The ITO, Ward-3(4), Surat V. Shri Vimalkumar Khandubhai Patel, Surat

ITA 475/AHD/2011

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 6975 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 9 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-12-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 05-11-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 18-02-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SONIA KUMAR
• Keywords: Unexplained investment
• Section: 69

Judgement Text

, , , , D, IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, D BENCH . .. . . .. . , !' !' !' !', , , , #$ %&'( #$ %&'( #$ %&'( #$ %&'(, , , , )* + ) ' )* + ) ' )* + ) ' )* + ) ' BEFORE S/SHRI G.C. GUPTA, VICE-PRESIDENT AND ANIL CHATURVEDI, ACCOUNTANT MEMBER) ITA NO.475/AHD/2011 [ASSTT.YEAR : 2007-2008] ITO, WARD-3(4) SURAT. /VS. SRI VIMALKUMAR KHANDUBHAI PATEL A-1/302, GEEN AVENUE APARTMENT LP SAVANI ROAD, ADAJAN SURAT 395009. ( (( ( -. -. -. -. / APPELLANT) ( (( ( /0-. /0-. /0-. /0-. / RESPONDENT) + 1 2 ) / REVENUE BY : SMT. SONIA KUMAR, SR.DR 4& 1 2 ) / ASSESSEE BY : SHRI HARDIK VORA 5 1 &(* / DATE OF HEARING : 5 TH NOVEMBER, 2014 678 1 &(* / DATE OF PRONOUNCEMENT : 12/12/2014 )9 / O R D E R PER G.C. GUPTA, VICE-PRESIDENT: THIS APPEAL BY THE REVENUE FOR THE ASSTT.YEAR : 2007-2008 IS DIRECTED AGAINST THE ORDER OF THE CIT(A). 2. THE GROUNDS OF THE APPEAL OF THE REVENUE ARE AS UNDER: 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.CIT(A) HAS ERRED IN DELETING THE ADDITION MADE O N ACCOUNT OF UNEXPLAINED INVESTMENT. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE LD.CIT(A) OUGHT TO HAVE UPHELD THE ORDER OF THE AO. ITA NO.475/AHD/2011 -2- 3. THE LEARNED DR SUBMITTED THAT THE ASSESSEE HAS N OT EXPLAINED ITS CASE BEFORE THE AO REGARDING UNEXPLAINED INVESTMENT MADE BY THE ASSESSEE. SHE SUBMITTED THAT THE ONUS WAS ON THE A SSESSEE TO EXPLAIN THE DEPOSIT ENTRIES IN THE BANK ACCOUNT OF THE ASSESSEE , AND THEREFORE, THE ADDITION WAS RIGHTLY MADE UNDER SECTION 69 OF THE A CT ON ACCOUNT OF UNEXPLAINED DEPOSITS IN BANK ACCOUNT OF THE ASSESSE E. SHE REFERRED TO THE RELEVANT PORTIONS OF THE ASSESSMENT ORDER IN SUPPOR T OF CASE OF THE REVENUE. SHE RELIED ON THE ORDER OF THE AO. 4. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT ABN AMRO BANK ACCOUNT HAS DULY SHOWN IN THE BALANCE SHEET OF THE ASSESSEE. THE COPY OF THE SAME WAS FILED IN THE COMPILATION BY TH E ASSESSEE. HE SUBMITTED THAT THE ASSESSEE HAS EXPLAINED THE SOURC E OF DEPOSIT ENTRIES BEFORE THE CIT(A) AND THE CIT(A) HAS ASKED FOR REMA ND REPORT FROM THE AO. HE SUBMITTED THAT THE AO COULD NOT CONTROVERT THE SUBMISSIONS OF THE ASSESSEE, ALTHOUGH, HE HAS NOT ACCEPTED THE CREDIT ENTRIES, AND HAS AGAIN SUGGESTED THE ADDITION THEREOF. HE REFERRED TO REL EVANT PORTIONS OF THE APPELLATE ORDER IN SUPPORT OF THE CASE OF THE ASSES SEE. 5. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE AO AND THE CIT(A), AND ALSO COPIES OF VARIOUS DOCUM ENTS FILED BY THE ASSESSEE. WE FIND THAT THE ASSESSEE HAS DECLARED I TS ACCOUNT BALANCE WITH ABN AMRO BANK IN ITS BALANCE SHEET FILED WITH THE R ETURN OF INCOME, COPY OF WHICH HAS BEEN FIELD IN THE COMPILATION BEFORE T HE TRIBUNAL. WITH REGARD TO THE SOURCE OF CREDIT ENTRIES IN THE BANK ACCOUNT OF THE ASSESSEE, WE FIND THAT THE ASSESSEE WAS ABLE TO EXPLAIN THE S OURCE THEREOF BEFORE THE CIT(A). THE CIT(A) HAS REPRODUCED THE SUMMARY OF S OURCE OF CREDIT ENTRIES IN THE BANK ACCOUNT OF THE ASSESSEE IN HIS APPELLATE ORDER. THE SOURCE HAS BEEN EXPLAINED BY THE ASSESSEE AS BUSINE SS LOAN RECEIVED FROM ITA NO.475/AHD/2011 -3- ABN AMBRO BANK, CASH WITHDRAWAL BY THE ASSESSEE FRO M SURAT PEOPLES CO-.OP BANK, CASH WITHDRAWAL FROM ICICI BANK LTD., CHEQUE RECEIVED FROM MOTILAL OSWAL SECURITIES LTD. AND CERTAIN AGRI CULTURE INCOME ETC. WE FIND THAT THE CIT(A) HAS PASSED A WELL REASONED APP ELLATE ORDER ON THE ISSUE BEFORE HIM, AND HAS CONSIDERED EACH AND EVERY CREDIT ENTRY IN THE ABN AMRO BANK ACCOUNT OF THE ASSESSEE WITH THE SOUR CE THEREOF AS EXPLAINED BY THE ASSESSEE. THE REVENUE COULD NOT C ONTROVERT THE FINDINGS RECORDED BY THE CIT(A) ON THIS BEHALF IN PARA 6 OF THE ORDER OF THE CIT(A). IN THESE FACTS OF THE CASE, WE ARE OF THE CONSIDERE D VIEW THAT THE ASSESSEE WAS ABLE TO EXPLAIN THE SOURCE OF DEPOSITS IN HIS B ANK ACCOUNT WITH ABN AMBRO BANK, AND ACCORDINGLY, THERE IS NO MISTAKE IN THE ORDER OF THE CIT(A) IN DELETING THE ADDITION, AND THE GROUNDS OF THE REVENUE BEING WITHOUT ANY MERIT ARE DISMISSED. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- SD/- ( %&'( %&'( %&'( %&'( / ANIL CHATURVEDI) )* + )* + )* + )* + /ACCOUNTANT MEMBER ( . .. . . .. . /G.C. GUPTA) !' !' !' !' /VICE-PRESIDENT C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD