Vaijayanthi Badri, Kottayam V. The ITO, Kottayam

ITA 507/COCH/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 90769 (ITAT-COCHIN)
• Duration Of Justice: 5 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-05-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 13-05-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 01-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K K JOHN
• Keywords: Salary income

Judgement Text

1 ITA NO .507 /COCH/2014 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI V DURGA RAO, JM AND SHRI B.R. BASKARAN, AM I.T.A. NO. 507/COCH/2014 (ASSESSMENT YEAR 2010-11) VAIJAYANTHI BADRI VS THE ITO, WD.3 AMMU HOUSE KOTTAYAM THEKKUMGOPURAM KOTTAYAM PAN : ADPPV8500L (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MATHEW JOSEPH RESPONDENT BY : SHRI K.K. JOHN DATE OF HEARING : 14-05-2015 DATE OF PRONOUNCEMENT : 15-05-2015 O R D E R PER SHRI V DURGA RAO, JM THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF THE CIT(A)-V, ERNAKULAM DATED 31-10-2014 FOR THE ASSESS MENT YEAR 2010-11. 2. THE FACTS IN BRIEF ARE THAT THE ASSESSEE SMT. VA IJAYANTHI BADRI IS AN INDIVIDUAL AND WIFE OF SHRI R BADRI, ONE OF THE PAR TNERS OF M/S JR & SONS, KOCHI. THE ASSESSEE HAD FILED RETURN OF INCOME DECLARING T OTAL INCOME OF RS.1,95,000 CONSISTING OF INCOME FROM SALARY RECEIVED FROM HER EMPLOYER, M/S JR & SONS AMOUNTING TO RS.1,80,000 AND OTHER INCOME OF RS.15, 000. THE RETURN FILED BY THE ASSESSEE WAS PROCESSED U/S 143(1). THEREAFTER, THE ASSESSEES CASE WAS SELECTED FOR SCRUTINY. IN THE ASSESSMENT ORDER, TH E ASSESSING OFFICER HAS 2 ITA NO .507 /COCH/2014 OBSERVED THAT ON VERIFICATION OF THE BANK ACCOUNTS REVEALED HUGE CASH DEPOSITS MADE IN THE NAME OF THE ASSESSEE IN ICICI BANK, M.G . ROAD, ERNAKULAM AMOUNTING TO RS.7,71,565, IN IDBI BANK, M.G. ROAD, ERNAKULAM OF RS.39,38,820. THE ASSESSING OFFICER ASKED THE ASSESSEE TO EXPLAIN THE SOURCE OF DEPOSITS. THE ASSESSEE EXPLAINED BEFORE THE ASSESSING OFFICER THA T SHE IS AN EMPLOYEE OF JR & SONS. SALE PROCEEDS WERE RECEIVED ON BEHALF OF M/S JR & SONS AND THE SAME WERE DEPOSITED IN HER BANK ACCOUNT. SUBSEQUENTLY, THE SAME WAS TRANSFERRED TO THE ACCOUNT OF M/S JR & SONS. HOWEVER, THE ASSESSI NG OFFICER DID NOT BELIEVE THE EXPLANATION GIVEN BY THE ASSESSEE AND CAME TO A CONCLUSION THAT THE ASSESSEE FAILED TO DISCHARGE THE ONUS CAST UPON HER AND ACCORDINGLY, THE AMOUNT DEPOSITED IN THE BANK ACCOUNTS OF THE ASSESSEE HAS BEEN ADDED AS UNDISCLOSED INCOME. THE ADDITION AMOUNTED TO RS.47,10,385. 3. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE CIT(A). THE LD.CIT(A) CONFIRMED THE ORDER OF THE ASSESSING OFFI CER ON THE GROUND THAT THERE IS NO LINKAGE BETWEEN THE FIRMS BUSINESS AND THE CUST OMERS DEPOSITS IN THE BANK ACCOUNTS OF THE ASSESSEE. AGGRIEVED, THE ASSESSEE FILED APPEAL BEFORE THE TRIBUNAL. 4. THE LD.COUNSEL FOR THE ASSESSEE SUBMITTED THAT T HE ASSESSEE IS AN EMPLOYEE OF M/S JR & SONS AND THE AMOUNTS RECEIVED FROM THE CLIENTS WERE IMMEDIATELY DEPOSITED IN THE BANK ACCOUNT OF THE AS SESSEE WHICH WERE SUBSEQUENTLY TRANSFERRED TO THE FIRM, M/S JR & SONS ACCOUNT. THE ASSESSEES 3 ITA NO .507 /COCH/2014 COUNSEL FILED PAPER BOOK AND POINTED OUT FROM PAGE 56 TO THAT THE AMOUNT DEPOSITED IN THE ICICI BANK WAS SUBSEQUENTLY TRANSF ERRED TO M/S JR & SONS CANARA BANK ACCOUNT (PAPER BOOK 4). THE LD.COUNSEL FURTHER SUBMITTED THAT HE IS ABLE TO ESTABLISH THE LINK BETWEEN THE DEPOSITS MAD E IN THE BANK ACCOUNT OF THE ASSESSEE, WHICH WERE SUBSEQUENTLY TRANSFERRED TO TH E FIRMS ACCOUNT AND REQUESTED FOR REMITTING THE ISSUE BACK TO THE FILE OF THE ASSESSING OFFICER. ON THE OTHER, THE LD.DR HAS RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW. 5. WE HAVE HEARD BOTH THE SIDES, PERUSED THE RECORD S AND THE ORDERS OF AUTHORITIES BELOW. THE ASSESSEE IS AN INDIVIDUAL A ND DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER HAS F OUND THAT THE ASSESSEE HAS DEPOSITED IN HER BANK ACCOUNT HELD WITH ICICI BANK, M.G. ROAD, ERNAKULAM AN AMOUNT OF RS.7,71,565, AND IN THE IDBI BANK, M.G. R OAD, ERNAKULAM AN AMOUNT OF RS.39,38,820 TOTALLING RS.47,10,385. WHEN THE A SSESSEE WAS ASKED TO EXPLAIN THE SOURCE OF DEPOSITS SHE SUBMITTED THAT T HE AMOUNTS DEPOSITED BELONGED TO THE COMPANY IN WHICH SHE IS WORKING. H OWEVER, THE ASSESSING OFFICER DID NOT BELIEVE THE VERSION OF THE ASSESSEE . THE ACTION OF THE ASSESSING OFFICER IS CONFIRMED BY THE CIT(A). IT IS A FACT T HAT THE ASSESSEE IS AN EMPLOYEE OF M/S JR & SONS. THE ASSESSING OFFICER AND THE CIT(A ) NOT BELIEVED THE VERSION OF THE ASSESSEE FOR THE REASON THAT SHE WAS NOT ABLE T O ESTABLISH THE AMOUNTS DEPOSITED WHICH WERE SUBSEQUENTLY TRANSFERRED TO TH E ACCOUNT OF JR & SONS ACCOUNT. NOW THE ASSESSEE HAS FILED ALL THE DETAIL S AND BOOKS OF ACCOUNT OF JR & SONS, IDBI BANK ACCOUNT STATEMENT AND ACCOUNT COPY OF AUTO SPARE AGENCIES 4 ITA NO .507 /COCH/2014 FROM WHOM THE ASSESSEE RECEIVED THE AMOUNTS, ICICI BANK STATEMENT, ETC. IN VIEW OF THE DETAILS FILED BY THE ASSESSEE BEFORE US WE FIND THAT IN THE INTEREST OF JUSTICE, THESE DETAILS ARE NECESSARY TO BE EXAMINED BY THE ASSESSING OFFICER. THEREFORE, WE SET ASIDE THE ORDER PASSED BY THE CIT (A) AND REMIT THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICER. THE AS SESSING OFFICER IS DIRECTED TO EXAMINE THE DETAILS FILED BY THE ASSESSEE AND THEN DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW AFTER GIVING OPPORTUNITY OF HEA RING TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON 15 TH DAY OF MAY, 2015. SD/- SD/- ( B.R. BASKARAN) ( V. DURGA RAO) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN, DT : 15 TH MAY, 2015 PKJ/- COPY TO: 1. VAIJAYANTHI BADRI, AMMU HOUSE, KOTTAYAM 2. ITO WD.3, KOTTAYAM 3. THE CIT, KOTTAYAM 4. THE CIT(A)-V, ERNAKULAM 5. THE DR (TRUE COPY) BY ORDER ASSTT. REGISTRAR, ITAT, COCHIN BENCH