Asmat Raza, Bhopal V. Assistant Commissioner of Income Tax 2 (1), Bhopal

ITA 507/Ind/2017

• Counselvise Citation: [2018] 122 COUNSELVISE.COM (IT) 4142 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-10-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 12-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P K MITRA
• Assessee Lawyers: DINESH CHIMNANI
• Keywords: Unexplained cash credit; Salary income; Peak credit
• Section: 143(3); 142(1); 68

Judgement Text

ATUL JAIN ITA NO.537/IND/2017 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NO.507/IND/2017 ASSESSMENT YEAR: 2011-12 REVENUE BY S HRI P.K. MITRA, SR.DR ASSESSEE BY SHRI DINESH CHIMNANI ,C.A DATE OF HEARING 0 8 .10 . 2018 DATE OF PRONOUNCEMENT 11 .10 .2018 O R D E R PER MANISH BORAD, AM . THIS APPEAL OF ASSESSEE PERTAINING TO A.Y. 2011-12 IS DIRECTED AGAINST THE ORDER OF LD. COMMISSIONER OF I NCOME TAX(APPEALS)-I, BHOPAL (IN SHORT CIT(A)), DATED 0 7.04.2014 WHICH IS ARISING OUT OF THE ORDER U/S 143(3) OF THE INCOME T AX ACT 1961(HEREINAFTER CALLED AS THE ACT) FRAMED ON 24. 03.2014 BY ACIT- 2(1) BHOPAL. 2. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS; S MT. ASMAT RAZA , 42, KOTRA SULTANABAD, BHOPAL A CIT 2(1), BHOPAL ( APPELLANT ) (RESPONDENT ) PAN NO. A HMPR6660C ATUL JAIN ITA NO.537/IND/2017 2 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE APPELLANTS CASE AND IN LAW, THE LD. CIT(A) ERRED IN SUSTAINING THE ADDITION OF RS.5,39,000/- (WRONGLY MENTIONED AS RS.5,39,700/-) OUT OF TOTAL ADDITION OF RS.8,39,000/- MADE BY THE LD.A.O IN THE ASSESSMENT ORDER PASSED ON ACCOUNT OF CASH DEPOSITED IN BANKS AS UNEXPLAINED CASH CREDIT U/S 68 OF THE INCOME TAX ACT. 3. BRIEFLY STATED THE FACTS AS CULLED OUT FROM THE RECORDS ARE THAT ASSESSEE IS AN INDIVIDUAL DRAWING INCOME FROM SALAR Y AND OTHER SOURCES. INCOME OF RS.31,25,000/- WAS DECLARED IN THE INCOME TAX RETURN FILED ON 30.03.2013. CASE PICKED UP FOR SCR UTINY NECESSARY NOTICES U/S 142(1) AND 143(2) OF THE ACT WERE SERVE D UPON THE ASSESSEE. ASSESSEE IS AN EMPLOYEE OF M/S. MAHAKAU SHAL SUGAR & POWER INDUSTRIES LTD, NARSINGHPUR. LD.A.O OBSERVED THAT DURING THE YEAR ASSESSEE DEPOSITED CASH OF RS.26,14,700/- ON VARIOUS DATES IN THE SAVINGS ACCOUNTS HELD WITH HDFC BANK A ND ICICI BANK. OUT OF THE ALLEGED CASH DEPOSITS OF RS.26,14 ,700/-, ASSESSEE OFFERED RS.17,75,000/- UNDER THE HEAD INCOME FROM O THER SOURCES IN THE INCOME TAX RETURN AND BALANCE CASH DEPOSIT O F RS.8,39,000/- WAS ALLEGED TO HAVE BEEN OUT OF THE ACCUMULATED CA SH IN HAND FROM EARLIER YEARS. LD.A.O WAS NOT SATISFIED WITH THE S UBMISSIONS AND HE ATUL JAIN ITA NO.537/IND/2017 3 MADE ADDITION OF RS.8,39,000/- TOWARDS UNEXPLAINED CASH DEPOSITS AND ASSESSED INCOME AT RS.39,64,000/-. 4. AGGRIEVED ASSESSEE FILED AN APPEAL BEFORE THE LD .CIT(A) AND MADE DETAILED SUBMISSION MENTIONING THAT RS.2,37,14 0/- HAS FURTHER BEEN OFFERED TO TAX BEFORE THE ASSESSING AU THORITY VIDE SUBMISSION DATED 10.3.2014. THIS FACT WAS NOT CONTR OVERTED BY THE DEPARTMENTAL REPRESENTATIVE, LD.CIT(A) THEREFORE TO OK UP THE ISSUE ONLY FOR THE ADDITION OF RS.6,02,560/- (RS.8,39,000 (-) RS.2,37,140). LD.CIT(A) AFTER GOING THROUGH THE CASH FLOW STATEM ENT AND OTHER RELEVANT DETAILS PARTLY ALLOWED THE ASSESSEES APPE AL DELETING THE ADDITION OF RS.3,00,000/- TREATING THE ALLEGED CASH DEPOSIT AS EXPLAINED. HE ACCORDINGLY CONFIRMED THE ADDITION FO R RS.3,01,860/-. 5. AGGRIEVED ASSESSEE IS NOW IN APPEAL BEFORE THE T RIBUNAL AGAINST THE ALLEGED ADDITION FOR UNEXPLAINED CASH D EPOSIT OF RS.3,01,860/- CONFIRMED BY LD.CIT(A). 6. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAS EARNED SALARY OF RS.13,50,000/- DURING THE FINANCIA L YEAR 2010-11. IN THE IMMEDIATELY PRECEDING YEAR ALSO ASSESSEE HAS SHOWN INCOME OF RS.12,25,000/-. THERE ARE REGULAR WITHDRAWALS FR OM THE BANK. ATUL JAIN ITA NO.537/IND/2017 4 SHE ALSO HAS SOME ACCUMULATED CASH IN HAND FROM HER PAST SAVINGS. OUT OF THE ALLEGED CASH DEPOSIT OF RS.26, 14,700/- ASSESSEE HAS ALREADY OFFERED RS.20,20,140/- FOR TAX AND THER EFORE NO ADDITION SHOULD HAVE CALLED FOR BY LD.CIT(A) FOR THE ALLEGE D CASH DEPOSIT OF RS.3,01,860/-. 7. ON THE OTHER HAND LD. DEPARTMENTAL REPRESENTATI VE VEHEMENTLY ARGUED AND SUPPORTED THE ORDERS OF LOWER AUTHORITIE S. 8. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE RECORDS PLACED BEFORE US. THE GRIEVANCE OF THE ASSESSEE IS LIMITED TO THE ADDITION OF RS.3,01,860/- FOR UNEXPLAINED CASH DEPO SIT. DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE SOURCE OF CASH DEPOSIT OF RS.26,14,700/- IN THE TWO BANK ACCOUNTS WAS ASKED F ROM THE ASSESSEE. THE ASSESSEE OFFERED RS.17,75,000/- AS I NCOME FROM OTHER SOURCES IN THE INCOME TAX RETURN. OUT OF THE REMAINING AMOUNT OF RS.8,39,000/- ASSESSEE FURTHER OFFERED RS .2,37,140/- FOR TAX WHICH LEFT REMAINING AMOUNT OF RS.6,01,860/-. LD.CIT(A) GAVE RELIEF OF RS.3,00,000/- AND FOR THE REMAINING AMOUN T THE ASSESSEE IS IN APPEAL BEFORE US. ATUL JAIN ITA NO.537/IND/2017 5 9. CASH FLOW STATEMENT HAS BEEN FILED AT PAGE-1 OF THE PAPER BOOK. AS PER THIS CASH FLOW THE PEAK CREDIT WAS ON 22.9.2 010 AT RS.20,12,140/-. PARTICULARS OF THIS CASH FLOW STAT EMENT STANDS UNCONTROVERTED BY THE REVENUE AUTHORITIES. ASSESSEE HAS ALREADY OFFERED RS.20,12,140/- TO TAX (RS.17,75,000/- + RS. 2,37,140/-). IN OUR CONSIDERED VIEW WHEN THE PEAK CREDIT FOR CASH H AS BEEN OFFERED TO TAX THERE REMAINS NO JUSTIFICATION FOR FURTHER A DDITION FOR THE UNEXPLAINED CASH DEPOSIT. EVEN OTHERWISE THE ASSESS EE HAS BEEN EARNING REGULAR INCOME FROM SALARY WHICH WAS RS.6,0 0,000/- FOR FINANCIAL YEAR 2009-10 AND RS.13,50,000/- DURING TH E FINANCIAL YEAR 2010-11. THE ASSESSEE HAS ALSO OFFE RED INCOME FOR RS.6,25,000/- AS MISCELLANEOUS INCOME DURING THE FI NANCIAL YEAR 2009-10. REGULAR WITHDRAWALS HAVE ALSO BEEN MADE FR OM THE BANK ACCOUNT. IN THE TOTALITY OF THESE FACTS INCLUDING THE FACT THAT PEAK BALANCE HAS BEEN OFFERED TO TAX. WE ARE OF THE CON SIDERED VIEW THAT NO FURTHER ADDITION FOR UNEXPLAINED CASH DEPOSIT WA S CALLED FOR. WE THEREFORE SET ASIDE THE FINDINGS OF LD.CIT(A) AND D ELETE THE ADDITION OF RS.3,01,860/- AND ALLOW THE APPEAL OF THE ASSESS EE. ATUL JAIN ITA NO.537/IND/2017 6 10. IN THE RESULT APPEAL OF THE ASSESSEE STANDS ALL OWED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 11.10. 2018. SD/- SD/- ( KUL BHARAT) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER / DATED : 11 OCTOBER, 2018 /DEV COPY TO: THE APPELLANT/RESPONDENT/CIT CONCERNED/CIT (A) CONCERNED/ DR, ITAT, INDORE/GUARD FILE. BY ORDER ASSTT.REGISTRAR,I.T.A.T., INDORE