SANJAY SHARMA, NEW DELHI V. ITO, WARD- 56(3), NEW DELHI

ITA 5083/DEL/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 2957 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-03-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 08-08-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: V K JIWANI
• Assessee Lawyers: MANISH PRAKASH AGGARWAL
• Section: 68; 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES SMC : DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER ITA.NO.5083/DEL./2017 ASSESSMENT YEAR 2013-2014 SHRI SANJAY SHARMA, 1/11078-C, S/F KH NO.39, GALI NO.08, SUBHASH PARK, NEW DELHI 110 032 PAN BIIPS7034R VS. THE INCOME TAX OFFICER, WARD-56(3), D-BLOCK, 2 ND FLOOR, VIKAS BHAWAN, I.P. ESTATE, NEW DELHI. PIN 110 002. (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI MANISH PRAKASH AGGARWAL, C.A. FOR REVENUE : SHRI V.K. JIWANI, SR. D.R. DATE OF HEARING : 0 9 .03.2018 DATE OF PRONOUNCEMENT : 14 .03.2018 ORDER THIS APPEAL BY ASSESSEE HAS BEEN DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-19, NEW DELHI, DATED 12 TH JUNE, 2017, FOR THE A.Y. 2013-2014, CHALLENGING THE ADDITION OF RS.1,25,000/- ON ACCOUNT OF UNEXPLAINED CASH DEPOSI T IN THE BANK ACCOUNT OF THE ASSESSEE. 2 ITA.NO.5083/DEL./2017 SHRI SANJAY SHARMA, NEW DELHI. 2. THE A.O. ON PERUSAL OF THE BANK STATEMENT OF S. B. ACCOUNT NO.XXX12229 MAINTAINED WITH ICICI BANK LIMI TED BY ASSESSEE AS PRIMARY HOLDER, OBSERVED THAT A SUM OF RS.1,25,000/- WAS DEPOSITED IN CASH IN THIS BANK AC COUNT WHICH IS NOT DISCLOSED BY THE ASSESSEE IN HIS RELEV ANT RETURN OF INCOME. THE A.O, THEREFORE, TREATED RS.1,25,000/- A S UNEXPLAINED INCOME OF CASH DEPOSIT AND ADDED TO THE INCOME OF THE ASSESSEE. THE LD. CIT(A) NOTED THAT THE BANK AC COUNT IN QUESTION IS JOINT ACCOUNT, OF WHICH, ASSESSEE IS FI RST HOLDER AND HIS WIFE SMT. KAVITA SHARMA IS A JOINT HOLDER. IT W AS ALSO NOTED THAT SMT. KAVITA SHARMA IS A HOUSEWIFE AND HAS NO M EANS OF INCOME. ALL THE AFFAIRS IN HER NAME ARE BEING CONDU CTED BY HER HUSBAND, WHETHER IT IS RELATED TO PURCHASE OR SALE OF PROPERTY, OPERATION OF BANK ACCOUNT. CASH WAS DEPOSITED IN TH E BANK ACCOUNT OF THE ASSESSEE, THE SOURCE OF WHICH, HAS N OT BEEN EXPLAINED. THE LD. CIT(A) ALSO NOTED THAT A.O. DURI NG THE COURSE OF ASSESSMENT HAS RECORDED THE STATEMENT OF SMT. KA VITA SHARMA WHO HAS ACKNOWLEDGED THAT SHE WAS A HOUSEWIF E, SHE WAS UNAWARE THAT SHE WAS A JOINT HOLDER OF THE BANK ACCOUNT 3 ITA.NO.5083/DEL./2017 SHRI SANJAY SHARMA, NEW DELHI. WITH HER HUSBAND AND SHE DID NOT HAVE ANY SOURCE OF INCOME. THE LD. CIT(A), THEREFORE, NOTED THAT ASSESSEE HAS BEEN ARTIFICIALLY COOKING UP INCOMES IN THE NAME OF HER SPOUSE I.E., SMT. KAVITA SHARMA, WHO HAS NO SOURCE OF INCOME AT ALL SINCE THE ASSESSEE IS THE FIRST HOLDER OF THE IMPUGNED BA NK ACCOUNT, THEREFORE, IN THE ABSENCE OF ANY EXPLANATION OR SOU RCE OF THE CASH DEPOSITED IN THE BANK ACCOUNT, THE LD. CIT(A) CONFIRMED THE ADDITION AND DISMISSED THIS GROUND OF APPEAL OF ASSESSEE. 3. I HAVE CONSIDERED THE RIVAL SUBMISSIONS AND DO NOT FIND ANY MERIT IN THE APPEAL OF THE ASSESSEE. THE L EARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT SINCE BANK ACCOUNT IS NOT PART OF THE BOOKS OF ACCOUNT OF THE ASSESSEE, T HEREFORE, NO ADDITION UNDER SECTION 68 COULD BE MADE AGAINST THE ASSESSEE. IT MAY BE NOTED HERE THAT NEITHER THE A.O. NOR THE LD. CIT(A) HAVE MENTIONED ANYTHING IN THE ORDERS IF ADDITION I S MADE UNDER SECTION 68 OF THE I.T. ACT. THE ASSESSEE DID NOT DI SCLOSE CASH DEPOSIT IN THE BANK ACCOUNT OR BANK ACCOUNT IN THE RETURN OF INCOME FILED FOR ASSESSMENT YEAR UNDER APPEAL. IT I S, THEREFORE, 4 ITA.NO.5083/DEL./2017 SHRI SANJAY SHARMA, NEW DELHI. UNACCOUNTED BANK ACCOUNT OF THE ASSESSEE CONTAINING CASH DEPOSIT OF RS.1,25,000. THE HONBLE ALLAHABAD HIGH COURT IN THE CASE OF COMMISSIONER OF INCOME TAX VS JAUHARIMA L GOEL (2006) 201 CTR (ALL.) 54 / (2008) 296 ITR 263 (ALL. ) (HC) HELD THAT DEPOSIT IN BANK ACCOUNT WOULD AMOUNT TO INVESTMENT UNDER SECTION 69 OF THE I.T. ACT. IN VIEW OF THIS, THE CONTENTION OF THE LEARNED COUNSEL FOR THE ASSESSEE IS REJECTED. LEARN ED COUNSEL FOR THE ASSESSEE FURTHER SUBMITTED THAT WIFE OF THE ASSESSEE WOULD BE HAVING ACCUMULATED CASH WITH HER. THEREFOR E, EXPLANATION OF ASSESSEE SHOULD BE ACCEPTED TO DELET E THE ADDITION. THERE IS NO MERIT IN THE CONTENTION OF LE ARNED COUNSEL FOR THE ASSESSEE BECAUSE ASSESSEE DID NOT PRODUCE A NY SOURCE OF CASH DEPOSIT IN THE BANK ACCOUNT WHICH IS MAINTA INED BY HIM IN HIS OWN NAME. THE STATEMENT OF WIFE OF ASSESSEE WAS RECORDED AT ASSESSMENT STAGE IN WHICH SHE HAS ADMITTED THAT SHE HAS NO SOURCE OF INCOME AND SHE DOES NOT KNOW HOW THE HUSB AND OF THE ASSESSEE HAVE BEEN MAKING TRANSACTION OF MONEY. THE LD. CIT(A), THEREFORE, CORRECTLY HELD THAT SMT. KAVITA SHARMA HAS NO SOURCE OF INCOME TO MAKE THE DEPOSIT. IN THE ABSENC E OF ANY 5 ITA.NO.5083/DEL./2017 SHRI SANJAY SHARMA, NEW DELHI. EVIDENCE ON RECORD TO EXPLAIN THE SOURCE OF THE CAS H DEPOSIT IN THE BANK ACCOUNT OF THE ASSESSEE, NO INTERFERENCE I S CALLED FOR IN THE MATTER. THIS GROUND OF ASSESSEE IS ACCORDING LY, DISMISSED. 4. IN THE RESULT, APPEAL OF ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- (BHAVNESH SAINI) JUDICIAL MEMBER DELHI, DATED 14 TH MARCH, 2018 VBP/- COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT(A) CONCERNED 4. CIT CONCERNED 5. D.R. ITAT SMC BENCH, DELHI 6. GUARD FILE. // BY ORDER // ASSISTANT REGISTRAR : ITAT DELHI BENCHES : DELHI.