DCIT, Kota V. SHRI HARISH KUMAR, Kota

ITA 559/JPR/2012

• Counselvise Citation: 55923114 RSA 2012
• Duration Of Justice: 3 year(s) 4 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 06-06-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJ MEHRA
• Assessee Lawyers: MAHENDRA GARGIEYA DHK
• Keywords: Income from undisclosed sources
• Section: 147; 148

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR JH VKJ-IH-RKSYKUH] U;KF;D LNL; ,OA JH VH-VKJ-EHUK] YS[KK LNL; DS LE{K BEFORE: SHRI R.P. TOLANI, JM & SHRI T.R. MEENA, AM VK;DJ VIHY LA-@ ITA NO. 559/JP/2012 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2007-08 THE DCIT CIRCLE- 2 KOTA CUKE VS. SHRI HARISH KUMAR S/O SHRI GAJANANDJI, VILLAGE-MANPURA, KOTA LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: BJDPK 5370 G VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SHRI RAJ MEHRA FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI MAHENDRA GARGIEYA LQUOKBZ DH RKJH[K@ DATE OF HEARING : 14/10/2015 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 16 /10/2015 VKNS'K@ ORDER PER BENCH THIS IS AN APPEAL FILED BY THE REVENUE AGAINST T HE ORDER OF THE LD. CIT(A), KOTA DATED 30-03-2012 FOR THE ASSESSMENT YE AR 2007-08 WHEREIN THE REVENUE HAS RAISED SOLITARY GROUND AS UNDER:- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE , THE LD. CIT(A), KOTA HAS ERRED IN:- (I) DELETING THE ADDITION OF RS. 36,79,901/- ON ACCOUNT OF UNEXPLAINED DEPOSITS WITHOUT GOING INTO THE EXAMINATION OF THE SOURCES OF THE BANK DEPOSITS IN ASSESSEE'S BANK ACCOUNT AND JUST BELIEV ING IN THE STATEMENT OF THE ASSESSEE THAT THEY CAME OUT OF EARLIER WITHDRAWALS. ITA NO. 559/JP/2012 THE DCIT , CIRCLE- 2, KOTA VS. SHRI HARISH KUMAR, KOTA . . 2 2.1 BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE H AD DEPOSITED A SUM OF RS. 26.60 LACS IN HIS BANK ACCOUNT MAINTAINED BY HI M IN BANK OF INDIA, ARJUNPURA BRANCH, KOTA DURING THE YEAR UNDER CONSID ERATION AND THE ASSESSEE HAD NOT FILED ANY RETURN OF INCOME FOR THE ASSESSMENT YEAR 2007- 08. THE AO CALLED FOR THE INFORMATIONS FROM THE REL EVANT BANK AND ON THE BASIS OF INFORMATION FROM THE BANK, IT WAS GATHERE D THAT THE ASSESSEE HAD DEPOSITED RS. 36,79,901/- ON DIFFERENT DATES. THE A SSESSEE ALSO EARNED INTEREST OF RS. 31/- IN THIS ACCOUNT. THE PROCEEDIN GS U/S 147 OF THE ACT WERE INITIATED BY THE AO BY ISSUING NOTICE U/S 14 8 OF THE ACT ON 24-07- 2009. HOWEVER, THE ASSESSEE FAILED TO COMPLY WITH T HE NOTICE. THE AO FURTHER VIDE NOTICES DATED 13-08-2009 AND 5-07-2010 DIRECTED THE ASSESSEE TO FURNISH THE DETAILS AS TO DEPOSITION OF THE AMOUNT IN THE BANK AND GET THE SAME VERIFIED BY PRODUCING THE BOOKS OF ACCOUNT BUT THE ASSESSEE FAILED TO DO SO. THE ASSESSEE VIDE SHOW C AUSE NOTICE DATED 25-11-2010 WAS REQUIRED TO EXPLAIN THE SOURCE OF DE POSITS AMOUNTING TO RS. 36,79,901/- AND ALSO TO EXPLAIN AS TO WHY THE A SSESSMENT PROCEEDINGS SHOULD NOT BE COMPLETED EX-PATE AFTER CONSIDERING T HE MATERIALS AVAILABLE ON RECORD. IN COMPLIANCE TO THIS SHOW CAUSE NOTICE, SHRI HARISH KUMAR APPEARED AND STATED THAT HE ALONGWITH HIS FAMILY ME MBERS OWNED AGRICULTURE LAND AND HE IS A FARMER BUT HE COULD NO T EXPLAIN THE SOURCE OF DEPOSITS MAINTAINED IN THE BANK ACCOUNT. THE AO OBS ERVED THAT THE ITA NO. 559/JP/2012 THE DCIT , CIRCLE- 2, KOTA VS. SHRI HARISH KUMAR, KOTA . . 3 ASSESSEE WAS NOT COOPERATIVE AND FINALLY THE AO ASS ESSED THE INCOME OF THE ASSESSEE AT RS. 36,79,930/- WITH FOLLOWING COM PUTATIONS. 1. CONCEALED INCOME FROM UNDISCLOSED SOURCES RS. 36,79,901/- 2. INTEREST INCOME RS. 31/- TOTAL INCOME RS. 36,79,932/- R/O RS. 36,79,930/- 2.2 BEING AGGRIEVED BY THE ORDER OF THE AO, THE ASS ESSEE PREFERRED FIRST APPEAL BEFORE THE LD. CIT(A) WHO DELETED THE ADDITI ON MADE BY THE AO BY OBSERVING AS UNDER:- 4.12 .. I HAVE GONE THROUGH THE SUBMISSIONS OF THE ASSESSEE, THE FINDINGS OF THE AO, REMAND REPORT OF AO, AND ALSO GONE THROUGH THE DETAILS FILED BY ASSESSEE AND FOLLOWING POINTS WERE NOTICED:- (I) THERE WAS AN OPENING BALANCE OF RS. 5,75,301/- IN THE BANK ACCOUNT OF THE ASSESSEE AS ON 01-04-2006. (II) IN THE MONTH OF FEB. AND MARCH 2006, THE ASSES SEE WITHDREW SUMS TOTALING TO RS. 3,10,000/- AND DEPOSI TED RS. 40,000/- IN CASH RESULTING IN CASH BALANCE OF APPRO X. RS. 2,70,000/- (III) IN THE MONTH OF APRIL, 2006, THE ASSESSEE WIT HDREW SUMS TOTALING TO RS. 5,55,000/- AND DEPOSITED CASH OF RS. 15,96,000/-. (IV) THE ASSESSEE WITHDREW RS. 24,05,240/- IN THE M ONTH OF MAY, 2006 AND DEPOSITED RS. 2,89,000/- IN CASH. (V) THE ASSESSEE CLAIMED THAT HE HAD RECEIVED RS. 15,80,0000/- FROM SALE OF LAND WHICH INCLUDED RS. 7 ,90,000/- IN CASH. (VI) THE ASSESSEE ALSO CLAIMED THAT THE FAMILY OF ASSESSEE OWNED 107 BIGHAS OF LAND IN THE NAMES OF VARIOUS FA MILY MEMBERS AND THE EARNING FROM THE SAME WAS AROUND RS . 6,00,000/- PER ANNUM. HE HAD RECEIVED RS. 1,78,611/ - BY ITA NO. 559/JP/2012 THE DCIT , CIRCLE- 2, KOTA VS. SHRI HARISH KUMAR, KOTA . . 4 CHEQUE WHICH WAS DEPOSITED IN BANK AND THE REST OF THE AMOUNT WAS USED FOR HOUSE HOLD EXPENSES ETC. THE BI LL RELATED TO THE SALE WERE IN THE NAME OF SHRI GAJANA ND, (FATHER OF ASSESSEE) BUT THE SAME WERE DEPOSITED IN THE ACCOUNT OF ASSESSEE. (VII) THE AO OBJECTED TO THE SUBMISSIONS OF ASSESSE E MAINLY ON THE GROUND THAT THE LAND WHICH WAS SOLD WAS IN T HE NAME OF SHRI GAJANAND S/O SHRI PANNA LAL (FATHER OF ASSE SSEE). SIMILARLY, IN RELATION TO RECEIPT OF SALE PROCEEDS OF AGRICULTURE PRODUCE, THE AO MAINLY OBJECTED ON THE GROUND THAT ALL THE SALES BILLS WERE IN THE NAME OF SHRI G AJANAND S/O SHRI PANNA LAL. (VIII) THE ASSESSEE IN HIS REJOINDER SUBMITTED THAT OUT OF ALL THE FAMILY MEMBERS, BANK ACCOUNT WAS IN THE NAME OF ASSESSEE ONLY AND ALL THE SALE PROCEEDS FROM SALE O F AGRICULTURE PRODUCE WAS DEPOSITED IN HIS ACCOUNT ON LY. THE ASSESSEE ALSO SUBMITTED THAT ALTHOUGH, THE LANDS, O WNED BY ASSESSEE'S FAMILY, WERE IN THE NAME OF VARIOUS FAMI LY MEMBERS, THE AGRICULTURE PRODUCE WERE SOLD IN THE N AME OF HEAD OF THE FAMILY, I.E. SHRI GAJANAND S/O SHRI PAN NA LAL. THE ASSESSEE FURTHER SUBMITTED THAT THE SALE PROCEE DS FROM THE SALE OF LAND BELONGING TO HIS FATHER WAS DEPOSI TED IN HIS BANK ACCOUNT AND THE FACT IS PROVED BY THE FACT THA T BOTH THE CHEQUES OF RS. 7,00,000/- AND RS. 9,00,000/- WERE D EPOSITED IN HIS ACCOUNT. (IX) THE ASSESSEE SUBMITTED THAT ASSESSEE AND HIS F AMILY WERE ENGAGED IN AGRICULTURE AND THEIR MAIN SOURCE O F INCOME WAS FROM AGRICULTURE. (X) THE ASSESSEE SUBMITTED KHASRA GIRDAWARI IN RELA TION TO 107 BIGHAS OF LAND OWNED BY VARIOUS FAMILY MEMBE RS OF ASSESSEE. (XI) IT WAS SEEN THAT A SUM OF RS. 26,74,000/- ONLY WAS DEPOSITED IN THE BANK ACCOUNT OF ASSESSEE DURING TH E YEAR AND NOT RS. 36,79,901/- MENTIONED BY AO. (XII) OUT OF THIS, RS. 7,90,000/- WAS DEPOSITED BY CHEQUE AND BALANCE RS. 18,84,000/- WAS DEPOSITED IN CASH ITA NO. 559/JP/2012 THE DCIT , CIRCLE- 2, KOTA VS. SHRI HARISH KUMAR, KOTA . . 5 FROM THE ABOVE, IT CAN BE REASONABLY CONCLUDED THAT ALTHOUGH THE LAND OWNED BY ASSESSEE FAMILY WAS IN T HE NAMES OF VARIOUS FAMILY MEMBERS OF ASSESSEE, THE SA LE PROCEEDS WERE DEPOSITED IN THE ACCOUNT OF ASSESSEE ONLY. SIMILARLY, THE PROCEEDS FROM SALE OF LAND WAS ALSO DEPOSITED IN THE ACCOUNT OF ASSESSEE. THE ASSESSEE BEING AGRI CULTURIST WAS NOT AWARE ABOUT COMPLEX PROVISIONS OF LAW AND THEREFORE, THIS MIX-UP HAPPENED. FROM THE ABOVE ANALYSIS, IT WAS SEEN THAT PRIOR TO DEPOSIT OF RS. 15,96,000/-, IN THE MONTH OF APRIL, 2006, THE ASSESSEE HAS CASH AVAILABLE OF RS. 8,25,000/- (RS. 3,10,000 + RS. 5,55,000 RS. 40,000) OUT OF THE CASH WITHDRAW N FROM THE BANK ACCOUNT ITSELF. REGARDING THE BALANCE AMOU NT OF RS. 7,71,000/- , THE ASSESSEE CLAIMED THAT THE SAME WAS OUT OF RS. 7,90,000/- RECEIVED IN CASH FROM SALE OF AGRICU LTURE LAND. THE AO IN HIS REMAND REPORT HAS STATED THE EXACT EV IDENCE THAT AMOUNT RECEIVED FROM SALE OF LAND ITSELF WAS D EPOSITED IN THE ACCOUNT OF ASSESSEE WAS NOT PRODUCED. I HAVE ALREADY HELD THAT THE SALE PROCEEDS FROM SALE OF AGRICULTUR E PRODUCE AND SALE OF AGRICULTURE LAND WAS DEPOSITED IN THE A CCOUNT OF ASSESSEE AS THERE WAS NO OTHER ACCOUNT IN THE NAME OF ANY OTHER FAMILY MEMBER. CONSIDERING THE FACT THAT THE TRANSACTION OF SALE WAS NOT DOUBTED BY AO AND THAT CHEQUE AMOUNT WAS DEPOSITED IN THE ACCOUNT OF ASSESSEE AND THAT THE CASH AMOUNT WAS DEPOSITED ON 29-04-2006 AND CHEQUE AMOUNT WAS DEPOSITED ON 28-04-2006. I AM OF THE OPI NION THAT THE SALE PROCEED FROM SALE OF AGRICULTURE LAND WAS ALSO DEPOSITED IN THE ACCOUNT OF ASSESSEE. IN VIEW OF THE ABOVE DISCUSSION, HE CASH DEPOSITED IN THE ACCOUNT OF ASSESSEE WAS TREATED AS EXPLAINED. T HE AO IS DIRECTED TO DELETE THE ADDITION OF RS. 36,79,901/-. THIS GROUND OF APPEAL IS THEREFORE, TREATED AS ALLOWED. 2.3 NOW THE REVENUE IS BEFORE US. DURING THE COURSE OF HEARING THE LD. DR RELIED ON THE ORDER OF THE AO. ITA NO. 559/JP/2012 THE DCIT , CIRCLE- 2, KOTA VS. SHRI HARISH KUMAR, KOTA . . 6 2.4 THE LD. AR OF THE ASSESSEE RELIED ON THE ORDER OF THE LD. CIT(A) ON THIS ISSUE. 2.5 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD INCLUDING THE WRITTEN SUBMISSIO N OF THE LD. AR OF THE ASSESSEE. WE FIND FROM THE RECORDS THAT THE LD. CI T(A) HAS TAKEN INTO CONSIDERATION ALL THE ASPECTS AS TO DELETION OF THE DISALLOWANCE AND THUS WE CONCUR WITH THE FINDING OF THE LD. CIT(A) ON TH IS ISSUE WHICH IS SUSTAINED. HENCE, SOLITARY GROUND RAISED BY THE REV ENUE IS DISMISSED. 3.0 IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 16 /10/201 5. SD/- SD/- VKJ-IH-RKSYKUH VH-VKJ-EHUK (R.P.TOLANI) (T.R. MEENA) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 16/10/2015 *MISHRA VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE DCIT, CIRCLE- 2, KOTA 2. IZR;FKHZ@ THE RESPONDENT-SHRI HARISH KUMAR, KOTA 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO.559/JP/2012) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR