Shri Vishnu Murlidhar Pawar, Burhanpur V. Income Tax officer, Burhanpur

ITA 564/Ind/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 9024 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 2 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-10-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 11-08-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: P K MITRA
• Assessee Lawyers: S S DESH
• Keywords: Unexplained investment
• Section: 143(3)

Judgement Text

VISHNU MURLIDHAR PAWAR ITA NO.564/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.564/IND/2017 ASSESSMENT YEAR: 2008-09 REVENUE BY S HRI P.K. MITRA, SR.DR ASSESSEE BY SHRI S.S. DESHPANDE ,C.A DATE OF HEARING 12 .10 . 2018 DATE OF PRONOUNCEMENT 17 . 10 .2018 O R D E R PER MANISH BORAD, AM . THIS APPEAL OF ASSESSEE PERTAINING TO A.Y. 2008-09 IS DIRECTED AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)- II, INDORE (IN SHORT CIT(A)), DATED 01.05.2017 WH ICH IS ARISING OUT OF THE ORDER U/S 143(3) OF THE INCOME TAX ACT 1961(HEREINAFTER CALLED AS THE ACT) FRAMED ON 02. 12.2010 BY ITO, BURHANPUR. SHRI VISHNU MURLIDHAR PAWAR, VILLAGE MANJROD, BURHANPUR (M.P) ITO, BURHANPUR ( APPELLANT ) (RESPONDENT ) PAN NO. BMMPP1697K VISHNU MURLIDHAR PAWAR ITA NO.564/IND/2017 2 2. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS; 1. THE LD.CIT(A) HAS ERRED IN UPHOLDING THE INCOME OF RS.5,20,830/- ON ACCOUNT OF ALLEGED INCOME FROM MONEY LENDING. 2. IT WAS PROVED BEFORE THE LD. AUTHORITIES THAT TH E ASSESSEE HAD PROVIDED THE FINANCIAL ASSISTANCE FOR VERY SHORT PE RIOD TO THE SMALL AGRICULTURALIST FOR REGULARIZING THE KCC ACCOUNTS A ND NO INTEREST WAS EARNED BY THE ASSESSEE. ALL THE AGRICULTURALIST HA VE CONFIRMED THE SAME BY THE AFFIDAVIT AND THE STATEMENTS GIVEN BEFO RE THE LD.A.O. 3. THE ADDITION MADE BY THE LD.A.O MAY PLEASE BE DE LETED. 4. THE ASSESSEE PRAYS TO ALTER, AMEND, ADD OR DELET E ANT OF THE GROUNDS OF APPEAL 3. BRIEF FACTS OF THE CASE AS CULLED OUT FROM THE RECORDS ARE THAT ASSESSEE IS AN INDIVIDUAL HAVING ONLY SOURCE O F INCOME FROM AGRICULTURE. THE INCOME TAX RETURN FILED ON 1 8.06.09. AGRICULTURE INCOME OF RS.8,00,000/- WAS DISCLOSED. CASE PICKED UP FOR SCRUTINY ON THE BASIS OF AIR INFORMAT ION. NOTICE U/S 143(2)OF THE ACT WAS SERVED UPON THE ASSESSEE. NECESSARY DETAILS AS CALLED FOR WERE SUBMITTED. LD.A.O ON PE RUSAL OF THE SAVING BANK ACCOUNT HELD BY THE ASSESSEE WITH BANK OF INDIA, KHAKNAR NOTICED THAT DURING THE FINANCIAL YEAR UNDE R APPEAL CASH OF RS.53,89,500/- WAS DEPOSITED ON VARIOUS DAT ES. THERE WERE REGULAR WITHDRAWALS ALSO. IT WAS CONTENDED BY THE VISHNU MURLIDHAR PAWAR ITA NO.564/IND/2017 3 ASSESSEE THAT INTEREST FREE THE ALLEGED CASH DEPOSI TS ARE HAVING THEIR SOURCE FROM AGRICULTURE INCOME AND ACCUMULATE D INCOME OF PRECEDING YEARS. IT WAS ALSO CONTENDED THAT LOA NS WERE GIVEN TO FRIENDS AND RELATIVES FOR SHORT PERIOD IN ORDER TO HELP THEM IN THEIR AGRICULTURE OPERATIONS. LD.A.O HOWEV ER TOOK THE VIEW THAT THE ASSESSEE IS ENGAGED IN MONEY LENDING BUSINESS BESIDES EARNING AGRICULTURE INCOME. ON THE BASIS O F BANK ACCOUNT AND CASH DEPOSITED AT VARIOUS DATES, LD.A.O CALCULATED A PEAK DEBIT BALANCE OF RS.4,65,024/- TR EATING IT AS UNDISCLOSED INVESTMENT IN MONEY LENDING BUSINESS. LD.A.O ALSO CALCULATED INTEREST INCOME OF RS.55,803/- ON T HE ALLEGED UNACCOUNTED INVESTMENT AND MADE ADDITION OF RS.5,20 ,827/- TO NIL INCOME SHOWN BY THE ASSESSEE. IN THE RESULT AGRICULTURE INCOME ASSESSED AT RS.8,00,000/- AND TO TAL INCOME OTHER THAN AGRICULTURE INCOME AT RS.5,20,83 0/-. AGGRIEVED ASSESSEE PREFERRED APPEAL BEFORE LD.CIT(A ) BUT FAILED TO SUCCEED AS THE VIEW TAKEN BY THE LD.A.O WAS CONF IRMED BY THE LD.CIT(A). 4. AGGRIEVED ASSESSEE NOW IS IN APPEAL BEFORE THE T RIBUNAL. VISHNU MURLIDHAR PAWAR ITA NO.564/IND/2017 4 5. AT THE OUTSET LD. COUNSEL FOR THE ASSESSEE REITE RATED THE SUBMISSIONS MADE BEFORE THE LOWER AUTHORITIES AND S UBMITTED THAT THERE WAS SUFFICIENT SOURCE OF CASH DEPOSITED ON VARIOUS DATES AT BANK ACCOUNT AND NO ADDITION WAS CALLED FO R UNACCOUNTED INVESTMENT AND HE ALSO SUBMITTED THAT N O INTEREST INCOME WAS EARNED. 6. PER CONTRA LD. DEPARTMENTAL REPRESENTATIVE VEHEM ENTLY ARGUED AND SUPPORTED THE ORDERS OF LOWER AUTHORITIE S AND ALSO POINTED OUT THE DETAILS FILED BY THE ASSESSEE AT PA GE 1(E) TO 1(I) OF THE PAPER BOOK PROVIDING COMPLETE PERSON WISE DE TAILS OF AMOUNTS GIVEN AND RECEIVED BACK DURING THE YEAR. 7. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE RECORDS PLACED BEFORE US. THE ASSESSEE BEING THE AGRICULTU RALIST IS REGULARLY EARNING INCOME FROM AGRICULTURE. DURING THE YEAR AGRICULTURE INCOME OF RS.8,00,000/- HAS BEEN ASSESS ED BY THE ASSESSING OFFICER. THERE WERE REGULAR TRANSACTIONS OF CASH DEPOSITS AND WITHDRAWALS AS WELL AS AMOUNTS GIVEN T O VARIOUS PERSONS FOR SHORT PERIOD. LD.A.O CALCULATED UNDISC LOSED INVESTMENT AMOUNT OF RS.4,65,024/-. APART FROM ADDI NG IT TO VISHNU MURLIDHAR PAWAR ITA NO.564/IND/2017 5 THE INCOME TO THE INCOME OF THE ASSESSEE LD. A.O AL SO MADE THE ADDITION FOR INTEREST INCOME OF RS.55,803/-. 8. PERUSAL OF THE BANK STATEMENT SHOWS THAT THERE W AS AN OPENING BALANCE OF RS.2,28,946/-. ASSESSEE HAS DEC LARED AGRICULTURE INCOME OF RS.8,00,000/- DURING THE YEAR . IT IS ALSO NOT DISPUTED THAT THE ASSESSEE HAS BEEN REGULARLY E ARNING INCOME FROM AGRICULTURE IN THE PAST. THERE IS NO M ATERIAL AVAILABLE WITH THE REVENUE AUTHORITIES TO PROVE THA T THE ASSESSEE RECEIVED CASH FROM UNEXPLAINED SOURCES OTH ER THAN AGRICULTURE INCOME. HOWEVER IT IS TRUE THAT THE AS SESSEE HAS GIVEN SHORT TERM ADVANCES TO VARIOUS PERSONS AND TH ERE ARE AROUND 19 PERSONS TO WHOM THE ASSESSEE HAS PAID THE AMOUNT ON CREDIT FOR SHORT PERIOD NOT EXCEEDING 12 MONTHS. 9. IN THESE GIVEN FACTS AND CIRCUMSTANCES OF THE CA SE, WE ARE OF THE CONSIDERED VIEW THAT AS FAR AS THE ADDIT ION ON UNACCOUNTED INVESTMENT IS CONCERNED THE ASSESSEE HA D SUFFICIENT ACCUMULATED FUNDS, OPENING BANK BALANCE AS WELL AS INCOME EARNED DURING THE YEAR WHICH COULD JUSTIFY T HE SOURCE OF THE CASH DEPOSITED ON VARIOUS DATES AND ALSO TO EXPLAIN THE VISHNU MURLIDHAR PAWAR ITA NO.564/IND/2017 6 SOURCE OF ALLEGED UNACCOUNTED INVESTMENT OF RS.4,65 ,024/- AND IN OUR VIEW THE SAME NEEDS TO BE DELETED. AS R EGARDS THE INTEREST INCOME ADDITION IS CONCERNED, WE DO NOT FI ND ANY REASON TO INTERFERE IN THE FINDINGS OF THE LOWER AU THORITIES AS NO PLAUSIBLE REASONS HAVE BEEN GIVEN BY THE LD. COU NSEL FOR THE ASSESSEE FOR GIVING SUCH SHORT TERM ADVANCES WH ICH ARE RANGING FROM 1 MONTH TO 6 MONTH WITHOUT CHANGING AN Y INTEREST AND THEREFORE THE ADDITION FOR ALLEGED INT EREST INCOME OF RS.55,083/- NEEDS TO BE CONFIRMED. 10. IN THE RESULT GROUND NO. 1 & 2 OF THE APPEAL OF THE ASSESSSEE IS PARTLY ALLOWED AND GROUND NO.3 & 4 ARE GENERAL IN NATURE WHICH NEEDS NO ADJUDICATION. 11. IN THE RESULT APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 17.10 .2018. SD/- SD/- ( KUL BHARAT) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER / DATED : 17 OCTOBER, 2018 /DEV VISHNU MURLIDHAR PAWAR ITA NO.564/IND/2017 7 COPY TO: THE APPELLANT/RESPONDENT/CIT CONCERNED/CIT (A) CONCERNED/ DR, ITAT, INDORE/GUARD FILE. BY ORDER ASSTT.REGISTRAR,I.T.A.T., INDORE