ITO, Ludhiana V. Ramesh Chander Verma, Ludhiana

ITA 566/CHANDI/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 60941 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 1 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-07-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 12-10-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 24-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N K SAINI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH A CHANDIGARH BEFORE SHRI H.L. KARWA, VP AND SHRI T.R. SOOD, AM ITA NO. 566/CHD/2011 ASSESSMENT YEAR: 2007-08 I.T.O. LUDHIANA V. RAMESH CHANDER VERMA H NO. 7, JEEVAN PREET NAGAR FEROZEPUR ROAD LUDHIANA AAMPV 8464 F (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI N.K. SAINI RESPONDENT BY: SHRI ASHOK GOYAL DATE OF HEARING: 09.07.201 2 DATE OF PRONOUNCEMENT: 13 .07.2012 ORDER PER T.R. SOOD, A.M IN THIS APPEAL THE REVENUE HAS RAISED THE FOLLOWI NG TWO GROUNDS: 1 ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A)-II, LUDHIANA HAS ERRED IN DELETING THE ADDITION OF RS. 9,25,000/- ON ACCOUNT OF CASH DEPOSITS IN THE BANK ACCOUNT OF THE APPELL ANT. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A)-II, LUDHIANA HAS ERRED IN DELETING THE ADDITION OF RS. 93,000/- ON ACCOUNT OF HOUSEHOLD EXPENSES. 2. GROUND NO. 1 AFTER HEARING BOTH THE PARTIES WE FIND THAT DUR ING ASSESSMENT PROCEEDINGS THE ASSESSING OFFICER GOT AI R INFORMATION THAT THE ASSESSEE HAS DEPOSITED A CASH OF RS. 13,38,000/- IN HIS BANK ACCOUNT WITH CATHOLIC SYRIAN BANK LTD. BRANCH, LUDHIANA. SINCE THE ASSESSEE COULD NOT FILE ANY SATISFACTORY REPLY BEFORE THE ASSESSING OFFICER , THE AMOUNT OF RS. 13,38,000/- WAS ADDED TO HIS INCOME. 3. BEFORE THE LD. CIT(A) THE SOURCES WERE EXPLAINED . THE SOURCES WERE STATED TO BE EARLIER WITHDRAWALS AMOUNTING TO RS. 3 ,51,000/-, RECEIPT OF RS. 75,000/- FROM SMT. YOGITA VERMA WHO IS DAUGHTER OF THE ASSESSEE WHO IS A TEACHER AND ALSO RECEIVED A SUM OF RS. 4.00 LAKHS F ROM SHILPA GARMENTS WHO WERE REGULAR ASSESSEES TO WHOM LOANS WERE GIVEN EAR LIER. A SUM OF RS. 1.00 2 LAKH HAS BEEN STATED TO HAVE BEEN RECEIVED FROM SHR I SAT PAL PURI WHO IS ALSO A REGULAR INCOME TAX ASSESSEE AND HIS PAN WAS ALSO FU RNISHED. 4. THE LD. CIT(A) ACCEPTED THESE SOURCES WHICH TOTA LED TO RS. 9,25,000/-. HE DELETED THE ADDITION OF RS. 9,25,000/- AND CONFI RMED THE BALANCE ADDITION OF RS. 4,13,000/-. 5. BEFORE US THE LD. DR FOR THE REVENUE STRONGLY SU PPORTED THE ORDER OF THE ASSESSING OFFICER. 6. ON THE OTHER HAND, THE LD. COUNSEL OF THE ASSES SEE SUPPORTED THE IMPUGNED APPELLATE ORDER AND INVITED OUR ATTENTION TO THE AFFIDAVIT FILED BY THE ASSESSEE. 7. WE HAVE HEARD THE RIVAL SUBMISSIONS CAREFULLY. THE CONTENTS OF THE SUBMISSIONS AND THE AFFIDAVITS SUBMITTED BEFORE THE LD. CIT(A) ARE AS UNDER: THERE WAS OPENING BALANCE OF RS. 3,51,000/- IN CAT HOLIC SYRIAN BANK LTD, LUDHIANA HAVING A/C NO. 0006063 OUT OF WHICH A SSESSEE HAS WITHDRAWN A SUM OF RS. 3,50,000/-. DETAIL OF WHICH IS AS UNDER: THE AMOUNT HAS BEEN WITHDRAWN AND AGAIN DEPOSITED S INCE ASSESSEE FEEL UNSECURED BECAUSE HE WAS OPERATED UPON AND UND ERWENT HEART SURGERY DURING THE ASSESSMENT PROCEEDINGS IN APOLLO HOSPITAL, DELHI. THERE WAS FEAR OF UNSECURITY AND UNCERTAINTITY IN T HE MIND OF THE ASSESSEE. AFFIDAVIT AND MEDICAL REPORTS ETC. FROM SHRI RAMESH CHAND VERMA IS ENCLOSED. THAT THE ASSESSEE HAS DEPOSITED RS. 1,00,000/- ON 2 0.6.2006 VIDE CHEQUE NO. 1061195 OF ING VYSYA BANK, LUDHIANA WHIC H HE RECEIVED FROM SHRI SAT PAL PURI SON OF SHRI AMIN CHAND PURI R/O FLAT NO. 15, IIIRD FLOOR, SUPER DELUXE SWAMI VIVEKANAND VIHAR, BLOCK A , BRS NAGAR, LUDHIANA. SAT PAL PURI IS REGULARLY INCOME TAX ASS ESSEE ASSESSED BY RANGE VI, LUDHIANA HAVING PAN NO. ABRPP 1341..AFFI DAVIT FROM SAT PAL PURI IS ENCLOSED. THAT ASSESSEE HAS ALSO RECEIVED A SUM OF RS. 75,00 0/- FROM SMT. YOGITA VERMA WHO IS REAL DAUGHTER OF SHRI RAMESH CHAND VER MA ASSESSEE. YOGITA VERMA IS TEACHER AND IS ENJOYING SALARY RS. 12000/- THERE BUT TOTAL SALARY DOES NOT EXCEED TAXABLE LIMIT. THIS A MOUNT HAS BEEN WITHDRAWN BY SMT. YOGITA VERMA FROM HIS PERSONAL SA VING ACCOUNT I.E. PUNJAB NATIONAL BANK, AGGAR NAGAR BRANCH, LUDHIANA HAVING 405000100046098. AFFIDAVIT FROM YOGITA VERMA IS EN CLOSED. THAT ASSESSEE HAS ALSO RECEIVED A SUM OF RS. 4,00,0 00/- ON DIFFERENT DATES FROM SHRI SUDHIR SYAL, WHO IS PROPRIETOR OF S HILPA GARMENTS, E-1, TEXTILE COLONY, LUDHIANA. THIS AMOUNT HAS BEEN REC EIVED AS RETURN OF LOAN, WHICH HAS BEEN CREDITED IN THE BOOKS OF M/S SHILPA GARMENTS, LUDHIANA. THAT SHRI SUDHIR SYAL IS REGULARLY INCOM E TAX ASSESSEE ASSESSED BY RANGE VII, LUDHIANA HAVING PAN NO. ALMP S 2799 E. AFFIDAVIT FROM SUDHIR SYAL IS ENCLOSED. 8. THE LD. CIT(A) HAS PASSED THE ORDER WHICH IS AS UNDER: 3 4 I HAVE GONE THROUGH THE CONTENTION OF THE APPELL ANTS COUNSEL AND ALSO PERUSED THE RELEVANT ASSESSMENT ORDER UNDER AP PEAL AS WELL AS WRITTEN SUBMISSIONS FILED BY THE APPELLANTS COUNSE L RELEVANT DOCUMENTS. AS THE APPELLANT VIDE HIS AFFIDAVIT SUBMITTED THAT HE NEEDED FUNDS FOR HIS REGULAR TREATMENT AT APOLLO HOSPITAL, DELHI AND IN THE WEIRD STATUS OF MIND HE FREQUENTLY WITHDREW AND DEPOSITED ABOVE SAID AMO UNTS IN THE BANK. THE APPELLANTS COUNSEL VIDES HIS WRITTEN ARGUMENTS REPRODUCED AS ABOVE HAS DISCLOSED THE SOURCES OF BANK DEPOSITS OF THE APPELLANT AS UNDER: (I) REGARDING SOURCE OF RS. 3,50,000/- THE COUNSEL HAS STATED THAT THESE ARE FROM OPENING BALANCE (AS ON 1.4.2006) OF RS. 3,51,000/- LYING IN APPELLANTS ACCOUNT AND WITHDRAWALS MADE T HROUGH SELF CHEQUES. (II) RS. 1,00,000/- RECEIVED FROM SHRI SAT PAL PURI S/O SHRI AMIN CHAND PURI, R/O FLAT NO. 15, IIIRD FLOOR, SUPER DEL UXE SWAMI VIVEKANAND VIHAR, BLOCK A, BRS NAGAR, LUDHIANA. TH E COUNSEL STATED THAT SHRI SAT PAL PURI IS REGULARLY INCOME T AX ASSESSEE HAVING PAN ABRPP 5134 L. HE ALSO FILED AN AFFIDAVI T FROM THE ABOVESAID PERSON IN THIS REGARD. (III) RS. 75,000/- RECEIVED FROM SMT. YOGITA VERMA DAUGHTER OF SHRI RAMESH CHAND VERMA (APPELLANT). THE COUNSEL SUBMIT TED THAT SMT. YOGITA VERMA IS TEACHER AND IS ENJOYING SALARY RS. 1,20,000/-. THIS AMOUNT HAS BEEN WITHDRAWN BY HER FROM HER PERSONAL SAVING ACCOUNT. AN AFFIDAVIT IN THIS REGA RD ALSO FILED. (IV) RS. 4,00,000/- RECEIVED FROM SHRI SUDHIR SYAL ON DIFFERENT DATES, WHO IS PROPRIETOR OF SHILPA GARMENTS, E-1, TEXTILE COLONY, LUDHIANA. THE COUNSEL STATED THAT THIS AMOUNT HAS BEEN RECEIVED AS RETURN OF LOAN, WHICH HAS BEEN CREDITED IN THE B OOKS OF M/S SHILPA GARMENTS, LUDHIANA. A COPY OF SAID ACCOUNT ALSO FILED BEFORE ME, WHICH SHOWS THE SAME PICTURE. HE ALSO A RGUED THAT SHRI SUDHIR SYAL IS REGULARLY INCOME TAX ASSESSEE H AVING PAN ALMPS 2799 E. AFFIDAVIT FROM SUDHIR SYAL ALSO FILE D DURING APPELLATE PROCEEDINGS. 4.1 CONSIDERING THE TOTALITY OF THE FACTS AND ABOVE FACTUAL POSITION OF THE CASE IN HAND, I AM OF THE VIEW THAT THE APPELLA NT HAS SUFFICIENT PROOFS REGARDING SOURCE OF RS. 9,25,000/- (RS. 3,50,000 + RS. 1,00,000 + RS. 75,000 + RS. 4,00,000) AND THE SAME ARE ACCEPTED B UT THE A PENALTY PROCEEDINGS FAILS TO EXPLAIN ANY SOURCE OR PLACE AN Y CONCRETE EXPLANATION REGARDING BALANCE AMOUNT OF RS. 4,13,00 0/-. THEREFORE, KEEPING IN VIEW THE ABOVE, THE DISALLOWANCE TO THE EXTENT OF RS. 9,25,000/- IS HEREBY DELETED AND BALANCE AMOUNT OF RS. 4,13,000/- IS CONFIRM ED. THUS, THIS GROUND OF THE APPEAL IS PAR TLY ALLOWED. 9. IT TRANSPIRED DURING HEARING THAT THE ASSESSEE H AS NOT FILED ANY APPEAL BEFORE THE TRIBUNAL FOR THE ADDITION OF RS. 4,13,00 0/-. AFTER EXAMINING THE CONTENTS OF THE AFFIDAVITS FILED BEFORE LD. CIT(A), WE ARE OF THE VIEW THAT THE LD. CIT(A) HAS CORRECTLY ADJUDICATED THE ISSUE BECAUSE THE ASSESSEE HAS BEEN ABLE TO EXPLAIN THE SOURCE OF RS. 9,25,000/-. IT HAS TO BE KEPT IN MIND THAT THE ASSESSEE IS A PENSIONER AND WAS EARLIER WORKING IN LIC AND THEREFORE, THERE 4 WAS NO SCOPE FOR EARNING UNDISCLOSED INCOME. IN TH ESE FACTS AND CIRCUMSTANCES WE CONFIRM THE ORDER OF THE LD. CIT(A ). 10. GROUND NO. 2 AFTER HEARING BOTH THE PARTIES WE FIND THAT DURI NG ASSESSMENT PROCEEDINGS THE ASSESSING OFFICER NOTICE D THAT THE ASSESSEE HAS SHOWN TOTAL HOUSEHOLD EXPENSES AT RS. 2,18,758/- . FROM THE BANK ACCOUNT OF THE ASSESSEE THE ASSESSING OFFICER FOUND DETAILS OF ELECTRICITY BILLS AND TELEPHONE BILLS WHICH WERE THERE FOR FEW MONTHS. O N THAT BASIS THE ASSESSING OFFICER ESTIMATED VARIOUS EXPENSES OF ELECTRICITY , TELEPHONE, CAR, AND ULTIMATELY ESTIMATED THE BALANCE OF HOUSEHOLD EXPENSES AND MAD E THE ADDITION OF RS. 1,17,000/-. 11. ON APPEAL BEFORE THE LD. CIT(A) IT WAS SUBMITTE D THAT THE ASSESSEES SON WAS RESIDING IN THE SAME HOUSE AND THE EXPENSES ON CAR ETC. WERE BEING SHARED BY HIM. SOME OF THE TELEPHONE BILLS HAVE BE EN DEBITED IN HIS ACCOUNT. 12. THE LD. CIT(A) ON THIS BASIS REDUCED THE ADDITI ON ON ACCOUNT OF HOUSEHOLD EXPENSES TO 20% VIDE PARA 6 OF ITS ORDER: KEEPING IN VIEW THE FACTS AND CIRCUMSTANCES OF THE CASE AND TAT THE APPELLANT IS RETIRED PERSON AND HAS NOT MUCH OBLIGA TIONS, IT WILL BE FAIR AND JUSTIFIABLE TO RESTRICT THE ADDITION OF RS. 1,1 7,000/- MADE BY THE ASSESSING OFFICER ON THE ACCOUNT OF HOUSEHOLD EXPEN SES TO THE EXTENT OF 20% OF THE WHOLE ADDITION I.E. RS. 23,400/- AND BAL ANCE 80% I.E. 93,600/- IS DIRECTED TO BE DELETED. THEREFORE, THIS GROUND OF THE APPELLANT IS PARTLY ALLOWED. 13. BEFORE US THE LD. DR FOR THE REVENUE SUPPORTED THE ORDER OF THE ASSESSING OFFICER. ON THE OTHER HAND, THE LD. COUN SEL OF THE ASSESSEE SUPPORTED THE ORDER OF THE LD. CIT(A). 14. AFTER HEARING BOTH THE PARTIES WE FIND HOUSEHOL D EXPENSES WERE ESTIMATED ON HIGHER SIDE BY THE ASSESSING OFFICER A ND THE ADDITION HAS BEEN RIGHTLY REDUCED BY THE LD. CIT(A) AND ACCORDINGLY WE CONFIRM THE SAME. 15.. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON 13 .07.2012 SD/- SD/- (H.L. KARWA) (T.R. SOOD) VICE PRESIDENT ACCOUNTANT MEMBER DATED: 13 .07.2012 SURESH COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT/THE C IT(A)/ THE DR 5