ITO, Rewari V. Shri Jai Singh, Rewari

ITA 5674/DEL/2010

• Counselvise Citation: 567420114 RSA 2010
• Duration Of Justice: 1 year(s) 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 18-01-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 15-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANUSHA KHURANA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH D : NEW DELHI) BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER AND SHRI B.C. MEENA, ACCOUNTANT MEMBER ITA NO.5674/DEL./2010 (ASSESSMENT YEAR : 2007-08) ITO, WARD 1, VS. SHRI JAI SINGH, NEW DELHI. S/O SHRI CHHUTAN LAL, 761/9, MATA CHOWK, NEAR BUS STAND REWARI 123 401 (HARYANA). (PAN : ABNPS4041F) ITA NO.6/DEL./2011 (ASSESSMENT YEAR : 2007-08) SHRI JAI SINGH, VS. ITO, WARD 1, S/O SHRI CHHUTAN LAL, NEW DELHI. 761/9, MATA CHOWK, NEAR BUS STAND REWARI 123 401 (HARYANA). (PAN : ABNPS4041F) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI SANJEEV JAIN, CA REVENUE BY : MS. ANUSHA KHURANA, DR ORDER PER B.C. MEENA, ACCOUNTANT MEMBER : BOTH THESE CROSS APPEALS EMANATE FROM THE ORDER OF THE CIT (APPEALS), ROHTAK DATED 20.10.2010 FOR THE ASSESSMENT YEAR 2007-08. THE GROUNDS IN REVENUES APPEAL IN ITA NO.5674/DEL/2010 READ AS UNDER :- ITA NO.5674/DEL./2010 ITA NO.6/DEL/2011 2 ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD . COMMISSIONER OF INCOME TAX (APPEAL) HAS ERRED IN LAW AND FACTS IN D ELETING THE ADDITION OF RS.12 LAKH MADE ON ACCOUNT OF UNEXPLAINED CASH DEPO SIT IN ASSESSEES BANK ACCOUNT. 2. THE APPELLANT CRAVES LEAVE FOR PERMISSION TO ADD , DELETE OR AMEND THE GROUNDS OF APPEAL BEFORE OR AT THE TIME OF HEAR ING OF APPEAL. THE GROUNDS IN ASSESSEES APPEAL IN ITA NO.6/DEL/20 11 READ AS UNDER :- 1. THAT THE LD. CIT (APPEAL) HAS ERRED ON FACTS AN D IN LAW BY CONFIRMING THE ORDER OF LD. ASSESSING OFFICER WHO A RBITRARILY ADDING AN AMOUNT OF RS.1,47,000/- IN THE INCOME OF APPELLANT, DEPOSITED BY SMT. ISHWAR DEVI W/O SH. JAI SINGH IN JOINT ACCOUNT WITH HER HUSBAND (APPELLANT) TREATING AS UNEXPLAINED SOURCE OF DEPOS IT ON THE GROUND SHE WAS NOT ASSESSED FOR THE AY 2007-08 WHEREAS SMT. ISHWAR DEVI WAS RUNNING HER OWN BUSINESS AND ALSO HAVE OWN SOURCE OF RENTAL INCOME AND THE FUND WAS DEPOSITED BY HER FROM HER OWN SOURCE AND DURING AY 2007-08 HER TOTAL INCOME WAS BELOW TAXABLE LIMIT PRESCRIBED FOR FILLI NG OF INCOME TAX RETURN AND THE FACTS ON RECORD COULD NOT BE CONSIDERED BY THE AUTHORITIES IN THE RIGHT PERSPECTIVE AND DESERVE TO BE DELETED. 2. THAT THE APPELLANT CRAVES, LEAVE TO ADD, MODIFY AND/OR DELETE ANY OF THE GROUND OF APPEAL AT THE TIME OF HEARING OF APPE AL, IF DEEMED NECESSARY, IN THE INTEREST OF JUSTICE AND EQUITY. 2. THE ASSESSEE IS A RETIRED EMPLOYEE OF EDUCATION DEPARTMENT OF GOVERNMENT OF HARYANA AND HAS DECLARED INCOME FROM PENSION, INTER EST AND AGRICULTURAL INCOME. THE ASSESSING OFFICER MADE TWO ADDITIONS OF CASH DEPOSI TS IN THE BANK ACCOUNT. RS.1,47,000/- WAS DEPOSITED IN THE JOINT SAVING BANK ACCOUNT OF T HE ASSESSEE ALONG WITH HIS WIFE AT STATE BANK OF BIKANER & JAIPUR, REWARI. THE ASSESSING OF FICER MADE THIS ADDITION BY NOT ACCEPTING THE ASSESSEES EXPLANATION THAT HIS WIFE WHO IS NOT ASSESSED TO TAX HAD DEPOSITED SUCH AMOUNT IN THE BANK. ASSESSING OFFICER ALSO AD DED THE AMOUNT OF RS.12 LACS WHICH WAS A CASH DEPOSIT IN THE ASSESSEES BANK ACCOUNT I N HDFC BANK ACCOUNT, REWARI. THE CIT (A) GRANTED THE RELIEF FOR DEPOSIT OF RS.12 LAC S BY ACCEPTING THE ASSESSEES CONTENTION THAT THERE WAS A CASH WITHDRAWAL OF RS.14,50,000/- ON 26.04.2006 FROM THE ASSESSEES OWN ACCOUNT WITH STATE BANK OF BIKANER & JAIPUR AND THE SAME WAS KEPT FOR THE ADMISSION OF HIS SON IN THE MBBS COURSE. SINCE THE SON OF THE A SSESSEE COULD NOT GET THE ADMISSION IN ITA NO.5674/DEL./2010 ITA NO.6/DEL/2011 3 THE MEDICAL INSTITUTION, THEREFORE, THE AMOUNT WAS DEPOSITED IN THE ASSESSEES OWN ACCOUNT WITH HDFC, REWARI. ASSESSEE ALSO PLEADED THAT HIS SON GOT ADMISSION IN NEPAL FOR WHICH THE AMOUNT WAS WITHDRAWN ON 26.04.2006. CIT (A) GR ANTED THE RELIEF TO THE ASSESSEE ON THIS ISSUE. HOWEVER, HE SUSTAINED THE AMOUNT OF RS .1,47,000/- WHICH WAS EXPLAINED BY THE ASSESSEE FROM THE SOURCES OF HIS WIFE, SMT. ISHWAR DEVI. 3. WE HAVE HEARD BOTH THE SIDES ON THE ISSUE RAISED IN REVENUES APPEAL AND THE FACTS OF THE CASE SHOWS THAT ASSESSEE HAS DEPOSITED THE C ASH ON 03.08.2006 IN HIS SAVING BANK ACCOUNT WITH HDFC OUT OF THE CASH WITHDRAWAL FROM H IS ACCOUNT KEPT AT SBBJ ON 26.04.2006. ASSESSEE HAD ADEQUATELY EXPLAINED THE REASON FOR KEEPING CASH IN HAND. THEREFORE, SINCE THE SOURCE OF THE CASH DEPOSITED I N THE ASSESSEES ACCOUNT COMES FROM THE ASSESSEES OWN BANK ACCOUNT. THE EXPLANATION REGAR DING THE CASH WITHDRAWAL FROM THE ACCOUNT AND DEPOSITING THE SAME IN THE ASSESSEES O WN ACCOUNT IN HDFC ACCOUNT IS AN ACCEPTABLE EXPLANATION, KEEPING THESE FACTS IN VIEW , WE DISMISS THE REVENUES APPEAL. 4. WE HAVE HEARD BOTH THE SIDES ON THE ISSUE INVOLV ED IN THE ASSESSEES APPEAL. THERE IS CASH DEPOSIT OF RS.1,47,000/- ON THREE DATES, 06 .04.2006, 07.04.2006 AND 13.04.2006 (RS.49,000/- ON EACH OCCASION) IN THE JOINT BANK AC COUNT OF THE ASSESSEE WITH HIS WIFE. CIT (A) SUSTAINED THE ADDITION TREATING THE CASH DEPOSI T FROM THE UNEXPLAINED SOURCES. AFTER HEARING BOTH THE SIDES, WE ARE OF THE VIEW THAT THE ASSESSEE SUBMITTED AN EXPLANATION, EXPLAINING THE SOURCE OF SMT. ISHWAR DEVI, WIFE OF THE ASSESSEE. THE PAPERS SUBMITTED BEFORE THE ASSESSING OFFICER WERE ALSO FILED BEFORE US. FROM THESE DOCUMENTS, WE FIND THAT SMT. ISHWAR DEVI, WIFE OF THE ASSESSEE WAS HAVING I NCOME FROM RENT, INCOME FROM BUSINESS AND PROFESSION AND INCOME FROM BANK INTERE ST. THE MANUFACTURING AND TRADING ACCOUNT AND PROFIT AND LOSS ACCOUNT FOR THE YEAR EN DING 31.3.2007 WAS ALSO SUBMITTED. THESE DOCUMENTS SHOW THAT SHE WAS DOING THE JOB OF TAILORING. SHE HAS ALSO DECLARED INCOME FROM KATRANS. THE FACTS OF CASE SHOW THAT S HE WAS HAVING INCOME WHICH COULD BE ITA NO.5674/DEL./2010 ITA NO.6/DEL/2011 4 THE SOURCE OF THE CASH DEPOSITS. KEEPING THESE FAC TS IN VIEW, WE HOLD THAT THE CIT (A) WAS NOT JUSTIFIED IN SUSTAINING THE ADDITION. THEREFOR E, WE DIRECT TO DELETE THIS ADDITION ALSO. THE APPEAL OF THE ASSESSEE STANDS ALLOWED. 5. IN THE RESULT, APPEAL OF THE REVENUE STANDS DISM ISSED AND THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON THIS 31 ST DAY OF JANUARY, 2012. SD/- SD/- (R.P. TOLANI) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED THE 31 ST DAY OF JANUARY, 2012 TS COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A), ROHTAK. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.