The ITO, Ward-6(2), Ahmedabad V. Shri Anant Valladas Mehta, Ahmedabad

ITA 569/AHD/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 85525 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 10 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 07-01-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 04-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DINESH SINGH
• Assessee Lawyers: D K PARIKH
• Keywords: Unexplained expenditure; Business income; Business expenditure
• Section: 69C

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, AHMEDABAD BEFORE SHRI SHAILENDRA KUMAR YADAV , JUDICIAL MEMBER AND SHRI N.S. SAINI, ACCOUNTANT MEMBER ./ ITA NO . 475 /AHD/ 201 3 [ [ / ASSESSMENT YEAR: 200 8 - 0 9 SHRI ANANT VALLAVDAS MEHTA, C/12, SUDARSHAN TOWER, NEAR NIRANT PARK, THALTEJ, AHMEDABAD PAN : ABLPM 8550 F VS INCOME TAX OFFICER, WARD 6(2), AHMEDABAD ./ ITA NO. 569 /AHD/ 201 3 [ [ / ASSESSMENT YEAR: 200 8 - 0 9 INCOME TAX OFFICER, WARD 6(2), AHMEDABAD VS SHRI ANANT VALLAVDAS MEHTA, AHMEDABAD PAN : ABLPM 8550 F / (APPELLANT) / (RESPONDENT) ASSESSEE(S) BY : SHRI D.K. PARIKH, AR REVENUE BY : SHRI DINESH SINGH, SR. DR. / DATE OF HEARING : 07 / 01 /201 5 / DATE OF PRONOUNCEMENT: 09 / 01 /201 5 / O R D E R PER SHRI N.S. SAINI, ACCOUNTANT MEMBER: THESE ARE THE CROSS APPEALS FILED BY THE A SSESSEE AND THE REVENUE AGAINST THE ORDER OF TH E COMMISSIONER OF INCOME - TAX (APPEALS) - X I , AHMEDABAD D ATED 31 . 12 .201 2 FOR ASSESSMENT YEAR 200 8 - 0 9 . ITA NOS. 475 & 569 /AHD/20 1 3 (ASSESSEE & REVENUE) SHRI ANANT VALLAVDAS MEHTA - AY 200 8 - 0 9 - 2 - 2. IN THE ASSESSEES APPEAL, THE ASSESSEE HAS TAKEN THE FOLLOWING EFFECTIVE GROUNDS OF APPEAL : - THE LD. CIT(APPEALS) ERRED BOTH IN LAW AND ON FACTS IN CON FIRMING ADDITION OF RS.2,99,800/ - BY APPLYING NET PROFIT RATE OF 5% ON ESTIMATED TURNOVER OF RS.90,00,000/ - . THE LD. CIT(A) FAILED TO APPRECIATE THAT THE APPELLANT HAD MADE PURCHASES OF RS.28,78,800/ - ONLY FOR HIS RETAIL BUSINESS AND HENCE ESTIMATING TURN OVER AT RS.90,00,000/ - IS UNJUST, UNCALLED FOR AND AGAINST THE SANCTION OF LAW. IT BE SO HELD NOW AND ADDITION OF RS.2,99,800/ - BE DELETED. THE LD. CIT(A) ALSO ERRED BOTH IN LAW AND ON FACTS IN CONFIRMING AN ADDITION OF RS.5,26,869/ - ESTIMATING THE INVE STMENT AS PEAK DEPOSIT. THE APPELLANT HAVING THE ONLY SOURCE OF INCOME AS RETAIL TRADE, ADDITION OF RS.5,26,869/ - IS PATENTLY WRONG AND UNJUSTIFIED. THE ADDITION OF RS.5,26,869/ - BE DELETED. 3. IN THE REVENUES APPEAL, THE RE VENUE HAS RAISED THE FOLLOWIN G GROUNDS OF APPEAL: - THE LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.33,72,883/ - ON ACCOUNT OF PAYMENT MADE OF CREDIT CARD EXPENSES U/S 69C OF THE I.T. ACT. 4. THE ASSESSING OFFICER MADE THE ADDITION BY OBSERVING AS UNDER: - '4. AS PER THE AIR INFORMATION, THE A SSESSEE HAS MADE PAYMENT OF RS. 41,99,552 / - FOR CREDIT CARD EXPENSES DURING THE YEAR. THE ASSESSEE WAS REQUESTED TO EXPLAIN THE SOURCE OF PAYMENT VIDE THIS OFFICE LETTER DTD. 1/11/2010 AND 04/11/2010. IN RESPONSE TO THIS , THE ASSESSEE FILED UNSIGNED REPLY DTD. 03/11/2010 THROUGH POST AND SUBMITTED THAT HE HAS MADE PAYMENT OF RS. 41 , 99 , 552/ - BY WAY OF CREDIT CARD FOR HIMSELF AND ON BEHALF OF HIS WIFE FOR PURCHASE OF PROVISIONAL GOODS FOR DOING RETAIL TRADING BUSINESS. OUT O F THE ABOVE, PURCHASES OF RS. 28, 78,800/ - IS FOR HIMSELF AND RS. 13,20,752 / - FOR HIS WIFE. HE ALSO SUBMITTED THAT HE AND HIS WIFE IS DOING THE RETAIL TRADING AND HAS DECLARED PROFIT @5% ON GROSS TURNOVER U/S ITA NOS. 475 & 569 /AHD/20 1 3 (ASSESSEE & REVENUE) SHRI ANANT VALLAVDAS MEHTA - AY 200 8 - 0 9 - 3 - 44AF OF THE I . T. ACT FOR WHICH NO BOOKS IS REQUIRE D. HE ALSO SUBMITTED THAT THE SOURCE OF PAYMENT IS AMOUNT RECEIVED FROM THE RETAIL SALES TURNOVER MADE BY HIM AND HIS WIFE AGAINST THE ABOVE REFERRED PURCHASES. IN RESPONSE TO THE ABOVE REPLY OF THE ASSESSEE, THE ASSESSEE VIDE LETTER DTD 4/11/2010 WAS REQ UESTED TO EXPLAIN HOW THE PURCHASE MADE FOR HIS WIFE (NEETA ANAND MEHTA) IS PAID THROUGH HIS CREDIT CARD. FURTHER, NO EVIDENCE HAS BEEN PRODUCED TO JUSTIFY THE CLAIM THAT THE PURCHASES WERE MADE FOR HIMSELF AND HIS WIFE AND PAYMENT OF CREDIT CARD BILLS ARE MADE OUT OF THE SALE OF PROVIS IONAL GOODS AND ACCORDINGLY RS. 41,99,552 / - WAS PROPOSED TO BE ADDED TO HIS INCOME. IN RESPONSE TO THIS, THE ASSESSEE VIDE LETTER DTD. 18/11/2010 SUBMITTED AS UNDER : - 'I INFORM YOU AND YOU ALSO AWARE THAT THE SOURCE OF PAYM ENT OF EXPENSES IS CREDIT CARD THROUGH WHICH I HAVE MADE THE PAYMENT FOR ME AND ON BEHALF OF MY WIFE. SO THERE IS NO QUESTION OF ADDITION OF RS. 41,99,552/ - AS THERE IS NO UNDISCLOSED SOURCE FOR EXPENSES FOR WHICH CREDIT CARD IS ITSELF IS A SOURCE OF ITS PA YMENT'. THE CONTENTION OF THE ASSESSEE IS CAREFULLY EXAMINED. THE ASSESSEE'S SUBMISSION HAS NO FORCE AS IT IS NOT SUPPORTED BY ANY EVIDENCE. THE ASSESSEE HAS NEITHER PROVED THAT HE HAS MADE PURCHASES OF PROVISIONAL ITEMS THROUGH CREDIT CARD NOR JUSTIFIED THAT THE PROVISIONAL ITEMS IF PURCHASED WERE USED AS TRADING GOODS. FURTHER ASSESSEE HAS NOT FURNISHED ANY EVIDENCE REGARDING SOURCE OF PAYMENT OF CREDIT CARD EXPENSES MADE BY HIM. AS THE ASSESSEE HAS FAILED TO SUBMIT ANY EVIDENCE IN SUPPORT OF PAYMENT MAD E FOR CREDIT CARD EXPENSES, THE SAME IS TREATED AS EXPENSES MADE FROM UNDISCLOSED SOURCE AND ADDED TO THE TOTAL INCOME U/S.69C OF THE I.T. ACT. PENALTY PROCEEDINGS INITIATED U/S.271(1)(C) OF THE I.T. ACT FOR FURNISHING INACCURATE PARTICULARS OF INCOME AND THEREBY CONCEALMENT OF INCOME.' 5 . ON APPEAL, THE CIT(A) HELD AS UNDER: - 2.3 I HAVE CAREFULLY CONSIDERED THE RIVAL CONTENTIONS. IT IS SEEN THAT IN THE INCOME TAX RETURN THE APPELLANT HAD DECLARED INCOME FROM TRADING OF GROCERY ITEMS. COGNIZANCE OF THIS FACT ITA NOS. 475 & 569 /AHD/20 1 3 (ASSESSEE & REVENUE) SHRI ANANT VALLAVDAS MEHTA - AY 200 8 - 0 9 - 4 - HAS BEEN TAKEN BY THE A.O. IN PARA - 3 OF THE ASSESSMENT ORDER. FURTHER DURING THE REMAND REPORT PROCEEDINGS THE STATEMENT OF THE APPELLANT WAS RECORDED BY THE A.O. ON 16.1.2012. IN THIS STATEMENT ALSO THE APPELLANT HAS UNAMBIGUOUSLY STATED THAT HE IS DOING RETAIL TRADING. IN FACT IN RESPONSE TO QUESTION NO.2 OF THIS STATEMENT, THE APPELLANT HAS STATED THAT HE IS ENGAGED IN RETAIL TRADING. IN RESPONSE TO QUESTION NO.3 THE APPELLANT HAD STATED THAT HE IS DOING RETAIL TRADING IN PULSES, RICE, KARIANA ETC. THE APPELLANT HAS ALSO FURNISHED COPIES OF SALES ACCOUNT AND PURCHASE ACCOUNT. THE A.O. HAS FAILED TO CONTROVERT THESE EVIDENCES. IN VIEW OF THESE EVIDENCES I AM OF THE CONSIDERED VIEW THAT THE APPELLANT WAS ENGAGED IN RETAIL TRADING. 2.4 THE APPELLANT D URING THE ASSESSMENT PROCEEDINGS SUBMITTED THAT HE HAD MADE PURCHASE OF R S. 28,78,800/ - FOR HIS RETA IL BUSINESS AND PURCHASE OF RS. 13,20,752 / - WAS MADE FOR THE RETAIL BUSINESS OF HIS WIFE. THE INCOME EARNED ON THESE PURCHASES HAS BEEN DECLARED AT THE RATE O F 5% IN THE HANDS OF THE APPELLANT AS WELL AS IN THE HANDS OF HIS WIFE. THESE PURCHASES WERE MADE ON THE CREDIT CARD (ISSUED BY ICICI BANK) OF THE APPELLANT. IT IS ALSO SEEN THAT DURING THE REMAND REPORT PROCEEDINGS THE A.O. MADE NECESSARY ENQUIRIES AND DE TECTED ANOTHER FIVE CREDIT CARDS. THE TOTAL PAYMENTS AGAINST ALL THE SIX CREDIT CARDS DURING THE YEAR UNDER CONSIDERATION IS RS. 84,18,580 / - . IN THE STATEMENT DATED 16.1.2012, THE APPELLANT HAS ALSO AGREED WITH THE EXISTENCE OF OTHER CREDIT CARDS. 2.5 THE PRESENT APPEAL IS TO BE DECIDED KEEPING IN VIEW THE ABOVE MENTIONED FACTS. AS DISCUSSED ABOVE THE APPELLANT IS ENGAGED IN THE BU SINESS OF RETAIL TRADING. SINCE TH E APPELLANT IS ENGAGED IN RETAIL TRADING , ACCORDINGLY, I AM OF THE CONSIDERED VIEW THAT ENTI RE PAYMENT MADE AGAINST CREDIT CARD CANNOT BE TREATED AS APPELLANT'S INCOME. THE APPELLANT IS EARNING PROFITS FROM RETAIL BUSINESS. THE FACTS AVAILABLE ON RECORD FURTHER INDICATE THAT THE APPELLANT HAS MADE TOTAL PURCHASES DURING THE YEAR UNDER CONSIDER ATION OF RS. 84,18,580/ - . THE APPELLANT'S CONTENTION THAT PURCHASES WERE MADE FOR DIFFERENT ENTITIES LIKE SUNRISE TRADING, SUNRISE PROVISION STORE AND VALLAVDAS MEHTA CANNOT BE ACCEPTED AS ALL THE PURCHASES WERE MADE AGAINST THE CREDIT CARD OF THE APPELLANT AND THE APPELLANT HAS FAILED TO FILE COGENT EVIDENCES TO PROVE THE EXISTENCE OF THREE RETAIL BUSINESSES. IN VIEW OF ABOVE, I HOLD THAT I INCOME GENERATED FROM THE PURCHASES MADE AGAINST ALL THE SIX CREDIT CARDS SHOULD BE ASSESSED IN THE HANDS OF THE APPEL LANT. SINCE THE APPELLANT ITA NOS. 475 & 569 /AHD/20 1 3 (ASSESSEE & REVENUE) SHRI ANANT VALLAVDAS MEHTA - AY 200 8 - 0 9 - 5 - IS ENGAGED IN RETAIL BUSINESS, IT WILL BE REASONABLE IF THE TOTAL TURNOVER OF TH E APPELLANT IS ESTIMATED AT RS. 90,00,000 / - AND THE NET PROFIT RATE OF 5% IS APPLIED ON THIS TURNOVER TO ESTIMATE THE INCOME EARNED. BY THIS METHODOLOG Y THE NET PROFIT IS ESTIMATED AT RS. 4,50,000/ - (90,00,000 X 0.5). AGAINST THIS PROFIT BENEFIT OF THE PROFITS DECLARED IN THE RETURN OF INCOME SHOULD BE ALLOWED. THE APPELLANT HAS DECLARED NET PR OFIT FROM RETAIL TRADING OF RS. 1,50,200 / - IN ITS RETURN OF INC OME. IN VIEW OF THESE FACT S ADDITION TO THE EXTENT OF RS.2,99,800/ - (RS. 4,50,000 - 1,50,200) IS CONFIRMED. 2.6 APART FROM INCOME THE APPELLANT MUST HAVE MADE INVESTMENTS TOWARDS PUR CHASES. THE INVESTMENTS MADE IN MAKING THE PURCHASES ALSO NEEDS TO BE ASSES SED. FOR ESTIMATING THE INVESTMENT THE APPELLANT WAS REQUIRED TO FILE COPIES OF CASH BOOK, COPY OF ICICI BANK BOOK AND COPY OF CREDIT CARD ACCOUNT WITH ICICI BANK LTD. THE PEAK DEPOSIT IN THESE ACCOUNT AS ON 19.11.2007 WORKS OUT AT RS.5,26,869/ - . THE DETAI LS OF THIS PEAK IS GIVEN AS UNDER : - 1) ICICI BANK BOOK RS. 3,39,426 / - 2) ICICI BANK CREDIT CARD A/C. RS. 12,373 / - 3) CASH BOOK RS. 1 , 75,070 / - TOTAL RS. 5,26,869/ - THE ABOVE FACTS CLEARLY INDICATE THAT THE APPELLANT HAS MADE PEAK I NVESTMENT OF RS. 5,26,869/ - IN HIS BANK ACCOUNTS. THE APPELLANT HAS FAILED TO FILE ANY COGENT EVIDENCE TO PROVE THE SOURCE OF THESE/ DEPOSITS. ACCORDINGLY , ADDITION TO THE EXTENT OF RS. 5,26,869 / - IS ALSO CONFIRMED. 2.7 AS A RESULT, ADDITION TO THE EXTENT OF RS. 8,26,669/ - (RS. 2,99,800 + RS.5,26,869) IS CONFIRMED. THE APPELLANT WILL GET A RELIEF OF RS.33,72,883 / - (RS. 41,99,552 - RS. 8,26,669). 6 . THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE CONTENDED BEFORE US THAT THE ASSESSEES CREDIT CARD WAS USED BY HIS WIFE FOR MAKING PURCHASES OF GOODS WHICH WERE SOLD BY HER. THE PROFITS WERE COMPUTED U/S 44AF OF THE ACT AND ACCORDINGLY RETURN OF INCOME WAS FILED. COPY OF THE SAME IS PLACED AT PAGE NO.7 OF THE PAPER - BOOK. HE SUBMITTED THAT HE ALSO FILED RETURN OF INCOME U/S 44AF OF THE ACT ITA NOS. 475 & 569 /AHD/20 1 3 (ASSESSEE & REVENUE) SHRI ANANT VALLAVDAS MEHTA - AY 200 8 - 0 9 - 6 - SHOWING THE PROFIT FROM THE PURCHASES MADE THROUGH CREDIT CARD BOTH IN HIS CASE AND HIS WIFE AND FILED THE RETURN OF INCOME ACCORDINGLY. IT WAS HIS SUBMISSION THAT, AS THE ASSESSEE HAD TRADING BUSINESS FOR WHICH PAYMENT S WERE MADE THROUGH CREDIT CARD , THEREFORE, NO DISALLOWANCE U/S 69C COULD BE MADE. 7. ON THE OTHER HAND, THE DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDER OF THE ASSESSING OFFICER AND SUBMITTED THAT THE ASSESSEE , WHEN CALLED UPON BY THE ASSESSIN G OFFICER TO FILE EVIDENCE TO JUSTIFY THE CLAIM THAT THE PURCHASES WERE MADE FOR HIMSELF AND HIS WIFE AND PAYMENT OF CREDIT CARD BILLS FOR THE SALE OF PROVISIONAL GOODS, THE ASSESSEE COULD NOT FILE ANY EVIDENCE IN SUPPORT OF HIS CLAIM AND, THEREFORE, THE A SSESSING OFFICER RIGHTLY MADE ADDITION OF RS.41,99,552/ - WHICH COMPRISED OF THE TOTAL PAYMENTS MADE THROUGH CREDIT CARD FOR EXPENSES DURING THE YEAR. 8. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE LOWER AUTHORITIES AND MATERIAL AVAI LABLE ON RECORD. IN THE INSTANT CASE, THE ASSESSEE HAS FILED HIS RETURN OF INCOME DISCLOSING TOTAL INCOME AT RS.1,18,810/ - AFTER CLAIMING DEDUCTION UNDER CHAPTER VIA OF RS.99,445 / - FROM GROSS TOTAL INCOME OF RS.2,18,250/ - . THE GROSS TOTAL INCOME INCLUDED BUSINESS INCOME OF RS.1,50,200/ - WHICH WAS DISCLOSED U/S 44AF ON BUSINESS TURNOVER OF RS.30,04,000/ - . THE ASSESSING OFFICER OBSERVED THAT THE ASSESSEE MADE PAYMENT OF RS.41,99,552/ - THROUGH CREDIT CARD OF ICICI BANK. THE ASSESSEE CLAIMED THAT THE PAYMENT S THROUGH CREDIT CARD WERE IN RESPECT OF PURCHASE OF PROVISIONAL ITEMS IN WHICH HE DEALS IN. HE CLAIMED THAT OUT OF TOTAL PAYMENT OF RS.41,99,552/ - , RS.28,78,800/ - WAS IN RESPECT OF HIS BUSINESS PURCHASES AND RS. 13,20,752/ - WAS IN RESPECT ITA NOS. 475 & 569 /AHD/20 1 3 (ASSESSEE & REVENUE) SHRI ANANT VALLAVDAS MEHTA - AY 200 8 - 0 9 - 7 - OF PURCHASES MA DE BY HIS WIFE. HE CONTENDED THAT HIS TURNOVER WAS RS.30,04,000/ - AND THE TURNOVER OF HIS WIFE WAS RS. 13,73,600/ - . 9. ACCORDING TO THE ASSESSING OFFICER, THE ASSESSEE HAS NOT PRODUCED ANY EVIDENCE TO SHOW THAT PAYMENTS FROM CREDIT CARD WERE MADE FOR PURC HASE OF TRADING GOODS AND THEREFORE, HE ADDED ENTIRE RS.41,99,552/ - TO THE INCOME OF THE ASSESSEE U/S 69C OF THE ACT BY TREATING THE ENTIRE PAYMENT AS UNEXPLAINED EXPENDITURE. 10. ON APPEAL, CIT(A) FOUND THAT THE ASSESSEE HAD MADE PAYMENT THROUGH FIVE MO RE CREDIT CARDS DURING THE YEAR. THE TOTAL PAYMENTS MADE THROUGH CREDIT CARDS WERE RS.84,18,580/ - . HE, THEREFORE, ESTIMATED THE TURNOVER OF THE ASSESSEE AT RS.90,00,000/ - AND ESTIMATED INCOME THERE FROM AT RS.4,50,000/ - @ 5%. THE CIT(A), ALLOWING CREDIT FOR RS.1,50,200/ - DECLARED AS BUSINESS INCOME IN THE RETURN, CONFIRMED THE ADDITION OF BUSINESS INCOME TO THE EXTENT OF RS.2,99,800/ - . THE CIT(A) FURTHER OBSERVED FROM ICICI BANK BOOK, ICICI BANK CREDIT CARD ACCOUNT AND CASH BOOK PRODUCED BEFORE HIM THAT THE PEAK DEPOSIT WAS RS.5,26,869/ - ON 19.11.2007 . IN ABSENCE OF ANY COGENT EXPLANATION ABOUT THE SOURCE OF INVESTMENT OF RS.5,26,869/ - HE CONFIRMED ADDITION TO THE EXTENT OF RS.5,26,869/ - ALSO. THUS, THE CIT(A) CONFIRMED ADDITION TO THE EXTENT OF RS.8,26, 669/ - OUT OF RS. 41,99,552/ - AND DELETED THE BALANCE ADDITION OF RS.33,72,883/ - . 11. BEING AGGRIEVED BY THE ABOVE ORDER OF THE CIT(A) , BOTH THE PARTIES ARE IN APPEAL BEFORE US. 12. THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE CONTENDED BEFORE US THAT T HE CIT(A) WAS NOT JUSTIFIED IN ESTIMATING ASSESSEES ITA NOS. 475 & 569 /AHD/20 1 3 (ASSESSEE & REVENUE) SHRI ANANT VALLAVDAS MEHTA - AY 200 8 - 0 9 - 8 - TURNOVER AT RS.90,00,000/ - WHEN THE TOTAL PAYMENT MADE WAS FOUND AT RS.84,18,580/ - . WE FIND THAT IT IS NOT IN DISPUTE THAT PAYMENT OF RS.84,18,580/ - WAS MADE FOR PURCHASE OF TRADING GOODS. THE AUTHORIZ ED REPRESENTATIVE OF THE ASSESSEE COULD NOT BRING ANY MATERIAL BEFORE US TO SHOW THAT ANY TRADING GOODS SO PURCHASED REMAINED UNSOLD AT THE END OF THE RELEVANT YEAR. THE ASSESSEES TURNOVER ALSO INCLUDES THE BUSINESS EXPENDITURE AND PROFIT OF THE ASSESSEE, BESIDES THE PURCHASES. THE ASSESSEE WAS NOT ABLE TO BRING ANY MATERIAL BEFORE US TO SHOW THE AMOUNT OF ITS OTHER BUSINESS EXPENSES AND THE AMOUNT OF GROSS PROFIT EARNED BY IT. THUS, WE FIND NO INFIRMITY IN THE ORDER OF THE CIT(A) IN ESTIMATING ASSESSEES TURNOVER AT RS.90,00,000/ - WHICH WAS MOST REASONABLE IN THE FACTS AND CIRCUMSTANCES OF THE CASE. THE CONTENTION OF THE ASSESSEE THAT PURCHASES OF RS.13,73,600/ - WAS SHOWN BY HIS WIFE IN HER RETURN OF INCOME MERITS NO INTERFERENCE WITH THE FINDING OF THE CI T(A) AS THE ASSESSEE MISERABLY FAILED TO BRING ON RECORD ANY MATERIAL TO SHOW THAT PAYMENTS WERE MADE FROM HIS CREDIT CARD IN RESPECT OF PURCHASES MADE BY HIS WIFE AND IN ABSENCE OF ANY MATERIAL TO SHOW HOW AND WHEN SUCH REPAYMENTS WERE MADE BY HIS WIFE TO HIM. 13. FURTHER, WE FIND THAT THE ASSESSEE HAS BROUGHT NO MATERIAL BEFORE US TO SHOW THAT THERE WAS ANY ERROR IN THE FINDING OF THE CIT(A) THAT THE ASSESSEE MADE PEAK DEPOSIT OF RS.5,26,869/ - ON 19.11.2007. FURTHER, THE ASSESSEE HAS BROUGHT NO MATERIA L TO EXPLAIN THE SOURCE OF THE SAID PEAK DEPOSIT. WE, THEREFORE, DO NOT FIND ANY MERIT IN THE APPEAL OF THE ASSESSEE AND ACCORDINGLY, THE SAME IS DISMISSED. 14. IN RESPECT OF REVENUES APPEAL, THE CONTENTION OF THE DEPARTMENTAL REPRESENTATIVE IS THAT THE ASSESSING OFFICER WAS ITA NOS. 475 & 569 /AHD/20 1 3 (ASSESSEE & REVENUE) SHRI ANANT VALLAVDAS MEHTA - AY 200 8 - 0 9 - 9 - JUSTIFIED IN MAKING ADDITION OF RS.41,99,552/ - AS THE ASSESSEE HAS BROUGHT NO MATERIAL TO SHOW THAT PAYMENTS WERE MADE THROUGH CREDIT CARD FOR PURCHASE OF TRADING GOODS. 15. THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE IN REPLY SU BMITTED THAT SIMILAR PAYMENTS FROM THE CREDIT CARD MADE BY THE ASSESSEE IN THE SUBSEQUENT ASSESSMENT YEAR 2010 - 11 W ERE ACCEPTED BY THE REVENUE AS BEING MADE FOR PURCHASE OF TRADING GOODS. 16. WE FIND THAT NO MATERIAL WAS BROUGHT ON RECORD BY THE REVENUE AFTER MAKING NECESSARY ENQUIRIES TO SHOW THAT PAYMENTS FROM CREDIT CARD WAS NOT MADE FOR PURCHASE OF TRADING GOODS, BUT WAS MADE FOR ANY PERSONAL EXPENSES CANNOT BE BRUSHED ASIDE SIMPLY ON THE BASIS OF SURMISES AND CONJECTURES AND WITHOUT BRINGING ON RECOR D MATERIAL TO CONTROVERT THE EXPLANATION OF THE ASSESSEE. IN ABSENCE OF ANY MATERIAL BROUGHT BEFORE US TO SHOW THAT THE EXPLANATION OF THE ASSESSEE WAS NOT PLAUSIBLE, WE FIND NO GOOD REASON TO INTERFERE WITH THE ORDER OF THE CIT(A). THEREFORE, THE APPEAL OF THE REVENUE ALSO STANDS DISMISSED. 17. IN THE RESULT, BOTH THE APPEALS ARE DISMISSED. ORDER PRONOUNCED IN THE COURT ON FRIDAY , THE 9 TH OF JANUARY , 201 5 AT AHMEDABAD. SD/ - SD/ - ( SHAILENDRA KUMAR YADAV ) JUDICIAL MEMBE R ( N.S. SAINI) ACCOUNTANT MEMBER AHMEDABAD; DATED 09 / 01 /201 5 * BIJU T , PS ITA NOS. 475 & 569 /AHD/20 1 3 (ASSESSEE & REVENUE) SHRI ANANT VALLAVDAS MEHTA - AY 200 8 - 0 9 - 10 - / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) - XI, AHMEDABAD 5. , , / DR, ITAT, AHMEDABAD 6. [ / GUARD FILE . / BY ORDER, //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD