ACIT, CHENNAI V. Jaya Balasubramanian, CHENNAI

ITA 580/CHNY/2013

• Counselvise Citation: 58021714 RSA 2013
• Duration Of Justice: 2 year(s) 1 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-05-2015
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 13-05-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 04-04-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: DR NISCHAL
• Assessee Lawyers: VIKRAM VIJAYARAGHAVAN
• Keywords: Unexplained cash credit

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI , ! ' # , $ %& BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER ./ ITA NO. 580/MDS/2013 / ASSESSMENT YEAR : 2008-09 THE ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE-XV, CHENNAI - 34. APPELLANT) V. SMT. JAYA BALASUBRAMANIAN, Y-58, 8 TH STREET, Y BLOCK, ANNA NAGAR, CHENNAI 40. PAN AAFPB9336B RESPONDENT) / APPELLANT BY : DR. NISCHAL, JCIT / RESPONDENT BY : SHRI VIKRAM VIJAYARAGHAVAN, ADVOCAT E ! / DATE OF HEARING : 13.05.2015 '# ! / DATE OF PRONOUNCEMENT: 29.05.2015 ' / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS) DATED 27 .12.2012. - - ITA 580 /13 2 2. THE GRIEVANCE OF THE REVENUE IS WITH REGARD TO DELETION OF ADDITION MADE ON ACCOUNT OF CASH DEPOSIT OF ` 20 LAKHS AND UNEXPLAINED CASH CREDIT OF ` 36 LAKHS. 3. THE ASSESSING OFFICER NOTICED THAT THERE WERE C ASH DEPOSITS OF ` 21,79,325/- IN ASSESSEES ACCOUNT WITH INDIAN BANK , MANDAVELIPAKKAM, CHENNAI BRANCH. REGARDING THE SOU RCES, THE ASSESSEE EXPLAINED THAT A SUM OF ` 15,00,000/- WAS RECEIVED FROM HER BROTHER TOWARDS THE PROPOSED SALE OF THE PRESEN T BUSINESS AND A SUM OF ` 5,50,000/- WAS THE AMOUNT WITHDRAWN BY THE ASSESSE E FROM HER CAPITAL ACCOUNT OF THE BUSINESS. THE AO F OUND THAT THE EXPLANATION OFFERED BY THE ASSESSEE IS NOT SATISFAC TORY AND HE MADE AN ADDITION OF ` 20 LAKHS AS UNEXPLAINED CASH DEPOSIT. HOWEVER, ON APPEAL, THE COMMISSIONER(APPEALS) DELET ED THE ADDITION OBSERVING THAT THE SAID AMOUNT OF ` 15 LAKHS HAS BEEN RECEIVED BY THE ASSESSEE FROM MR. C.D.MEYAPPAN, WHO WAS CONFIRMED THE PAYMENT. ANOTHER AMOUNT OF ` 5,50,000/- WAS THE CASH WITHDRAWAL FROM THE PROPRIETARY CONCERN, M/S. SUPREME CATERING AND HOUSE KEEPING SERVICES ON 9.3.2008, WH ICH WAS USED FOR MAKING A DEPOSIT OF ` 5,50,000/- ON 10.3.2008 INTO SB - - ITA 580 /13 3 ACCOUNT OF INDIAN BANK. ACCORDINGLY, HE DELETED TH E ADDITION. AGAINST THIS, REVENUE IS IN APPEAL BEFORE US. 4. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MA TERIAL ON RECORD. THE INFORMATION FURNISHED BY THE ASSES SEE BEFORE THE COMMISSIONER(APPEALS) ON THE BASIS OF WHICH HE DELE TED THE ADDITION, WAS NOT PRODUCED BEFORE THE AO. IN VIEW OF THIS, WE ARE OF THE OPINION THAT THE ISSUE REQUIRES TO BE RE-EXA MINED AT THE END OF THE AO. ACCORDINGLY, WE REMIT THE ISSUE BACK TO THE FILE OF THE AO FOR RE-CONSIDERATION. 5. REGARDING THE ADDITION OF ` 36 LAKHS, THE FACTS ARE THAT THE ASSESSING OFFICER NOTICED THAT THERE WERE CREDITS O F ` 30 LAKHS AND ` 6 LAKHS IN THE SB ACCOUNT NO.458699541 OF INDIAN B ANK. THE ASSESSEE EXPLAINED THAT THESE WERE THE LOANS RECEIV ED FROM M/S. PARAMOUNT GROUP P. LTD. AND FURNISHED A CONFIRMATIO N LETTER FROM THE COMPANY. THE AO DID NOT ACCEPT THE CONTENTION OF THE ASSESSEE ON THE GROUND THAT THE ASSESSEE FAILED TO PRODUCE THE AUDITED ACCOUNTS AND TREATED THE SAME AS UNACCOUNTE D INCOME U/S.69 OF THE ACT. 6. HOWEVER, ON APPEAL, THE ASSESSEE SUBMITTED THAT SHE HAD AVAILED LOANS OF ` 36 LAKHS FROM M/S. PARAMOUNT GROUP P. - - ITA 580 /13 4 LTD. DURING THE FINANCIAL YEAR 2007-08 AND ALSO REP AID AN AMOUNT OF ` 16,50,000/- ON 7.9.2007, LEAVING A CLOSING BALANCE OF ` 19,80,000/- AT THE END OF THE FINANCIAL YEAR 2007- 08. THE CIT(A) OBSERVED THAT THE SAVINGS BANK ACCOUNT NO.458699541 IS IN INDIAN BANK IS THE PERSONAL BANK ACCOUNT OF SMT. JA YA BALASUBRAMANIAN(ASSESSEE). THIS ACCOUNT IS NOT PAR T OF THE BUSINESS AFFAIRS AND HENCE NOT FOUND IN THE BALANCE SHEET OF THE ASSESSEES PROPRIETARY CONCERN, M/S. SUPREME CATERI NG AND HOUSE KEEPING SERVICES. ACCORDING TO HIM, THE AMO UNT OF ` 36 LAKHS WAS ISSUED BY CHEQUES AND IT IS PROPERLY EXPL AINED BY THE ASSESSEE. HENCE, HE DELETED THE ADDITION. 7. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MA TERIAL ON RECORD. IT IS TO BE SEEN THAT BEFORE THE CIT(A ), THE ASSESSEE HAS FILED AUDITED BALANCE SHEET OF THE COMPANY M/S. PARAMOUNT GROUP P. LTD., WHICH WAS NOT FURNISHED BEFORE THE A O AT THE TIME OF ASSESSMENT. BEING SO, IN ALL FAIRNESS, THE ISSU E REQUIRES RE- EXAMINATION AT THE END OF THE A.O. ACCORDINGLY, WE REMIT THIS ISSUE ALSO BACK TO THE FILE OF THE AO FOR FRESH CON SIDERATION. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE I S PARTLY ALLOWED. - - ITA 580 /13 5 ORDER PRONOUNCED ON FRIDAY, THE 29 TH OF MAY, 2015 AT CHENNAI. SD/- SD/- ( $% &'( ) ) ( $ ( * + ) ,-.//.0.12345.65.7.48 ,-.345.699:.5 ;8 ' )< /JUDICIAL MEMBER ! )<=>>9?3@.3@A2BC25 $' /CHENNAI, D) /DATED, THE 29 MAY, 2015. MPO* )E FGHG /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. I8 /CIT(A) 4. I /CIT 5. GJ& K /DR 6. &LM /GF.