Sh. Niranjan Kumar Jain, Muzaffarnagar V. ITO, Muzaffarnagar

ITA 5996/DEL/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 77799 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 7 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-07-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 11-06-2014
• Assessment Year: 2005-2006
• Appeal Filed On: 03-12-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: AMAL GARG
• Keywords: Unexplained investment
• Section: 69; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC NEW DELHI BEFORE SHRI S.V. MEHROTRA : ACCOUNTANT MEMBER ITA NO. 5996/DEL/2012 ASSTT. YR: 2005-06 NIRANJAN KUMAR JAIN VS. INCOME-TAX OFFICER, S/0 SH. MADHO RAM, 464/104, WARD 1(1), MUZAFFARN AGAR. SUMAN VIHAR, MUZAFFARNAGAR. PAN: AMFPK 9993 F ( APPELLANT ) ( RESPONDENT ) APPELLANT BY : SHRI ANKIT GUPTA ADV. RESPONDENT BY : SHRI AMAL GARG SR. DR. DATE OF HEARING : 12-06-2014 DATE OF ORDER : 11-07-2014. O R D E R PER S.V. MEHROTRA, A.M: : THIS APPEAL, BY THE ASSESSEE, IS DIRECTED AGAINST T HE ORDER DATED 29-8- 2012 PASSED BY THE LD. CIT(A), MUZAFFARNAGAR IN APP EAL NO. 08/12-13, RELATING TO A.Y. 2005-06. 2. BRIEF FACTS OF THE CASE ARE THAT NOTICE U/S 148 WAS ISSUED ON THE BASIS OF INFORMATION WITH THE AO THAT THE ASSESSEE HAD M ADE A DEPOSIT OF RS. 3 LACS WITH SH. AMIT SINGHAL PROP. M/S JKM STEELS, PA TEL NAGAR, MUZAFFARNAGAR, WHICH WAS NOT APPARENTLY EXPLAINED F ROM THE CAPITAL ACCOUNT. IN THE REASONS RECORDED, THE ASSESSING OF FICER HAS OBSERVED THAT THE ASSESSEE FILED A REPLY ON 30-3-2010 ALONG WITH A CO PY OF HIS ACCOUNT IN THE BOOKS OF M/S JKM STEELS AND COPY OF BANK A/C WITH C ENTRAL BANK OF INDIA, NAI MANDI, MUZAFFARNAGAR. THE BANK A/C SHOWED DEPOS IT OF RS. 3 LACS IN 2 CASH ON 21-12-2004 AND A CHEQUE OF RS. 3 LACS WAS I SSUED ON THE SAME DAY. THE ASSESSING OFFICER AFTER CONSIDERING THE ASSESSE ES DETAILED SUBMISSIONS, IN WHICH ASSESSEE HAD, INTER ALIA, POINTED OUT THAT HE HAD HIMSELF DISCLOSED INTEREST INCOME FROM M/S JKM STEELS OF RS. 8219/- A ND HAD ALSO CLAIMED TDS OF RS. 838/-, MADE THE ADDITION AS UNDER: INCOME OFFERED VIDE REPLY DT. 14-10-2010 RS. 8,21 9 UNEXPLAINED DEPOSIT U/S 69 ON A/C OF UNEXPLAINED CASH DEPOSIT IN BANK RS. 3,00,000 2.1. AGGRIEVED, ASSESSEE PREFERRED APPEAL BEFORE LD . CIT(A) WHO CONFIRMED THE ADDITION OF RS. 25,382/- AND AGREED T HAT PRIMA FACIE THE AMOUNT OF RS. 2 LACS WAS UNEXPLAINED IN THE HANDS O F ASSESSEE FOR THE RELEVANT ACCOUNTING PERIOD 2005-06. THUS, THE ASSES SING OFFICER WAS DIRECTED TO TAKE A REMEDIAL ACTION IN CASE OF ASSESSEE FOR A .Y. 2006-07. 2.2. THE ASSESSING OFFICER LEVIED A PENALTY OF RS. 33,330/- APROPOS THE ADDITION OF RS. 25,382/- CONFIRMED BY LD. CIT(A). 2.3. LD. CIT(A) AFTER CONSIDERING THE FACTS OF THE CASE RESTRICTED THE PENALTY TO 100%, INTER ALIA, OBSERVING THAT THE ASS ESSEE HAD FAILED TO ADDUCE ANY SATISFACTORY EXPLANATION IN REBUTTAL OF THE PRE SUMPTION THAT UNEXPLAINED INVESTMENT OF RS. 25,382/- REPRESENTED HIS UNEXPLAI NED MONEY. 3. I HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PA RTIES AND HAVE PERUSED THE RECORD OF THE CASE. THE ASSESSEE HAD FI LED ITS RETURN OF INCOME DECLARING INCOME OF RS. 79,969/- AND ADMITTED THAT THERE WAS MISTAKE OF NOT INCLUDING THE INTEREST INCOME FROM M/S JKM STEELS I N COURSE OF ASSESSMENT PROCEEDINGS ONLY OF RS. 8219/- AND ACCORDINGLY ADDI TION OF RS. 8219/- WAS MADE. AS REGARDS THE DEPOSIT OF RS. 3 LACS WITH M/S JKM STEELS, THE ASSESSEE HAD FILED DETAILED CHART OF CAPITAL A/C, WHICH HAS BEEN REPRODUCED AT PAGES 5 & 6 OF ASSESSMENT ORDER, IN WHICH THE CLOSING CAPIT AL FOR A.Y. 2005-06 HAS 3 BEEN SHOWN AT RS. 3,00,242/-, WHICH INCLUDED THE RE VISED RETURN OF RS. 88,188/-. 3.1. THE ASSESSING OFFICER DID NOT ACCEPT THE ASSES SEES CONTENTION BECAUSE HE NOTICED THAT THE ACCOUNT WAS OPENED WITH CENTRAL BANK OF INDIA, NAI MANDI, MUZAFFARNAGAR ON 17-6-2004 WITH DEPOSIT OF R S. 5,000/- AND AFTER A GAP OF SIX MONTHS A SUM OF RS. 3 LACS IN CASH WAS D EPOSITED IN THE ACCOUNT AND CHEQUE FOR THE SUM OF RS. 3 LACS OF M/S JKM STE ELS WAS ISSUED ON THE SAME DATE. HE POINTED OUT THAT NO WITHDRAWAL WAS MA DE FROM THE ACCOUNT TILL 20-1-2006 BUT STILL A SUM OF RS. 2 LACS IN CASH WAS DEPOSITED IN THE BANK ACCOUNT. 3.2. LD. CIT(A) AFTER CONSIDERING THE DETAILS OF TH E CAPITAL ACCOUNT, FILED BY THE ASSESSEE, HAS POINTED OUT THAT TO THE EXTENT OF RS. 25,382/- THERE WAS NO DETAIL, EVEN AFTER GIVING OF MAXIMUM POSSIBLE BE NEFIT OF SUCH ACCUMULATION. 3.3. THE ASSESSEE HAS NOT BEEN ABLE TO REBUT THE FI NDINGS OF LD. CIT(A). THE ASSESSEE HAS NO EXPLANATION FOR EXCESS DEPOSIT OF RS. 25,382/-. I, THEREFORE, CONFIRM THE ORDER OF LD. CIT(A). 4. IN THE RESULT ASSESSEES APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 11-07-2014. SD/- ( S.V. MEHROTRA ) ACCOUNTANT MEMBER DATED: 11-07-2014. MP COPY TO : 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR. 4