Samiran Nandi, Bhubaneswar V. ITO, Ward-1(4), Bhubaneswar

ITA 60/CTK/2017

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 3783 (ITAT-CUTTACK)
• Duration Of Justice: 3 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-05-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 21-02-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: D K PRADHAN
• Assessee Lawyers: B K MOHAPATRA
• Keywords: Salary income; Source of fund

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK SMC BENCH, CUTTACK BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER ITA NO. 60/CTK/2017 ASSESSMENT YEAR : 2011 - 2012 SAMIRAN N ANDI, CIFA, KAUSALYAGANG, BHUBANESWAR. VS. ITO, WARD 1(4), CUTTACK PAN/GIR NO. AAMPN 9194 N (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI B.K.MOHAPATRA, AR REVENUE BY : SHRI D.K.PRADHAN, DR DATE OF HEARING : 24 /05/ 2017 DATE OF PRONOUNCEMENT : 26 /0 5 /2017 O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - 2, BHUBANESWAR , DATED 30 TH NOVEMBER, 2016 , FOR THE ASSESSMENT YEAR 2011 - 12 . 2. GROUND NOS. 1 & 6 ARE GENERAL IN NATURE AND HENCE, REQUIRES NO SEPARATE ADJUDICATION BY ME. 3. IN GROUND NO S .2 , 3 & 4 & 5 OF THE APPEAL, THE GRIEVANCE OF THE ASSESSEE IS THAT THE LD CIT(A) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER MAKING ADDITION OF RS.1,24,844/ - ON ACCOUNT OF ACCRUED 2 ITA NO. 60/CTK/2017 ASSESSMENT YEAR :2011 - 2012 INTEREST FROM 30 NOS OF FDR DEPOSITED EARLIER BY HIS WIFE ARCHANA NANDI AND RENEWED FROM TIME TO TIME. 4. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF LOWER AUTHORITIES AND MATERIALS AVAILABLE ON RECORD. THE UNDISPUTED FACTS OF T HE CASE ARE THAT THE ASSESSING OFFICER OBSERVED THAT THE ASSESSEE JOINTLY WITH HIS WIFE IS MAINTAINING A SAVING BANK ACCOUNT FROM WHIC H VARIOUS FIXED DEPOSITS HAVE BEE N MADE ON WHICH INTEREST OF R S. 1,44,292/ - HAS ACCRUED. THE ASSESSING O FFICER FU RTHER NOTICED THAT THE ASSESSEE HAS CREDITED INTEREST OF RS. 19,448/ - IN HIS OWN NAME, INTEREST OF RS. 1,24,844/ - IN THE NAME OF HIS WIFE AND I NTEREST OF RS. 5,009/ - IN THE NAME OF HIS SON. BEFORE THE ASSESSING OFFICER, THE ASSESSEE ADMITTED THAT THE SOURCE OF THE FIXED DEPOSITS WERE HIS SALARY INCOME EVEN THOUGH SOME OF THE FIXED DEPOSITS WERE IN THE NAME OF HIS WIFE AND SON. THE A SSESSING O F FICER FURTHER OBSERVED THAT AT THE BEHEST OF H IS REPRESENTATIVE, THE ASSESSEE RETRACTED HIS EARLIER ADMISSION AND STATED THAT THE SOURCE OF FUND OF FIXED DEPOSITS IN THE NAME O F SPOUSE IS HER OWN INCOME. THE ASSESSING O FFICER REQUIRED THE ASSESSEE TO SUPPORT HIS CASE WITH EVIDENCE. EVEN THOUGH THE ASSESSING O FFICER GAVE SEVERAL OPPORTUNITIES FOR THIS PURPOSE, THE ASSESSEE COULD NOT SUBSTANTIATE THAT THE SOURCE OF FIXED DEPOSITS IN THE NAME OF HIS WIFE WERE OUT OF HER OWN INCOME. NO DETAILS REGARDIN G SOURCE OF INCOME OF MINOR SON WERE PRODUCED. THEREFORE, THE ASSESSING O FFICER HELD T HAT INTEREST OF RS. 1,24,844 / - WAS INCOME OF THE ASSESSEE AND ADDED THE SAME TO THE INCOME OF THE ASSESSEE. 3 ITA NO. 60/CTK/2017 ASSESSMENT YEAR :2011 - 2012 5. ON APPEAL BEFORE THE CIT(A), THE ASSESSEE REITERATED THE SUBMISSIONS MADE BEFORE THE ASSESSING OFFICER. THE ASSESSEE SUBMITTED THAT MRS ARCHANA NANDI WAS A SCHOOL TEACHER AND CLAIMED TO HAVE FILED COPY OF CERTIFICATE ISSUED BY THE SCHOOL AS PER ANNEXURE TO WRITTEN SUBMISSION DATED 30.11.2 016. 6. THE CIT(A) OBSE RVED THAT T HE ANNEXURE TWO HAS FIVE PAGES. PAGE ONE AND TWO ARE THE MARK SHEETS ISSUED BY UNIVERSITY OF BURDWAN. PAGE - 3 IS D A T E D.29.01.1993, IS A LETTER ISSUED BY ONE SCHOOL IN HOOGHLY TO APPEAR FOR INTERVIEW AS A TEACHER IN SCHOOL. PAGE - 4 IS D A T E D.03.04. 1991 ISSUED BY SURI MUNICIPAL GIRLS HIGH SCHOOL IN WHICH IT IS STATED THAT SHE H AS WORKED AS MATHEMATICS TEACHER FROM 06.07.1990 TO 31.03.1991. PAGE - 5 IS D A T E D.03.08.1992 ISSUED BY SURABHISTHAN BHUBAN MOHINI GIRLS HIGH SCHOOL, NADIA IN WHICH IT IS STATED T HAT THE MRS NANDI WAS APPOINTED ON DEPUTATION VACANCY UP TO 15.05.1993. 6.1 ON PERUSAL THESE DOCUMENTS, THE CIT(A) OBSERVED THAT MRS ARCHANA NANDI WORKED AS TEACHER WAY BACK IN 1993. HE OBSERVED THAT THE ASSESSEE SUBMITTED BEFORE HIM INCOME EARNED OU T OF AGRICULTURAL LAND INHERITED BY MRS ARCHANA NANDI AND PIN MONEY HAS BEEN INVESTED IN TAKING OUT THE FIXED DEPOSITS. 7. THEREFORE, THE CIT(A) HELD THAT DURING THE C OURSE OF THE APPEAL PROCEEDINGS, THE ASSESSEE COULD NOT FILE ANY EVIDENCE WHATSOEVER IN SUPPORT OF EARNING OF INCOME BY MRS ARCHANA NANDI. THE DETAILS FILED DURING THE COU RSE OF THE APPEAL PROCEEDINGS DID NOT SHOW THAT MRS ARCHANA NANDI 4 ITA NO. 60/CTK/2017 ASSESSMENT YEAR :2011 - 2012 HAD SEPARATE AND INDEPENDENT SO URCE OF EARNING. THE INTEREST ON FIXED DEPOSITS IS OF RS. 1,44,292/ - . IF THE RATE OF INTEREST IS TAKEN AS 8%, IT TRANSLATES INTO FIXED DEPOSITS OF NEARLY RS. 18 LACS. MRS ARCHANA NANDI DOES NOT FILE ANY RETURN OF INCOME SHOWING INTEREST INCOME AND AGRICULTUR AL INCOME. IN VIEW OF THE ABOVE , IT WAS HE LD THAT INTEREST OF RS. 1,24,844 / - IS UND ISCLOSED INCOME OF THE ASSESSEE . ACCORDINGLY, THE ADDITION MADE BY THE ASSESS ING OFFICER OF RS. 1,24,844 / - WAS UPHELD . 8. BEFORE ME, LD A.R. OF THE ASSESSEE REITERATED THE SUBMISSIONS MADE BEFORE THE LOWE R AUTHORITIES. 9. LD D.R. RELIED ON THE ORDERS OF LOWER AUTHORITIES. 10. I FIND THAT THE ASSESSEE CLAIMED THA T INTEREST INCOME OF RS.1,19,835 / - BELONGED TO HIS WIFE MRS ARCHANA NANDI IN WHOSE NAME FDRS WERE TAKEN AND THAT INTEREST INCOME OF RS.5,009/ - BELO NGED TO HIS SON IN WHOSE NAME FDRS WERE TAKEN. THE ASSESSING OFFICER REQUIRED THE ASSESSEE TO EXPLAIN THE SOURCE OF INCOME OF HIS WIFE AND SON FOR ACQUIRING THE FDS. BEFORE THE ASSESSING OFFICER, NO DETAILS OR EVIDENCES COULD BE FILED. BEFORE THE CIT(A) , THE ASSESSEE FILED WRITTEN SUBMISSIONS. THE CIT(A) HAS ANALYSED THE WRITTEN SUBMISSION AND OBSERVED THAT THAT T HE ANNEXURE TWO HAS FIVE PAGES. PAGE ONE AND TWO ARE THE MARK SHEETS ISSUED BY UNIVERSITY OF BURDWAN. PAGE - 3 IS D A T E D.29.01.1993, IS A LETTER ISSUED BY ONE SCHOOL IN HOOGHLY TO APPEAR FOR INTERVIEW AS A TEACHER IN SCHOOL. PAGE - 4 IS D A T E D.03.04.1991 ISSUED BY SURI MUNICIPAL GIRLS HIGH SCHOOL IN WHICH IT IS STATED THAT SHE WAS WORKED AS MATHEMATICS TEACHER FROM 06.07.1990 TO 5 ITA NO. 60/CTK/2017 ASSESSMENT YEAR :2011 - 2012 31.03.1991. PAGE - 5 IS D A T E D.03.08.1992 ISSUED BY SURABHISTHAN BHUBAN MOHINI GIRLS HIGH SCHOOL, NADIA IN WHICH IT IS STATED THAT THE MRS NANDI WAS APPOINTED ON DEPUTATION VACANCY UP TO 15.05.1993. ON PERUSAL THESE DOCUMENTS, THE CIT(A) OBSERVED THAT MRS ARCHANA NANDI WORKED A S TEACHER WAY BACK IN 1993. HE OBSERVED THAT THE ASSESSEE SUBMITTED BEFORE HIM INCOME EARNED OUT OF AGRICULTURAL LAND INHERITED BY MRS ARCHANA NANDI AND PIN MONEY HAS BEEN INVESTED IN TAKING OUT THE FIXED DEPOSITS. THUS, BEFORE THE CIT(A) ALSO THE ASSESS EE COULD NOT SUBSTANTIATE WITH EVIDENCE THAT THE FD RS IN THE NAME OF WIFE MRS ARCHANA NANDI AND HIS SON WA S ACQUIRED OUT OF INCOME OF MRS ARCHANA NANDI . THUS, THE FINDINGS OF THE ASSESSING OFFICER THAT THE FD R S IN THE NAMES OF THE WIFE AND SON OF THE ASS ESSEE WERE ACQUIRED OUT OF SALARY INCOME OF THE ASSESSEE COULD NOT CONTROVERTED. BEFORE ME ALSO, NO MATERIAL COULD BE FILED TO CONTROVERT THE FINDINGS OF THE LOWER AUTHORITIES. HENCE, I DO NOT FIND ANY GOOD AND JUSTIFIABLE REASON TO INTERFERE W ITH THE ORDER OF THE CIT(A), WHICH IS HEREBY CONFIRMED AND DISMISS THE GROUND OF APPEAL OF THE ASSESSEE. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON 26 /05/2017 IN THE PRESENCE OF PARTIES. SD/ - ( N.S SAINI) A CCOUNTANT MEMBER CUTTACK; DATED 26 /05/2017 B.K.PARIDA, SPS 6 ITA NO. 60/CTK/2017 ASSESSMENT YEAR :2011 - 2012 COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PRIVATE SECRETARY ITAT, CUTTACK 1. THE APPELLANT : SAMIRAN NANDI, CIFA, KAUSALYAGANG, BHUBANESWAR. 2. THE RESPONDENT. ITO, WARD 1(4), CUTTACK 3. THE CIT(A) - 2, BHUBANESWAR 4. PR.CIT - 2, BHUBANESWAR. 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY// 7 ITA NO. 60/CTK/2017 ASSESSMENT YEAR :2011 - 2012 DATE INITIAL 1. DRAFT DICTATED ON 24 /05 /17 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 24 /05 /17 (DICTATION PAD HAS BEEN ENCLOSED ALONG WITH ORIGINAL FILE) SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS/ PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. FILE SENT TO THE BENCH CLERK SR.PS 8. DATE ON WHICH FILE GOES TO THE H.C. 9. DATE ON WHICH FILE GOES TO THE SPS 10. DATE OF DISPATCH OF ORDER.