The Income-tax Officer, UDHAMPUR V. Smt. Usha Kiran Prop, UDHAMPUR

ITA 603/ASR/2011

• Counselvise Citation: 60320914 RSA 2011
• Duration Of Justice: 5 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-05-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 12-12-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: PREM NATH ARORA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. H.S. SIDHU, JUDICIAL MEMBER AND SH. B.P.JAIN, ACCOUNTANT MEMBER I.T.A. NO.603(ASR)/2011 ASSESSMENT YEAR:2006-07 PAN:AACZPK7346L THE INCOME TAX OFFICER, VS. SMT. USHA KIRAN PROP. UDHAMPUR. M/S. HOTEL CHANAKYA, UDHAMPUR. (APPELLANT) (RESPONDENT) APPELLANT BY:SH. TARSEM LAL, DR RESPONDENT BY:SH. PREM NATH ARORA, ADV DATE OF HEARING :15/05/2012 DATE OF PRONOUNCEMENT:28/05/2012 ORDER PER BENCH: THIS APPEAL OF THE REVENUE ARISES FROM THE ORDER OF THE CIT(A), JAMMU, DATED 21.09.2011 FOR THE ASSESSMENT YEAR 200 6-07 2. THE ONLY EFFECTIVE GROUND RAISED BY THE REVENUE READS AS UNDER: 1. ON THE FACTS AND CIRCUMSTANCES WHETHER THE LD. CIT(A) WAS RIGHT IN DELETING THE ADDITION BY APPLYING GP. RATE WHEN THE UNACCOUNTED DEPOSITS IN THE BANK ARE RECEIPTS OTHER THAN SALES TURNOVER. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E HAD DECLARED AN INCOME OF RS.2,08,680/- FROM RECEIPTS FROM THE BUS INESS OF RUNNING A HOTEL AND BAR. THE SAID RECEIPTS WERE DECLARED AT RS.20,8 6,773/- WHEREAS THE TOTAL ITA NO..603(ASR)/2011 2 DEPOSITS MADE IN THE BANK ACCOUNT AS OBSERVED BY TH E AO WERE TO THE TUNE OF RS.38,72,059/-. THE ASSESSEE SUBMITTED THE EXPLA NATION THAT THE IMPUGNED WITHDRAWALS HAVE BEEN RE-DEPOSITED ON VARIOUS DATE S AND THE DETAILS WERE SUBMITTED, WHICH ARE AVAILABLE ON RECORD. THE AO DI D NOT ACCEPT THE EXPLANATION OF THE ASSESSEE AND ADDED RS.15,85,773/ - TO THE INCOME OF THE ASSESSEE. DURING THE APPELLATE PROCEEDINGS, THE ASS ESSEE FILED WRITTEN SUBMISSIONS ALONGWITH DETAILS OF ENTRIES IN THE CAS H CREDIT ACCOUNT WITH UCO BANK, UDHAMPUR, WHICH WERE SENT TO THE A.O. THE REP ORT OF THE AO WAS RECEIVED WHICH IS AVAILABLE AT PARA 3.4 OF CIT(A)S ORDER. THE LD. CIT(A) BY TAKING INTO CONSIDERATION THE REMAND REPORT OF T HE AO AND THE EXPLANATION OF THE ASSESSEE SUBMITTED BEFORE THE AO IN THE ASSESSMENT PROCEEDINGS AND REMAND PROCEEDINGS DELETED THE ADD ITION VIDE PARA 4.3 BY SUSTAINING THE ADDITION OF RS.3,44,294/-. 4. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE FACTS OF THE CASE. THE EXPLANATION OF THE ASSESSEE DURING THE ASSESSME NT PROCEEDINGS AND THE REMAND PROCEEDINGS WAS THAT CASH HAS BEEN DEPOSITE D OUT OF WITHDRAWALS MADE FROM THE BANK, WHICH ARE MATTER OF RECORD AND AS PER BOOKS OF ACCOUNT MAINTAINED. THE SAID AMOUNT HAS NOT BEEN UTILIZED F OR THE CONSTRUCTION OF THE BUILDING KNOWN AS CHANAKYA PLAZA FOR WHICH THE AMOU NT WAS WITHDRAWN AND SINCE THE SAME WAS NOT USED, THEREFORE, THE AMO UNT WAS DEPOSITED BACK IN THE BANK. IN THIS REGARD, THE AO HAS NO MATERIAL ON RECORD THAT THE SURPLUS CASH IN HAND HAS BEEN USED. THE EXPLANATION OF THE ASSESSEE HAS NOT BEEN ITA NO..603(ASR)/2011 3 PROVED TO BE FALSE. THE BOOKS OF ACCOUNT ARE MAINTA INED BY THE ASSESSEE AND NO SPECIFIC DEFECT IN THE SAME HAS BE EN POINTED OUT. MOREOVER, THE BOOKS OF ACCOUNT HAVE NOT BEEN REJECTED AND NO APPLICATION U/S 145(3) HAS BEEN INVOKED. IN SUCH FACTS AND CIRCUMSTANCES O F THE CASE, THERE IS NO REASON WHY THE EXPLANATION OF THE ASSESSEE SHOULD N OT BE ACCEPTED. THE ASSESSEE HAS DEPOSITED THE CASH INTO BANK AND ALL E NTRIES HAVE BEEN RECORDED IN THE REGULAR BOOKS OF ACCOUNT AND THERE IS NO MA TTER OF DISPUTE. SIMPLY THE ADDITION CANNOT BE MADE ON THE BASIS OF WHIMS, FANC Y, CONJECTURES AND SURMISES. EVEN THE QUESTION OF HUMAN PROBABILITIES ARGUED BY THE LD. DR CANNOT GO IN GO IN FAVOUR OF THE REVENUE. IN THE FA CTS AND CIRCUMSTANCES OF THE CASE, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LD. CIT(A), WHO HAS RIGHTLY DELETED THE ADDITION. THUS, ALL THE GROUND S OF THE REVENUE ARE DISMISSED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28TH MAY, 2012. SD/- SD/- (H.S. SIDHU) (B.P. JAIN) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 28TH MAY, 2012 /SKR/ COPY OF THE ORDER IS FORWARDED TO : 1. THE ASSESSEE:SMT. USHA KIRAN, UDHAMPUR. 2. THE ITO UDHAMPUR. 3. THE CIT(A), 4. THE CIT, 5. THE SR DR, ITAT, AMRITSAR