ITO, Muzaffarnagar V. Sh. Dinesh Chand Tyagi, Muzaffarnagar

ITA 6145/DEL/2015

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 2438 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-11-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2011-2012
• Appeal Filed On: 18-11-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SURENDER PAL
• Keywords: Unexplained cash credit; Peak credit

Judgement Text

ITA NO. 6145/DEL/2015 A.Y. 2011-12 DINESH CHAND TYAGI 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: F, NEW DELHI BEFORE SMT. BEENA A PILLAI, JUDICIAL ME MBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBE R ITA NO. 6145/DEL/2015 AY: 2011-12 ITO WARD 1(2) MUZAFFARNAGAR VS . SHRI DINESH CHAND TYAGI 720/1-INDIRA COLONY, GALI NO. 4, ROORKEE ROAD, MUZAFFARNAGAR. ADSPT5325Q (APPELLANT) (RESPONDE NT) REVENUE BY : SH. SURENDER PAL, SR. DR ASSESSEE BY : NONE DATE OF HEARING : 06/11/2018 DATE OF PRONOUNCEMENT : 14/11/2018 ORDER PER BEENA A PILLAI, JUDICIAL MEMBER PRESENT APPEAL HAS BEEN FILED BY REVENUE AGAINST OR DER DATED 14/08/15 PASSED BY LD. CIT (A), MUZAFFARNAGAR FOR A SSESSMENT YEAR 2011-12 ON FOLLOWING GROUNDS OF APPEAL: 1. THE LD.CIT(A) MUZAFFARNAGAR WHILE COMPUTING THE PE AK CREDIT FOR DISALLOWANCE OF UNEXPLAINED CASH CREDITS , ERRED IN LAW AND ON FACTS, AND FAILED TO FOLLOW THE SPECI FIC DIRECTIONS OF THE LD. ITAT, GIVEN IN ASSESSEES OWN CASE IN ITA NO. 5117/DEL/2012 AND ITA 5235/DEL/2012 DATED 22.02.2013 FOR AY 2009-10, IN SO FAR AS THE RECEIPT S ON ACCOUNT OF TRUCK INCOME WERE TO BE CONSIDERED AFTE R COMPARING WITH SOME SIMILAR CASES AND OR ON SOME RATIONAL BASIS WHEREAS THE LD. CIT(A) MERELY ACCEP TED THE RECEIPTS DECLARED BY THE ASSESSEE. 2. THE LD. CIT(A) MUZAFFARNAGAR, WHILE COMPUTING THE P EAK CREDIT FOR DISALLOWANCE OF UNEXPLAINED CASH CREDITS , ERRED IN LAW AND ON FACTS, IN SO FAR AS THE PEAK CREDIT W AS ITA NO. 6145/DEL/2015 A.Y. 2011-12 DINESH CHAND TYAGI 2 REQUIRED TO BE CALCULATED IN RESPECT OF EACH OF THE BANK ACCOUNTS OF THE ASSESSEE, WHEREAS THE LD.CIT(A) SIM PLY ADOPTED THE CREDIT APPEARING IN THE BANK ACCOUNTS O N THE LAST DAY OF THE RELEVANT YEAR AS PEAK CREDIT. 3. THE LD. CIT(A) MUZAFFARNAGAR, WHILE COMPUTING THE P EAK CREDIT FOR DISALLOWANCE OF UNEXPLAINED CASH CREDIT, ERRED IN LAW AND ON FACTS, IN FURTHER REDUCING THE SUM BY RS . 8 LAKHS, BY CONSIDERING THE CASH DEPOSIT OF RS. 8 LAK HS AS PART OF THE SALE PROCEEDS OF TRUCK SOLD BY THE ASSE SSEE DURING THE YEAR WHEREAS, THERE WAS NO SUBSTANTIATIN G EVIDENCE ON RECORD TO SHOW THAT THE SAID CASH OF RS . 8 LAKHS, DEPOSITED ON VARIOUS DATES IN THE ACCOUNTS O F THE ASSESSEE, WAS NECESSARILY PART OF THE SALE PROCEEDS OF THE TRUCK. 4. THE LD. CIT(A) MUZAFFARNAGAR HAS ERRED IN LAW AND O N FACTS, IN HOLDING: - A) THAT MERELY BECAUSE THE REGISTRATION OF THE TRUCK CHANGED FROM BEING IN THE NAME OF THE ASSESSEE TO THE PURCHASER, THE QUANTUM OF CLAIM OF THE SALE PROCEEDS AT RS. 8 LAKHS WAS GENUINE AND CORRECT. B) THAT MERELY BECAUSE THE ASSET UNDER CONSIDERATION WAS CAPITAL IN NATURE, THE ASSESSEE WAS NOT REQUIRE D TO PROVE THE GENUINENESS OF THE TRANSACTION. 2. BRIEF FACTS OF THE CASE ARE AS UNDER : ASSESSEE IS AN INDIVIDUAL AND FILED HIS RETURN OF I NCOME ON 31/03/12 DECLARING TOTAL INCOME OF RS.5,01,250/-. T HE CASE WAS SELECTED FOR SCRUTINY AND NOTICE UNDER SECTION 143 (2) OF THE ACT WAS ISSUED ALONG WITH QUESTIONNAIRE AND NOTICE UNDE R SECTION 142 (1) OF THE ACT. IN RESPONSE TO STATUTORY NOTICE S, REPRESENTATIVE OF ASSESSEE APPEARED BEFORE THE LD. AO AND FILED RE QUISITE DETAILS AS CALLED FOR. LD.AO OBSERVED THAT ASSESSEE DERIVES ITS INCOME FROM PLAYING IN TRUCKS AND AGRICULTURAL INCOME LD.A O OBSERVED THAT ASSESSEE SHOWED AN AMOUNT OF RS.79,964/- AGAIN ST BANK INTEREST/NSE INTEREST ETC. LD.AO OBSERVED THAT A SU M OF RS.79,08,500/- WAS DEPOSITED IN CASH WHICH RELATED TO RECEIPTS ITA NO. 6145/DEL/2015 A.Y. 2011-12 DINESH CHAND TYAGI 3 FROM PLAYING OF TRUCKS. SINCE ASSESSEE COULD NOT PR ODUCE ANY AUTHENTIC EVIDENCE TO PROVE ACCUMULATION OF CASH IS DEPOSITED THE SUBMISSIONS OF ASSESSEE WAS DISBELIEVED. ASSESS ING OFFICER THUS, MADE AN ADDITION OF RS.79,08,500/-. 2.1 AGGRIEVED BY THE ADDITION MADE BY LD.AO ASSESSE E PREFERRED APPEAL BEFORE LD.CIT (A). 2.2 LD. SR. DR PLACED RELIANCE UPON THE ORDER OF LD . AO 2.3 WE HAVE PERUSED THE ORDERS PASSED BY AUTHORITIE S BELOW. IT IS OBSERVED THAT BEFORE LD.CIT (A) ASSESSEE FURN ISHED DETAILED WORKING OF DEPOSITS AMOUNTING TO RS.79,08,500/- AND WITHDRAWALS AT RS.56,70,00/-. IT WAS CONTENDED THAT WITHDRAWALS HAVE BEEN MADE EXCLUSIVELY TO RUN BUSINESS OF ASSES SEE. ASSESSEE PLACED BEFORE LD.CIT (A) ON ORDER OF THIS TRIBUNAL IN ASSESSEES OWN CASE FOR ASSESSMENT YEAR 2009-10, WHEREIN PEAK CREDIT WAS COMPUTED. ASSESSEE SUBMITTED COMPUTATION OF PEAK CR EDIT FOR YEAR UNDER CONSIDERATION BEFORE LD.CIT (A). LD. CIT (A) FOLLOWING DECISION OF THIS TRIBUNAL IN ASSESSEES OWN CASE FO R ASSESSMENT YEAR 2009-10 (SUPRA) RESTRICTED ADDITION AT RS.7,70 ,425/- BEING PEAK CREDIT FOR YEAR UNDER CONSIDERATION. 3. WE DO NOT FIND ANY INFIRMITY IN OBSERVATIONS OF LD. CIT (A) AND THE SAME IS UPHELD. ACCORDINGLY THE GROUNDS RAISED BY REVENUE STANDS DI SMISSED. IN THE RESULT APPEAL FILED BY REVENUE STANDS DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT ON 14/11/2018 SD/- SD/- (PRASHANT MAHARISHI) (BEENA A PILLAI) ACCOUNTANT MEMBER JU DICIAL MEMBER DT. 14 TH NOVEMBER,2018 *KAVITA ARORA ITA NO. 6145/DEL/2015 A.Y. 2011-12 DINESH CHAND TYAGI 4 COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT - TRUE COPY - BY ORDER, ASSISTANT REGISTRAR ITAT DELHI BENCHES DATE DRAFT DICTATED ON 13.11.2018 DRAFT PLACED BEFORE AUTHOR 14.11.2018 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. APPROVED DRAFT COMES TO THE SR.PS/PS 14.11.2018 KEPT FOR PRONOUNCEMENT ON & ORDER UPLOADED ON : 14.11.2018 FILE SENT TO THE BENCH CLERK 14.11.2018 DATE ON WHICH FILE GOES TO THE AR DATE ON WHICH FILE GOES TO THE HEAD CLERK. DATE OF DISPATCH OF ORDER.