ITO, New Delhi V. Mrs. Kanwal Aggarwal, New Delhi

ITA 6210/DEL/2013

• Counselvise Citation: [2015] 120 COUNSELVISE.COM (IT) 9963 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 5 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-05-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 11-05-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 20-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T VASANTHAN
• Assessee Lawyers: ADESH KUMAR JAIN
• Section: 44AD

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH D , NEW DELHI) BEFORE SHRI G. C. GUPTA, HONBLE VICE PRESIDENT AND SHRI T.S. KAPOOR, ACCOUNTANT MEMBER I.T.A. NO.6210 /DEL/2013 ASSESSMENT YEAR : 2010-11 ITO, WARD 37(2), VS. MRS. KANWAL AGGARWAL, NEW DELHI P-8, GREEN PARK EXTN., NEW DELHI-110 016 GIR / PAN:AAAPA4819R (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI T. VASANTHAN, SR. DR RESPONDENT BY : SHRI ADESH KUMAR JAIN, CA DATE OF HEARING : 11.05.2015 DATE OF PRONOUNCEMENT : 13.05.2015 ORDER PER T.S. KAPOOR, AM: THIS IS AN APPEAL FILED BY REVENUE AGAINST THE ORD ER OF LD. CIT(A) DATED 20.09.2013. THE REVENUE HAS TAKEN 4 GROUNDS OF APPEAL. HOWEVER, THE CRUX OF GRIEVANCE OF THE REVENUE IS THE ACTION OF LD. CIT(A) BY WHICH HE HAD DELETED THE ADDITION OF RS.18 LACS WHICH WAS MA DE BY A.O. ON ACCOUNT OF DEPOSITS BY ASSESSEE IN HER BANK ACCOUNT. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS A PARTNER IN THE FIRM NAMELY S P AGGARWAL DENTAL AND ORTHO. AND IS ENGAGE D IN THE PROFESSION OF PROVIDING DENTAL SERVICES. DURING THE YEAR UNDER C ONSIDERATION, THE ASSESSEE DECLARED HER REMUNERATION FROM THE FIRM AS HER INCO ME BESIDES INTEREST AND RENTAL INCOME. DURING ASSESSMENT PROCEEDINGS, THE A.O. OBSERVED THAT ON ITA NO.6210/DEL/2013 2 VARIOUS DATES, THE ASSESSEE HAD DEPOSITED CASH IN H ER BANK ACCOUNT AMOUNTING TO RS.18.08 LACS. THE ASSESSEE WAS SHOW CAUSED TO EXPLAIN THE SOURCE OF DEPOSITS OF CASH. SHE EXPLAINED THAT AS ON 31.03.2009 SHE HAD CASH BALANCE OF RS.17,46,113/- IN HAND AND HAD ALSO EARNED RENTAL INCOME OF RS.1,08,000/- DURING THE YEAR. HOWEVER A.O. DID NO T ACCEPT THE CONTENTION OF ASSESSEE AS THE ASSESSEE FAILED TO PRODUCE BOOKS OF ACCOUNTS MAINTAINED BY ASSESSEE. SHE SUBMITTED THAT SHE WAS NOT IN A P OSITION TO SUBMIT BOOKS OF ACCOUNTS AS HER ACCOUNTING RECORDS WERE MAINTAINED BY C.A. AND DUE TO SOME DISPUTE, HE WAS NOT HANDING OVER THE REQUIRED BOOKS OF ACCOUNTS. THEREFORE, THE A.O. MADE THE ADDITION OF RS.18 LACS AS HER EXPLANATION WAS UNSUBSTANTIATED. 3. AGGRIEVED, THE ASSESSEE FILED APPEAL BEFORE LD. CIT(A) AND REITERATED HER CONTENTION THAT IN THE EARLIER YEAR, SHE WAS PR ACTICING AS INDIVIDUAL AND HER BOOKS OF ACCOUNTS WERE AUDITED U/S 44AD AND THE BALANCE SHEET CONTAINED RS.17,46,113/- AS CLOSING BALANCE OF CASH IN HAND AS ON 31.03.2009. ASSESSEE FURTHER SUBMITTED THAT RS.1.0 8 LACS WAS DEPOSITED IN HER BANK ACCOUNT OUT OF RENTAL INCOME. LD. CIT(A) DELETED THE ADDITION BY HOLDING AS UNDER: 5.1 I H A VE CAREFULLY CONSIDERED THE ASSESSMENT ORDER AND SUBMISSIONS THEREOF . THE F AC T S OF THE C A SE AS PER ASSESSMENT ORDER ARE THAT THE ASSESSEE HAD DEPOS I TED CASH A MOUNTING TO RS . 18,08 , 000/- IN THE BANK . THE A . R . OF THE ASSESSEE WAS UNABLE TO EXPL A IN THE SOURCE OF CASH DEPOSITED IN THE BANK ACCOUNT . IT WAS SIMPLY CLAIMED THAT THE C AS H WAS DEPOSITED OUT OF OPENING CASH IN HAND AVAILABLE WITH THE ASSESSEE , BUT THE ASS E S SEE FAILED TO PRODUCE RELEVANT RECORDS I . E . SUPPORTING LEDGER/REGISTER OR FORM 3C. TH E ASS ESS ING OFFICER TREATED THE AMOUNT AS UNEXPLAINED DEPOS IT AND ADDED IT UN DE R SE CTI O N 68 O F THE ACT . THE PR E C E DING PREVIOUS YEAR , HAS NOT BEEN QUESTIONED BY THE DEPARTMENT . AS PER THE AU D IT R E PORT TH E RE IS CLOSING CASH IN HAND OF RS . 17 , 46 , 113/-. THERE IS NOTHING ON ITA NO.6210/DEL/2013 3 RECORD TO SHOW THAT THIS CASH HAS BEEN UTILIZED IN ANY OTH ER ACTIVITY . FURTHER THE APPELLANT HAS ALSO SHOWN RS . 1 , 08 , 000/- AS RENTAL INCOME IN HER RETURN . KEEPING IN VIEW THESE TWO SOURCES , THE VAILABILITY OF CASH OF RS . 18 , 00 , 000/- IN HER HANDS CANNOT BE DOUBTED. IN CASE THE ASSESSING OFFICER IS NOT CONVI NCED ABOUT THE AVAILABILITY OF CLOSING CASH IN HAND , AS ON 31 . 03 . 2009 , APPROPRIATE ACTION MAY BE TAKEN IN THE RELEVANT YEAR. THE ADDIT ION IS DELETED . 4. AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE US. AT THE OUTSET, LD. D.R. SUBMITTED THAT LD. CIT(A) HAS ACCEPTED THE CO NTENTION OF ASSESSEE WITHOUT VERIFYING THE BOOKS OF ACCOUNTS OF ASSESSEE AND SIMPLY ON THE BASIS OF AUDITED ACCOUNTS ACCEPTED THE PLEA OF ASSESSEE R EGARDING CASH IN HAND. 5. LD. A.R. ON THE OTHER HAND SUBMITTED THAT ASSESS EE WAS PRACTICING IN HER INDIVIDUAL NAME FOR THE YEAR ENDED 31.03.2009 A ND HER BOOKS OF ACCOUNTS WERE ALSO AUDITED AND COPY OF AUDIT REPORT ALONG WITH COPY OF BALANCE SHEET WAS FILED WITH THE A.O. AS WELL AS LD . CIT(A). HE SUBMITTED THAT IN THE BALANCE SHEET AS ON 31.03.2009, THERE W AS CLOSING BALANCE OF CASH IN HAND AT RS.17,46,113/-. IN SUPPORT OF HIS CONTE NTIONS HE FILED COPY OF BALANCE SHEET ALONG WITH P & L ACCOUNT AND AUDIT RE PORT AND ON THE BASIS OF THESE DOCUMENTS HE SUBMITTED THAT THERE WAS CASH BA LANCE IN HAND AND ARGUED THAT SOURCE OF DEPOSITS IN THE BANK ACCOUNT WAS TOTALLY EXPLAINED 6. WE HAVE HEARD RIVAL PARTIES AND HAVE GONE THROUG H THE MATERIAL PLACED ON RECORD. WE FIND THAT THE ASSESSEE IN THE EARLIE R YEAR WAS PRACTICING AS DENTAL SURGEON IN HER INDIVIDUAL CAPACITY. A COPY OF BALANCE SHEET FILED BY LD. A.R. CLEARLY SHOWS CASH IN HAND OF RS.17,46,113 /-. DURING EARLIER YEAR THE ASSESSEE HAD ALSO SHOWN A PROFIT OF RS.13,94,11 3/- WHICH IS APPARENT FORM INCOME AND EXPENDITURE ACCOUNT AS ON 31.03.200 9. THE A.O. WITHOUT REFERRING TO EARLIER YEAR INCOME TAX RETURN, MADE A DDITION, WHICH LD. CIT(A) HAS RIGHTLY DELETED AS THE DEPOSITS OF CASH IN THE YEAR UNDER CONSIDERATION IS ITA NO.6210/DEL/2013 4 DULY EXPLAINED BY OPENING BALANCE OF CASH IN HAND A S ON 01.04.2009. FURTHER, THE ASSESSEE HAD DECLARED RENTAL INCOME OF RS.1,08,000/-. THE INCOME DECLARED BY ASSESSEE IN EARLIER YEAR AMOUNTI NG TO RS.13,94,113/- IS ENOUGH TO JUSTIFY CASH IN HAND AS ON 31.03.2009. T HEREFORE, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF LD. CIT(A). THEREFOR E, APPEAL FILED BY REVENUE IS DISMISSED. 7. IN VIEW OF ABOVE, APPEAL FILED BY REVENUE IS DIS MISSED. 8. ORDER PRONOUNCED IN THE OPEN COURT ON 13 TH MAY, 2015. SD./- SD./- ( G. C. GUPTA) (T.S. KAPOO R) VICE PRESIDENT ACCOUNTANT MEMBER DATE: 13.05.2015 SP COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT (A)-, NEW DELHI. 5. THE DR, ITAT, LOKNAYAK BHAWAN, KHAN MARKET, NEW DEL HI. TRUE COPY. BY ORDER (ITAT, NEW DELHI). S.NO. DETAILS DATE INITIALS DESIGNATION 1 DRAFT DICTATED ON 11/5 SR. PS/PS 2 DRAFT PLACED BEFORE AUTHOR 11/5 SR. PS/PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/AM 5 APPROVED DRAFT COMES TO THE SR. PS/PS 13/5/15 SR. PS/PS 6 KEPT FOR PRONOUNCEMENT 13/5 SR. PS/PS 7 FILE SENT TO BENCH CLERK 13/5 SR. PS/PS 8 DATE ON WHICH THE FILE GOES TO HEAD CLERK 9 DATE ON WHICH FILE GOES TO A.R. 10 DATE OF DISPATCH OF ORDER