Sh. Dinesh Chand Goel, Meerut V. ITO, Meerut

ITA 6669/DEL/2014

• Counselvise Citation: 666920114 RSA 2014
• Duration Of Justice: 7 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 2
• Next Hearing Date: 14-07-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 08-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANOJ KUMAR CHOPRA
• Assessee Lawyers: RK GARG
• Keywords: Peak credit
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : SMC-2 NEW DELHI BEFORE SHRI J.SUDHAKAR REDDY , ACCOUNTANT MEMBER ITA NO: 6669/DEL/2014 ASSTT. YEAR : - 2008-09 DINESH CHAND GOEL, VS. ITO 268, SWARJ PATH, WARD-1(2) DHOLKI MOHALLA MEERUT MEERUT (PAN ABPPG5482N) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI R.K. GARG, ADVOCATE RESPONDENT BY :SHRI MANOJ KUMAR CHOPRA, SR. DR DATE OF HEARING :14.7.2015 DATE OF PRONOUNCEMENT : 7. 8.2015 O R D E R PER J.SUDHAKAR REDDY, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE DIR ECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) DATED 15.9.20 14 FOR THE ASSESSMENT YEAR 2008-09 ON THE FOLLOWING GROUNDS :- 1. THAT UNDER THE FACTS & CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) HAS ERRED TO CONFIRM THE ADDITION OF RS. 10,60,000/- U/S 69A. CO NFIRMATION OF ADDITION IS ARBITRARY, UNJUST, UNCALLED-FOR, ILLEGAL AND IN CASE HIGHLY EX CESSIVE. 2. THAT WITHOUT PREJUDICE TO GROUND NO. 1, THE LEARNED CIT(A) HAS ERRED TO HOLD THAT THE STATEMENT OF AFFAIRS FILED WERE UNRELIABLE AND FULL OF DISCREPANCY, AS WELL AS, CASH DEPOSIT IN BANK WAS NOT COVERED BY CORRELATION OF C ASH WITHDRAWALS AND DEPOSIT AS PER CHART FILED. THE REJECTION OF EXPLANATION AND C ONFIRMATION OF ADDITION AT RS. 10,60,000/- IS THEREFORE ARBITRARY, UNJUST, UNCALLE D-FOR, ILLEGAL AND IN CASE HIGHLY EXCESSIVE. ITA NO. 6669/DEL/2014 SHRI DINESH CHA ND GOEL VS. ITO 2 2. I HAVE HEARD SHRI MANOJ KUMAR CHOPRA, SR . DR ON BEHALF OF THE REVENUE AND SHRI R.K. GARG ON BEHALF OF THE ASSESSEE. 3. ON A CAREFUL CONSIDERATION OF THE FACTS A ND CIRCUMSTANCES OF THE CASE AND A PERUSAL OF THE PAPERS ON RECORD AND THE ORDERS OF T HE AUTHORITIES BELOW WE HOLD AS FOLLOWS :- 4. FACTS IN BRIEF :- THE ASSESSEE BEING GOLD SMITH. HE FILED HIS RETURN OF INCOME ON 25.7.2008 SHOWING TOTAL INCOME OF RS. 1,12,890/-. THE CASE WAS SELECT ED FOR SCRUTINY AND DURING ASSESSMENT PROCEEDING THE AO NOTICED THAT THERE WAS CASH DEPOSIT OF RS. 15,60,000/- IN HIS BANK ACCOUNT. IN THIS REGARD THE AO WAS ASKED TO EXPLAIN THE SOURCE OF ABOVE CASH DEPOSIT. ON CONSIDERATION OF F ACTS OF THE CASE AND SUBMISSION FILED BY THE ASSESSEE, THE AO WAS OF THE VIEW THAT OUT OF RS. 15,60,000/-, A SUM OF RS. 5 LACS RECEIVED BY THE WIFE OF ASSESSEE FROM ON E SMT. SAVITA SINGH WAS EXPLAINED WHEREAS, THE BALANCE AMOUNT OF RS. 10,60, 000/- REMAIN UNEXPLAINED. ACCORDINGLY THE UNEXPLAINED CASH DEPOSIT OF RS. 10, 60,000/- WAS ADDED TO THE INCOME OF THE ASSESSEE AND ASSESSMENT WAS COMPLETED U/S 143(3) OF THE I.T. ACT VIDE ORDER DATED 30.12.2010. AGGRIEVED WITH ABOVE T HE ASSESSEE IS IN APPEAL BEFORE ME. 5. AFTER HEARING RIVAL CONTENTIONS WE ARE OF THE OPINION THAT ONLY THE PEAK CREDIT CAN BE BROUGHT TO TAX UNDER THE FACTS AND CIRCUMSTA NCES OF THE CASE. THE ENTIRE CREDITS IN THE BANK ACCOUNT CANNOT BE ADDED. CIRCUL ATION OF FUNDS CANNOT BE DENIED. THE ASSESEE HAS FILED THE FOLLOWING CALCULATION OF PEAK CREDIT : ITA NO. 6669/DEL/2014 SHRI DINESH CHA ND GOEL VS. ITO 3 DATE NATURE OF DEPOSIT AMOUNT TOTAL BALANCE SOURCE OF DEPOSIT PAPER BOOK PAGE NO. 15.10.2007 DEPOSIT FROM 10/10/07-15/10/07 RS. 6,02,537/- RS. 6,02,537/- AS PER DETAILS MENTIONED BELOW PAGE NO. 7 DETAILED NARRATION OF PEAK DEPOSITS 10/10/07 OLD BALANCE AS PER BANK ACCOUNT RS. 22,637/- RS. 22,537/- DINESH GOEL OUT OF CASH IN HAND AS PER CASH BOOK AND CAPITAL OF RS. 3,04,948/- PAGE NO. 7 13/10/07 CASH DEPOSIT BY SMT. MANJU GOEL W/O DINESH GOEL RS. 2,50,000/- RS. 2,72,537/- DEPOSIT BY SMT. MANJU GOEL OUT OF CASH RECEIVED AGAINST AGREEMENT TO SELL THE PROPERTY AS ACCEPTED BY LD. AO PAGE NO. 7 15/10/07 DEPOSIT OF LOAN CHEQUE FROM RAGHUVANSHAM RS. 3,00,000/- RS. 5,72,537/- LOAN RAISED FROM RAGHUVANSHAM DULY ACCEPTED BY THE LD. AO 15/10/07 CASH DEPOSIT BY SHRI DINESH CHAND GOEL RS. 30,000/- RS. 6,02,537/- DEPOSIT BY DINESH GOEL OUT OF HIS CURRENT INCOME AND CAPITAL AS THIS CALCULATION OF THE ASSESSEE REQUIRED VERIFI CATION, WE SET ASIDE THE SAME TO THE FILE OF THE AO FOR FRESH ADJUDICATION. THE AO SHALL BRING TO TAX ONLY THE PEAK CREDIT OF THE YEAR. ITA NO. 6669/DEL/2014 SHRI DINESH CHA ND GOEL VS. ITO 4 IN THE RESULT THIS APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 7 TH AUGUST, 2015. SD/- (J. SUDHAKAR REDDY) ACCOUNTANT MEMBER DATED: THE 7 TH AUGUST 2015 VEENA COPY OF THE ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR 6. GUARD FILE BY ORDER DY. REGISTRAR SL. NO. DESCRIPTION DATE 1. DATE OF DICTATION BY THE AUTHOR 9.7.2015 2. DRAFT PLACED BEFORE THE DICTATING MEMBER 14.7.2 015 3. DRAFT PLACED BEFORE THE SECOND MEMBER 4. DRAFT APPROVED BY THE SECOND MEMBER 5. DATE OF APPROVED ORDER COMES TO THE SR. PS 6. DATE OF PRONOUNCEMENT OF ORDER 7. DATE OF FILE SENT TO THE BENCH CLERK 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER