Anu Agarwal, Dehradun V. ITO, Ward-1(1), Dehradun

ITA 68/DDN/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 8946 (ITAT-DEHRADUN)
• Duration Of Justice: 1 year(s) 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-03-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2016-2017
• Appeal Filed On: 01-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VINAY SINGH RAWAT
• Keywords: Unexplained investment
• Section: 48

Judgement Text

1 ITA NO. 68/DDN/2019 IN THE INCOME TAX APPELLATE TRIBUNAL DEHRADUN CIRCUIT BENCH: DEHRADUN BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBE R AND MS SUCHITRA KAMBLE, JUDIC IAL MEMBER ITA NO. 68/DDN/2019 ( A. Y 2016-17) (THROUGH VIDEO CONFEREN CING) SMT. ANU AGARWAL W/O. SHRI ASHOK AGARWAL 88/84, JHANDA MOHALLA, DEHRADUN AAZPA1976G (APPELLANT) VS INCOME TAX OFFICER WARD-1(1) DEHRADUN (RESPONDENT) APPELLANT BY NONE RESPONDENT BY SH. VINAY SINGH RAWAT, SR. DR ORDER PER SUCHITRA KAMBLE, JM THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE OR DER DATED 29.04.2019 PASSED BY CIT(A)- DEHRADUN FOR ASSESSMENT YEAR 2016 -17. 2. THE GROUNDS OF APPEAL ARE AS UNDER:- 1. THAT THE LD.CIT(A) ERRED IN CONFIRMING AN ADDI TION OF RS. 2,15,000/- AS UNEXPLAINED INVESTMENT IN HOUSE PROP ERTY . 3. THE ASSESSEE IS AN INDIVIDUAL AND SHE DERIVES IN COME FROM SALE AND PURCHASE OF SPICES. RETURN OF INCOME WAS FILED ON 28/03/2017 DECLARING TOTAL INCOME OF RS. 5,08,190/- THE ASSESSMENT ORDER WAS P ASSED ON 22/12/2018 DATE OF HEARING 19.03.2021 DATE OF PRONOUNCEMENT 24.03.2021 2 ITA NO. 68/DDN/2019 THEREBY MAKING ADDITION OF RS.7,15,000/- ASSESSED U /S 61 OF THE INCOME TAX ACT, 1961 READ WITH SECTION 115BBE OF THE ACT. 4. BEING AGGRIEVED BY THE ASSESSMENT ORDER, THE ASS ESSEE FILED APPEAL BEFORE THE CIT(A). THE CIT(A) PARTLY ALLOWED THE APPEAL OF THE ASSESSEE. 5. AT THE TIME OF HEARING, NONE APPEARED ON BEHALF OF THE ASSESSEE BUT THROUGH POST WE HAVE RECEIVED WRITTEN SUBMISSIONS O F THE ASSESSEE HERSELF FOR PROCEEDINGS WITH THE MATTER ON THE BASIS OF WRITTEN SUBMISSIONS. THE SAME ARE AS FOLLOWS:- 1. FACTS OF THE CASE:- I AM AN INDIVIDUAL ENJOYING INCOME FROM SALE AND PURCHASE OF SPICES. RETURN OF INCOME WAS FILED SHOWING AN INCOME OF RS. 5,08,190/-.DURING THE YEAR UNDER CONSIDERATION I PU RCHASED A RESIDENTIAL HOUSE SITUATED AT SUBHASH ROAD, DEHRADUN JOINTLY WI TH MY HUSBAND ,SHRI ASHOK KUMAR AGARWAL, FOR RS. 1,45,15,000/-. MY SHAR E OF INVESTMENT IN HOUSE IS RS. 95,43,189/-. 2. THAT THE LEARNED A.O HAS DISALLOWED A SUM OF RS.7,1 5,000/- AS UNEXPLAINED INVESTMENT IN PURCHASE OF HOUSE AS UNDE R:- RS. 3,60,000/- BEING SAVINGS OUT OF CURRENT YEARS INCOME. RS. 3,55,000/- OUT OF SAVINGS OF EARLIER YEARS. RS .7,15,000/- IN APPEAL THE LEARNED CIT (A) HAS ALLOWED A CONSOLI DATED DEDUCTION OF RS.5,00,000/- AND CONFIRMED THE BALANCE OF RS. 2,15 ,000/- AS UNEXPLAINED INVESTMENT 3. THAT MY SUBMISSIONS ARE AS UNDER:- A) ADDITION OF RS.3.60.000/- MADE BV LEARNED A.O. OUT OF CURRENT INCOME. 3 ITA NO. 68/DDN/2019 THE INVESTMENT OF RS.3,60,000/- OUT OF INCOME OF Y EAR UNDER CONSIDERATION, FOR RS. 5,28,192/- IS VERY REASONABL E AS I AM JOINT IN MESS WITH MY HUSBAND AND TWO UNMARRIED SONS. MY HUS BAND AND MY TWO SONS ARE SEPARATELY ASSESSED TO TAX. THE TOT AL NUMBER OF FAMILY MEMBERS IS FOUR AND TOTAL WITHDRAWALS OF FOU R PERSONS AMOUNT TO RS.4,95,223/-. THE WITHDRAWALS FOR HOUSEH OLD EXPENSES ARE VERY REASONABLE. THE STANDARD OF LIVING OF THE FAMILY IS VERY ORDINARY. WE ARE LIVING IN AN OLD ANCESTRAL HOUSE A ND NO RENT WAS PAID. KEEPING IN VIEW ALL THE ASPECTS OF THE CASE, NO ADDITION IN INCOME IS CALLED FOR. B) ADDITION OF RS.3.55.000/- MADE BY THE LEARNED A.O. OUT OF SAVINGS OF EARLIER YEARS. REGARDING SAVINGS OF EARLIER YEARS AMOUNTING TO R S.3,55,000/-, IT MAY BE SUBMITTED THAT I HAVE BEEN ASSESSED TO TAX F OR THE LAST MORE THAN 15 YEARS I GIVE BELOW THE POSITION OF MY INCOME ASS ESSED FOR THE LAST FIVE YEARS:- S. NO. A.Y INCOME ASSESSED 1 2015-16 5,37,565.00 2 2014-15 2,51,130,00 3 2013-14 2,45,660,00 4 2012-13 1,92,709.00 5 2011-12 1,92,678.00 THE SUM OF RS. 3,55,000/- REPRESENTED MY SAVINGS OU T OF INCOME OF EARLIER YEARS AS WELL AS MY STREEDHAN. I AM AGED ABOUT 48 YEARS. IT MAY BE MENTIONED THAT INDIAN LADIES GENERALLY KEEP SOME SA VINGS WITH THEM TO MEET ANY CONTINGENCY AND URGENT NEEDS AS STREEDHAN . IN VIEW OF THE ABOVE FACTS, NO ADDITION IN INCOME I S CALLED FOR. 4 ITA NO. 68/DDN/2019 4.THAT THE LEARNED CIT(A) CONFIRMED AN ADDITION OF RS. 2,15,000/- OUT OF RS. 7,15,000/-.THERE APPEARS TO BE NO JUSTIFICATION FOR ANY ADDITION TO MY INCOME. IT IS REQUESTED THAT THE ADDITION OF RS.2,15,000/- MAY KINDLY BE DELETED FOR WHICH I SHALL FEEL HIGHLY OBLIGED. 6 THE LD. DR RELIED UPON THE ASSESSMENT ORDER AND T HE ORDER OF THE CIT(A). 7. WE HAVE HEARD LD. DR AND PERUSED THE MATERIAL AV AILABLE ON RECORD. FROM PERUSAL OF THE ORDER OF THE CIT(A), IT IS CLEA R THAT THE ASSESSEE HAS GIVEN BREAK UP OF PERSONAL DRAWINGS OF THE CASH AS WELL AS BREAK UP TAKEN OUT BY THE HUSBAND AND TWO UNMARRIED SONS. AS RELATED TO THE AMOUNT OF RS.3,55,000/- , THE SAME REPRESENTS HER SAVINGS OUT OF INCOME OF EARLIER YEARS AS WELL AS HER STREEDHAN. FOR THIS, SHE HAS GIVEN THE REASON THAT INDIAN WOMEN GENERALLY KEEP SOME SAVINGS WITH THEM TO MEET CONTINGENCY EXPENSES AND URGENT NEEDS. THE EXPLANATION GIVEN BY THE ASSE SSEE APPEARS TO BE TENABLE AS SHE HAS DEMONSTRATED THROUGH HER WRITTEN SUBMISS IONS THAT THE CASH OF RS.2,15,000/- HAS AN ELEMENT OF SAVINGS FOR THE CON TINGENCIES OF THE FAMILY OF FOUR WHICH ALSO INCLUDES HER STREEDHAN. THOUGH T HE CIT(A) HAS RAISED THE DOUBT THAT THESE STREEDHAN CANNOT BE IN CASH, IT IS IN FACT IN INDIAN TRADITION CERTAIN AMOUNT IN CASH IS GIVEN BY THE RELATIVES TO THE WOMEN IN THE FAMILY ESPECIALLY FROM THE WOMANS FATHER SIDE. FURTHER, THE ASSESSEE IS ALSO A SELF- EMPLOYER/ENTREPRENEUR WHO DERIVES CERTAIN INCOME FR OM SALE AND PURCHASE OF SPICES AND THEREFORE, HAS TO KEEP CERTAIN AMOUNT OF CASH IN HAND FOR PURCHASE OF THE ITEMS/NECESSARY GOODS FOR PREPARING SPICES I N CASE OF EMERGENCY/CONTINGENCIES. THESE FACTS WERE TOTALLY I GNORED BY THE ASSESSING OFFICER AS WELL AS CIT(A). HENCE, WE ARE ALLOWING THE APPEAL OF THE ASSESSEE. 5 ITA NO. 68/DDN/2019 7. IN RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 24TH DAY OF MARCH, 2021 SD/- SD/- (R. K. PANDA) (SUCHITRA KAMBLE) ACCOUNTANT MEMBER JUDICIAL M EMBER DATED: 24/03/2021 R. NAHEED COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI 6 ITA NO. 68/DDN/2019