Kiran, Karnal V. ITO, Ward- 2, Karnal

ITA 687/DEL/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 0954 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 30-01-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S L ANURAGI
• Assessee Lawyers: VINOD KUMAR GARG

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC , NEW DELHI BEFORE S H. N. K. BILLAIYA , ACCOUNTANT MEMBER ITA NO. 6 87 /DEL/201 8 ASSESSMENT YEAR: 20 09 - 10 KIRAN H. NO. 954 - I, SECTOR - 9 KARNAL 132001 PAN AOJPK3629N VS ITO WARD - 2 , KARNAL HARYANA 132001 (APPELLANT) (RESPONDENT) APPELLANT BY SH. VINOD KUMAR GARG, CA RESPONDENT BY SH. S.L. ANURAGI, SR. DR DATE OF HEARING: 26 /11 /2 0 18 DATE OF PRONOUNCEMENT: 2 7 / 1 1 /2018 ORDER PER N. K. BILLAIYA, AM: T HIS APPEAL B Y THE ASSESSEE IS PREFERRED AGAINST THE ORDER OF THE CIT(A), KARNAL DATED 0 1.1 2 .2017 PERTAINING TO A. Y. 20 09 - 10 . 2 2. THE ONLY GRIEVANCE OF THE ASSESSEE IS THAT THE CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS. 1425630/ - MADE BY THE ASSESSING OFFICER . 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT DURING THE COURSE OF THE ASSESSMENT PROCEEDINGS. THE ASSESSING OFFICER ASKED THE ASSESSEE TO EXPLAIN THE SOURCE OF CASH DEPOSIT OF RS.29,93,099/ - MADE IN THE SAVINGS BANK ACCOUNT DURING THE YEAR UNDER CONSI DERATION. IN HER REPLY THE ASSESSEE STATED THAT SHE IS NOT MAINTAINING ANY BOOKS OF ACCOUNTS AND IS ASSESSED U/S 44 AF OF THE ACT IN RESPECT OF HER INCO ME FROM RUNNING B EAUTY P ARLOUR. IT WAS EXPLAINED THAT THE CASH DEPOSITED IN THE SAID SAVINGS BANK ACCOUN T IS OUT OF FREQUENT WITHDRAWALS FROM THE SAME BANK AND ALSO BY THE SALE OF LIVE STOCK. THE EXPLANATION DID NOT FIND ANY FAVOUR WITH THE ASSESSING OFFICER WHO CALCULATED THE PEAK CASH CREDIT AND MADE THE ADDITION OF RS.14 , 25 , 630/ - . 4. THE ASSESSEE AGITAT ED THE MATTER BEFORE THE CIT(A) BUT WITHOUT ANY SUCCESS. 5. BEFORE ME THE COUNSEL FOR THE ASSESSEE VEHEMENTLY STATED THAT THE ASSESSEE HAD FURNISHED COMPLETE DETAILS OF SALE OF LIVE STOCKS. IT IS THE SAY OF THE COUNSEL THAT CONFIRMATIONS WERE FILED FROM THE PURCHASERS AND THE ASSESSING OFFICER HIMSELF HAS MADE NECESSARY ENQUIRIES FROM THEM. 3 6. THE COUNSEL FURTHER POINTED OUT THAT PEAK CASH CREDIT COMPUTED BY THE ASSESSING OFFICER IS ERRONEOUS AND AGAINST THE FACTS OF THE DEPOSITS AND WITHDRAWALS IN THE SAVINGS BANK ACCOUNT. PER CONTRA THE DR STRONGLY SUPPORTED THE FINDINGS OF THE ASSESSING OFFICER. 7 . I HAVE CAREFULLY CONSIDERED T HE ORDERS OF THE AUTHORITIES BELOW. THERE IS NO DISPUTE THAT THE RE IS FREQUENT WITHDRAWALS AND DEPOSITS IN THE SA VINGS BANK ACCOUNT , THEREFORE , IT CANNOT BE RULED OUT THAT THE DEPOSITS MADE IN THE SAVINGS BANK ACCOUNT ARE OUT OF FREQUENT WITHDRAWALS MADE BY THE ASSESSEE. HOWEVER, PEAK CASH CREDIT IS A REASONABLE YARD STICK FOR MAKING THE ADDITION BUT IT APPEARS THAT THE CALCULATION DONE BY THE ASSESSING OFFICER IS NOT CORRECT. I THEREFORE, RESTORE THE ISSUE TO THIS EXTENT TO THE FILES OF THE ASSESSING OFFICER. THE ASSESSEE IS DIRECTED TO FURNISH THE CORRECT CALCULATION OF PEAK CASH CREDIT AND THE ASSESSING OFFICER IS DIRECTED TO VERIFY THE SAME AND DECIDE THE ISSUE AFRESH. 8. IN SO FAR AS THE SALE OF LIVE STOCK IS CONCERNED THE DOCUMENTARY EVIDENCES BROUGHT ON RECORD CLEARLY SHOW THAT THE ASSESSEE HAS SOLD SOME LIVE STOCK FOR A SALE CONSIDERATION OF RS.7.60 LACS . THE DOCUMENTARY EVIDENCE FURNISHED BY THE ASSESSEE HAVE BEEN VERIFIED BY THE ASSESSING OFFICER DURING THE REMAND PROCEEDINGS. WITHOUT ASSIGNING ANY SPECIFIC REASON FOR NOT ACCEPTING THE DOCUMENTARY EVIDENCES MAKES THE ADDITION TO 4 THIS EXTENT UNCALLED FOR. I THEREFORE DIRECT THE ASSESSING OFFICER TO ACCEPT THE SOURCE OF CASH DEPOSIT OUT OF LIVE STOCK TO THE EXTENT OF RS.7.60 LACS. TO THIS EXTENT THE ASSESSEE GETS A RELIEF. THE BALANCE ADDITION IS SET ASIDE TO THE FILES OF THE ASSESSING OFFICER FOR RE - ADJ UDICATION AS PER DIRECTIONS GIVEN HERE IN ABOVE. 9 . IN THE RESULT, THE APPEAL IS FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER P RONOUNCED IN THE OPEN COURT ON 27 . 1 1 . 2 018. SD/ - ( N. K. BILLAIYA ) A CCOUNTANT MEMBER * NEHA* DATE: - 27 . 1 1 .2018 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(APPEALS) 5 . DR: ITAT ASSISTANT R EGISTRAR ITAT NEW DELHI 5 DATE OF DICTATION 26.11.2018 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE S R.PS/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/ PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WEBSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH FILE GOES TO THE HEAD CLERK. THE DATE ON WHICH FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER 6