Smt. Arti Motwani, Faizabad V. Dy. Commissioner of Income Tax, Faizabad

ITA 689/LKW/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 4051 (ITAT-LUCKNOW)
• Duration Of Justice: 8 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-08-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 08-08-2016
• Assessment Year: 2011-2012
• Appeal Filed On: 16-11-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Income from undisclosed sources

Judgement Text

I.T.A. NO. 689 /LKW/ 15 ASSESSMENT YEAR:20 11 - 12 1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B , LUCKNOW BEFORE SHRI P. K. BANSAL, ACCOUNTANT MEMBER AND SHRI ABY T. VARKEY , JUDICIAL MEMBER ITA NO. 689 / LKW /201 5 SMT. ARTI MOTWANI, RAJENDRA NAGAR COLONY, MUGALPURA, FAIZABAD PAN: - AJUPM 2336 C ASSESSMENT Y EAR: 20 11 - 12 VS DCIT, CIRCLE FAIZABAD (APPELLANT) (RESPONDENT) O R D E R 3. BRIEF FACTS OF THE CASE IS THAT THE ASSESSEE IS AN INDIVIDUAL HAD RETURNED DECLARING A TOTAL INCOME OF RS. 8,15,280/ - WHICH WAS SELECTED FOR SCRUTINY. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, ASSESSING OFFI CER NOTICED THAT ASSESSEE HAS MADE AN INVESTMENT OF RS. 21,80,000/ - FOR PURCHASE OF PROPERTY AT FAIZABAD ON 12.04.2010. THE ASSESSING OFFICER PER A BY T. V ARK EY , J .M. THIS IS AN APPEAL PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT(A), FAIZABAD D ATED 15.09.2015 FOR A SSESSMENT Y EAR 20 11 - 12 . 2. THE ONLY GROUND THAT HAS BEEN RAISED BEFORE US THAT IS AGAINST THE CONFIRMATION OF ADDITION OF RS. 1,80,000/ - MADE BY THE ASSESSING OFFICER. APPELLANT BY SHRI SAMRAT CHANDRA, CA RESPONDENT BY SHRI AMIT NIGAM , DR DATE OF HEARING 08.08.2016 DATE OF PRONOUNCEMENT 11.08.2016 I.T.A. NO. 689 /LKW/ 15 ASSESSMENT YEAR:20 11 - 12 2 ASKED THE ASSESSEE TO EXPLAIN THE SOURCE OF SAID INVESTMENT FOR WHICH THE ASSESSEE REPLIED THAT SHE HAS TAKEN A LO AN OF RS. 17,50,000/ - FROM BANK OF BARODA AND RS. 2,50,000/ - WAS TAKEN FROM SHRI ANAND MOTWANI AND REST AMOUNT OF RS. 1,80,000/ - WAS PAID AFTER WITHDRAWAL FROM S.B. ACCOUNT NO. 9036 WITH BANK OF BARODA. ACCORDING TO THE ASSESSING OFFICER FROM THE PERUSAL O F THE BANK STATEMENT TH ERE HAS BEEN NO SUCH WITHDRAWAL OF RS. 1,80,000/ - PRIOR TO 12.04.2010. THEREFORE, ACCORDING TO THE ASSESSING OFFICER THIS AMOUNT REMAINS UNEXPLAINED AND WAS ADDED TO THE INCOME OF THE ASSESSEE UNDER THE HEAD INCOME FROM UNDISCLOSED SOURCES. 4. AGGRIEVED THE ASSESSEE PREFERRED AN APPEAL BEFORE LD. CIT(A) WHO WAS PLEASED TO DISMISS IT. AGAINST THE SAID ORDER OF THE LD. CIT(A), ASSESSEE IS B EFORE US. 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE RECORDS. WE TAKE NOT THAT THE ASSESSEES CONTENTION BEFORE THE LD. CIT(A) WAS THAT SHE HAD OPENING CASH IN HAND AS ON 01.04.2010 OF RS. 3,20,764/ - WHICH CAN BE SEEN FROM THE FINANCIAL STATEMENT O F ASSESSMENT YEAR 20 1 0 - 11. IT WAS ALSO BROUGHT TO THE NOTICE OF THE LD. CIT(A) THAT ASSESSEE HAD FILLED CLOSING CASH IN HAND ON 31.03.2010 WHICH WAS RS. 3,20,764/ - WHICH IS EVIDENT FROM THE PERUSAL OF RETURN OF INCOME FOR ASSESSMENT YEAR 2010 - 11. IN ORDER TO CORROBORATE THE SAID FACT ASSESSEE SUBMITTED THE BALANCE SHEET AS ON 31.03.2010 AND THE SAME WAS RECONCILED WITH RETURN FILED FOR ASSESSMENT YEAR 2010 - 11. HOWEVER, WE FIND THAT THE ASSESSING OFFICER WAS OF THE OPINION THAT SINCE ASSESSEE HAS SAID BEFORE HIM THAT RS. 1,80,000/ - HAS BEEN WITHDRAWN FROM THE S.B. ACCOUNT MAINTAINED BY HER IN THE BANK OF BARODA AND THE BANK STATEMENT DOE S NOT REFLECT SUCH A WITHDRAWAL OF AMOUNT , HE WAS OF THE OPINION THAT ASSESSEE FAILED TO EXPLAIN THE SOURCE OF THE INVESTMEN T . HOWEVER , WE TAKE NOTE THAT BEFORE THE LD. CIT(A) THE I.T.A. NO. 689 /LKW/ 15 ASSESSMENT YEAR:20 11 - 12 3 ASSESSEE IN HER WRITTEN SUBMISSION WHICH HAS BEEN FOUND INCORPORATED I N THE IMPUGNED ORDER THE ASSESSEE HAS CLEARLY STATE D THAT SHE HAD OPENING CASH IN HAND AS ON 01.04.2010 OF RS. 3,20,764/ - WHICH CAN BE SEEN FROM THE FINANCIAL STATEMENT OF ASSESSMENT YEAR 20 1 0 - 11 AND FROM THE ROI OF AY 2010 - 11 (SUPRA). 6. WE TA KE NOTE THAT THE LD. CIT(A) HAS NOT CONSIDERED THIS VITAL CONTENTION THAT HAS BEEN RAISED BEFORE HIM ( I.E, OPENING CASH IN HAND) WHEREAS WE TAKE NOTE THAT WHILE GIVING RELIEF T O THE ASSESSEE IN RESPECT TO ANOTHER ADDITION WHICH THE ASS ESSING OFFICER MADE IN RESPECT T O ADDITION OF RS. 8,70,000/ - BEING INVESTMENT MADE ON A P ROPERTY AT CIVIL LINES FAIZABAD, W E TAKE NOTE THAT THE LD. CIT(A) ACCEPTED THE CONTENTION OF THE ASSESSEE THAT IT HAD OPENING CASH IN HAND OF RS. 3,20,764/ - AND CASH WITHDRAWAL FROM THE BANK RS. 2,68,5000/ - AND THE INCOME FROM BUSINESS RS. 3,69,700/ - AND RENT OF RS. 12 , 020/ - AND OUTSTANDING RENT OF PREVIOUS YEAR RECEIVED IN CURRENT YEAR OF RS. 2,70,000/ - WHICH TOTAL S TO AN AMOUNT OF RS. 12,33,506 / - . WE TAKE NOTE THAT THE LD. CIT(A) WAS SATISFIED WITH THE EXPLANATION OF THE ASSESSEE AND ACCORDING TO HIM THE SOURCE OF INCOME FOR THE INVESTMENT MADE BY THE ASSESSEE TO A TUNE OF RS. 8,70,000/ - WAS BELIEVABLE . HOWEVER, HE COULD NOT CONVINCE HIMSELF ABOUT THE S OURCE OF INCOME OF RS. 1,80,000 / - , WHEN SHE HAS CATEGORICALLY SAID THAT SHE HAD WITH HER CASH AMOUNTING TO RS 1,80,000/= AS ON 12.04.2010 . WE TAKE NOTE THAT THE ASSESSEE HAD A N OPENING CASH IN HAND RS. 3,20,764/ - AS ON 01.04.2010 AND THE PROPERTY HAS BEEN PURCHASED ON 12.04.2010 , THEREFORE, THE ASSESSEE HAD CASH IN HAND OF THE ABOVE SAID AMOUNT , WHICH THE LD CIT(A) ACCEPTS WHEN HE GAVE RELIEF TO ASSESSEE BY DELETING RS 8,7 0,000/=WHICH WAS ADDED BY AO ON THE PREMISES THAT ASSESSEE COULD NOT EXPLAIN THE SOURCE OF INCOME FOR INVESTMENT IN A PROPERTY AT CIVIL LINES . THEREFORE, WE FIND THAT THE ASSESSEE HAS BEEN ABLE TO I.T.A. NO. 689 /LKW/ 15 ASSESSMENT YEAR:20 11 - 12 4 PROVE THE SOURCE OF INCOME RS. 1,80,000/ - AND THEREFORE WE DIRECT DELETION OF THE ADDITION MADE ON THIS ACCOUNT. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. (ORDER PRONOUNCED IN THE OPEN COURT ON 11.08.2016. ) SD/ - SD/ - ( P. K. BANSAL ) ( ABY T. VARKEY ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 11 / 08 /2016 *S HARAD COPY OF THE ORDER FORWARDED TO 1. : THE APPELLANT 2. THE RESPONDENT. 3. CONCERNED CIT 4. THE CIT(A) 5. D.R., I.T.A.T., LUCKNOW ASSTT. REGISTRAR