Dr. (Smt) Madura Chandu, Bangalore V. ITO, Bangalore

ITA 732/BANG/2015

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 3756 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 4 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-10-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 07-09-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 18-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SWAPNA DAS
• Assessee Lawyers: V SRINIVASAN
• Keywords: Unexplained investment; Depreciation
• Section: 68; 69; 6; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, BANGALORE BEFORE S MT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA NO S . 732 & 733 / BANG/20 15 (ASSESSMENT YEAR: 2009 - 10 ) DR.(SMT.) MADURA CHANDU, NO.27, 1 ST MA IN, II CROSS, CHAKRAVARTHY LAYOUT, PALACE CROSS ROAD BENGALURU - 560 020. PAN:ADLPC 0562 E VS. APPELLANT INCOME - TAX OFFICER, WARD 5(4), BENGALURU. RESPONDENT APPELLANT BY : SHRI V.SRINIVASAN, ADVOCATE. RESPO NDENT BY : MS.SWAPNA DAS, JCIT. DATE OF HEARING : 07/09/2016 DATE OF PRONOUNCEMENT : 14 /10/2016 O R D E R PER I NTURI RAMA RAO, AM : THESE ARE APPEALS FILED BY THE ASSESSEE DIRECTED AGAINST THE TWO ORDERS OF THE COMMISSIONER OF INCOME - TAX ( APPEALS) [CIT(A)], BENGALURU, BOTH DATED 31/03/2015 FOR THE ASSESSMENT YEAR 2009 - 10. 2. THE ASSESSEE RAISED THE FOLLOWING GROUNDS OF APPEAL IN ITA NO.732/BANG/2015 : ITA NO S . 732 & 733 /BANG/201 5 PAGE 2 OF 5 ITA NO.733/BANG/2015: ITA NO S . 732 & 733 /BANG/201 5 PAGE 3 OF 5 3. BRIEFLY FACTS OF THE CASE ARE AS UNDE R: THE APPELLANT IS AN INDIVIDUAL DERIVING INCOME UNDER THE HEAD PROFESSION AS A DOCTOR. RETURN OF INCOME FOR THE ASSESSMENT YEAR 2009 - 10 WAS FILED ON 29/ 0 7/2009 DECLARING A TOTAL INCOME OF RS.1,92,220/ - . AFTER PROCESSING THE SAID RETURN OF INCOME U/S 143(1) OF THE INCOME - TAX ACT,1961 [ THE ACT FOR SHORT], THE ASSESSMENT CAME TO BE COMPLETED U/S 144 OF THE ACT VIDE ORDER DATED 30/12/2011 BY THE ITO, WARD 5(4), BANGALORE, AT A TOTAL INCOME OF RS.2,28,54,250/ - . WHILE DOING SO, THE ASSESSING OFFICER [AO ] MADE ADDITION ON ACCOUNT OF UNEXPLAINED CASH DEPOSITS OF RS.110.50 LAKHS U/S 68 OF THE ACT AND MADE ADDITION OF RS.116 LAKHS ON ACCOUNT OF UNEXPLAINED INVESTMENT IN PLANT AND MACHINERY U/S 6 9 OF THE ACT. 4. BEING AGGRIEVED, AN APPEAL WAS PREFERRE D BEFORE THE CIT(A) WHO, VIDE IMPUGNED ORDER, HAD DELETED ADDITION ON ACCOUNT OF UNEXPLAINED INVESTMENT OF RS.116 LAKHS AND IN RESPE CT ITA NO S . 732 & 733 /BANG/201 5 PAGE 4 OF 5 OF UNEXPLAINED CASH DEPOSITS AFTER CALLIN G FOR REMAND REPORT FROM THE AO REDUCED ADDITION TO THE EXTENT OF RS.30,01,000/ - . 5. BEING AGGRIEVED BY THIS ADDITION, APPELLANT IS IN APPEAL BEFORE US IN THE PRESENT APPEAL. 5.1 LEARNED COUNSEL FOR ASSESSEE VEHEMENTLY CONTENDED THAT THE CIT(A) OUGHT TO HAVE TELESCOPED THIS ADDITION AGAINST MISCELLANEOUS INCOME REPORTED OF RS .45 LAKHS DISCLOSED BY THE APPELLANT. 5.2 ON THE OTHER HAND, LEARNED DEPARTMENTAL REPRESENTATIVE PLACED RELIANCE ON THE ORDERS OF THE LOWER AUTHORITIES. 6. WE HEARD RIVAL SUBMISSIONS AND PERUSED MATERIAL ON RECORD. WHEN THE APPELLANT HAS REP ORTED MISCELLANEOUS INCOME OF RS.45 LAKHS, SAME CAN BE DEEMED TO HAVE BEEN DEPOSITED IN BANK. THUS CASH DEPOSIT TO THE EXTENT OF RS.30,01,000/ - SHOULD BE TREATED AS EXPLAINED. THE FACT THAT RETURNED INCOME IS LOWER IS ONLY RS.1 , 92, 22 0/ - DOES NOT SUGGEST T HAT THERE WAS NO SOURCE FOR MAKING DEPOSIT OF CASH IN BANK OUT OF KNOWN SOURCE OF INCOME. RETURNED INCOME CAN BE LOWER FOR MANY REASONS WHICH DOES NOT INVOLVE OUTFLOW OF CASH SUCH AS DEPRECIATION. THUS, THE APPEAL IS TREATED AS ALLOWED. 7. THE APPEAL BEARING ITA NO.733/BANG/2015 IS FILED CHALLENGING THE DIRECTION OF THE CIT(A) CONFIRMING LEVY OF PENALTY ON THE ADDITION SUSTAINED OF RS.30,01,000/ - . I N THE APPEAL FILED BY THE ITA NO S . 732 & 733 /BANG/201 5 PAGE 5 OF 5 ASSESSEE VIZ. ITA NO.732/BANG/2015 W E HAVE QUASHED ADDITION AND HENCE , THE QU ESTION OF LEVY OF PENALTY DOES NOT ARISE. AS SUCH, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 14 TH OCTOBER , 2016 S D/ - S D/ - (ASHA VIJAYARAGHAVAN) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBE R PLACE : BANGALORE D A T E D : 14 / 1 0/2016 SRINIVASULU, SPS COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A) - II BANGALORE 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE TRIBUNAL BANGALORE