Assistant Commissioner of Income-tax, V. Sou. Sharmila Dilip Mohite, Kolhapur

ITA 742/PUN/2015

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 7708 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 3 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-08-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 21-08-2017
• Assessment Year: 2011-2012
• Appeal Filed On: 19-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NIRUPAMA KOTRU
• Keywords: Salary income

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE . . . . , , BEFORE SHRI D.KARUNAKARA RAO, AM AND SHRI VIKAS AWASTHY, JM . / ITA NO. 742/PUN/2015 / ASSESSMENT YEAR : 2011-12 ACIT, CENTRAL CIRCLE, IST FLOOR, SHRIRAM HEIGHTS, SHAHUPURI, IST LANE, KOLHAPUR . / APPELLANT V/S SOU. SHARMILA DILIP MOHITE, 240B, MOHITE HOUSE, GEN. THORAT MARG, TARABAI PARK, KOLHAPUR PAN : AFAPM1222P . / RESPONDENT ASSESSEE BY : NONE REVENUE BY : SMT. NIRUPAMA KOTRU, CIT / ORDER PER D. KARUNAKARA RAO, AM : THIS APPEAL IS FILED BY THE REVENUE AGAINST THE OR DER OF CIT(A)-1 & 2, KOLHAPUR, DATED 25-02-2015 FOR THE ASSESSMENT YEAR 2011-12. 2. THERE IS NONE TO REPRESENT THE ASSESSEE. HOWEVE R, WE PROCEED TO ADJUDICATE THE ISSUE WITH THE HELP OF LD. DEPARTMEN TAL REPRESENTATIVE FOR THE REVENUE AND ON THE BASIS OF MATERIAL AVAILABLE ON R ECORD. 3. BRIEFLY STATED RELEVANT FACTS OF THE CASE ARE TH AT THE ASSESSEE IS A DIRECTOR OF D.M. CORPORATION PVT. LTD. ASSESSEE DERIVED INCOME FROM SALARY, CAPITAL GAIN AND INCOME FROM OTHER SOURCES. AO NOTICED THAT AN AMOU NT OF RS.35,00,000/- HAS BEEN TRANSFERRED BY SHRI RAMCHANDRA MARUTI MOHITE TO THE BANK ACCOUNT OF MRS. SHARMILA / DATE OF HEARING : 21.08.2017 / DATE OF PRONOUNCEMENT: 23.08.2017 2 ITA NO.742/PUN/2015 MRS. SHARMILA DILIP MOHITE DILIP MOHITE, THE ASSESSEE. THE SAME AMOUNT WAS IN VESTED IN SHARES OF SUBHADRA LOCAL AREA BANK LTD. AO SOUGHT EXPLANATION FROM TH E ASSESSEE AND THE ASSESSEE FURNISHED HER REPLY THAT THE SAME IS ON ACCOUNT OF UNSECURED INTEREST FREE LOAN FROM HER FATHER-IN-LAW MR. R.M. MOHITE. THERE IS NO CON SIDERABLE CASH FLOW AS THE ONLY INCOME IS FROM SALARY BEING AN ADMINISTRATIVE OFFIC ER OF D.M. CORPORATION PVT. LTD., REJECTING THE EXPLANATION GIVEN BY THE ASSESSEE THE AO ASSESSED THE INVESTMENT OF RS.35,00,000/- AND ADDED IN THE HANDS OF THE ASSESS EE ON PROTECTIVE BASIS. LD.CIT(A) DELETED THE PROTECTIVE ADDITION OF RS.35, 00,000/- IN THE HANDS OF THE ASSESSEE AS PER THE DISCUSSION GIVEN IN PARA 5 OF H IS ORDER. SUBSTANTIVE ADDITION IS MADE IN THE HANDS OF SHRI RAMCHANDRA MARUTI MOHITE. 4. AGGRIEVED WITH THE ORDER OF CIT(A) THE REVENUE I S IN APPEAL BEFORE US WITH THE GROUNDS REFERRED TO IN THE APPEAL. 5. THERE IS NONE TO REPRESENT THE ASSESSEE DESPITE THE NOTICE. SHRI M.K. KULKARNI WHO REPRESENTED THE APPEAL OF SHRI RAMCHAN DRA MARUTI MOHITE SUBMITTED THAT HE IS NOT AUTHORIZED. HOWEVER, CONSIDERING TH E PROTECTIVE NATURE OF THE ADDITION AND THE DECISION OF CIT(A), WE PROCEED TO ADJUDICATE THE APPEAL OF THE REVENUE. 6. WE HEARD THE LD. DEPARTMENTAL REPRESENTATIVE FOR THE REVENUE AND PERUSED THE MATERIAL AVAILABLE ON RECORD. HE RELIED ON THE ORDER OF THE AO DUTIFULLY. WE HAVE GONE THROUGH THE ORDER OF CIT(A) ON THIS LIMIT ED ISSUE. WE FIND THE CIT(A) AT PARA NO.5 OF HIS ORDER DELETED THE PROTECTIVE ADDIT ION MADE BY THE AO BY HOLDING AS UNDER : 5. ON GOING THROUGH THE BANK STATEMENT IT IS SEEN THAT RS.35 LAKHS HAS BEEN CREDITED IN THE BANK ACCOUNT OF THE ASSESSEE. SHRI R.M. MOHITE HAS ACCEPTED AND GIVEN CONFIRMATION OF HAVING ADVANCED RS.35 LAKHS T O THE ASSESSEE. THE VERY SAME AMOUNT HAS BEEN DEBITED IN FAVOUR OF SHUBHADRA LOCA L AREA BANK LTD. ALL THESE DOCUMENTS LEAVE NO DOUBT THAT THE INVESTMENT HAD CO ME FROM SHRI R.M. MOHITE. IN VIEW OF THESE FACTS, THE ASSESSING OFFICER CANNOT T REAT THE INVESTMENT AS UNEXPLAINED. IF HE HAS ANY DOUBT ABOUT THE SOURCE OF RS.35 LAKHS CREDITED IN HER BANK ACCOUNT WHICH WAS ACCEPTED BY SHRI R.M. MOHITE , THE ASSESSING OFFICER SHOULD 3 ITA NO.742/PUN/2015 MRS. SHARMILA DILIP MOHITE HAVE TAKEN ACTION IN THE CASE OF SHRI R.M. MOHITE. THE ASSESSING OFFICER HAS DULY TAKEN ACTION AND MADE SIMILAR ADDITION IN THE CASE OF SHRI R.M. MOHITE. THEREFORE, THE PROTECTIVE ADDITION MADE IN THE CASE OF ASSESSE E IS HEREBY DELETED. 7. FROM THE ABOVE, WE FIND THE CIT(A) HAS RIGHTLY C OME TO A CONCLUSION THAT THE SOURCES OF INVESTMENT HAD COME FROM SHRI RAMCHANDRA MARUTI MOHITE AS SHRI R.M. MOHITE CONFIRMED THE SAME. THE TRANSACTION IS EXEC UTED THROUGH THE BANKING CHANNEL. AS SUCH, THERE IS NO CASE FOR MAKING PROT ECTIVE ADDITION IN THE HANDS OF THIS ASSESSEE. THE FRESH ASSESSMENT OF SHRI RAMCHA NDRA MARUTI MOHITE HAS REACH FINALITY. THE REVISION ORDER OF LD. PRINCIPAL CIT( CENTRAL), PUNE DATED 29-03-2016 U/S.263 OF THE ACT, WHICH HAS NOW BEEN DISMISSED BY THE TRIBUNAL AS WITHDRAWN VIDE ITA NOS. 880 TO 882/PUN/2016 DATED 21-08-2016. IN VIEW OF THE ABOVE, WE FIND THE ORDER OF THE CIT(A) IS FAIR AND REASONABLE AND IT DOES NOT CALL FOR ANY INTERFERENCE FROM OUR SIDE. ACCORDINGLY, THE GROUN DS RAISED BY THE REVENUE ARE DISMISSED. 8. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 23 RD DAY OF AUGUST, 2017. SD/- SD/- (VIKAS AWASTHY) (D. KARUNAKARA RAO) /JUDICIAL MEMBER / ACCOUNTANT MEMBER PUNE; DATED : 23 RD AUGUST, 2017. / COPY OF THE ORDER FORWARDED TO : / BY ORDER , // TRUE COPY // //TRUE COPY// SENIOR PRIVATE SECRETARY , / ITAT, PUNE 1. / THE APPELLANT 2. / THE RESPONDENT 3. 4. THE CIT(A) - 1 & 2, KOLHAPUR THE CIT -1 & 2, KOLHAPUR 5. % , , B BENCH PUNE; 6. / GUARD FILE.