Viral Rameshchandra Doshi, Surendranagar V. The Income Tax Officer, Ward-2, Surendranagar

ITA 75/RJT/2012

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 9081 (ITAT-RAJKOT)
• Duration Of Justice: 5 year(s) 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-04-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 03-04-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 14-02-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C S ANJARIA SR DR
• Assessee Lawyers: DM RINDANI

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT [ CONDUCTED THROUGH E-COURT AT AHMEDABAD ] BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND SHRI MAHAVIR PRASAD, JUDICIAL MEMBER ./ I.T.A. NO.75/RJT/2012 ( / ASSESSMENT YEAR : 2008-09) VIRAL RAMESHCHANDRA DOSHI PROP.: M/S.MAHAVIR GLASS TRADING CO. OPP. SATTA HALL, MAIN ROAD SURENDRANAGAR / VS. THE INCOME TAX OFFICER WARD-2 ROOM NO.5, IRISH HOSPITAL BUILDING OPP. MELA MEDAN SURENDRANAGAR ./ ./ PAN/GIR NO. AIXPD 7566 K ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI D.M. RINDANI, AR ! / RESPONDENT BY : SHRI C.S. ANJARIA, SR.DR ' #$% ! & / DATE OF HEARING 03/04/2017 '( ! & / DATE OF PRONOUNCEMENT 05/ 04 /2017 / O R D E R PER PRADIP KUMAR KEDIA, AM : THE CAPTIONED APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX(APPEALS)-XVI, AH MEDABAD [CIT(A) IN SHORT] DATED 25/11/2011 FOR THE ASSESSMENT YEAR (AY) 2008-09. ITA NO.75/RJT/2 012 VIRAL RAMESHCHANDRA DOSHI VS. ITO ASST.YEAR 2008-09 - 2 - 2. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE RE AD AS UNDER:- 1. THE LEARNED CIT(A) HAS ERRED IN LAW AND ON FACTS I N CONFIRMING THE ADDITION OF RS.26,53,700/- ON ACCOUNT OF UNEXPLAINE D CASH CREDIT, BEING DEPOSITS IN THE BANK ACCOUNT WITH RAJKOT NAGR IK SAHAKARI BANK AND AXIS BANK IN NAME OF APPELLANTS MOTHER AN D FATHER RESPECTIVELY WITH HIS NAME AS THE SECOND HOLDER IN BOTH THE ACCOUNTS. IN VIEW OF FACTS AND SUBMISSIONS FILED, THE IMPUGNED ADDITION OF RS.26,53,700/- REQUIRES TO BE DELETED. 2. THE LEARNED CIT(A) HAS FURTHER ERRED IN NOT APPRECI ATING THE FACT THAT THE SAME AO HAD SIMULTANEOUSLY REOPENED THE AS SESSMENTS OF APPELLANTS FATHER AND MOTHER AND SINCE HE HAS FINA LLY PROCEEDED TO TAX THE DEPOSITS IN THE BANK ACCOUNT IN THEIR NAME SUBSTANTIVELY BEING PRIMARY ACCOUNT HOLDERS, THE IMPUGNED ADDITIO N OF RS.26,53,700/- IN THE HANDS OF THE APPELLANT EVEN O THER WISE REQUIRES TO BE DELETED, THE SAME HAVING RESULTED IN DOUBLE T AXATION OF THE SAME AMOUNT IN CASE OF DIFFERENT ASSESSEES ON SUBS TANTIVE BASIS. 3. THE LEARNED CIT(A) FURTHER FAILED TO APPRECIATE THE FACT THAT THE APPELLANTS FATHER AND MOTHER HAD CATEGORICALLY OWN ED UP THE TRANSACTIONS APPEARING IN THE BANK ACCOUNTS IN THEI R NAME BY FILING DULY NOTARIZED AFFIDAVITS AND HENCE THERE WAS NO RE ASON TO TAX THE SAID TRANSACTIONS IN THE HANDS OF THE APPELLANT WHO WAS ONLY THE SECOND HOLDER IN THE SAID BANK ACCOUNTS. 3. BRIEFLY STATED, FOR THE RELEVANT AY 2008-09, THE CASE WAS UNDER SCRUTINY. IN THE COURSE OF SCRUTINY ASSESSMENT, TH E ASSESSING OFFICER (AO) FOUND THAT THE ASSESSEE HAS DEPOSITED CASH AGG REGATING TO RS.26,53,700/- IN RAJKOT NAGRIK SAHAKARI BANK LTD. AND AXIS BANK SURENDRANAGAR BRANCH DURING ACCOUNTING YEAR 01/04/2 007 TO 31/03/2008. IN THE COURSE OF THE ASSESSMENT, IT WAS SUBMITTED B Y THE ASSESSEE THAT THE AFORESAID BANK ACCOUNTS ARE HELD JOINTLY BY THE ASS ESSEE AND HIS FATHER ITA NO.75/RJT/2 012 VIRAL RAMESHCHANDRA DOSHI VS. ITO ASST.YEAR 2008-09 - 3 - SHRI RAMESHBHAI MANIBHAI DOSHI AND MOTHER SMT. JYOT SNABEN RAMESHCHANDRA DOSHI. IT WAS CONTENDED THAT SIMILAR ADDITIONS HAVE BEEN MADE IN THE HANDS OF OTHER JOINT ACCOUNT HOLDER SMT .JYOTSNABEN R.DOSHI/SHRI RAMESHCHANDRA M.DOSHI. THE LD.AR SUBM ITTED THAT THE SAME CASH DEPOSIT CANNOT BE TAXED IN THE HANDS OF M ORE THAN ONE PERSON. THIS AMOUNTS TO DOUBLE TAXATION. THE LD.AR SUBMITT ED THAT THE APPEAL OF MOTHER SMT.JYOTSNABEN R.DOSHI IS PENDING BEFORE THE CIT(A)-VII AHMEDABAD IN APPEAL NO.553/2011-12 FOR THE SAME ASS ESSMENT YEAR ON THE SAME ISSUE. HE ACCORDINGLY PLEADED THAT THIS A PPEAL SHOULD ALSO BE RESTORED BACK TO THE FILE OF CIT(A) SO THAT THE ISS UE CAN BE DETERMINED IN THE HAND OF RIGHT PERSON AFTER EXAMINING THE FACTS IN PERSPECTIVE QUA ALL CONNECTED ASSESSEES. 4. THE LD.DR DID NOT EXPRESS ANY OBJECTION ON THE P ROPOSITION OF THE LD.AR TO RESTORE THE MATTER BACK TO THE FILE OF CIT (A). 5. WE STRAIGHTAWAY AGREE WITH THE PROPOSAL TO RESTO RE THE MATTER TO THE FILE OF CIT(A) ON BEHALF OF THE ASSESSEE. THE CIT(A) MAY VERIFY THE FACTS CONCERNING THE ISSUE IN PERSPECTIVE TO DETERM INE THE RIGHTFUL OWNER OF CASH SO DEPOSITED. FOR THIS PURPOSE, THE APPEAL S OF ALL CONNECTED ASSESSEES MAY BE CLUBBED TOGETHER FOR ASSESSMENT O F CASH DEPOSITS IN THE HANDS OF RIGHT PERSON. NEEDLESS TO SAY, PROPER OPP ORTUNITY SHALL BE PROVIDED TO THE ASSESSEE IN THIS REGARD. THE ISSUE IS THUS KEPT OPEN AND ITA NO.75/RJT/2 012 VIRAL RAMESHCHANDRA DOSHI VS. ITO ASST.YEAR 2008-09 - 4 - THE MATTER IS RESTORED TO THE FILE OF CIT(A) FOR FR ESH ADJUDICATION OF THE ISSUE IN ACCORDANCE WITH LAW. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 05 / 04/ 2017 AT AHMEDABAD. SD/- SD/- ( MAHAVIR PRASAD) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD ; DATED 05/04/2017 ..#, $.,#../ T.C. NAIR, SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. - & ' .& / CONCERNED CIT 4. ' .& ( ) / THE CIT(A)-XVI, AHMEDABAD 5. 2$34 ,&,# , , /DR,ITAT, RAJKOT 6. 4?@ A% / GUARD FILE. / BY ORDER, 2& ,& //TRUE COPY// / ( DY./ASSTT.REGISTRAR) %&, / ITAT, RAJKOT 1. DATE OF DICTATION .. 3.4.17 (DICTATION-PAD 6- P AGES ATTACHED AT THE END OF THIS FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER .. 4.4.17 3. OTHER MEMBER... 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S. 5.4.17 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 5.4.17 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER