SHRI ANAND LOGDE, Vidisha V. The ITO, Vidisha

ITA 756/IND/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5742 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 2 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-03-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 01-03-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 05-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Assessee Lawyers: S S DESHPANDE
• Keywords: Peak credit

Judgement Text

ITA 756 OF 2014 ANAND LOGDE 1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER AND SHRI B.C. MEENA, ACCOUNTANT MEMBER ITA NO.756/IND/2014 A.Y. 2009-10 ANAND LOGDE, VIDISHA PAN ACAPL 6287 E :: APPELLANT VS ITO-VIDISHA :: RESPONDENT ASSESSEE BY SHRI S.S. DESHPANDE RESPONDENT BY SHRI R.A. VERMA DATE OF HEARING 01.3.2016 DATE OF PRONOUNCEMENT 01.3.2016 O R D E R PER SHRI B.C. MEENA, AM THIS APPEAL IS FILED BY THE ASSESSEE CHALLENGING T HE ORDER OF LD. CIT(A)-BHOPAL, DATED 09.9.2014 CHALLENGING THE CONFIRMATION OF ADDITION OF RS.22,11,000/-. 2. FACTS, IN BRIEF, ARE THAT FROM THE AIR, THE ASSE SSING OFFICER FOUND THAT THE ASSESSEE MADE CASH DEPOSITS. OF RS.2 3,76,750/-, RS.11,15,700/- AND RS.10,95,400/- IN HIS SAVING BAN K ACCOUNTS. ITA 756 OF 2014 ANAND LOGDE 2 THE ASSESSEE SUBMITTED THAT AN ACCOUNT WITH AXIS BA NK IS NOT MAINTAINED SINGLY BUT JOINTLY WITH HIS WIFE. HIS WI FE IS THE FIRST HOLDER AND HE IS THE SECOND HOLDER OF THE ACCOUNT AND BANK ACCOUNT IS BEING USED FOR THE PURPOSE OF BUSINESS OF HIS WIFE RUN BY HER INDEPENDENTLY. TRANSACTIONS IN THE BANK ACCOUNT HAV E BEEN DISCLOSED IN THE BOOKS OF ACCOUNT OF HIS WIFE AND T HEREFORE, THE ASSESSEE WAS NOT SHOWING TRANSACTIONS IN HIS BOOKS OF ACCOUNT. BUT THE ASSESSING OFFICER OBSERVED THAT THE PAN OF THE ASSESSEE FEATURES IN THE AIR DATA UPLOADED BY AXIS BANK AND THEREFORE, THE ASSESSEE WAS REQUIRED TO EXPLAIN THE SOURCE OF CASH DEPOSITS MADE IN THE AXIS BANK AS WELL AS IN OTHER BANKS AS STATE D ABOVE. ACCORDINGLY, THE ASSESSING OFFICER MADE ADDITION OF THE TOTAL CASH DEPOSITS AT RS.45,87,850/-. AGAINST THE SAME, THE A SSESSEE APPROACHED THE LD. CIT(A), WHO, CONSIDERING THE REM AND REPORT, DELETED THE ADDITION AT RS.23,76,750/-, WHICH ARE T OTAL CASH DEPOSITS MADE DURING THE YEAR IN THE SAVING BANK ACCOUNT WIT H AXIS BANK. STILL AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE U S. 3. BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE HAS REITERATED THE SUBMISSIONS MADE BEFORE AUTHORITIES BELOW AND CONTE NDED THAT THE ADDITION MAINTAINED BY THE LD. CIT(A) IS NOT JUSTIF IED AS THE SAME IS ITA 756 OF 2014 ANAND LOGDE 3 RECORDED IN THE BOOKS OF ACCOUNT. ALTERNATIVELY, TH E REVENUE AUTHORITIES DID NOT PURSUE THE PEAK THEORY. ON THE OTHER HAND, LD. DR PLACED RELIANCE ON THE ORDERS OF THE REVENUE AUT HORITIES. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL AVAILABLE ON RECORD. THE ASSESSEE HAS FILED A PAPER BOOK RUNNING INTO 48 PAGES ALONG WITH WRITTEN SUBMISSIONS, WHERE IN, THE RELEVANT DOCUMENTS HAVE BEEN ANNEXED. THE ASSESSEE HAS AGITA TED THAT SUBMISSIONS OF THE ASSESSEE AND RELEVANT DOCUMENTS HAVE NOT BEEN APPRECIATED IN THE PROPER PERSPECTIVE. WE FIND THAT DEPOSITS IN THE BANKS ARE RECORDED IN THE BOOKS OF ACCOUNT OF H IS WIFE. SOURCE OF THE CASH DEPOSIT WAS NOT EXPLAINED BEFORE THE RE VENUE AUTHORITIES. ASSESSEE CLAIMS THAT THE BANK ACCOUNT RELATE TO WIFE OF THE ASSESSEE. ALTERNATIVELY, ASSESSEE ALSO PLEADED FOR ADDITION BASED ON PEAK THEORY. ALL THESE REQUIRE CONSIDERATI ON AT THE LEVEL OF OF THE ASSESSING OFFICER. THUS, WE SET ASIDE THE OR DERS OF THE REVENUE AUTHORITIES AND THE ISSUE IS RESTORED BACK TO THE FILE OF THE LD. AO WITH DIRECTION TO DECIDE THE ISSUE IN VIEW O F THE DISCUSSION MADE HEREINABOVE. THE AO SHALL DECIDE THE ISSUE AFT ER GIVING DUE OPPORTUNITY OF HEARING TO THE ASSESSEE. THE ASSESSE E SHALL BE AT LIBERTY TO FILE ANY FURTHER EVIDENCE, IF ANY, IN SU PPORT OF THE CLAIM. ITA 756 OF 2014 ANAND LOGDE 4 5. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES ONLY. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 01.3.2016 . SD/- ( D.T. GARASIA) JUDICIAL MEMBER SD/- (B.C. MEENA) ACCOUNTANT MEMBER DATED: 01.3.2016 !VYS! COPY TO: APPELLANT/RESPONDENT/CIT(A)/CIT/DR, INDORE