The ITO, Ward-2(4), Surat V. Smt. Jully Najranglal Nahar, Surat

ITA 829/AHD/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 67792 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-10-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 04-09-2013
• Assessment Year: 2008-2009
• Appeal Filed On: 22-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K C MATHEWS SRDR
• Assessee Lawyers: S K KABRA
• Keywords: Income from undisclosed sources; Peak credit

Judgement Text

, , , , D, IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, D BENCH . .. . . .. . , !' !' !' !', , , , #$ #$ #$ #$ %& %& %& %& , , , , &' &' &' &' ( & ' ( & ' ( & ' ( & ' BEFORE S/SHRI G.C. GUPTA, VICE-PRESIDENT AND TEJ RAM MEENA, ACCOUNTANT MEMBER) ITA NO.829/AHD/2013 [ASSTT.YEAR : 2008-2009] ITO, WARD-2(4) SURAT. /VS. SMT. JULLY BAJARANGLAL NAHAR 2/4592, SAGRAMPURA MAIN ROAD SAGRAMPURA, SURAT. PAN : ACVPN 7756 K ( (( (*+ *+ *+ *+ / APPELLANT) ( (( (,-*+ ,-*+ ,-*+ ,-*+ / RESPONDENT) ( . / &/ REVENUE BY : SHRI K.C. MATHEWS, SR-DR 1% . / &/ ASSESSEE BY : SHRI S.K. KABRA 2 . %3'/ DATE OF HEARING : 4 TH SEPTEMBER, 2013. 456 . %3'/ DATE OF PRONOUNCEMENT : 04/10/2013 &7 / O R D E R PER G.C. GUPTA, VICE-PRESIDENT: THIS APPEAL OF THE REVENUE FOR THE ASSESSMENT YEAR 2008-2009 IS DIRECT ED AGAINST THE ORDER OF THE CIT(A)-II, SURAT DATED 18.1.2013. 2. THE ONLY GROUND OF THE APPEAL OF THE REVENUE IS AS UNDER: ITA NO.829/AHD/2013 -2 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.CIT(A) HAS ERRED IN RESTRICTING THE ADDITION OF RS.19,86,009/- MADE ON ACCOUNT OF UNACCOUNTED INCOM E DEPOSITED IN THE UNDISCLOSED BANK ACCOUNT TO RS.1,7 3,758/- WITHOUT APPRECIATING THE FACT THAT THE ASSESSEE FAI LED TO PROVE THAT CASH DEPOSITS WERE RECEIVED BACK AND WERE AVAI LABLE FOR RE-DEPOSITS, THEREFORE, NO BENEFIT OF TELESCOPING I S FEASIBLE IN THIS CASE. 3. THE LEARNED DR SUBMITTED THAT THE CIT(A) HAS ERR ED IN RESTRICTING THE ADDITION OF RS.19,86,009/- MADE ON ACCOUNT OF UNACCOUNTED INCOME DEPOSITED IN THE UNDISCLOSED BAN K ACCOUNT AT RS.1,73,758/-. HE SUBMITTED THAT THE ASSESSEE COUL D NOT PROVE THAT CASH DEPOSITS WERE RECEIVED BACK AND WERE AVAILABLE FOR RE-DEPOSITS IN THE BANK, AND THEREFORE NO BENEFIT OF PEAK CREDIT C OULD BE ALLOWED TO THE ASSESSEE. HE SUBMITTED THAT THE ASSESSEE COULD NOT PROVE THE RE- CYCLING OF THE AMOUNT, AND THEREFORE, THE ORDER OF THE AO SHOULD BE SUSTAINED AND RELIED ON THE ORDER OF THE AO. THE L EARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE CIT(A) HAS PASSED A WELL REASONED ORDER, AND HAS WORKED OUT THE PEAK AMOUNT OF THE EN TRIES IN THE BANK ACCOUNT OF THE ASSESSEE, AND THE ISSUE IS COVERED I N ITS FAVOUR WITH THE DECISION OF THE ITAT, AHMEDABAD BENCH IN THE CASE O F ITO VS. SHRI MANUBHAI NARAYANBHAI PATEL IN ITA NO.2161/AHD/2012 DATED 12.4.2013, WHEREIN IN IDENTICAL FACTS, ONLY THE PEA K AMOUNT OF CASH DEPOSITS WAS ASSESSED IN THE HANDS OF THE ASSESSEE. HE RELIED ON THE ORDER OF THE CIT(A). 4. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND HAVE PE RUSED THE ORDERS OF THE AO AND THE CIT(A) AND ALSO THE DECISI ON OF THE ITAT, AHMEDABAD BENCH IN ITO VS. SHRI MANUBHAI NARAYANBHA I PATEL (SUPRA). WE FIND THAT THE CIT(A) HAS CONFIRMED THE ADDITION OF THE ITA NO.829/AHD/2013 -3 PEAK AMOUNT OF THE DEPOSITS IN THE ACCOUNT OF THE A SSESSEE MAINTAINED WITH THE ICICI BANK. THE CIT(A) HAS GIVEN A FINDIN G THAT WHOLE OF THE DEPOSIT AMOUNT COULD NOT BE TREATED AS UNEXPLAI NED, FOR THE REASON THAT, THE FUND HAVE BEEN CIRCULATED THROUGH WITHDRA WALS AND DEPOSITS, AND IN SUCH SITUATION, TAKING PEAK AMOUNT OF TRANSA CTION IS BEST SUITED COURSE OF ACTION. WE FIND THAT NO DEFECT IN THE WO RKING OF THE PEAK AMOUNT MADE BY THE CIT(A) COULD BE POINTED OUT ON B EHALF OF THE REVENUE. THE ISSUE IS COVERED IN FAVOUR OF THE A SSESSEE WITH THE DECISION OF THE ITAT, AHMEDABAD BENCH IN ITO VS. SH RI MANUBHAI NARAYANBHAI PATEL (SUPRA), WHEREIN HELD THAT THE EN TIRE AMOUNT OF DEPOSIT COULD NOT BE TAXED AS INCOME IN THE HANDS O F THE ASSESSEE, AND THE ASSESSMENT OF THE AMOUNT REPRESENTING THE PEAK OF CASH CREDIT, AS THE ASSESSEES INCOME, IS WHOLLY JUSTIFIED. IN TH ESE FACTS OF THE CASE, AND IN VIEW OF THE FACT THAT THERE IS NO DEFECT IN THE WORKING OF THE PEAK AMOUNT, AND IN THE ABSENCE OF ANY EVIDENCE BRO UGHT ON RECORD THAT THE WITHDRAWALS MADE FROM THE BANK WERE UTILIS ED ELSEWHERE, WE HOLD THAT THERE IS NO MISTAKE IN THE ORDER OF THE C IT(A) ON THIS ISSUE, IN ASSESSING PEAK AMOUNT OF CREDIT IN THE BANK ACCO UNT OF THE ASSESSEE, WHICH IS CONFIRMED, AND THE GROUND OF THE APPEAL OF THE REVENUE IS DISMISSED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- SD/- ( %& %& %& %& / TEJ RAM MEENA) &' ( &' ( &' ( &' ( /ACCOUNTANT MEMBER ( . .. . . .. . /G.C. GUPTA) !' !' !' !' /VICE-PRESIDENT ITA NO.829/AHD/2013 -4 C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD 1. DATE OF DICTATION : 04-09-2013 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER. : 05-09-2013 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P.S./P.S : 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT. : 5. DATE ON WHICH FAIR ORDER PLACED BEFORE OTHER MEMBER : 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P.S./P.S. : 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK. : [ 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK. : 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER. : 10. DATE OF DESPATCH OF THE ORDER :