Shri Vishal R.Chugh, Surat V. The Income tax Officer,Ward-3(1), Surat

ITA 866/AHD/2013

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 6976 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 8 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-12-2014
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Next Hearing Date: 14-11-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 28-03-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ROOP CHAND SR DR
• Assessee Lawyers: R B SHAH
• Keywords: Peak credit

Judgement Text

, , , , D, IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, D BENCH . .. . . .. . , !' !' !' !', , , , #$ %&'( #$ %&'( #$ %&'( #$ %&'(, , , , )* + ) ' )* + ) ' )* + ) ' )* + ) ' BEFORE S/SHRI G.C. GUPTA, VICE-PRESIDENT AND ANIL CHATURVEDI, ACCOUNTANT MEMBER) ITA NO.866/AHD/2013 [ASSTT.YEAR : 2009-2010] SHRI VISHAL R. CHUGH A-402, RADHA KRISHNA APARTMENT BHATAR ROAD SURAT 395 002. PAN : AHHPC 4494 L /VS. ITO, WARD-3(1) SURAT. ( (( ( -. -. -. -. / APPELLANT) ( (( ( /0-. /0-. /0-. /0-. / RESPONDENT) 1& 2 3 ) / ASSESSEE BY : SHRI R.B. SHAH + 2 3 ) / REVENUE BY : SHRI ROOPCHAND, SR.DR 5 2 &(* / DATE OF HEARING : 14 TH NOVEMBER, 2014 678 2 &(* / DATE OF PRONOUNCEMENT : 12/12/2014 )9 / O R D E R PER G.C. GUPTA, VICE-PRESIDENT: THIS APPEAL BY THE ASSESSEE FOR THE ASSTT.YEAR 2009-2010 IS DIRECTED AGAINST THE OR DER OF THE CIT(A). 2. THE ONLY GROUND OF THE APPEAL OF THE ASSESSEE IS AS UNDER: 1. ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE A S WELL AS LAW ON THE SUBJECT, THELD.CIT(A) HAS ERRED IN CONFIRMING T HE ACTION OF THE AO IN MAKING ADDITION OF RS.26,77,745/- AS UNACCOUN TED INCOME DEPOSITED IN UNDISCLOSED BANK ACCOUNT. ITA NO.866/AHD/2013 -2- 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE AO HAS GROSSLY ERRED IN ADDING THE ENTIRE AMOUNT IN THE BA NK ACCOUNT OF THE ASSESSEE AS UNDISCLOSED INCOME, ALTHOUGH, ONLY PEAK THEREOF SHOULD HAVE BEEN ADDED IN THE HANDS OF THE ASSESSEE. HE SUBMIT TED THAT THE COPY OF THE BANK ACCOUNT WAS SUBMITTED TO THE AO, BUT, STILL TH E AO HAS MADE HIGH ADDITION OF RS.26.77 LAKHS FOR NO VALID REASON. HE SUBMITTED THAT THE PEAK IN THIS CASE, IN THE BANK ACCOUNT OF THE ASSESSEE W ITH ICICI BANK COMES TO RS.2,97,297/- ONLY. THE LEARNED DR HAS OPPOSED THE SUBMISSIONS OF THE LEARNED COUNSEL OF THE ASSESSEE. HE SUBMITTED THAT THE ASSESSEE HAS FAILED TO EXPLAIN THE ABOVE PEAK THEORY BEFORE THE AO. HE SUBMITTED THAT THE ASSESSEE SHOULD HAVE ESTABLISHED THE NEXUS BETWEEN THE CREDIT AND DEBIT ENTRIES IN THE BANK ACCOUNT OF THE ASSESSEE WITH IC ICI BANK. HE RELIED ON THE ORDERS OF THE AO AND THE CIT(A). 4. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE AO AND THE CIT(A), AND ALSO COPY OF THE BANK ACCOUN T WITH THE ICICI BANK FILED IN THE COMPILATION BEFORE US. WE FIND T HAT THE ONLY PEAK AMOUNT WORKED OUT, IN ACCORDANCE WITH ACCEPTEDPRINC IPLES OF ACCOUNTANCY, SHOULD HAVE BEEN ADDED AS INCOME IN TH E HANDS OF THE ASSESSEE. WE ARE UNABLE TO ACCEPT THE STAND OF THE REVENUE THAT THE ASSESSEE SHOULD BE PUT TO PROVE THAT THE THERE WAS A DIRECT NEXUS BETWEEN THE DEBIT AND CREDIT ENTRIES IN THE BANK ACCOUNT OF THE ASSESSEE WITH ICICI BANK. THE LEARNED COUNSEL FOR THE ASSESSEE CLAIMED THAT THE PEAK AMOUNT IN THIS CASE, WITH REGARD TO ICICI BANK COMES TO RS .2,97,297/-. IN THESE FACTS OF THE CASE, WE RESTORE THE ISSUE IN THE GROU NDS OF THE APPEAL OF THE ASSESSEE TO THE FILE OF THE AO WITH DIRECTION TO MA KE THE ADDITION OF ONLY THE PEAK AMOUNT IN THE BANK ACCOUNT OF THE ASSESSEE WITH ICICI BANK. THE CLAIM OF THE ASSESSEE THAT THE PEAK AMOUNT COMES TO RS.2,97,297/- SHOULD BE VERIFIED BY THE AO AND THE AFTER VERIFICATION, T HE CORRECT FIGURE OF PEAK ITA NO.866/AHD/2013 -3- AMOUNT MAY BE ADDED AS INCOME IN THE HANDS OF THE A SSESSEE. WE DIRECT ACCORDINGLY, AND THE GROUND OF THE APPEAL OF THE AS SESSEE IS PARTLY ALLOWED. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- SD/- ( %&'( %&'( %&'( %&'( / ANIL CHATURVEDI) )* + )* + )* + )* + /ACCOUNTANT MEMBER ( . .. . . .. . /G.C. GUPTA) !' !' !' !' /VICE-PRESIDENT 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