ITO, Bangalore V. Smt. Rajeshwari Subramanya, Bangalore

ITA 879/BANG/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 0619 (ITAT-BANGALORE)
• Duration Of Justice: 7 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 05-07-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUSAN THOMAS JOSE
• Assessee Lawyers: H V GOWTHAMA
• Keywords: Source of fund
• Section: 68

Judgement Text

PAGE 1 OF 5 ITA NO.879 /BANG/2012 1 IN THE INCOME TAX APPELLATE TRIBUNAL, BANGALORE BENCH B BEFORE SHRI GEORGE GEORGE K, JUDICIAL MEMBER AND SHRI JASON P BOAZ, ACCOUNTANT MEMBER ITA NO.879/BANG/2012 (ASST. YEAR 2009-2010) THE INCOME TAX OFICER, WARD-4(3), BANGALORE. VS SMT. RAJESHWARI SUBRAMANYA, NO.412, 5 TH CROSS, 3 RD PHASE, J P NAGAR, BANGALORE-78. PA NO. ABDPS 1785 N (APPELLANT) (RESPONDENT) DATE OF HEARING : 27.02.2013 DATE OF PRONOUNCEMENT : 27.02.2013 APPELLANT BY : SMT. SUSAN THOMAS JOSE, JCIT RESPONDENT BY : SHRI H V GOWTHAMA, C.A. OR DER PER GEORGE GEORGE K : THIS APPEAL INSTITUTED AT THE INSTANCE OF THE DEP ARTMENT IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-II, BANGAL ORE DATED 27.04.2012. THE RELEVANT ASSESSMENT YEAR IS 2009-2010. 2. THE SOLITARY ISSUE THAT ARISE FOR OUR CONSIDERAT ION IS WHETHER THE CIT(A) IS JUSTIFIED IN DELETING THE ADDITION MA DE ON ACCOUNT OF CASH CREDITS APPEARING IN SAVINGS BANK ACCOUNT OF HDFC B ANK AMOUNTING TO RS.14,17,960/-. PAGE 2 OF 5 ITA NO.879 /BANG/2012 2 3. BRIEF FACTS OF THE CASE ARE AS FOLLOWS:- DURING THE FINANCIAL YEAR 2008-09 RELEVANT TO ASSE SSMENT YEAR 2009-2010, THE ASSESSEE HAD MAINTAINED S.B. ACCOUNT NO.02611000006930 WITH HDFC BANK, JAYANAGAR 3 RD BLOCK, BANGALORE. IN THE SAID ACCOUNT, THERE WAS CASH DEPOSIT AMOUNTING TO RS.14,17,960/-. THE ASSESSEE WAS ASKED TO EXPLAIN THE SOURCE OF FUNDS AS APPEARING IN THE SAI D ACCOUNT. SINCE THE LEARNED AR FAILED TO FURNISH THE DETAILS SATISFACTO RILY, AS CALLED FOR, THE ABOVE CASH CREDITS AMOUNTING TO RS.14,17,960/- WAS TREATED AS INCOME OF THE ASSESSEE AND BROUGHT TO TAX UNDER THE PROVISIONS OF SECTION 68 OF THE I T ACT. 4. AGGRIEVED, THE ASSESSEE CARRIED THE MATTER IN A PPEAL BEFORE THE FIRST APPELLATE AUTHORITY. 5. BEFORE THE FIRST APPELLATE AUTHORITY, THE ASSESS EE HAD EXPLAINED THE SOURCE AND HAD LINKED THE SAME WITH C ASH DEPOSITS MADE IN HER BANK ACCOUNT. ON THE EVIDENCE PRODUCED BY THE ASSESS EE, THE CIT(A) CALLED FOR A REMAND REPORT FROM THE ASSESSING OFFICER AND ON RECEIPT OF THE REMAND REPORT, THE CIT(A) DECIDED THE ISSUE IN FAVO UR OF THE ASSESSEE. 6. THE REVENUE BEING AGGRIEVED IS IN APPEAL BEFORE US. 7. THE LEARNED DR SUBMITTED THAT DELETION OF CASH CREDITS BY THE CIT(A) IS OPPOSED TO LAW, AS THE ASSESSEE COULD NOT SATISFACTORILY EXPLAIN THE SOURCES DURING THE COURSE OF ASSESSMENT PROCEEDINGS , WHICH MEANS, THAT THE ONUS UNDER SECTION 68 HAS NOT BEEN CONCLUSIVELY DISC HARGED BY THE ASSESSEE. IT WAS FURTHER SUBMITTED THAT INSPITE OF NUMEROUS O PPORTUNITIES PROVIDED TO PAGE 3 OF 5 ITA NO.879 /BANG/2012 3 THE ASSESSEE, THE ASSESSEE HAD FAILED TO PROVE THE SOURCE OF CASH DEPOSITS IN THE BANK. 8. THE LEARNED AR, ON THE OTHER HAND, SUPPORTED TH E ORDER OF THE CIT(A). 9. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIALS ON RECORD. THE SOLE ISSUE FOR OUR CONSIDERATION IS WHETHER THE CIT(A) IS JUSTIFIED IN DELETING THE ADDITION MADE UNDER SECTI ON 68 OF THE ACT. THE RELEVANT FINDING OF THE CIT(A) READS AS FOLLOWS:- 4.3 I HAVE CAREFULLY CONSIDERED THE APPELLANTS SUBMISSIONS AND PERUSED THE ASSESSMENT ORDER/RECORD S. THE APPELLANT HAS POINTED OUT THAT, SINCE THE APPEL LANT AND HER HUSBAND WERE ABROAD, THIS INFORMATION COULD NOT BE SUBMITTED IN TIME TO THE AO AND THE AO HAD NOT ALLOWED FURTHER TIME AS REQUESTED BY THE APPELLANT. THE EXPLANATION FURNISHED BY THE APPELLANT IS AS UNDER: NO. DATE OF DEPOSIT DESCRIPTION AMOUNT (RS.) 1. 17/9/2009 AGRICULTURAL INCOME 19,800 2. 4/2/2009 -DO- 18,000 3. 4/2/2009 DEPOSITS OUT OF WITHDRAWALS MADE ON 13/10/2008 & 29/11/2008 2,90,000 4. 10/2/2009 AGRICULTURAL INCOME 19,500 5. 12/2/2009 -DO- 19,200 6. 16/2/2009 -DO- 18,400 7. 17/2/2009 -DO- 15,060 8. 18/2/2009 -DO- 18,000 9. 9/3/2009 LOAN FROM SHRI GINKA R N PRASHANTH 5,00,000 10. 25/3/2009 SALE OF AGRICULTURAL LAND 5,00,000 PAGE 4 OF 5 ITA NO.879 /BANG/2012 4 4.4 AS REGARDS CASH CREDITS OF RS.5,00,000/- CLAIME D AS LOAN FROM THE APPELLANTS NEPHEW, A CONFIRMATION LETTER FROM THE NEPHEW REGARDING LOAN OF RS.5 LAKHS HAS BE EN FURNISHED AND THE TRANSACTION IS THROUGH BANK. NO ADVERSE OBSERVATION HAS BEEN MADE BY THE ASSESSING OFFICER IN HIS REMAND REPORT AND, THEREFORE, THE EXPLANATION OF THE APPELLANT IS ACCEPTED. THE APPE LLANTS CONTENTION THAT A SUM OF RS.1,27,960/- OUT OF RS.14,17,960/- IS INCOME FROM AGRICULTURE AND THAT A SUM OF RS.5,00,000/- REPRESENTS SALE PROCEEDS OF AN AGRICULTURAL LAND, IS NOT DISPUTED BY THE ASSESSING OFFICER. AGRICULTURE INCOME OF RS.1,27,960/- HAS B EEN DECLARED IN HER RETURN OF INCOME AND ALSO RS.5,00,0 00/- HAS BEEN SHOWN AS RECEIPT FROM SALE OF AGRICULTURAL LAND. THE SAME ARE ACCEPTED. AS REGARDS CREDIT OF RS.2,90,000/- CLAIMED TO BE OUT OF EARLIER WITHDRAW ALS, THERE ARE NO ADVERSE FINDINGS BY THE ASSESSING OFFIC ER IN HIS REMAND REPORT AND BEING SUPPORTED BY PRECEDING WITHDRAWALS, THE SAME IS ACCEPTED. ACCORDINGLY, THE ADDITION OF RS.14,17,960/- MADE BY THE AO IS DELETED . 9.2 WE FIND THAT THE CIT(A) HAD EXAMINED THE ADDI TION OF RS.14,17,960/- MADE UNDER SECTION 68 OF THE ACT BY T HE ASSESSING OFFICER IN DETAIL AND EVERY ASPECT/ITEM OF THE SAID ADDITION HAS BEEN ADDRESSED BEFORE DELETING THE SAID ADDITION. BEFORE US, REV ENUE HAS NOT BEEN ABLE TO CONTROVERT THE FINDINGS OF THE CIT(A). IN THIS VIE W OF THE MATTER, WE FIND NO REASON TO DIFFER WITH THE FINDINGS OF THE CIT(A) AND THEREFORE, DECLINE TO INTERFERE IN THE ORDER OF THE CIT(A) AND, WE AFF IRM THE SAME AS CORRECT AND IN ACCORDANCE WITH LAW. 10. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. PAGE 5 OF 5 ITA NO.879 /BANG/2012 5 ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH DAY OF FEBRUARY, 2013. SD/- SD/- (JASON P BOAZ) (GEORGE GEORGE K) ACCOUNTANT MEMBER JUDICIAL MEMBER COPY TO : 1. THE REVENUE 2. THE ASSESSEE 3. THE CIT CONCERNE D. 4. THE CIT(A) CONCERNED. 5. DR 6. GF MSP/ BY ORDER SENIOR PRIVATE SECRETARY, ITAT, BANGALORE.