Pritesh Dinesh Adani, Ichalkaranji V. Income-tax Officer, Ward - 3, Ichalkranji

ITA 88/PUN/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 7616 (ITAT-PUNE)
• Duration Of Justice: 6 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-07-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2005-2006
• Appeal Filed On: 21-01-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: RELATE TO ASSESSMENT YEARS
• Keywords: Gift; Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT . ., . / ITA NOS. 88 TO 90/PUN/2019 / ASSESSMENT YEARS : 2005-06, 2006-07 & 2007-08 SHRI PRITESH DINESH ADANI, 19/21, NEAR SHRI HARI TALKIES, YASHWANT COLONY, ICHALKARANJI 416 115 PAN : AJEPA3681J VS. ITO, WARD-3, ICHALKARANJI (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THESE THREE APPEALS BY THE ASSESSEE RELATE TO THE ASSESS MENT YEARS 2005-06, 2006-07 & 2007-08. 2. THERE IS A DELAY OF 84 DAYS IN PRESENTING EACH OF THE APPEALS BEFORE THE TRIBUNAL. THE ASSESSEE HAS FILED AN A FFIDAVIT GIVING REASONS IN SUPPORT OF THE CONDONATION OF DELAY, WITH WHICH I AM SATISFIED. AS SUCH, THE DELAY IS CONDONED AND T HE APPEALS ARE ADMITTED FOR HEARING ON MERITS. APPELLANT BY SHRI M.K. KULKARNI RESPONDENT BY SHRI VISHWAS MUNDE DATE OF HEARING 24-07-2019 DATE OF PRONOUNCEMENT 25-07-2019 ITA NOS.88 TO 90/PUN/2019 PRITESH D. ADANI 2 A.Y. 2005-06 : 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESS EE FILED HIS RETURN DECLARING TOTAL INCOME OF RS.42,220/- WHICH WAS PROCESSED U/S.143(1) OF THE ACT. THEREAFTER, RE-ASSESS MENT PROCEEDINGS WERE INITIATED. THE ASSESSING OFFICER (AO) OBSERVED THAT CERTAIN AMOUNTS WERE DEPOSITED IN THE BANK ACCOUNT. THE ASSESSEE SUBMITTED THAT A SUM OF RS.75,000/ - WAS RECEIVED FROM HIS MOTHER, IN SUPPORT OF WHICH A CONFIRMATION LETTER WAS FILED. AS REGARDS THE OTHER AMOUNT OF RS.32,800 /-, THE ASSESSEE SUBMITTED THAT HE RECEIVED THIS AMOUNT FROM HIS GRANDFATHER IN THREE INSTALMENTS, FOR WHICH ALSO SOME CONFIRMATION WAS FILED. NOT CONVINCED, THE AO MADE ADDITIONS OF RS.75,000/- AND RS.32,800/-. THE LD. CIT(A) DELETE D THESE TWO ADDITIONS, BUT DIRECTED THE AO TO ASSESS A SUM OF RS.87,932/- AS UNDISCLOSED PEAK CAPITAL IN THE HANDS OF A SSESSEE. 4. HAVING HEARD BOTH THE SIDES AND GONE THROUGH THE RELEVA NT MATERIAL ON RECORD, IT IS SEEN THAT THE ASSESSEE GAVE EXPLANA TION ABOUT DEPOSITS OF RS.75,000/- AND RS.32,800/- RECEIVED FROM HIS MOTHER AND GRANDFATHER RESPECTIVELY. NOT ONLY THAT, THE ASS ESSEE ALSO FURNISHED CONFIRMATION LETTERS AND THE SOURCE OF MONEY ITA NOS.88 TO 90/PUN/2019 PRITESH D. ADANI 3 RECEIVED BY SUCH PERSONS WHICH WAS GIVEN TO THE ASSESSEE . CONSIDERING THE TOTALITY OF THE FACTS AND CIRCUMSTANCES IN THE INSTANT CASE, I AM OF THE CONSIDERED OPINION THAT THE ASSESSE E SUCCESSFULLY EXPLAINED THE SOURCE OF DEPOSITS IN THE BANK TO THIS EXTENT. THIS GROUND IS, THEREFORE, ALLOWED. 5. NO SUSTAINABLE LEGAL ARGUMENT SUPPORTED BY ANY COGENT EVIDENCE WAS ADVANCED IN SUPPORT OF INITIATION OF RE-ASSESSM ENT PROCEEDINGS. SUCH GROUND, THEREFORE, STANDS DISMISSED. A.YRS. 2006-07 & 2007-08 : 6. THE FACTS FOR THE A.Y. 2006-07 ARE THAT THE AO INITIATED R E- ASSESSMENT PROCEEDINGS IN THE SAME MANNER AS FOR THE PRE CEDING YEAR. THE ASSESSEE SUBMITTED THE SOURCE OF DEPOSIT BY EX PLAINING THAT A SUM OF RS.2,18,000/- WAS RECEIVED FROM SHRI P. D . SHAH IN FD ACCOUNT AND NO EXPLANATION WAS TENDERED FOR A FURTHER SUM OF RS.45,293/-. IN ADDITION, THE ASSESSEE EXPLAINED THE SOUR CE OF CASH DEPOSIT OF RS.40,000/- TOWARDS GIFT RECEIVED FROM GRANDFATHER. NOT CONVINCED, THE AO MADE THE ADDITIONS OF RS.40,000/- AND RS.2,63,293/- (RS.2,18,000 + RS.45, 293). THE FACTS FOR THE A.Y. 2007-08 ARE THAT THE ASSESSEE EXPLAINED THE SOURCE OF CASH DEPOSIT IN THE BANK TOWARDS RS.28,000/- A S HAVING ITA NOS.88 TO 90/PUN/2019 PRITESH D. ADANI 4 BEEN RECEIVED FROM GRANDFATHER AND FURNISHED NO EXPLAN ATION FOR CASH DEPOSIT OF RS.7,783/-. THE AO MADE THESE TWO ADD ITIONS. 7. THE LD. CIT(A), FOR BOTH THE YEARS UNDER CONSIDE RATION, DELETED THE ADDITIONS MADE BY THE AO. HE, HOWEVER, HELD THA T PEAK BANK BALANCE WAS TO BE ADDED, WHICH FOR THE A.Y. 2 006-07 WAS DETERMINED AT RS.3,38,994/- AND FOR THE A.Y. 2007-0 8 AT RS.3,17,621/-. THE ASSESSEE IS AGGRIEVED BY THE CONFIR MATION OF ADDITIONS TO THIS EXTENT. 8. HAVING HEARD BOTH THE SIDES AND GONE THROUGH THE RELEVA NT MATERIAL ON RECORD, IT IS OBSERVED THAT THE ASSESSEE GAVE EXPLANATION ABOUT THE SOURCE OF SOME CASH DEPOSITS IN THE B ANK ACCOUNT AND FOR OTHERS ITEMS OF DEPOSIT, THE ASSESSEE COU LD NOT GIVE ANY JUSTIFICATION. THE LD. AR CONTENDED THAT NO PROPER OPPORTUNITY WAS GRANTED BY THE AUTHORITIES BELOW FOR EXPLAINING THE SOURCE OF SUCH CASH DEPOSITS FOR BOTH THE YEARS. I T WAS, THEREFORE, PRAYED THAT ONE MORE OPPORTUNITY BE GIVEN. WITH OUT GOING INTO THE MERITS AND CONSIDERING THE TOTALITY OF THE FACTS A ND CIRCUMSTANCES OF THE EXTANT APPEALS, I AM OF THE CONSIDERE D OPINION THAT ENDS OF JUSTICE WOULD MEET ADEQUATELY IF THE IMPUGNED ORDER ON THIS SCORE IS SET-ASIDE AND THE MATTER I S ITA NOS.88 TO 90/PUN/2019 PRITESH D. ADANI 5 REMITTED TO THE FILE OF AO. I ORDER ACCORDINGLY AND DIRECT TH E AO TO DECIDE THE ISSUE AFRESH ON MERITS OF ADDITIONS AFTER ALLOWING A REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 9. AS REGARDS THE GROUNDS AGAINST THE INITIATION OF RE- ASSESSMENT PROCEEDINGS, THE LD. AR DID NOT ADVANCE ANY LEG ALLY SUSTAINABLE ARGUMENTS BACKED BY ANY COGENT EVIDENCE. SUC H GROUNDS ARE, THEREFORE, DISMISSED. 10. IN THE RESULT, THE APPEAL FOR THE A.Y. 2005-06 IS PARTLY ALLOWED AND FOR THE LATER TWO YEARS ARE PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 25 TH JULY, 2019. SD/- (R.S.SYAL) / VICE PRESIDENT PUNE; DATED : 25 TH JULY, 2019 ITA NOS.88 TO 90/PUN/2019 PRITESH D. ADANI 6 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT (APPEALS)-2, KOLHAPUR 4. THE PR.CIT-2, KOLHAPUR 5. , , SMC / DR SMC, ITAT, PUNE; 6. / GUARD FILE. // TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE DATE 1. DRAFT DICTATED ON 24-07-2019 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 24-07-2019 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER -- JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. -- JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8. FILE SENT TO THE BENCH CLERK SR.PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK 10. DATE ON WHICH FILE GOES TO THE A.R. 11. DATE OF DISPATCH OF ORDER. *