Shri Sukhdev Singh, Bassi Pathana V. ITO, Mandi Gobindgarh

ITA 89/CHANDI/2015

• Counselvise Citation: 8921514 RSA 2015
• Duration Of Justice: 6 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-08-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 17-08-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 23-01-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Assessee Lawyers: TEJ MOHAN SINGH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS.ANNAPURNA MEHROTRA, ACCOUNTANT MEMBER ITA NO. 89/CHD/2015 ASSESSMENT YEAR: 2009-10 SHRI SUKHDEV SINGH, V THE ITO, # 6-C, VILLAGE PAWALA, SUNAM, BASSI PATHANA. (HEADQUARTER) MANDI GOBINDGARH. PAN: CBAPS9025G (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI TEJ MOHAN SING H RESPONDENT BY : SHRI MANJIT SINGH DATE OF HEARING : 17.08.2015 DATE OF PRONOUNCEMENT : 21.08.2015 O R D E R PER BHAVNESH SAINI,JM THIS APPEAL BY ASSESSEE IS DIRECTED AGAINST THE ORD ER OF LD. CIT(APPEALS) PATIALA DATED 27.11.2014 FOR ASSESSMENT YEAR 2009-10 CHALLENGING THE ADDITION OF RS. 15,51,500/- OUT OF TOTAL ADDITION OF RS. 21,51,500/ -. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT ASSESSEE WAS HAVING A BANK ACCOUNT NO. 37 AT FATEHGARH SAHIB COOPERATIVE BANK. THERE WERE CASH DEPOSITS AMOUNTI NG TO RS. 21,50,500/-. AS NOTED IN THE ASSESSMENT ORDER, DURING ASSESSMENT PROCEEDINGS ASSESSEE SUBMITTED TH AT CASH DEPOSITED IN THE ACCOUNT IS FROM LOAN ACCOUNT WITH AXIS BANK. RS. 10 LACS WERE TRANSFERRED FROM AGRICU LTURE 2 LOAN ACCOUNT NO. 10627 TO AXIS BANK ACCOUNT NO. 488 204. THE ASSESSING OFFICER, HOWEVER DID NOT ACCEPT CONTE NTION OF THE ASSESSEE CONTENDING THAT CASH DEPOSITS IN TH E COOPERATIVE BANK ACCOUNT DID NOT TALLY WITH THE WITHDRAWAL ENTRIES OF AXIS BANK AND ADDED RS. 21,51,500/-. 3. THE ADDITION WAS CHALLENGED BEFORE LD. CIT(APPEA LS) AND SUBMISSIONS OF THE ASSESSEE ARE REPRODUCED IN T HE APPELLATE ORDER IN WHICH THE ASSESSEE BRIEFLY EXPLA INED THAT ASSESSEE IS A PARTNER IN M/S SSD TRADERS AND W AS ALSO OWNER OF AGRICULTURE LAND AND WAS CULTIVATING THE LAND OWNED BY HIS FATHER AND OTHER FAMILY MEMBERS. THE ASSESSEE HAS SAVING BANK ACCOUNT NO. 06701010048820 4 WITH THE AXIS BANK LTD. ( IN SHORT 24) SAVING BANK NO. 37 WITH FATEHGARH SAHIB CENTRAL COOPERATIVE BANK LTD. CHUNNI KALAN BRANCH. THE ASSESSEE HAD FURTHER BEEN SANCTIONED AGRICULTURE BANK LOAN LIMIT OF RS. 10 LA CS BY AXIS BANK LTD. IN THE ACCOUNT NO. 0670103000010627 ( IN SHORT 627). THE AMOUNT OF RS. 10 LACS WAS TRANSFER RED ON 29.09.2008 BY AXIS BANK LTD. IN THE SAVING BANK NO. 204 HELD BY THE ASSESSEE. THE ASSESSEE, THEREAFTER, WI THDRAWN AN AMOUNT OF RS. 9,80,000/- ON 03.10.2008 OUT OF TH E BALANCE OF RS. 9,83,146/- STANDING TO HIS CREDIT IN SB ACCOUNT NO. 204 AND ON 03.10.2008 ITSELF, HAD DEPOS ITED RS. 6 LACS IN HIS SB ACCOUNT NO. 37 WITH COOPERATIV E BANK. THE ASSESSEE HAD, THEREAFTER, WITHDRAWN CASH FROM THE ABOVE SB ACCOUNT ON DIFFERENT DATES AND HAD AGA IN 3 DEPOSITED THE AMOUNT WITH THE SAME COOPERATIVE BANK ON DIFFERENT DATES. THE ASSESSING OFFICER DIRECTED TH E ASSESSEE TO PRODUCE COPY OF THE BANK ACCOUNT WHICH WAS PROVIDED. IT WAS FOUND THAT ASSESSEE MADE CASH DEP OSITS WITH FATEHGARH SAHIB CENTRAL COOPERATIVE BANK LTD. IN ACCOUNT NO. 37. THE ASSESSING OFFICER WAS NOT SATI SFIED WITH THE EXPLANATION OF THE ASSESSEE AND MADE THE ADDITION FOR MAKING DEPOSITS IN SB ACCOUNT NO. 37 W ITH FATEHGARH SAHIB CENTRAL COOPERATIVE BANK LTD. 4. THE ASSESSEE REITERATED THE SAME FACTS BEFORE LD . CIT(APPEALS) AND ALSO SUBMITTED THAT ASSESSEE HAD WITHDRAWN SUBSEQUENTLY THE AMOUNTS ON DIFFERENT DAT ES AND AGAIN MADE DEPOSITS OUT OF THAT VERY CASH AVAIL ABLE WITH HIM WHICH IS EVIDENT FROM THE C ASH FLOW CHART AND TABLE SHOWING THE CASH DEPOSITS/WITHDRAWALS MADE IN SB ACCOUNT NO. 37 WITH FATEHGARH SAHIB CENTRAL COOPERA TIVE BANK LTD. IT WAS SUBMITTED THAT ASSESSING OFFICER IGNORED THESE EVIDENCES. THE COMMENTS OF THE ASSESSING OFF ICER WERE CALLED FOR ON THE SUBMISSIONS OF THE ASSESSEE AND THE ASSESSING OFFICER REITERATED THE SAME FACTS AS WERE NOTED IN THE ASSESSMENT ORDER AND ALSO SUBMITTED THAT THE DATES OF DEPOSITS OF CASH INTO SB ACCOUNT OF COOPERATIVE BANK DID NOT TALLY WITH THE WITHDRAWAL ENTRIES OF AXIS B ANK. THEREFORE, ADDITION WAS JUSTIFIED. THE ASSESSEE AL SO FILED APPLICATION UNDER RULE 46A FOR ADMISSION OF THE ADD ITIONAL EVIDENCE AND EXPLAINED THAT THERE WAS A TRANSFER OF FUNDS FROM AGRICULTURAL LOAN ACCOUNT NO. 627 TO SB ACCOUN T NO. 4 204 OUT OF WHICH CASH WAS WITHDRAWN. THE CASH FLOW CHART IN RESPECT OF CASH WITHDRAWALS FROM SB ACCOUNT NO. 204 WITH AXIS BANK LTD. AND FURTHER CASH DEPOSITS/WITHDRAWALS IN SB ACCOUNT NO.37 WITH FATEH GARH SAHIB CENTRAL COOPERATIVE BANK LTD. CHUNNI KALAN IS REPRODUCED AT PAGE 7 & 8 OF THE IMPUGNED ORDER WHIC H IS REPRODUCED AS UNDER : DATE BANK ACCOUNT NO, CASH WITHDRAWN CASH DEPOSIT CASH BALANCE 28/08/2008 37 - 1,500 03/10/2008 0670100488204 9,80,000 - 9,80,000 03/10/2008 37 - 6,00,000 3,80,000 06/10/2008 37 3,00,000 _ 6,80,000 07/10/2008 37 1,00,000 - 7,80,000 13/10/2008 37 1,00,000 - 8,80,000 17/10/2008 37 1,00,000 - 9,80,000 17/10/2008 37 1,50,000, 8,30,000 18/10/2008 37 1, 50,000 - 9,80,000 21/10/2008 37 - 3,00,000 6,80,000 22/10/2008 37 1,00,000 - 7,80,000 25/10/2008 37 - 5,00,000 2,80,000 27/10/2008 37 3,00,000 - 5,80,000 29/10/2008 37 1,00,000 - 6,80,000 30/10/2008 37 - 1,00,000 5,80,000 30/10/2008 37 - 5,00,000 80,000 01/11/2008 37 6,00,000 - 6,80,000 05/11/2008 37 1,00,000 - 7,80,000 22/11/2008 37 2,00,000 - 9,80,000 21,51,500 5 5. THE RECORD OF THE ASSESSING OFFICER WAS CALLED F OR AND MATTER WAS DISCUSSED WITH THE ASSESSING OFFICER. T HE LD. CIT(APPEALS) FOUND THAT DEPOSIT IN SB ACCOUNT NO. 2 04 IS OUT OF THE TRANSFER ENTRY FROM AXIS BANK ACCOUNT NO . 627. FURTHER RS. 9,80,000/- IS WITHDRAWN FROM AXIS BANK. THE DEPOSIT AND WITHDRAWAL IN ACCOUNT NO. 37, AS SUBMIT TED BY THE ASSESSEE WAS ALSO VERIFIED. HOWEVER, THE LD . CIT(APPEALS) GAVE BENEFIT OF RS. 6 LACS ONLY FOR WI THDRAWAL MADE FROM AXIS BANK AND CONFIRMED THE REST OF THE ADDITION OF RS. 15,51,500/-. THE FINDINGS OF LD. CIT(APPEALS) AT PAGE 8 & 9 OF THE APPELLATE ORDER A RE REPRODUCED AS UNDER : NOW COMING TO THE SOURCE OF DEPOSIT, IT IS SEEN FR OM THE CASHFLOW CHART AS SUBMITTED BY APPELLANT THAT HE DEPOSITED RS.6 LA KHS ON 03.10.2008 OUT OF WITHDRAWAL OF RS.9,80,000/- FROM AXIS BANK A/C ON 03.10.2008. TH EREFORE, SOURCE OF RS.6 LAKHS IS EXPLAINED BEING MADE, OUT OF WITHDRAWAL MADE ON SAME DAY. HOWEVER, THEREAFTER, THE APPELLANT HAS WITHDRA WN CASH OUT OF THIS ACCOUNT ON VARIOUS DATES FROM 06.10.2008 TO 17.10.2 008 AND HAS TRIED TO EXPLAIN THE CASH DEPOSITS ON VARIOUS DATES OUT OF R EPEATED WITHDRAWAL & DEPOSITS MADE ON VARIOUS DATES. THE REASON FOR SUCH TRANSACTIONS IS NOT DEAR AND DEFIES COMMON LOGIC. FURTHER, THE APPELLANT IN HIS SUBMISSION HAS CONTENDED THAT THE DEPOSITS IN THE CO-OPERATIVE BAN KS ARE AGRICULTURAL RELATED ENTRIES AND CASH DEPOSIT ENTRIES OUT OF WIT HDRAWAL ON 29.09.2008 FROM AXIS BANK LTD. AND OF AGRICULTURE SALE PROCEED S. HOWEVER, DURING APPELLATE PROCEEDING, THE APPELLANT TRIED TO EXPLAI N THE DEPOSIT ONLY OUT OF ORIGINAL DEPOSIT. ON ONE HAND ASSESSES HIMSELF SAY THAT THE ENTRIES ARE RELATED TO AGRICULTURAL NEEDS AND FURTHER DOES NOT EXPLAIN AS TO WHY SUCH AMOUNT IS REPEATEDLY ROTATED ON VARIOUS DAYS BY WAY OF FREQUENT DEPOSITS & WITHDRAWALS, THE EXPLANATION PUT FORWARD BY THE ASS ESSEE CANNOT BE ACCEPTED. IN VIEW OF THIS, I AM OF THE OPINION THAT ONLY DEPOSIT OF RS. 6 LAKHS IS EXPLAINED IN THIS CASE AND BALANCE ADDITION IS C ONFIRMED. 6 6. WE HAVE HEARD LD. REPRESENTATIVES OF BOTH THE PA RTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE LD. COUNSEL FOR THE ASSESSEE RESTRICTED HIS ARGUMENTS O N MERIT TO CHALLENGE THE ADDITION OF RS. 15,51,500/- ONLY A ND SUBMITTED THAT HE WOULD NOT BE ARGUING ON LEGAL ISS UES. THE LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS MADE BEFORE AUTHORITIES BELOW AND SUBMI TTED THAT RS. 9,80,000/- WERE WITHDRAWN FROM SB ACCOUNT NO. 204 ON 03.10.2008 OUT OF WHICH RS. 6 LACS WERE DEPO SITED ON THE SAME DAY IN SB ACCOUNT NO. 37 WITH FATEHGARH SAHIB CENTRAL COOPERATIVE BANK LTD. HOWEVER, FOR R EST OF THE AMOUNT, NO BENEFITS HAVE BEEN GIVEN AND FURTHER THE WITHDRAWALS MADE FROM THE BANK ACCOUNT NO. 37 WERE SUFFICIENT FOR RE-DEPOSIT IN THE SAME BANK ACCOUNT NO. 37 WITH COOPERATIVE BANK LTD., THEREFORE WHOLE ADDITIO N IS UNJUSTIFIED. 7. ON THE OTHER HAND, LD. DR RELIED UPON ORDERS OF THE AUTHORITIES BELOW AND SUBMITTED THAT SUFFICIENT BEN EFIT IS ALREADY ALLOWED TO THE ASSESSEE THEREFORE, APPEAL O F THE ASSESSEE MAY BE DISMISSED. 8. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED MATERIAL AVAILABLE ON RECORD. THE CASE OF THE ASSESSEE IS WITH REGARD TO UNEXPLAINED CASH DEPOSIT IN SB ACCOUNT NO. 37 WITH FATEHGARH SAHIB CENTRAL COOPERA TIVE BANK LTD. CHUNNI KALAN ON DIFFERENT DATES WHICH IS CLEAR FROM THE CASH-FLOW CHART REPRODUCED ABOVE. THE ASS ESSEE EXPLAINED THAT ON 03.10.2008, HE HAS WITHDRAWN RS. 7 9,80,000/- OUT OF BANK ACCOUNT NO. 204 AND OUT OF T HE WITHDRAWAL OF RS. 9,80,000/-, RS. 6,00,000/- HAVE B EEN DEPOSITED WITH SB ACCOUNT NO. 37 ON THE SAME DAY. T HE LD. CIT(APPEALS) ACCEPTED THE SOURCE OF RS. 6 LACS BEING WITHDRAWN FROM AXIS BANK SB ACCOUNT NO. 204. THE L D. CIT(APPEALS), HOWEVER, FOR SUBSEQUENT WITHDRAWALS O F CASH FROM SB ACCOUNT NO. 37 DID NOT ACCEPT CONTENTION OF THE ASSESSEE BECAUSE THE ASSESSEE CLAIMED HIMSELF THAT ENTRIES ARE RELATED TO AGRICULTURAL NEED AND THEREA FTER DID NOT FURTHER EXPLAIN AS TO WHY SUCH AMOUNT IS ROTATE D ON VARIOUS DATES BY WAY OF FREQUENT DEPOSITS AND WITHDRAWALS. EVEN IF THE ASSESSEE HAS FAILED TO EX PLAIN THE REASON FOR FREQUENT WITHDRAWALS AND RE-DEPOSIT IN THE SAME BANK ACCOUNT NO. 37 WITH COOPERATIVE BANK BUT THE CASH FLOW CHART REPRODUCED ABOVE SHOWS THAT ASSESSE E WOULD BE ENTITLED FOR PART RELIEF ALSO BECAUSE THE SOURCE OF THE DEPOSIT IN THE BANK ACCOUNT IS EXPLAINED PARTLY FURTHER FROM THE SAME CASH FLOW STATEMENT. THE LD. CIT(APPEALS) ACCEPTED THE CONTENTION OF THE ASSESSE E WITH REGARD TO SOURCE OF RS. 6 LACS DEPOSITED IN THE BAN K ACCOUNT OUT OF WITHDRAWALS MADE FROM AXIS BANK. TH E LD. CIT(APPEALS) HOWEVER, DID NOT GIVE FURTHER BENEFIT OF RS. 3,80,000/- WHICH WAS AVAILABLE TO THE ASSESSEE FOR MAKING DEPOSIT IN SB ACCOUNT NO. 37 WITH COOPERATIVE BANK AS THE ASSESSEE HAS WITHDRAWN RS. 9,80,000/- FROM AXIS BANK SB ACCOUNT NO. 204. THEREFORE, RS. 3,80,000/- IS FURTHER AVAILABLE TO THE ASSESSEE FOR MAKING DEPOSI T IN SB ACCOUNT NO. 37. FURTHER, AS PER FINDING OF THE LD. 8 CIT(APPEALS), WHEN BENEFIT OF RS. 6 LACS WAS GIVEN TO THE ASSESSEE BEING THE AMOUNT WITHDRAWN ON THE SAME DAY FROM AXIS BANK LTD., THE LD. CIT(APPEALS) SHOULD AL SO GIVE BENEFIT OF RS. 1,50,000/- DEPOSITED ON 17.10.2008 B ECAUSE PRIOR TO THIS DATE, ASSESSEE HAS IMMEDIATELY WITHDR AWN RS. 1 LAC ON 17.10.2008 AND RS. 1 LAC ON 13.10.2008 . ON THE SAME REASONING WHEN ASSESSEE HAS WITHDRAWN RS. 1 LAC ON 29.10.2008 AND DEPOSITED RS. 1 LAC ON THE VE RY NEXT DAY ON 30.10.2008 IN THE SAME BANK ACCOUNT, THEREFORE, THE ADDITION OF RS. 1,50,000/- AND RS. 1 LAC SHOULD ALSO NOT BE CONFIRMED AGAINST THE ASSESSEE. THUS, WE ARE SATISFIED THAT ASSESSEE HAS BEEN ABLE TO EXP LAIN THE FURTHER SOURCE OF DEPOSIT IN THE BANK ACCOUNT BEING THE AVAILABILITY OF RS. 3,80,000/-, RS. 1,50,000/- AND RS. 1 LAC IN CASH OUT OF THE WITHDRAWALS FROM AXIS BANK A CCOUNT NO. 204 AND WITHDRAWALS MADE FROM SB ACCOUNT NO. 37 WITH SAME COOPERATIVE BANK. THE ASSESSEE, THUS, WO ULD BE ENTITLED FOR FURTHER REDUCTION OF THE ADDITION B Y RS. 6,30,000/-. FOR THE REST OF THE DEPOSITS, THE ASSE SSEE HAS NOT BEEN ABLE TO EXPLAIN ANYTHING AND THERE IS NO T ALLY WITH THE WITHDRAWALS AND THE RE-DEPOSIT IN THE SAME BANK ACCOUNT. THEREFORE, CONSIDERING THE ABOVE DISCUSSI ON, WE CONFIRM THE ORDER OF THE LD. CIT(APPEALS) IN PRINCI PLE IN MAKING THE ADDITION ON ACCOUNT OF UNEXPLAINED DEPOS IT IN THE BANK ACCOUNT NO. 37 WITH COOPERATIVE BANK, HOWE VER REDUCE THE ADDITION FURTHER BY RS. 6,30,000/-, RESU LTANTLY THE ADDITION WOULD BE RESTRICTED TO RS. 9,21,500/-. THE ASSESSING OFFICER IS, THEREFORE, DIRECTED TO GIVE F URTHER 9 RELIEF TO THE ASSESSEE FOR A SUM OF RS. 6,30,000/- AND SHALL MAINTAIN THE ADDITION OF RS. 9,21,500/-. 9. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 21 ST AUGUST,2015. SD/- SD/- (ANNAPURNA MEHROTRA) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 21 ST AUGUST,2015. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT, DR ASSISTANT REGISTRAR, ITAT CHANDIGARH