Income Tax Officer-3(5), Lucknow V. Smt. Tabassum Ahmad, Lucknow

ITA 892/LKW/2014

• Counselvise Citation: 89223714 RSA 2014
• Duration Of Justice: 5 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-06-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 30-04-2015
• Assessment Year: 2011-2012
• Appeal Filed On: 12-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR ANAND KUMAR AGARWAL
• Assessee Lawyers: H P SINGH
• Keywords: Unexplained investment; Search and seizure

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B , LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO. 8 92 /LKW/201 4 ASSESSMENT YEAR:20 1 1 20 1 2 INCOME TAX OFFICER, 3 (5), LUCKNOW VS. SMT. TABASSUM AHMAD, 4/62, VISHAL KHAND, GOMTI NAGAR, LUCKNOW PAN:AALPA5665Q (APPELLANT) (RESPONDENT) ASSESSEE BY SHRI H. P. SINGH, ADVOCATE DEPARTMENT BY DR. ANAND KUMAR AGARWAL, CIT, D.R. DATE OF HEARING 30/04/2015 DATE OF PRONOUNCEMENT 0 5 /06/2015 O R D E R PER A. K. GARODIA, A.M. T HIS IS REVENUE S APPEAL DIRECTED AGAINST THE ORDER OF LD CIT(A) I , LUCKNOW DATED 23 .0 9 .201 4 FOR A.Y. 20 1 1 20 1 2 . 2. GROUND NO. 1 AS PER REVISED GROUNDS IS AS UNDER: - WHETHER ON FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT (APPEALS), LUCKNOW WAS JUSTIFIED IN DELETING THE ADDITION OF RS.14,11,754/ - MADE BY THE A.O. ON ACCOUNT OF ADDITION IN THE CAPITAL ACCOUNT FROM UNEXPLAINED SOURCES, IN SPITE OF FACT THAT NO SUCH ACCOUNT AS EITHER AVAILABLE OR FOUND MAINTAINED DURING THE COURSE OF SEARCH AND SEIZURE OPERATION OR SUBMITTED FOR EXAMINATION DURING THE COURSE OF ASSESSMENT PROCEEDINGS BEFORE THE A.O. 3 . LEARNED DR OF THE REVENUE SUPPORTED THE ASSESSMENT ORDER. LEARNED AR OF THE ASSESSEE SU PPORTED THE ORDER OF LEARNED CIT (A). 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND THAT THE BASIS ADOPTED BY THE A.O. FOR MAKING THIS ADDITION IS THAT THE CLOSING BALANCE OF 2 CAPITAL ACCOUNT AS ON 31.03.2010 AS PER STATE MENT OF AFFAIRS WAS RS.83,98,338/ - AND AFTER ADDING THE INCOME OF THE ASSESSEE FOR THAT YEAR RS.3 , 72,126/ - , IT WAS RS.87,30,464/ - . BUT IN THE PRESENT YEAR, THE AMOUNT OF CAPITAL SHOWN IS RS.1 , 01,50,378/ - . THE A. O. WORKED OUT THE DIFFERENCE OF THESE TWO FI GURES AT RS.14,19,914/ - AND MADE ADDITION. THE SAME WAS DELETED BY LEARNED CIT (A) BY GIVING A FINDING THAT THE DIFFERENCE IS FULLY EXPLAINED EXCEPT THE AMOUNT OF RS. 8,160/ - FOR WHICH, ADDITION IS UPHELD BY HIM. ON PAGES 7 & 8 OF THE PAPER BOOK IS CAPITAL ACCOUNT FOR EACH YEAR FROM F.Y. 2004 05 TO 2010 - 11. AS PER THIS, CLOSING CAPITAL AS ON 31.03.2011 IS RS.1 , 01,50,378/ - AS NOTED BY THE A.O. ALSO IN THE ASSESSMENT ORDER. SIMILARLY, ON PAGES 11 & 12 OF THE PAPER BOOK IS DRAWING ACCOUNT FOR EACH YEAR FROM F. Y. 2004 05 TO 2010 11. AS PER THIS, A TOTAL DRAWING UP TO 31.03.2011 IS RS. 20,11,514.33. NET CAPITAL IS GROSS CAPITAL LESS DRAWINGS. THEREFORE, THESE TWO FIGURES ARE TO BE NETTED. WHEN WE DO SO, THE NET CAPITAL AS ON 31.03.2011 COMES TO RS. 8 1, 38 , 863 .67 / - . THERE IS NET DEBIT BALANCE OF RS. 16,898/ - AS ON 31.03.2011 IN INCOME TAX ACCOUNT. AFTER REDUCING THIS AMOUNT, NET CAPITAL COMES TO RS. 81,21,965.67. AS PER THE STATEMENT OF AFFAIRS AS ON 31.03.2011 APPEARING ON PAGE 5 OF THE PAPER BOOK, NET CAPITAL AS ON 31.03.2011 IS SHOWN AT RS. 79,89,187.67 BUT THIS IS BY CONSIDERING DRAWINGS AT RS. 21,44,292.33 AS AGAINST RS. 20,11,514.33. HENCE THERE IS EXCESS DRAWING CONSIDERED ON PAGE 5 BY RS. 132,778/ - . IF THIS IS ADDED IN RS. 79,89,187.67, CLOSING CAPITAL AS ON 31.03.2011 COMES TO RS. 81,21,965.67 LEAVING NO DIFFERENCE. THEREFORE, WE DECLINE TO INTERFERE IN THE ORDER OF LEARNED CIT (A) ON THIS ISSUE. ACCORDINGLY, GROUND NO. 1 IS REJECTED. 5. GROUND NO. 2 AS PER REVISED GROUNDS IS AS UNDER: - LD. CIT (APPEA LS) HAS ERRED ON LAW AS WELL AS ON FACTS AND CIRCUMSTANCES OF THE CASE IN DELETING THE ADDITION OF RS. 500,000/ - MADE BY THE A.O. AS UNEXPLAINED INVESTMENT. 6. GROUND NO. 3 & 4 ARE INTER CONNECTED WITH GROUND NO. 2. LEARNED DR OF THE REVENUE SUPPORTED THE ASSESSMENT ORDER. LEARNED AR OF THE ASSESSEE SUPPORTED THE ORDER OF LEARNED CIT (A). 3 7. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND THAT THE BASIS ADOPTED BY THE A.O. FOR MAKING THIS ADDITION IS THAT THE INVESTMENT OF RS.5,00,000/ - IN VIL LTD. DID NOT APPEAR IN STATEMENT OF AFFAIRS. THE SAME WAS DELETED BY LEARNED CIT (A) BY GIVING A FI NDING THAT THE INVESTMENT MADE I N VIL LTD. UP TO 31.03.2010 WAS OF RS. 29,71,700/ - AS PER STATEMENT OF AFFAIRS AS ON 31.03.2010 AND IT REMAINED AT THE SAME AMOUNT AS ON 31.03.2011 AS CAN BE SEEN IN THE STATEMENT OF AFFAIRS AS ON 31.03.2011. HE HAS ALSO GIV EN A FINDING THAT INVESTMENT OF RS. 500,000/ - WAS MADE IN THE PRESENT YEAR IN ING LIFE INSURANCE AND NOT IN VIL LIMITED AND THE SAME IS APPEARING IN STATEMENT OF AFFAIRS AS ON 31.03.2011. LEARNED DR OF THE REVENUE COULD NOT CONTROVERT THESE FINDINGS OF LEA RNED CIT (A). AS PER STATEMENT OF AFFAIRS AS ON 31.03.2010 AND 31.03.2011 APPEARING IN THE PAPER BOOK ALSO, THIS FINDING OF LEARNED CIT (A) IS SUPPORTED. THEREFORE, WE DECLINE TO INTERFERE IN THE ORDER OF LEARNED CIT (A) ON THIS ISSUE ALSO. ACCORDINGLY, GR OUND NO. 2 TO 4 ARE REJECTED. 8 . IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED . (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD/. SD/. (SUNIL KUMAR YADAV) ( A. K. GARODIA ) JUDICIAL MEMBE R ACCOUNTANT MEMBER DATED: 0 8 /0 6 /201 5 *C.L.SINGH COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. CONCERNED CIT 4. THE CIT(A) 5. D.R., I.T.A.T., LUCKNOW ASSTT. REGISTRAR