T.V.Senthil, Coimbatore V. ITO, Coimbatore

ITA 9/CHNY/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 58083 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-03-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 12-03-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 04-01-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R B NAIK
• Assessee Lawyers: K RAGHU
• Keywords: Unexplained cash credit
• Section: 133(6)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : CHENNAI [BEFORE SHRI N.S. SAINI, ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER] I.T.A.NO.09/MDS/2012 ASSESSMENT YEAR : 2007-08 SHRI T.V.SENTHIL NO.391, N.H.ROAD COIMBATORE 641 001 [PAN: ALHPS5275Q] VS THE INCOME TAX OFFICER WARD III(4) COIMBATORE (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K.RAGHU, CA RESPONDENT BY : SHRI R.B.NAIK, CIT/DR DATE OF HEARING : 12-03-2012 DATE OF PRONOUNCEMENT : 16-03-2012 O R D E R PER N.S. SAINI, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE ASSE SSEE AGAINST THE ORDER OF THE LD.CIT(A)-I, COIMBATORE, DATED 18.11.2011. 2. IN THIS APPEAL, THE SOLE GRIEVANCE OF THE ASS ESSEE IS THAT THE LD.CIT(A) ERRED IN CONFIRMING THE ADDITION TO THE E XTENT OF ` 7,42,248/- ON THE GROUND THAT THE SOURCE OF THE DEPOSITS INTO THE BANK ACCOUNT COULD NOT BE EXPLAINED AS NO SUFFICIENT BALANCE WAS AVAILABLE WITH THE CASH WITHDRAWALS MADE TO MAKE DEPOSITS OF ` 1 LAKH AND ` 2 LAKHS. I.T.A.NO.09/12 :- 2 -: 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSE D THE ORDERS OF THE LOWER AUTHORITIES AND MATERIALS AVAILABLE ON RECORD. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSING OFFICER, F ROM A COPY OF BANK STATEMENT OBTAINED FROM STANDARD CHARTERED BANK U/ S 133(6) OF THE ACT, FOUND THAT THE ASSESSEE HAS MADE CASH DEPOSIT S OF ` 11,75,226/-, THE SOURCE OF WHICH COULD NOT BE EXPLAINED BY THE ASSESSEE. HE, THEREFORE, TREATED THE ENTIRE DEPOSITS IN THE BANK ACCOUNT AS UNEXPLAINED CREDITS AND ADDED THE SAME TO THE INCOM E OF THE ASSESSEE. 4. IN APPEAL, THE LD.CIT(A) OBSERVED THAT TH E ASSESSEE WAS HAVING HOUSE PROPERTY INCOME OF ` 20,488/- AND INCOME FROM OTHER SOURCES OF ` 1,24,100/-, THE TOTAL OF BOTH OF WHICH WAS ` 2,22,978/-. HE CONSIDERED THE SOURCE OF DEPOSITS IN THE STANDAR D CHARTERED BANK ACCOUNT AS EXPLAINED TO THAT EXTENT AND REDUCED THE ADDITION MADE BY THE ASSESSING OFFICER TO ` 9,42,248/-. THE ASSESSEE ALSO CONTENDED BEFORE THE LD.CIT(A) THAT A SUM OF ` 2 LAKHS DEPOSITED BY HIM IN THE IMPUGNED BANK ACCOUNT WAS RECEIVED FROM HIS MOTHER. THE ASSESSEE PRODUCED RECEIPT FOR THE SALE OF JEWELLERY OF ` 1,58,550/-. THE ASSESSEE ALSO PRODUCED EVIDENCE OF PAST SAVINGS OF ` 42,000/-. THE LD.CIT(A) ACCEPTED THE SUM OF ` 2 LAKHS AS EXPLAINED TAKING INTO CONSIDERATION THE REPORT OF THE ASSESSING OFFICER, WHO ALSO OPINED THAT I.T.A.NO.09/12 :- 3 -: THE DEPOSITS TO THE EXTENT OF ` 2 LAKHS FURTHER COULD BE TREATED AS EXPLAINED BY THE ASSESSEE. THEREFORE, THE LD.CIT (A) REDUCED THE ADDITION MADE BY THE ASSESSING OFFICER TO ` 7,42,248/-. 5. THE ASSESSEE FURTHER CONTENDED BEFORE THE L D.CIT(A) THAT THE DEPOSITS MADE IN THE BANK ACCOUNT OF ` 2 LAKHS AND ` 1 LAKH ETC. ON VARIOUS DATES WERE OUT OF EARLIER WITHDRAWALS. THE LD.CIT(A) HELD THAT THE ASSESSEE DID NOT HAVE SUFFICIENT CASH WI THDRAWALS TO MAKE THE DEPOSITS IN THE AMOUNTS OF ` 1 LAKH AND ` 2 LAKHS AND THEREFORE, DID NOT ACCEPT THE CONTENTION OF THE ASSESSEE. 6. WE FIND THAT THE LD.CIT(A) HAS NOT GIVEN RE ASONS FOR NOT ACCEPTING THE CONTENTIONS OF THE ASSESSEE. THE LD . A.R OF THE ASSESSEE HAS FILED BEFORE US IN PAPER BOOK PAGES 1 & 2, EXTRACT OF LEDGER OF STANDARD CHARTERED BANK ACCOUNT AND EXTRA CT OF CASH BOOK AT PAGES 3 & OF THE PAPER BOOK. HOWEVER, BOTH THE PAR TIES BEFORE US HAVE NOT FILED COPY OF BANK STATEMENT. HENCE, WE A RE NOT IN A POSITION TO ADJUDICATE THE ISSUE COMPLETELY. THEREFORE, WE SET ASIDE THE ORDER OF THE LOWER AUTHORITIES AND REMAND THE ISSUE BACK TO THE FILE OF THE ASSESSING OFFICER FOR ADJUDICATION AFRESH AFTER VER IFYING THE CASH BOOK AND THE BANK STATEMENT AND BY PASSING A SPEAKING OR DER. NEEDLESS TO MENTION THAT THE ASSESSING OFFICER SHALL ALLOW REAS ONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE BEFORE ADJUDICATING THE ISSUE AFRESH. THE I.T.A.NO.09/12 :- 4 -: ASSESSEE IS ALSO DIRECTED TO FILE ALL THE DETAILS A ND DOCUMENTS AS AND WHEN CALLED UPON TO DO BY THE ASSESSING OFFICER FOR ADJUDICATION OF THE ISSUE. WITH THESE DIRECTIONS, THE GROUNDS OF APPEA L ARE ALLOWED FOR STATISTICAL PURPOSES. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 16 -03-2012. SD/- SD/- (GEORGE MATHAN) JUDICIAL MEMBER (N.S.SAINI) ACCOUNTANT MEMBER DATED: 16 TH MARCH, 2012 RD COPY TO: APPELLANT/RESPONDENT/CIT(A)/CIT/DR