Sh. Simardeep Singh, Jalandhar V. The Assistant Commissioner of Income Tax, Jalandhar

ITA 90/ASR/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 0506 (ITAT-AMRITSAR)
• Duration Of Justice: 2 year(s) 5 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 12-06-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 13-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMALENDU NATH MISRA
• Assessee Lawyers: RAVISH SOOD
• Keywords: Salary income
• Section: 131

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR BEFORE SH. A.D.JAIN, JUDICIAL MEMBER AND SH. T.S. KAPOOR, ACCOUNTANT MEMBER I.T.A NO.90(ASR)/2014 ASSESSMENT YEAR: 2010-11 SH. SIMERDEEP SINGH, 833-URBAN ESTATE, PHASE-I, JALANDHAR. PAN:ABRPS8245F VS. ASST. CIT, CIRCLE-III, JALANDHAR. (APPELLANT) (RESPONDENT) APPELLANT BY: SH. RAVISH SOOD (ADV.) RESPONDENT BY: SH. AMALENDU NATH MISRA ( DR.) DATE OF HEARING: 23.05.2016 DATE OF PRONO UNCEMENT:13.07.2016 ORDER PER T. S. KAPOOR (AM): THIS IS AN APPEAL FILED BY ASSESSEE AGAINST THE OR DER OF LEARNED CIT(A), JALANDHAR, DATED 15.01.2014 FOR ASST. YEAR: 2010-11. 2. THE ASSESSEE IS AGGRIEVED WITH THE ACTION OF LEA RNED CIT(A), BY WHICH HE HAD CONFIRMED THE ADDITIONS MADE BY ASSESS ING OFFICER ON ACCOUNT OF CASH DEPOSITS IN HIS BANK ACCOUNT WITH C ANARA BANK. THE ASSESSEE IS FURTHER AGGRIEVED WITH THE ACTION OF LE ARNED CIT(A), BY WHICH HE HAD SUSTAINED AN ADDITION OF RS.37,500/- ON ACCO UNT OF ADDITION IN THE CAPITAL ACCOUNT OF ASSESSEE. 3. THE BRIEF FACTS OF THE CASE AS NOTED IN THE ASSE SSMENT ORDER ARE THAT THE ASSESSEE DERIVES INCOME FROM SALARY BEING A PARTNER WITH FIRM M/S GLOBAL TRAVEL & EDUCATION SERVICES. DURING THE YEAR UNDER CONSIDERATION, THE ASSESSEE WAS ASKED TO FURNISH AL L DETAILS OF HIS BANK ITA NO.90 (ASR)/2014 ASST. YEAR : 2010-11 2 ACCOUNTS. FROM THE INFORMATION FURNISHED BY ASSESSE E, THE ASSESSING OFFICER OBSERVED THAT THE ASSESSEE HAD NOT DISCLOSE D THE CASH DEPOSITS IN CANARA BANK, SAHOTA COMPLEX, GARHA ROAD, JALANDHAR. FROM THE PERUSAL OF ACCOUNT THE ASSESSING OFFICER OBSERVED T HAT THE ASSESSEE HAD DEPOSITED RS.35,66,500/- IN THIS ACCOUNT ON VARIOUS DATES. THEREFORE, ASSESSEE WAS REQUIRED TO EXPLAIN THE SAME. THE ASSE SSEE SUBMITTED THAT THIS ACCOUNT WAS USED TO MAINTAIN THE SECURITY AMOU NTS RECEIVED FROM VARIOUS PROSPECTIVE STUDENTS. THE ASSESSEE FURTHER SUBMITTED THAT THIS ACCOUNT IS BEING USED TO REFLECT THE ABILITY OF THE STUDENTS TO PAY THE ADMISSION FEE. THE ASSESSEE FURTHER SUBMITTED THAT HE HAD ALREADY DECLARED INTEREST INCOME FROM THIS SAVING ACCOUNT I N HIS RETURN OF INCOME AND THEREFORE, IT CAN NOT BE SAID THAT THE ACCOUNT WAS NOT DISCLOSED. THE ASSESSING OFFICER WAS NOT SATISFIED WITH THE REPLY AS HE NOTED THAT THE ASSESSEE HAD USED THIS BANK ACCOUNT TO PURCHASE IMM OVABLE PROPERTY AND HAD ALSO UTILIZED THE FUNDS TO MAKE FDS WITH TH E BANK. THEREFORE, HE HELD THAT MONEY DEPOSITED IN THE BANK ACCOUNT REPRE SENTED HIS OWN MONEY. HOWEVER, THE ASSESSING OFFICER AGAIN GAVE OP PORTUNITY TO THE ASSESSEE TO EXPLAIN THE CASH DEPOSITS AND IN REPLY THE ASSESSEE FILED LIST OF STUDENTS MENTIONING THEIR ID NOS. DATE OF REPAYM ENT IN THE NEXT YEAR AS AN EVIDENCE TO PROVE THAT DEPOSITS IN THE SAID A CCOUNT WAS ON ACCOUNT OF SECURITY DEPOSITS RECEIVED FROM THE STUDENTS. TH E ASSESSING OFFICER, HOWEVER, WAS NOT SATISFIED WITH THE REPLY AND THERE FORE, HE MADE AN ADDITION OF RS.35,66,500/-. THE ASSESSING OFFICER F URTHER MADE AN ITA NO.90 (ASR)/2014 ASST. YEAR : 2010-11 3 ADDITION OF RS.37,500/- WHICH THE ASSESSEE HAD CRED ITED IN HIS CAPITAL ACCOUNT. 4. AGGRIEVED THE ASSESSEE FILED APPEAL BEFORE LEARN ED CIT(A) AND FILED VARIOUS SUBMISSIONS. THE LEARNED CIT(A) OBTAINED RE MAND REPORT FROM THE ASSESSING OFFICER AND AFTER OBTAINING REMAND RE PORT AND AFTER CONSIDERING THE MATERIAL ON RECORD HE UPHELD BOTH T HE ADDITIONS, THEREFORE, THE ASSESSEE IS IN APPEAL BEFORE US. 5. AT THE OUTSET, THE LEARNED AR SUBMITTED THAT ASS ESSEE HAD EXPLAINED THE SOURCES OF DEPOSITS IN BANK ACCOUNT A ND ALSO HAD FILED COMPLETE LIST OF STUDENTS WHO HAD DEPOSITED THE AMO UNT IN THE BANK ACCOUNT. THE LEARNED AR IN THIS RESPECT INVITED OUR ATTENTION TO PAGE 9 TO 12 OF PAPER BOOK WHERE DATE WISE CASH DEPOSITED BY VARIOUS STUDENTS WAS PLACED. THE LEARNED AR FURTHER TOOK US TO PB PA GE 13 TO 23 WHERE THE SAID DEPOSITS WERE RETURNED BACK TO STUDENTS IN THE NEXT YEAR. THE LEARNED AR FURTHER SUBMITTED THAT ASSESSEE HAD MADE SPECIFIC REQUEST TO ASSESSING OFFICER FOR ISSUING NOTICES U/S 131 TO ST UDENTS/PARENTS OF STUDENTS TO VERIFY THE CLAIM OF ASSESSEE BUT THE AS SESSING OFFICER DID NOT CONSIDER THE REQUEST. THE LEARNED AR SUBMITTED THAT THE ASSESSEE WAS READY TO PRODUCE THE STUDENTS/PARENTS OF STUDENTS E VEN AT THIS STAGE. 6. THE LEARNED DR, HEAVILY RELIED UPON THE ORDERS O F AUTHORITIES BELOW. 7. WE HAVE HEARD THE RIVAL PARTIES AND HAVE GONE TH ROUGH THE MATERIAL PLACED ON RECORD. WE FIND THAT THE ASSESSE E HAD DECLARED ITA NO.90 (ASR)/2014 ASST. YEAR : 2010-11 4 INTEREST RECEIVED FROM CANARA BANK IN HIS COMPUTATI ON OF INCOME PLACED AT (PB PAGE-75), THEREFORE, IT CANNOT BE SAID THAT ASSESSEE HAD CONCEALED THIS BANK ACCOUNT. BY OFFERING THE INCOME AS INTER EST FROM THIS BANK ACCOUNT, THE ASSESSEE IN DIRECTLY DISCLOSED THE EXI STENCE OF THIS BANK ACCOUNT. THE CLAIM OF THE ASSESSEE THAT HE HAD RETU RNED BACK THE SECURITY AMOUNTS IN THE SUCCEEDING YEAR HAS BEEN BR USHED ASIDE BY THE AUTHORITIES BELOW IN VIEW OF THEIR FINDINGS THAT TH E AMOUNT DEPOSITED IN THE SAID BANK ACCOUNT WAS UTILIZED FOR PURCHASE OF IMMOVABLE PROPERTY AND FOR MAKING FIXED DEPOSITS WITH THE BANKS. THE A UTHORITIES BELOW HAS ALSO OBSERVED THAT THE DEPOSITS SLIPS INDICATED THA T THE DEPOSITS WERE MADE EITHER BY ASSESSEE HIMSELF OR BY HIS ASSOCIATE /STAFF OF ASSESSEE. THE LEARNED AR ON THE OTHER HAND SUBMITTED THAT ASSESSE E WAS READY TO PRODUCE THE STUDENT/PARENTS OF STUDENTS FROM WHOM T HE AMOUNTS WERE RECEIVED. THE CLAIM OF THE ASSESSEE THAT IN NEXT YE AR THE REFUNDS OF SECURITY HAS BEEN MADE HAS NOT BEEN VERIFIED BY AUT HORITIES BELOW, THEREFORE, IN THE INTEREST OF JUSTICE, WE DEEM IT A PPROPRIATE TO REMIT BACK THIS ISSUE TO THE OFFICE OF ASSESSING OFFICER, WHO AFTER PROVIDING SUFFICIENT OPPORTUNITY TO THE ASSESSEE, WILL DECIDE THE ISSUE AFRESH ON THE BASIS OF EXAMINATION OF STUDENTS/PARENTS OF STUDENTS AND WIL L ALSO VERIFY THE SOURCE FOR MAKING REFUND OF SECURITIES. 8. IN VIEW OF THE ABOVE THE GROUND NO.1 TO 5 IS ALL OWED FOR STATISTICAL PURPOSES. ITA NO.90 (ASR)/2014 ASST. YEAR : 2010-11 5 9. GROUND NO.6, REGARDING ADDITION OF RS.37,500/- I S ALSO REMITTED BACK TO ASSESSING OFFICER WHO SHOULD DECIDE THE ISS UE AFRESH. 10. GROUND NO.7 IS PREMATURE AND THEREFORE, DOES NO T REQUIRE ANY ADJUDICATION. 11. IN THE RESULT, THE APPEAL FILED BY ASSESSEE I S ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 13 .07.2016. SD/- SD/- (A.D. JAIN) (T. S. KAPOOR) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 13.07.2016. /PK/ PS. COPY OF THE ORDER FORWARDED TO: (1) THE ASSESSEE: (2) THE (3) THE CIT(A), (4) THE CIT, (5) THE SR DR, I.T.A.T., TRUE COPY BY ORDER