JAYASHREE DEEPAK THAKKAR, NAVI MUMBAI V. ITO 22(3)(2), MUMBAI

ITA 931/MUM/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 3940 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 5 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-08-2016
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 10-02-2015
• Court: TRIBUNAL
• Department Lawyers: SACHCHIDANAND DUBEY
• Assessee Lawyers: PRADEEP S SHETTY
• Keywords: Business income; Salary income

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, MUMBAI BEFORE SHRI B.R. BASKARAN (AM) I.T.A. NO. 931 /MUM/ 20 1 5 (ASSESSMENT YEAR 200 9 - 1 0 ) JAYSHREE DEEPAK THAKKAR C - 9/5 - 15, M.G. COMPLEX SECTOR - 14, VASHI NAVI MUMBAI - 400 703. VS. ITO 22(3)(2 MUMBAI ( AP PELLANT ) ( RESPONDENT ) PAN NO . ADDPT8929K ASSESSEE BY SHRI PRADEEP S. SHETTY DEPARTMENT BY SHRI SACHCHIDANAND DUBEY DATE OF HEARING 4 .8. 201 6 DATE OF PRONOUNCEMENT 4 . 8 . 201 6 O R D E R THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 2.12.2014 PASSED BY LEARNED CIT(A) - 26, MUMBAI AND IT RELATES TO A.Y. 2009 - 10. THE ASSESSEE IS AGGRIEVED BY THE DECISION OF LEARNED CIT(A) IN CONFIRMING THE ADDITION OF ` 2,41,675/ - RELATING TO BANK DEPOSITS ASSESSED AS INCOME OF THE ASSES SEE. 2. LEARNED AR SUBMITTED THAT THE ASSESSING OFFICER HAS ASSESSED FOLLOWING AMOUNTS FOUND DEPOSITED IN THE BANK ACCOUNT STANDING IN THE NAME OF ASSESSEE AND HER HUSBAND LATE MR. DEEPAK THAKKAR. I) CAR HIRE CHARGES ` 1,65,003/ - II) BANK INTEREST ` 421/ - III) GENERAL POST OFFICE ` 2,200/ - IV) SALARY FROM EMDEE FORWARDER ` 1,20,000/ - V) SALARY RECEIVABLE ` 10,000/ - VI) INTEREST ON F.D. MATURITY ` 3,168/ - VII) INTEREST ON RECURRING DEPOSIT ` 383/ - VIII) CASH DEPOSIT ` 18,20,500/ - IX) SALARY RELIEVED FOR EARLIER YEAR ` 20,00 0/ - TOTAL ` 21,41,675/ - JAYSHREE DEEPAK THAKKAR 2 3. LEARNED AR SU BMITTED THAT THIS BANK ACCOUNT HAS BEEN FULLY OPERATED BY ASSESSEES HUSBAND ONLY . HE SUBMITTED THAT THE ASSESSEE HEREIN IS HOUSEWIFE. HE SUBMITTED THAT THE ASSESSEES HUSBAND HAS BEEN WORKING IN A COMPANY AND WAS ALSO DOING CAR HIR ING BUSINESS . THE SALARY INCOME AS WELL AS RECEIPTS FROM CAR HIRE BUSINESS WAS DEPOSITED IN THIS BANK ACCOUNT. WITH DRAWALS MADE FROM THE BANK ACCOUNT MIGHT ALSO HAVE BEEN USED TO MAKE DEPOSITS IN THE SUBSEQUENT OCCASIONS. THE LD A.R SUBMITTED THAT ASSESSEES HUSBAND IS NO MORE. ACCORDINGLY, LEARNED AR SUBMITTED THAT THE ASSESSING OFFICER WAS NOT JUSTIFIED IN ASSESSING DEPOSITS BELONGING TO ASSESSEES HUSBAND AS INCOME OF THE ASSESSEE. 4. LEARNED AR, IN THE ALTERNATIVE, SUBMITTED THA T THE ASSESSEE CAN BE LINKED TO ONLY CASH DEPOSITS OF ONLY ` 18,20,500/ - . LEARNED AR SUBMITTED THAT THESE CASH DEPOSITS MIGHT REPRESENT BUSINESS RECEIPTS AND ACCORDINGLY SUBMITTED THAT INCOME OF THE ASSESSEE MAY BE ESTIMATED OUT OF THE DEPOSITS MADE INTO B ANK ACCOUNT. 5. LEARNED DEPARTMENTAL REPRESENTATIVE, ON THE CONTRARY, SUBMITTED THAT THE ASSESSEE HAS FAILED TO FURNISH ANY EXPLANATION WITH REGARD TO THE DEPOSITS FOUND IN THE BAN ACCOUNT AND HENCE ENTIRE CASH DEPOSITS FOUND CAN BE ASSESSED IN THE HANDS OF THE ASSESSEE. 6. I HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. DURING THE COURSE OF PROCEEDINGS, ASSESSEE FURNISHED COPY OF BANK ACCOUNT. ON PERUSAL OF THE SAME, I NOTICED THAT BANK ACCOUNT STANDS IN THE NAME OF ASSESSEES HUSBAND LAT E MR. DEEPAK THAKKAR AND IT IS STATED THAT THE ASSESSEE IS A JOINT OWNER OF THE BANK. I FURTHER NOTICED THAT THE SALARY INCOME BELONGING TO THE ASSESSEES HUSBAND WAS FOUND DEPOSITED IN THIS BANK ACCOUNT. IT IS STATED THAT THE ASSESSEE IS THE HOUSEWIFE AN D HENCE THERE IS MERIT IN THE CONTENTION OF THE ASSESSEE THAT ALL THE TRANSACTIONS MIGHT HAVE BEEN CARRIED BY THE ASSESSEES HUSBAND. I ALSO FIND MERIT IN THE ALTERNATIVE CONTENTION OF THE ASSESSEE THAT THE CASH DEPOSITS FOUND IN THE BANK ACCOUNT ALONE CO ULD BE LINKED WITH THE JAYSHREE DEEPAK THAKKAR 3 ASSESSEE. SINCE THERE HA VE BEEN CASH DEPOSITS OF SMALL AMOUNTS ON VARIOUS DATES COUPLED WITH THE WITHDRAWALS, THERE IS MERIT IN THE ALTERNATIVE CONTENTION OF WITH ASSESSEE THAT THE DEPOSITS MAY REPRESENT BUSINESS RECEIPTS OF SOME BUS INESS CARRIED ON BY THE ASSESSEE AND HER HUSBAND. IN THAT CASE ENTIRE CASH DEPOSITS , IN MY VIEW, CANNOT BE CONSIDERED AS INCOME OF THE ASSESSEE AND ACCORDINGLY INCOME IS REQUIRED TO BE ESTIMATED, IN THE ABSENCE OF BOOKS OF ACCOUNT. IN VIEW OF THE ABOVE, I DEEM IT PROPER TO ESTIMATE INCOME FROM THE AGGREGATE AMOUNT OF CASH DEPOSITS AT 10%, WHICH WORKS OUT T O ` 1,82,050/ - . OTHER DEPOSITS, WHICH IN THE NATURE OF CAR HIRE CHARGES, BANK INTEREST, SALARY INCOME, POST OFFICE INCOME ETC. , IN MY VIEW, CANNOT BE CON SIDERED AS ASSESSEES INCOME AND HENCE THE SAME ARE LIABLE TO THE EXCLUDED. ACCORDINGLY, I SET ASIDE THE ORDER PASSED BY LEARNED CIT(A) AND DIRECT THE ASSESSING OFFICER TO ASSESS THE INCOME FROM CASH DEPOSITS AT ` 1,82,050/ - . I ORDER ACCORDINGLY. 7. IN TH E RESULT, APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER HAS BE EN PRONOUNCED IN THE COURT ON 4. 8 .2016 SD/ - (B.R.BASKARAN) ACCOUNTANT MEMBER MUMBAI ; DATED : 4 / 8 / 2 0 1 6 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// ( DY./ASSTT. REGISTRAR) ITAT, MUMBAI P S