Nilima Narottam Rana, Nashik V. Assisant Commissioner of Income-tax,

ITA 959/PUN/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 9550 (ITAT-PUNE)
• Duration Of Justice: 11 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-05-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 02-05-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 06-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANN KAPTHUAMA
• Keywords: Gift
• Section: 143(3); 153A; 131; 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A , PUNE , , BEFORE MS. SUSHMA CHOWLA, JM AND SHRI RAJESH KUMAR, AM . / ITA NO . 959 /P U N/201 6 / ASSESSMENT YEAR : 20 10 - 11 NILIMA NAROTTAM RANA, FLAT NO. 8, PRABHA APARTMENT, MALVIYA CHOWK, PANCHAVATI, NASHIK 422003 PAN : AFXPR5887C . / APPELLANT VS. ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 1 , NASHIK . / RESPONDENT / APPELLANT BY : S HRI PRAMOD S. SHINGTE / RESPONDENT BY : MS. ANN KAPTHUAMA / DATE OF HEARING : 0 2 .05. 201 7 / DATE OF PRONOUNCEMENT: 04 . 0 5 .201 7 / ORDER PER RAJESH KUMAR, A M : TH E APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 12, PUNE DATED 05 - 02 - 2016 FOR THE ASSESSMENT YEAR 2010 - 11 ARISING OUT OF ASSESSMENT ORDER PASSED U/S. 143(3) R.W.S. 153A OF THE INCOME - TAX ACT , 1961 (IN SHORT THE ACT). ITA NO . 959/PUN/2016 2 2. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER : IN VIEW OF THE FACTS OF THE CASE, PROVISIONS OF LAW, EVIDENCES ON RECORD AND THE SUBMISSIONS MADE 1. THE LEARNED CIT (A) ERRED IN RETAINING THE ENTIRE ADDITION OF RS.7,60,230/ - ON ACCOUNT OF CASH FOUND AT LOCKER NO. 189 WITH THE NASHIK MERCHANTS CO - OP. BANK LTD., NASHIK, DURING THE COURSE OF SEARCH ON 27.04.2010, AS APPELLANTS INCOME FROM UNDISCL OSED SOURCES. THEREFORE, IT IS PRAYED TO CANCEL THE ADDITION OF RS.7,60,230/ - . 2. APPELLANT CRAVES LEAVE TO ADD/AMEND/DELETE ANY GROUND OF APPEAL BEFORE OR AT THE TIME OF HEARING. 3. THE ONLY ISSUE RAISED BY THE ASSESSEE IS AGAINST THE CONFIRMATION O F ADDITION OF RS.7,60,230/ - BY THE COMMISSIONER OF INCOME TAX (APPEALS) AS MADE BY THE ASSESSING OFFICER ON ACCOUNT OF CASH FOUND IN THE LOCKER OF THE ASSESSEE WITH THE NASHIK MERCHANTS CO - OPERATIVE BANK LTD., NASHIK, DURING THE COURSE OF SEARCH ON 27 - 04 - 2010. 4. THE B RIEF FACT S OF THE CASE ARE THAT , A SEARCH ACTION WAS CONDUCTED U/S. 132 OF THE ACT ON ASHOKA GROUP OF ASSESSEE ON 20 - 04 - 2010 , IN WHICH CERTAIN INFORMATION S W ERE FOUND WITH RESPECT TO LOCKER LOCKER NO. 189 WITH NASHIK MERCHANT CO - OP. BANK LTD ., NASHIK OF THE ASSESSEE WHICH WAS SEARCHED U/S. 132 ON 27 - 04 - 2010 AND CASH TO THE TUNE OF RS.7,60,230/ - WAS FOUND . A NOTICE WAS ISSUED U/S. 153A OF THE ACT ON 23 - 02 - 2012 AND SERVED UPON THE ASSESSEE ON 24 - 02 - 2012 . THE SAID NOTICE WAS COMPL IED WITH T HE ASSESSEE BY FIL ING RETURN OF INCOME ON 19 - 03 - 2012 DECLARING TOTAL INCOME OF RS.2,32,630. IN HER STATEMENT THE ASSESSEE CLAIMED TO HAVE ACCUMULATED THE SAID CASH OUT OF HOUSEHOLD SAVING S , WITHDRAWAL S FROM THE BANKS , AMOUNTS RECEIVED FROM HER HUSBAND ,FR OM GIFTS FROM VARIOUS FRIENDS , RELATIVES AND ALSO OUT OF SAVINGS OF HER DAUGHTER IN LAW SMT POONAM RANA . THE ASSESSEE BEING THE ELDEST LADY IN THE FAMILY USED TO KEEP THE CONTRIBUTIONS BY VARIOUS FAMILY MEMBERS IN ORDER TO MEET THE HOUSE HOLD EXPENSES. BE SIDES SHE ALSO CLAIMED THAT THE CASH WAS ITA NO . 959/PUN/2016 3 ALSO DRAWN FROM BUSINESS IN WHICH SHE WAS A PARTNER EARLIER WHILE ADMITTING CANDIDLY THAT SHE WAS NOT CONNECTED TO THE BUSINESS DURING LAST 5 YEARS . HOWEVER, THE ASSESSING OFFICER , NOT SATISFIED WITH THE EXPLANATI ON OF THE ASSESSEE , ADDED RS.7,60,230/ - AS UNEXPLAINED CASH TO THE INCOME OF THE ASSESSEE BY FRAMING ASSESSMENT U/S. 143(3) R.W.S. 153A VIDE ORDER DATED 20 - 03 - 2013 , ASSESSING THE TOTAL INCOME AT RS.9,92,858/ - . AGGRIEVED BY THE ORDER OF ASSESSING OFFICER, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS), WHO ALSO DISMISSED THE APPEAL OF THE ASSESSEE AFTER TAKING INTO ACCOUNT THE DETAIL ED SUBMISSIONS AS HAS BEEN INCORPORATED IN PARA 3.1 OF THE APPEAL ORDER BY GIVING FINDINGS IN PARAS 3.2, 3.3 AND 3.4 OBSERVING AND HOLDING THAT THE ASSESSEE HAS NEITHER WITHDRAW N MONEY NOR DID THE FAMILY MEMBERS WITHDR A W THE MONEY AND THE ASSESSEE COULD NOT EXPLAIN THE EXACT SOURCE OF THE CASH FOUND IN THE LOCKER . ACCORDINGLY, THE COMMISSIONER OF INCOME TAX (APPEALS) UPHELD THE ORDER OF ASSESSING OFFICER. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL PLACED ON RECORD INCLUDING THE ORDERS OF AUTHORITIES BELOW . THE UNDISPUTED FACTS OF THE CASE ARE THAT THE ASSESSEE IS A SENIOR CITIZEN AND HAS BEEN CONNECTED TO THE BUSINESS OF HER HUSBAND AS H IS PARTNER, B UT DURING THE LAST 5 YEARS SHE WAS AT ALL NOT ASSOCIATED WITH THE BUSINESS . DURING THE COURSE OF SEARCH PROCEEDINGS, THE ASSESSEE ADMITTED AND CLAIMED AT THE TIME OF RECORDING STATEMENT U/S. 131(1) OF THE ACT THAT THE SAID CASH WAS ACCUMULATED OUT OF HER PAST SAVINGS OUT OF HOUSEHOLD EXPENSES FOR WHICH THE FAMILY MEMBERS MAKES CONTRIBUTIONS, MONEY GIVEN BY HER HUSBAND, GIFTS RECEIVED FROM FRIENDS AND RELATIVES ON VARIOUS OCCAS IONS . WE ALSO FIND THAT THE ASSESSEE TRIED TO EXPLAIN THE SOURCE OF CASH ALSO OUT OF THE SAVINGS MADE BY HER DAUGHTER - IN - LAW SMT. POONAM RANA WHICH W AS CORROBORATED BY FILING A DECLARATION FROM SMT. POONAM RANA. FROM ITA NO . 959/PUN/2016 4 THE ABOVE DISCUSSION AND FACTS, WE A RE OF THE OPINION THAT THE ASSESSEE IS A SENIOR CITIZEN AND KEEPING IN VIEW HER AGE AND THE JUSTIFICATIONS GIVEN BY HER , THE CASH OF RS.7,60,230/ - FOUND IN THE LOCKER HAS BEE N EXPLAINED BY HER AT THE TIME OF RECORDING HER STATEMENT AND ALSO BEFORE THE AU THORITIES BELOW . KEEPING IN VIEW THE QUANTUM OF ADDITION AND AGE OF THE ASSESSEE BEING SENIOR CITIZEN , THE ASSESSEE DESERVE S LENIENT VIEW WHILE DEALING AND DISPOSING OF SUCH CASE ESPECIALLY WHEN THE ASSESSEE HAS ADEQUATE LY EXPLAINED THE SOURCE AT THE TIME OF RECORDING OF STATEMENT U/S. 131 (1) OF THE ACT . ACCORDINGLY, WE SET ASIDE THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) AND DIRECT THE ASSESSING OFFICER TO DELETE THE ADDITION. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 4 TH MAY, 2017. SD/ - SD/ - ( SUSHMA CHOWLA ) ( RAJESH KUMAR ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER / PUNE ; DATED : 4 TH MAY, 201 7 . RK / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APP ELLANT ; 2. / THE RESPONDENT; 3. ( ) / THE CIT (A) - 12, PUNE 4. THE PR. CIT - CENTRAL, NAGPUR ; 5. , , / DR A , ITAT, PUNE; 6. / GUARD FILE . / BY ORDER, // // TRUE COPY // / ASSISTANT REGISTRAR, , / ITAT, PUNE