Smt. Rani Singh, Indore V. THE DCIT CENTRAL CIRCLE, Indore

ITSSA 197/IND/2016

• Counselvise Citation: [2018] 122 COUNSELVISE.COM (IT) 3655 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 4 month(s) 15 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 28-02-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 13-10-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LALCHAND
• Assessee Lawyers: P D NAGAR
• Keywords: Search and seizure; Reasonable cause; Condonation of delay
• Section: 143(3); 153A; 68; 132

Judgement Text

SMT. RANI SINGH GARHA IT(SS)A NO. 197/IND/2016 1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, HONBLE JUDICIAL MEMBER AND SHRI MANISH BORAD, HONBLE ACCOUNTANT MEM BER IT(SS)A NO. 197/IND/2016 A.Y. 2008-09 SMT. RANI SINGH INDORE ::: APPELLANT VS DCIT CENTRAL CIRCLE, INDORE ::: RESPONDENT APPELLANT BY SHRI P.D. NAGAR RESPONDENT BY SHRI LALCHAND DATE OF HEARING 15.2.201 8 DATE OF PRONOUNCEMENT 2 8 .2.201 8 O R D E R PER SHRI MANISH BORAD, AM THIS APPEAL OF THE ASSESSEE RELATING TO THE ASSESSMENT YEAR 2008-09 IS DIRECTED AGAINST THE ORDER O F THE COMMISSIONER OF INCOME TAX (APPEALS)-III, INDORE , DATED 16.6.2016 WHICH IS ARISING OUT OF THE ORDER U/S 153A SMT. RANI SINGH GARHA IT(SS)A NO. 197/IND/2016 2 R.W.S. 143(3) OF THE ACT DATED 20.3.2015 FRAMED BY TH E DCIT (CENTRAL)1, INDORE. 2. WE OBSERVE THAT THE APPEAL IS TIME BARRED BY 3 DAYS. APPLICATION FOR CONDONATION OF DELAY ALONG WITH AFFIDAVI T IS PLACED ON RECORD THEREBY MENTIONING THAT DUE TO SICKN ESS, THE ASSESSEE WAS PREVENTED FROM FILING THE APPEAL WITHI N TIME. WE, THEREFORE, LOOKING TO THE REASONABLE CAUSE, CONDONE THE DELAY IN FILING THE APPEAL AND ADMIT THE SAM E FOR ADJUDICATION, 3. THE SOLE GRIEVANCE OF THE ASSESSEE IN GROUND NO. 1 IS AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) CONFIRMING THE ADDITION OF RS. 16,49,000/- TOWARDS ADDITION OF UNDISCLOSED INCOME U/S 68 OF THE ACT MADE BY THE ASSESSING OFFICER FOR ALLEGED UNEXPLAINED CASH DEPOSITS IN BANK ACCOUNT. SMT. RANI SINGH GARHA IT(SS)A NO. 197/IND/2016 3 4. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN INDIVIDUAL EARNING INCOME FROM TOUR AND TRAVEL BUSINESS. SEARCH AND SEIZURE OPERATION UNDER SECTION 132 OF THE ACT WAS CARRIED OUT ON 21.9.2012 AT THE APOLLO GROUP OF INDORE INCLUDING THE ASSESSEE. BLOC K ASSESSMENT PROCEEDINGS FOR THE ASSESSMENT YEARS 2007-0 8 TO 2013-14 WERE CARRIED OUT. FOR THE ASSESSMENT YEAR 2008-09 THE ASSESSING OFFICER EXAMINED THE DETAILS AND OBSERVED THAT THE CASH OF RS.16,49,000/- WAS DEPOSITED ON VARIOUS DATES IN IDBI BANK ACCOUNT. EVEN THOUGH THE ASSESSEE FILED VARIOUS DETAILS BUT THEY COULD NOT CONV INCE THE ASSESSING OFFICER AND HE COMPLETED THE ASSESSMENT U/S 153A READ WITH SECTION 143(3) OF THE ACT ASSESSING TH E INCOME AT RS.36,86,471/- AFTER MAKING ADDITION OF RS.16,49,000/- FOR THE UNEXPLAINED CASH DEPOSITS. 4. AGAINST THE ORDER OF THE ASSESSING OFFICER, THE AS SESSEE PREFERRED APPEAL BEFORE THE COMMISSIONER OF INCOME TA X SMT. RANI SINGH GARHA IT(SS)A NO. 197/IND/2016 4 (APPEALS) BUT COULD NOT SUCCEED. NOW THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 5. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE SOURCE OF CASH DEPOSITS IN THE BANK ACCOUNT IS OUT OF THE WITHDRAWALS MADE BY THE ASSESSEE FROM THE VERY SAME BANK ACCOUNT. THERE WAS OPENING CASH BALANCE OF RS. 1,40,607/-. FURTHER BETWEEN 25.5.2007 TO 16.8.2007 THERE WERE CASH WITHDRAWALS OF RS. 17,32,000/- IN THE IDBI BANK ACCOUNT AND IN THE VERY SAME ACCOUNT THE ALLEGED CASH OF RS. 16,49,000/- WAS DEPOSITED. IT WAS URGED THAT SUCH ALLEGED CASH DEPOSIT IS DULY EXPLAINED AND HENCE THE ADDITION MAY BE DELETED. 6. ON THE OTHER HAND, THE LEARNED DR VEHEMENTLY ARGUE D SUPPORTING THE ORDERS OF THE LOWER AUTHORITIES AND FU RTHER SUBMITTED THAT THERE WAS NO PLAUSIBLE REASON GIVEN BY THE ASSESSEE FOR THE ALLEGED CASH WITHDRAWALS AND DEPOSITS O N REGULAR INTERVALS. SMT. RANI SINGH GARHA IT(SS)A NO. 197/IND/2016 5 7. WE HAVE HEARD BOTH THE SIDES AND CAREFULLY PERUSED THE MATERIAL AVAILABLE ON RECORD OF THE TRIBUNAL, INTER ALIA, IMPUGNED ASSESSMENT ORDER, ORDER OF THE LEARNED CIT(A ) ALONGWITH PAPER BOOK FILED BY THE ASSESSEE. THE SOLE ISSUE RAISED IN THIS APPEAL RELATES TO ADDITION FOR UNEXPLAINED CASH DEPOSIT OF RS.16,49,000/-. WE FIND THAT THE ASSE SSING OFFICER MADE THE IMPUGNED ADDITION FOR THE CASH DEPOS ITED ON VARIOUS DATES IN IDBI BANK ACCOUNT. IT HAS BEEN CONSISTENTLY ARGUED ALONG WITH RELEVANT DETAILS THAT THE SOURCE OF CASH DEPOSIT IS FROM WITHDRAWALS FROM THE S AME BANK ACCOUNT. EVEN THE COMMISSIONER OF INCOME TAX (APPEALS) HAS ALSO GIVEN DETAILS IN HIS FINDINGS WHICH WE FIND APPROPRIATE TO OBSERVE HEREUNDER :- DATE OF DEPOSIT AMOUNT OF CASH DEPOSITE DATE AMT. WITHDRAWN REMARKS 07.05.2007 37,000 25.05.07 28.05.07 01.06.07 01.06.07 3,50,000 2,37,000 1,00,000 70,000 CASH DEPOSIT STATED TO BE OUT OF CASH IN HAND 14.06.2007 50,000 07.06.07 50,000 CASH DEPOSIT AFTER 7 DAYS OF WITHDRAWAL 05.07.2007 3,80,000 25.06.07 5,00,000 CASH DEPOSIT SMT. RANI SINGH GARHA IT(SS)A NO. 197/IND/2016 6 AFTER 10 DAYS OF WITHDRAWAL 16.08.2007 4,25,000 16.08.07 4,25,000 CASH DEPOSIT ON SAME DAY TOTAL 16,49,000 17,32,000 FROM A PERUSAL OF THE ABOVE DETAILS WHICH PROVIDE DETAIL S OF CASH DEPOSITS AND WITHDRAWALS FROM IDBI BANK ACCOUNT, THE REVENUE HAS NOT POINTED OUT ANY MISTAKE IN THESE DETAILS AND HAS ALSO NOT CHALLENGED THE GENUINENESS. T HE ONLY ALLEGATION OF THE REVENUE IS WHY THE ASSESSEE HAS WITHDRAWN EVEN WHEN IT WAS HAVING CASH BALANCE AND THEN AGAIN DEPOSITED. EXCEPT THIS OBJECTION, NOTHING ELSE HAS BEEN BROUGHT ON RECORD BY THE REVENUE AUTHORITIES TO DISLODGE THE CLAIM OF THE ASSESSEE. WE FIND THAT THE ASSESSEE IS A DIRECTOR IN GARHA GEARS LIMITED AND GAJRA BEVELS PVT. LTD. WHICH WAS FACING SOME LEGAL ACTION AS B OTH THESE COMPANIES WERE DECLARED SICK INDUSTRIAL UNDERTAKINGS BY BIFR. VARIOUS CRIMINAL COMPLAINTS WERE LODGED AGAINST THE ASSESSEE. TO COPE UP WITH SUCH SMT. RANI SINGH GARHA IT(SS)A NO. 197/IND/2016 7 SITUATION, SHE NEEDED CASH IN HAND TO FACE THE TOUGH TI ME. WE FIND THIS REASON TO BE SUFFICIENT ON THE PART OF T HE ASSESSEE TO KEEP CASH IN HAND WITH HER. IN THE FACTS AN D CIRCUMSTANCES OF THEN CASE WHEREIN THE SOURCE OF CASH DEPOSITS IS HAVING A DIRECT LINK WITH THE CASH WITHDRA WALS FROM IDBI BANK, WE FIND NO JUSTIFICATION IN THE ACTION OF THE ASSESSING OFFICER IN MAKING THE ADDITION FOR UNEXPLAIN ED CASH CREDIT. WE ACCORDINGLY SET ASIDE THE FINDINGS OF THE COMMISSIONER OF INCOME TAX (APPEALS) AND DELETE THE ADDITION OF RS. 16,49,000/-. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED . PRONOUNCED IN OPEN COURT ON 28 TH FEBRUARY, 2018. SD/- SD/- (KUL BHARAT) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER 28 TH FEBRUARY, 2018 DN/- COPY TO APPELLANT/RESPODENT/PR.CIT/CIT(A)/DR/GUAR D FILE SMT. RANI SINGH GARHA IT(SS)A NO. 197/IND/2016 8