Smt. Usha Kiran Singh, Dhanbad V. DCIT, Ranchi

ITSSA 39/RAN/2015

• Counselvise Citation: [2018] 122 COUNSELVISE.COM (IT) 3796 (ITAT-RANCHI)
• Duration Of Justice: 2 year(s) 6 month(s) 19 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 04-05-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2003-2004
• Appeal Filed On: 15-10-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P K MONDAL
• Assessee Lawyers: DINESH PODDAR
• Keywords: Salary income

Judgement Text

1 IT(SS)A.39/RAN/2015 SMT USHA KIRAN SINGH, DHANBAD A .Y.2003-04 IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH [BEFORE HONBLE SHRI J.SUDHAKAR REDDY, AM & SHRI S.S.VISWANETHRA RAVI, JM ] IT(SS)A NO.39/RAN/2015 ASSESSMENT YEAR : 2003-04 SMT. USHA KIRAN SINGH, -VERSUS- D.C.I.T., CENTRAL CIRCLE-1, DHANBAD RANCHI (PAN: AIMPS 6004 Q) (APPELLANT) (RESPONDENT) FOR THE APPELLANT: SHRI DINESH PODDAR, ADVOCATE FOR THE RESPONDENT: SHRI P.K.MONDAL, JCIT DATE OF HEARING : 27.02.2018. DATE OF PRONOUNCEMENT : 04.05.2018. ORDER PER S.S.VISWANETHRA RAVI, JM THIS APPEAL BY THE ASSESSEE IS AGAINST THE ORDER D ATED 24.08.2016 PASSED BY C.I.T-(A)-3, PATNA FOR A.Y.2003-04. 2. THE ONLY ISSUE IS TO BE DECIDED IS AS TO WHETHE R THE CIT(A) IS JUSTIFIED IN CONFIRMING THE ADDITION MADE BY THE AO ON ACCOUNT O F CAPITAL INTRODUCTION FROM UNDISCLOSED SOURCES IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. THE LD. AR SUBMITS THAT THE ASSESSEE PREFERRED AN APPEAL BEFORE CIT(A) AGAINST THE ORDER DATED 30.03.2006 PASSED BY THE AO AND CIT (A) CONFIRMED THE SAID ADDITION MADE BY THE AO. THE ASSESSEE AS WELL AS THE RESPOND ENT REVENUE PREFERRED APPEALS BEFORE THE TRIBUNAL AGAINST THE ORDER OF CIT(A) AND THE TRIBUNAL RESTORED THE ISSUE OF CAPITAL INTRODUCTION TO THE FILE OF THE AO FOR HIS FRESH ADJUDICATION. THE LD. AR SUBMITS THAT THE RELEVANT EVIDENCE IN SUPPORT OF HO W THE ASSESEE INTRODUCED THE CAPITAL IN M/S MAHENDRA SERVICE STATION WERE FILED BEFORE A O. THE LD. AR PLACED ON RECORD THE PAPER BOOK CONTAINING PAGES 1 TO 7 AND SUBMITS THAT THE SAID DETAILS WERE FILED 2 IT(SS)A.39/RAN/2015 SMT USHA KIRAN SINGH, DHANBAD A .Y.2003-04 BEFORE THE AO AND DID NOT CONSIDER THE SAME. THE LD . AR SUBMITS THAT THE AMOUNT OF CAPITAL INTRODUCTION WAS RECEIVED BY THE ASSESSEE F ROM HER HUSBAND DR.B.K.SINGH. THE SAID DR.B.K.SINGH IS A DOCTOR IN BHARAT COKING COAL LTD AND HAS SALARY INCOME AS WELL AS INCOME FROM UTI UNITS TOTALLING TO A GROSS INCOME OF RS.5,79,833/- FOR THE YEAR UNDER CONSIDERATION AND REFERRED TO CASH FLOW STATEMENT OF THE SAID DR.B.K.SINGH AT PAGE NO. 1 OF PAPER BOOK. THE LD. AR ARGUED THAT THE AO AND CIT(A) EXAMINED THE SAID CASH FLOW STATEMENT AND NOT CONSIDERED THE SAM E IN RIGHT PROSPECTIVE. THE LD. AR SO REFERRED TO BANK STATEMENTS AT PAGES 2 TO 7 AND ARGUED BY REFERRING IT TO PAGE NO.5, 6 AND 7 AND ARGUED THAT THERE WERE WITHDRAWALS WHICH CLEARLY INDICATES THE AMOUNTS GIVEN TO HIS WIFE TOWARDS A LOAN FOR THE PURPOSE OF INVESTING THE SAME AS A CAPITAL INTRODUCTION IN M/S. MAHINDRA SERVICE STATION. THE FINDINGS OF THE AO AND CIT(A) WERE IN ACCORDANCE WITH DOCUMENTARY EVIDENCE FILED BEFORE THE SAID AUTHORITIES AND THERE IS NO REASON TO TREAT THE SAID CAPITAL INTROD UCTION AS UNEXPLAINED AS THE SAME WAS SUPPORTED BY DOCUMENTARY EVIDENCE AS FILED BEFORE T HE TRIBUNAL IN PAGE NOS. 1 TO 7 AND PLEADED TO ALLOW THE GROUNDS OF ASSESSEE RAISE D IN THIS APPEAL. 4. THE LD. DR SUBMITS THAT THE DOCUMENTS FILED BEFO RE THIS TRIBUNAL BY WAY OF A PAPER BOOK WERE FILED BEFORE AO IN THE SECOND ROUND OF LITIGATION AND WERE CONSIDERED AND HELD THE LOAN TRANSACTION BETWEEN AS SESSEE AND HER HUSBAND IS INGENUINE. THE CIT(A) AGREED WITH THE VIEW OF AO AF TER THOROUGH EXAMINATION AND SUPPORTED THE ORDER OF CIT(A) . 5. HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATE RIALS AVAILABLE ON RECORD. IT IS NOTICED THAT THERE IS NO DISPUTE WITH REGARD TO STA TUS EMPLOYMENT OF ASSESSEES HUSBAND. THE AO ACCEPTED THAT HE IS A DOCTOR IN BHA RAT COKING COAL LTD AND HAS A SALARY INCOME AS WELL AS INCOME FROM UTI UNITS. THE AO ALSO EXAMINED THE CASH FLOW STATEMENT FILED BEFORE HIM FOR THE YEAR UNDER CONSI DERATION AND DID NOT CONTROVERT THAT THE HUSBAND OF THE ASSESSEE HAS SURPLUS FUNDS IN HI S HANDS AT RS.86,276/-. ON PERUSAL OF THE CASH FLOW STATEMENT RELEVANT TO A.Y.2003-04 OF ASSESSEES HUSBAND PLACED AT PAGE 1 OF THE PAPER BOOK WHICH CLEARLY ESTABLISHES THAT ASSESSEES HUSBAND WHO IS A 3 IT(SS)A.39/RAN/2015 SMT USHA KIRAN SINGH, DHANBAD A .Y.2003-04 DOCTOR HAS GROSS INCOME OF RS.5,79,833/- AND SURPLU S OF FUNDS OF RS.86,276/.- IN HIS HANDS. THE AO ONLY DOUBTED THE GENUINENESS OF THE S OURCE OF CAPITAL INTRODUCTION BUT NOT THE CREDITWORTHINESS OF THE ASSESSEES HUSBAND. THE AO DID NOT DISPUTE THAT ACCUMULATION OF FUNDS BY WAY OF WITHDRAWALS AS POIN TED OUT BY THE LD. AR FROM PAGES 5,6, AND 7 OF THE PAPER BOOK. ON PERUSAL OF THE BAN K STATEMENT SPECIFICALLY AT PAGE 5,6 AND 7 WHICH CLEARLY SHOWS DEPOSITS AS WELL AS WITH DRAWALS AND THE SAID WITHDRAWALS DEEM TO HAVE BEEN ACCUMULATED AND HAVE BEEN GIVEN T O HIS WIFE FOR THE PURPOSE OF CAPITAL INTRODUCTION. THEREFORE WE FIND FORCE IN TH E ARGUMENTS OF THE LD. AR AND DELETE THE ADDITION AS CONFIRMED BY CIT(A). GROUND NO.1 TO 4 RAISED BY THE ASSESSEE ARE ALLOWED. 6. IN THE RESULT THE APPEAL BY THE ASSESEE IS ALLOW ED. O RDER PRONOUNCED IN THE OPEN COURT ON 04.05.2018. SD/- SD/- [J.SUDHAKAR REDDY] [ S.S.VISWANETHRA RAVI ] ACCOUNTANT MEMBER JUD ICIAL MEMBER DATED : 04.05.2018. [RG SR.PS] COPY OF THE ORDER FORWARDED TO: 1.SMT. USHA KIRAN SINGH, IV/8, DOCTORS COLONY, JAG JIVAN NAGAR, DHANBAD. 2. D.C.I.T., CENTRAL CIRCLE-1, RANCHI. 3. C.I.T.(A)-3, PATNA. 4. C.I.T.- P ATNA. 5. CIT(DR), PATNA. TRUE COPY BY ORDER, SENIOR PRIVATE SECRETARY 4 IT(SS)A.39/RAN/2015 SMT USHA KIRAN SINGH, DHANBAD A .Y.2003-04 HEAD OF OFFICE/D.D.O., ITAT, KOLKATA BENCHES