Mrs. Rakshaben H. Zaveri, V. The ACIT., Cent.Circle-2,

ITSSA 77/AHD/2004

• Counselvise Citation: [2012] 121 COUNSELVISE.COM (IT) 8111 (ITAT-AHMEDABAD)
• Duration Of Justice: 8 year(s) 3 month(s) 17 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 06-07-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 11-06-2012
• Assessment Year: misc
• Appeal Filed On: 19-03-2004
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V VERMA
• Assessee Lawyers: S N DIVETIA
• Keywords: Block assessment

Judgement Text

, , , , C , IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, C BENCH . .. . . .. . , !' !' !' !', , , , #$ #$ #$ #$ # ## #. .. .% $% % $% % $% % $%, , , , &' ( &' ( &' ( &' ( & ' & ' & ' & ' BEFORE S/SHRI G.C. GUPTA, VICE-PRESIDENT AND A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER) IT(SS)A NO.77/AHD/2004 [BLOCK PERIOD : 1.4.89 TO 20.1.2000] MRS. RAKSHABEN ZAVERI ZAVERI NURSING HOME STATION ROAD DAHOD. /VS. ACIT, CENT.CIR.2 BARODA. ( (( (*+ *+ *+ *+ / APPELLANT) ( (( (,-*+ ,-*+ ,-*+ ,-*+ / RESPONDENT) ./ 0 1 &/ ASSESSEE BY : SHRI S.N.DIVETIA ( 0 1 &/ REVENUE BY : SHRI V.VERMA 3 0 /4'/ DATE OF HEARING : 11 TH JUNE, 2012 5%6 0 /4'/ DATE OF PRONOUNCEMENT : 6-7-2012 &7 / O R D E R PER G.C. GUPTA, VICE-PRESIDENT: THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-IV, AHMEDA BAD DATED 4.12.2003 FOR THE BLOCK PERIOD 1.4.1989 TO 20.1.2000. 2. THIS IS A RECALLED MATTER. IN THE ORIGINAL ORDE R PASSED BY THE TRIBUNAL, GROUND NO.4 OF THE ASSESSEE WAS NOT DISPO SED OF BY THE TRIBUNAL WHILE DISPOSING OF THE APPEAL, AND THEREFO RE, THE TRIBUNAL VIDE ITS ORDER DATED 20.01.2012 IN MA NO.137/AHD/2004 IN IT(SS) NO.77/AHD/2004 HAS RECALLED THE ORDER OF THE TRIBUN AL DATED 2.2.2007. TO THAT EXTENT, THE REGISTRY WAS DIRECTED TO FIX TH E APPEAL OF THE ASSESSEE IN IT(SS) NO.77/AHD/2004 FOR HEARING ONLY ON GROUND NO.4 OF THE APPEAL OF THE ASSESSEE. 3. THE GROUND NO.4 OF THE ASSESSEES APPEAL READS A S UNDER: IT(SS)A NO.77/AHD/2004 -2- 4.01 ON THE FACTS IN THE CIRCUMSTANCES OF YOUR APP ELLANTS CASE AND IN LAW THE LD.CIT HAS ERRED IN CONFIRMING ADDIT ION ON ACCOUNT OF DEPOSITS FROM UNDISCLOSED INCOME OF RS.2,84,893/ - IN SAVING BANK ACCOUNT NO.4658 IN PANCHMAHAL DIST. CO-OP. BAN K. 4.02 YOUR APPELLANT SAYS AND SUBMITS THAT THE ADDI TION MADE BY LD.AO WAS ON THE BASIS OF THE PRESUMPTION AND WITHO UT CONSIDERING EXPLANATION SUBMITTED BY YOUR APPELLANT DURING THE ASSESSMENT PROCEEDINGS. YOUR APPELLANT FURTHER SUBMITS THAT E VEN DURING THE APPELLATE PROCEEDINGS BEFORE LD. CIT, FULL EXPLANAT ION WAS GIVEN ABOUT EACH AND EVERY CREDIT/DEPOSIT ENTRY APPEARING IN PANCHMAHAL DIST. CO-OP. BANK ACCOUNT. YOUR APPELLA NT, THEREFORE, PRAYS THAT YOUR HONOUR BE PLEASE TO HOLD SO NOW AND DELETE THE IMPUGNED ADDITION. 4. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE BASIS OF THE ADDITION WAS THE DEPOSIT IN SAVING BANK ACCOUNT NO. 4658 IN PANCHMAHAL DIST. CO-OP. BANK (PDCB FOR SHORT). HE SUBMITTED THIS AMOUNT WAS ALREADY DISCLOSED BY THE ASSESSEE TO THE DEPARTMENT IN ITS BOOKS OF ACCOUNTS DURING THE ASSESSMENT PROCEEDINGS, AND THE REFORE, COULD NOT BE CONSIDERED IN THE BLOCK ASSESSMENT OF THE ASSESSEE. HE REFERRED TO PARA-9 OF THE ASSESSMENT ORDER IN SUPPORT OF HIS SUBMISSIO N WHEREIN THE AO RECORDED THE FACT THAT THE ASSESSEE HAVING A BANK A CCOUNT WITH PDCB BEARING NO.4658. THE LEARNED DR HAS OPPOSED THE SU BMISSION OF THE LEARNED COUNSEL OF THE ASSESSEE. HE SUBMITTED THAT THE ASSESSEE HAS FILED RETURN OF INCOME UPTO THE ASSESSMENT YEAR 1997-98 W HEREIN THIS BANK ACCOUNT WAS DISCLOSED. HE SUBMITTED THAT FOR THE S UBSEQUENT ASSESSMENT YEAR 1998-99 AND 1999-2000, THE ASSESSEE HAS NOT FI LED RETURN OF INCOME, AND THEREFORE, THE SOURCE OF DEPOSITS IN THIS BANK ACCOUNT DURING THE FINANCIAL YEAR 1997-98 AND 1998-99 HAVE TO BE EXAMI NED IN THE BLOCK ASSESSMENT OF THE ASSESSEE. IT(SS)A NO.77/AHD/2004 -3- 5. WE HAVE CONSIDERED RIVAL SUBMISSIONS CAREFULLY A ND HAVE PERUSED THE ORDERS OF THE AO AND THE CIT(A). WE FIND THAT IN PARA-9 OF THE ASSESSMENT ORDER, THE AO RECORDED THAT THE ASSESSEE HAS BANK ACCOUNT IN PDCB, DAHOD BEARING NO.4658 AND THAT THE ASSESSEE HAS FILED RETURN UPTO THE ASSESSMENT HEAR 1997-98 IN WHICH THIS BANK ACCOUNT WAS DISCLOSED. FOR THE A.Y.1998-99 AND 1999-2000 RELAT ING TO FINANCIAL YEAR 1997-98 AND 1998-99 RESPECTIVELY, THE ASSESSEE DID NOT FILE HER REGULAR RETURN OF INCOME AND HAS ACCORDINGLY DECLARED SOME INCOME PERTAINING TO THIS ASSESSMENT YEAR IN HER RETURN FOR BLOCK PERIOD , AND THEREFORE DEPOSITS MADE IN THIS BANK ACCOUNT DURING THE FINANCIAL YEAR 1997-98 AND 1998-99 HAVE TO BE EXAMINED IN THE BLOCK ASSESSMENT OF THE ASSESSEE TO ASCERTAIN THE SOURCE THEREOF. WE FIND THAT THE ASSESSEE HAS NOT FILED HER RETURN OF INCOME IN ASSESSMENT YEAR 1998-99 AND 1999-2000 AND THEREFORE THE DEPOSITS MADE BY THE ASSESSEE IN THIS BANK ACCOUNT DURING THE FINANCIAL YEAR 1997-98 AND 1998-99 COULD VALIDLY BE EXAMINED BY THE AO TO ASCERTAIN THE SOURCE THEREOF. THE CLAIM OF THE ASS ESSEE WAS THAT IT HAS EXPLANATION IN RESPECT OF EVERY CREDIT/DEPOSIT ENTR Y APPEARING IN THE BANK ACCOUNT WITH PDCB AND ITS CASE WAS NOT PROPERLY A PPRECIATED BY THE REVENUE AUTHORITIES. IN THE FACTS AND CIRCUMSTANCE S OF THE CASE, WE ARE OF THE VIEW THAT IT SHALL BE IN THE INTEREST OF JUSTIC E TO SET ASIDE THE ISSUE IN THE GROUND NO.4 OF THE APPEAL OF THE ASSESSEE TO TH E FILE OF THE AO WITH DIRECTION TO DECIDE THE SAME DE NOVO ON MERIT AFTER ALLOWING DUE OPPORTUNITY OF HEARING TO THE ASSESSEE. THE ASSESS EE SHALL BE AT LIBERTY TO FILE ANY EXPLANATION AND EVIDENCE IN SUPPORT OF ITS CASE REGARDING SOURCE OF DEPOSITS ENTRIES IN HER BANK ACCOUNT. WE DIRECT ACCORDINGLY. IT(SS)A NO.77/AHD/2004 -4- 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE, TO TH E EXTENT OF GROUND OF APPEAL NO.4 DETAILED ABOVE, IS ALLOWED FOR STATISTI CAL PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- SD/- ( #.% $% /A.MOHAN ALANKAMONY) &' ( /ACCOUNTANT MEMBER ( . .. . . .. . /G.C. GUPTA) !' !' !' !' /VICE-PRESIDENT C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD