ITO, Mohali v. Smt. Surjit Kaur, Mohali

ITA 1184/CHANDI/2011 | 2008-2009
Pronouncement Date: 15-02-2012 | Result: Dismissed

Appeal Details

RSA Number 118421514 RSA 2011
Assessee PAN AIRPK5577F
Bench Chandigarh
Appeal Number ITA 1184/CHANDI/2011
Duration Of Justice 2 month(s) 7 day(s)
Appellant ITO, Mohali
Respondent Smt. Surjit Kaur, Mohali
Appeal Type Income Tax Appeal
Pronouncement Date 15-02-2012
Appeal Filed By Department
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 15-02-2012
Date Of Final Hearing 15-02-2012
Next Hearing Date 15-02-2012
Assessment Year 2008-2009
Appeal Filed On 08-12-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES A CHANDIGARH BEFORE SHRI H.L.KARWA HON'BLE VICE PRESIDENT AND SHRI MEHAR SINGH ACCOUNTANT MEMBER ITA NO. 1184/CHD/2011 ASSESSMENT YEAR: 2008-09 THE ITO WARD-6(3) VS SMT. SURJIT KAUR MOHALI MOHALI PAN NO. AIRPK5577F (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI AKHILESH GUPTA RESPONDENT BY : SHRI RAVI SHANKAR DATE OF HEARING : 15.2.2012 DATE OF PRONOUNCEMENT : 15.2.2012 ORDER PER H.L.KARWA VP THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINS T THE ORDER OF CIT(A) CHANDIGARH DATED 30.9.2011 RELATING TO ASSE SSMENT YEAR 2008- 09. 2. IN THIS APPEAL THE REVENUE HAS RAISED THE FOLLO WING GROUNDS:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) HAS ERRED IN PARTLY ALLOWING APPEAL OF THE ASSESSEE WITHOUT APPRECIATIN G THE FACTS OF THE CASE. 2 ON. THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW THE LD. CIT(A) HAS ERRED IN GIVING RELI EF OF RS. 18 29 261/- BY ACCEPTING ASSESSEE'S PLEA THA T 2 THE SAME CASH WAS ROTATED WHEREAS THE A.O. HAS RIGHTLY MADE ADDITION ON ACCOUNT OF UNEXPLAINED CASH CREDITS IN ASSESSEE'S BANK ACCOUNT. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE CIT(A) HAS ERRED IN HOLDING THAT THE ASSESSEE WAS ENTITLED TO EXEMPTION U/S 11 OF THE IT ACT IN V IEW OF THE FACTS THAT THE ASSESSEE WAS NOT MAINTA INING SEPARATE BOOKS OF ACCOUNT AS REQUIRED BY SECTION 11 (4A)OF THE I.T. ACT 1961. 4. IT IS PRAYED THAT THE ORDER OF THE LD. CIT (A) BE S ET ASIDE AND THAT OF THE ASSESSING OFFICER MAY BE RESTORED. 5. THE APPELLANT CRAVES LEAVE TO ADD OR AMEND ANY GROUNDS OF APPEAL BEFORE THE APPEAL IS HEARD OR IS DISPOSED OFF 3. GROUND NOS. 1 4 & 5 ARE GENERAL IN NATURE AND H ENCE NO FINDINGS ARE BEING GIVEN. 4. GROUND NO.3 OF THE APPEAL DOES NOT ARISE OUT OF THE ORDERS OF THE LOWER AUTHORITIES AND HENCE WE DISMISS THE SAME A S INFRUCTUOUS. 5. AS REGARDS GROUND NO.2 OF THE APPEAL THE RELEVA NT FACTS NOTED BY THE ASSESSING OFFICER ARE THAT THERE WERE CREDIT EN TRIES OF CASH DEPOSITED TO THE TUNE OF RS. 24 04 700/- IN THE BAN K ACCOUNT NO.12967 OF THE ASSESSEE WITH PUNJAB & SIND BANK PREMISES M OHALI. IN THIS CASE THE ASSESSING OFFICER HAS PASSED EX.PARTE ASSE SSMENT ORDER U/S 144 OF THE INCOME TAX ACT 1961 (IN SHORT 'THE ACT' ) FOR THE REASONS THAT THE ASSESSEE DID NOT COMPLY WITH THE STATUTORY NOTICE. NO REPLY WAS FILED BY THE ASSESSEE IN THE ASSESSMENT PROCEED INGS AND SO THE ASSESSING OFFICER CONCLUDED THAT THE ASSESSEE DID N OT HAVE SATISFACTORY EXPLANATION FOR THE SAID DEPOSITS. THE ASSESSING OFFICER OBTAINED THE 3 STATEMENT OF ACCOUNT NO. 12967 MAINTAINED BY THE AS SESSEE FROM THE BANK WHICH CONFIRMED THE CASH DEPOSITS AS PER THE T RANSACTIONS DETAIL MENTIONED BELOW:- DATE OF TRANSACTION AMOUNT (IN RS.) 21.6.2007 26 700/- 4.7.2007 1 45 000/- 3.9.2007 1 50 000/- 15.9.2007 1 68 000/- 4.10.2007 1 00 000/- 5.12.2007 35 000/- 10.12.2007 45 000/- 13.12.2007 4 00 000/- 14.12.2007 5 00 000/- 15.12.2007 1 00 000/- 14.1.2008 7 00 000/- 15.2.2008 35 000/- 6. THE ASSESSING OFFICER ADDED THE ENTIRE AMOUNT OF RS. 24 04 700/- TO THE INCOME OF THE ASSESSEE AS INCOM E FROM UNDISCLOSED SOURCES. 7. AGGRIEVED BY THE ORDER OF ASSESSING OFFICER THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE CIT(A). BEFORE THE CIT(A) THE ASSESSEE TOOK THE FOLLOWING LINE OF ARGUMENTS:- (I) THAT THE ASSESSEE WANTED TO VISIT A REAL SISTER IN USA. FOR PROVIDING VISA THE US EMBASSY REQUIRED THAT HER BANK ACCOUNT SHOULD HAVE SOME TRANSACTIONS AND SO THE ASSESSEE ROTATED THE SAME CASH NUMBER OF TIMES TO SHOW TRANSACTIONS IN HER BANK ACCOUNT; 4 (II) THAT THE CASH WAS ROTATED IN THE BANK ACCOUNT TOO MANY TIMES TO GET VISA AND THE ASSESSEE WAS FINALLY SUCCESSFUL TO GET VISA; AND (III) THAT THE ASSESSEE HAD WITHDRAWN AND DEPOSITED CASH MEANING THEREBY THAT THE SAME CASH HAS BEEN ROTATED MANY TIMES JUST TO SHOW TRANSACTIONS IN THE BANK ACCOUNT AND NO OTHER KNOWN INVESTMENTS AND SO IT CANNOT BE SAID THAT THE AMOUNT WAS INVESTED ELSEWHERE FOR SHORT TIME. 8. THE CIT(A) ALLOWED A RELIEF OF RS. 18 29 261/- A ND OBSERVED AS UNDER:- 6.1 A CLOSE SCRUTINY OF THE BANK ACCOUNT REVEALS THAT THE PEAK BALANCE IS RS. 11 01 652/- AS ON 19.12.2007 AND THE OPENING BALANCE AS ON 01.04.2007 WAS RS. 5 26 213/-. THE BE NEFIT OF ROTATION OF CASH HAS TO BE GIVEN TO THE APPELLANT SINCE ONLY PEAK BALANCE CAN BE ASSESSED. THE APPELLANT HAS NOT EXPLAINED SO URCE OF 'CLEARING/BANK TRANSFER' AND SO BENEFIT IN RESPECT OF THE SAME CANNOT BE GIVEN. THUS THE NET CREDIT DURING THE Y EAR WORKS OUT TO RS. 5 75 439/- ( 11 01 652 - 5 26 213) WHICH IS REQUIRED TO BE TAXED AS 'INCOME FROM OTHER SOURCES'. HENCE OUT O F THE ADDITION MADE OF RS. 24 04 700/- ON ACCOUNT OF UNEXPLAINED C REDITS IN THE BANK ACCOUNT ADDITION OF RS. 5 75 439/- IS CONFIRM ED AND THE APPELLANT GETS RELIEF OF RS. 18 29 261/-. THE REST OF THE TWO ADDITIONS MADE BY THE ASSESSING OFFICER OF RS. 8 038/~ AND RS . 11 375/- HAVE NOT BEEN CONTESTED AND SO THE SAME ARE CONFIRMED. G ROUNDS OF APPEAL TAKEN BY THE APPELLANT ARE PARTLY ALLOWED. 9. WE HAVE HEARD THE RIVAL SUBMISSIONS AND HAVE ALS O PERUSED THE MATERIALS AVAILABLE ON RECORD. SHRI RAVI SHANKAR LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS MADE BEFORE THE LOWER AUTHORITIES. ON THE OTHER HAND SHRI AKHILESH GUPTA LD. DR SUBM ITTED THAT ASSESSEE BEING EMPLOYEE WITH PUNJAB SCHOOL EDUCATIO N BOARD AND HAVING ONLY INCOME FROM SALARY AT RS. 1 35 974/- DU RING THE RELEVANT 5 PERIOD CANNOT HAVE SUCH HUGE CASH DEPOSITS IN HER BANK ACCOUNT NO. 12967 FROM DISCLOSED SOURCES. THE ASSESSEE WAS ASK ED TO EXPLAIN THE SOURCE OF THESE CASH DEPOSITS BUT THE ASSESSEE DID NOT FILE ANY SATISFACTORY REPLY IN THIS REGARD. HE THEREFORE SUBMITTED THAT THE ASSESSING OFFICER WAS JUSTIFIED IN MAKING THE ADDIT ION OF RS. 24 04 700/-. SHRI AKHILESH GUPTA LD. DR HOWEVER SUBMITTED THAT ORDER OF THE CIT(A) MAY BE SET ASIDE AND THAT OF AS SESSING OFFICER MAY BE RESTORED. IT IS RELEVANT TO OBSERVE HERE THAT T HERE IS NO MATERIAL ON RECORD TO CONTROVERT THE FINDINGS OF THE CIT(A). T HERE IS NO MATERIAL ON RECORD TO CONTROVERT THIS PLEA OF THE ASSESSEE T HAT THE CASH WAS ROTATED IN THE BANK ACCOUNT MANY TIMES TO GET VISA AND THE ASSESSEE WAS FINALLY SUCCESSFUL IN GETTING VISA. THE LD. CIT(A) HAS CATEGORICALLY OBSERVED THAT THE COPY OF THE BANK ACCOUNT SUBMITTE D BY THE ASSESSEE SHOWED THAT THE ASSESSEE HAD WITHDRAWN CASH AND HE THEREFORE CONCLUDED THAT THE SAME CASH HAD BEEN ROTATED MANY TIMES JUST TO SHOW TRANSACTIONS IN THE BANK ACCOUNT. THE CIT(A) HAS A LSO CATEGORICALLY STATED THAT THERE WERE NO OTHER KNOWN INVESTMENTS T O SHOW THAT THE AMOUNT WAS INVESTED ELSEWHERE BY THE ASSESSEE FOR S HORT TIME. WE ALSO AGREE WITH THIS OBSERVATION OF THE CIT(A) THAT IN T HE FACTS AND CIRCUMSTANCES OF THE PRESENT CASE ONLY PEAK BALANCE SHOULD BE ASSESSED. THE CIT(A) HAS WORKED OUT THE NET CREDIT DURING THE YEAR AT RS. 5 75 439/- WHICH DESERVES TO BE ACCEPTED BECAUS E THERE IS NO MATERIAL ON RECORD TO SHOW THAT THIS WORKING IS INC ORRECT. CONSIDERING THE ENTIRE FACTS AND CIRCUMSTANCES OF THE PRESENT C ASE WE DO NOT THINK 6 IT APPROPRIATE TO INTERFERE WITH THE FINDINGS OF TH E CIT(A) AND THEREFORE WE UPHOLD THE SAME. 10. IN THE RESULT APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 15 TH DAY OF FEBRUARY 2012. SD/- SD/- (MEHAR SINGH) (H.L.KARWA) ACCOUNTANT MEMBER VICE PRESIDENT DATED : 15 TH FEBRUARY 2012 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR TRUE COPY BY ORDER ASSISTANT REGISTRAR