Shri Hitesh B.Patel L/h. of Late Bhulabhai K.Patel, Modasa v. The Income tax Officer,Ward-4,, Modasa

ITA 1203/AHD/2010 | 2005-2006
Pronouncement Date: 10-02-2012 | Result: Allowed

Appeal Details

RSA Number 120320514 RSA 2010
Assessee PAN ARTPM7532N
Bench Ahmedabad
Appeal Number ITA 1203/AHD/2010
Duration Of Justice 1 year(s) 9 month(s) 24 day(s)
Appellant Shri Hitesh B.Patel L/h. of Late Bhulabhai K.Patel, Modasa
Respondent The Income tax Officer,Ward-4,, Modasa
Appeal Type Income Tax Appeal
Pronouncement Date 10-02-2012
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 10-02-2012
Date Of Final Hearing 12-01-2012
Next Hearing Date 12-01-2012
Assessment Year 2005-2006
Appeal Filed On 16-04-2010
Judgment Text
ITA NO.1203/AHD/2010 ASS ESSMENT YEAR 2005-06 1 IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH AHM EDABAD (BEFORE SHRI MUKUL KUMAR SHRAWAT AND SHRI A.L. GEH LOT) I.T.A. NO. 12 03 /AHD/2010 (ASSESSMENT YEAR: 2005 -2006 ) LATE BHULABHAI K.PATEL L.H. SHRI HITESH B. PATEL AT & POST DAHYALIA MODASA DIST. SABARKANTHA. (APPELLANT) VS. INCOME TAX OFFICER WARD 4 MODASA SABARKANTHA. (RESPONDENT) PAN: ARTPM 7532 N ON BEHALF OF THE ASSESSEE. : SHRI M. K. PATEL. ON BEHALF OF THE REVENUE : SHRI SAMIR TEKRIWAL S R.D.R. ( )/ ORDER DATE OF HEARING : 12-1-2012 DATE OF PRONOUNCEMENT : 10-2-2012 PER: SHRI A.L. GEHLOT A.M. THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE O RDER OF LD. CIT (A)-VI AHMEDABADS ORDER DATED20-11-2009 FOR THE ASSESSMEN T YEAR 2005-06. 2. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER: - 1. THAT ON FACTS AND IN LAW THE LD. CIT (A) HAS G RIEVOUSLY ERRED IN HOLDING ASSESSEES INVESTMENT AS UNEXPLAINED INVEST MENT WITHIN THE MEANING ITA NO.1203/AHD/2010 ASS ESSMENT YEAR 2005-06 2 OF SECTION 69 OF THE ACT WHEN ASSESSEE HAS SHOWN AN D MAINTAINED BOOKS OF ACCOUNTS. 2. THAT ON FACTS AND IN LAW THE LD. CIT (A) HAS GR IEVOUSLY ERRED IN NOT HOLDING THAT ENTIRE RS.6 00 000/- DEPOSITED BY THE ASSESSEE IN CASH WHEN RS.2 00 000/- DEPOSITED ON 27-9-2004 DEPOSITED BY T RANSFER IN THE DISEASES ACCOUNT. 3. THAT ON FACTS AND IN LAW THE LD. CIT (A) HAS GR IEVOUSLY ERRED THAT NOTICE ISSUED U/S. 148 IS IN ACCORDANCE WITH LAW. 3. THE BRIEF FACTS OF THE CASE ARE THAT INTIMATION RECEIVED FROM TO AO FROM OTHER CIRCLE OF THE DEPARTMENT THAT THE ASSESSEE MA DE INVESTMENT OF RS.6 LACS IN BACK WELL BISCUITS LTD. THE CASE OF THE ASSESSEE WA S REOPENED. NOTICE U/S.148 WAS ISSUED ON5-3-2008. THE ASSESSEE FILED RETURN OF INC OME DECLARING INCOME OF RS.26 470/- AND AGRICULTURE INCOME RS.35 000/-.FRO M THE BANK STATEMENT FILED BY THE ASSESSEE THE AO NOTICED THAT BEFORE ISSUING CH EQUE TO BACK WELL BISCUITS LTD. THE ASSESSEE DEPOSITED CASH OF RS.6 LACS ON DIFFERE NT DATES. THE AO DID NOT SATISFY WITH THE EXPLANATION FILED BY THE ASSESSEE AND MADE ADDITION OF RS. 6 LACS U/S. 69 OF THE ACT. THE CIT (A) CONFIRMED THE ACTION OF THE A O. 4. WE HAVE HEARD THE LD. REPRESENTATIVES OF THE PAR TIES AND RECORDS PERUSED. WE FIND THAT THE ASSESSEE FURNISHED COMPLETE DETAIL S OF HIS BANK ACCOUNT FROM WHICH THE ASSESSEE MADE THE SAID INVESTMENT OF RS.6 LACS .IN THE SAID ACCOUNT ONE OF THE ENTRY OF RS.2 LACS DATED 27-9-2004 IS TRANSF ER ENTRY AND NOT CASH DEPOSIT. THE SAID BANK ACCOUNT IS OD ACCOUNT AS THE ASSESSEE TOO K LOAN AGAINST FIXED DEPOSITS. THE FDRS WERE MADE OUT OF RETIREMENT BENEFITS. THE ASSESSEE WAS HAVING AGRICULTURE INCOME. THE ADDITION MADE U/S. 68 IN TH E HANDS OF THE COMPANY WHERE THE ASSESSEE INVESTED RS.6 LACS HAS BEEN ACCEPTED B Y THE CIT (A) ON SAME SET OF ITA NO.1203/AHD/2010 ASS ESSMENT YEAR 2005-06 3 DOCUMENTS WHICH ARE FILED BEFORE THE AO IN THE CASE OF THE ASSESSEE. THE ASSESSEE ALSO EXPLAINED THAT RS.2 LACS RECEIVED FROM SHRI PR AVINSINGH MADHAVSING SISODIYA ON ACCOUNT OF ADVANCE ON AGREEMENT TO SALE OF HIS A GRICULTURE LAND. A CONFIRMATION LETTER WAS ALSO FILED. LOAN OF RS.1 23 100/- WERE ALSO TAKEN BY ASSESSEE OF WHICH DETAILS ARE FILED. THE ASSESSEE FILED RETURN OF INC OME ALONG WITH BALANCE SHEET SHOWING THE SAID INVESTMENT. THE INCOME DECLARED BY ASSESSEE IN THE RETURN OF INCOME RS.26 470/0 AND AGRICULTURE INCOME RS.35 000 /- HAVE BEEN ACCEPTED BY THE AO HIMSELF. THE ASSESSEE EXPIRED ON 8-12-2008 BEFOR E ISSUING NOTICE U/S. 148 DATED 10-3-2008. AFTER CONSIDERING ALL THE ABOVE FA CTS CAN IT BE SAID THAT ADDITION OF RS.6 LACS IS WARRANTED? THE FACTS ARE VERY CLEAR THAT WHEN A PERSON HAVING RETIREMENT BENEFITS HAVING ANNUAL INCOME OF RS.26 470/- AGRICULTURE INCOME RS.35 000/- CAN NOT EVEN SAVE RS.6 LACS IN HIS ENTI RE LIFE NOT ONLY THIS BUT IT IS ALSO FACT THAT THE ASSESSEE HAS FULLY EXPLAINED THE SOUR CE OF INVESTMENT OF RS. 6 LACS FILING VARIOUS DETAILS AND EXPLANATION. WE ARE NOT IN AGREEMENT WITH THE VIEW OF REVENUE THAT ADDITION IS WARRANTED U/S. 69 OF THE A CT IN A CASE WHERE THE ASSESSEE HAS FURNISHED BALANCE SHEET. THERE IS NO INVESTMENT WHICH WAS NOT RECORDED IN BOOKS OF ACCOUNT. 5. IN THE LIGHT OF ABOVE DISCUSSION WE ARE OF THE C ONSIDERED OPINION THAT NO ADDITION OF RS.6 LACS IOS WARRANTED AS ASSESSEE HAS EXPLAINED THE INVESTMENT SATISFACTORILY. WE THEREFORE DELETE THE ADDITION O F RS.6 LACS. 6. SINCE WE DECIDE THE ISSUE ON MERIT IN FAVOUR OF THE ASSESSEE THEREFORE WE DO NOT EXPRESS OUR VIEW RELATING TO CHALLENGING OF REOPENING U/S. 148 OF THE ACT. ITA NO.1203/AHD/2010 ASS ESSMENT YEAR 2005-06 4 7. THE APPEAL OF THE ASSESSEE IS ALLOWED AS INDICAT ED ABOVE. ORDER PRONOUNCED IN OPEN COURT ON 10 - 2 - 2012. SD/- SD/- ( MUKUL KR. SHRAWAT) (A. L.GEHLOT) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD. S.A.PATKI. COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS)-VI AHMEDABAD. 4. THE CIT CONCERNED. 5. THE DR. ITAT AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT AHMEDABAD. 1.DATE OF DICTATION 31 - 01 -2012 2.DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE TH E DICTATING 31 /01 / 2012 MEMBER.OTHER MEMBER. 3.DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S 9 - 2 -2012. 4.DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT 10 - 1 -2012 5.DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR .P.S./P.S 10 - 2 -2012 6.DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 13 - 2 -2012. 7.DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8.THE DATE ON WHICH THE FILE GOES TO THE ASSTT. REG ISTRAR FOR SIGNATURE ON THE ORDER 9.DATE OF DESPATCH OF THE ORDER..