ITO, v. Shri. Chandrashekar Desai,

ITA 239/BANG/2014 | 2009-2010
Pronouncement Date: 21-11-2014 | Result: Allowed

Appeal Details

RSA Number 23921114 RSA 2014
Assessee PAN AHAPD0477H
Bench Bangalore
Appeal Number ITA 239/BANG/2014
Duration Of Justice 9 month(s) 7 day(s)
Appellant ITO,
Respondent Shri. Chandrashekar Desai,
Appeal Type Income Tax Appeal
Pronouncement Date 21-11-2014
Appeal Filed By Department
Order Result Allowed
Bench Allotted C
Tribunal Order Date 21-11-2014
Date Of Final Hearing 18-11-2014
Next Hearing Date 18-11-2014
Assessment Year 2009-2010
Appeal Filed On 14-02-2014
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SMT. P. MADHAVI DEVI JUDICIAL MEMBER AND SHRI ABRAHAM P GEORGE ACCOUNTANT MEMBER ITA NO. 239 / BANG/20 1 4 (ASSESSMENT YEAR: 2009 - 10 ) INCOME - TAX OFFICER WARD 14(4) BANGALORE. APPELLANT VS. SHRI CHANDRASHEKAR DASARI NO.44 ABOVE HOTEL RAGA REST HOUSE ROAD BANGALORE - 560024. RESPONDENT PAN:AHAPD0477H APPELLANT BY: DR. K.SHANKAR PRASAD JCIT(DR) . RESPONDENT BY: SHRI CHAVALI NARAYAN CA. DATE OF HEARING : 18 / 11 /2014 . DATE OF PRONOUNCEMENT: 21 /11/2014. O R D E R PER SMT. P.MADHAVI DEVI JM : THIS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE CIT(A) - V BANGALORE DATED 18/10/2013 FOR THE ASSESSMENT YEAR 2009 - 10. THE REVEN UE IS AGGRIEVED BY THE ORDER OF THE CIT(A) IN DELETING THE ADDITION OF RS.24 89 510/ - MADE BY THE ASSESSING OFFICER (AO) AS UNEXPLAINED CASH CREDIT. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN INDIVIDUAL DERIVING INCOME FROM SALARY AS A CONSULT ANT IN M/S.SAP ITA NO 239 /BANG/2014 S HRI CHANDRASH EKAR DASARI PAGE 2 OF 5 LABS INDIA PVT. LTD. HE FILED HIS RETURN OF INCOME FOR THE RELEVANT ASSESSMENT YEAR ON 11/01/2010 DECLARING A TOTAL INCOME OF RS.6 89 400/ - . DURING THE ASSESSMENT PROCEEDINGS U/S 143(3) OF THE INCOME - TAX ACT 1961[HEREINAFTER REFERRED TO A S 'THE ACT'] IT WAS OBSERVED THAT THE RE WERE CASH DEPOSIT S IN TO ASSESSEE S BANK ACCOUNT DURING THE ACCOUNTING YEAR OF A SUM OF RS.24 89 500/ - . THE ASSESSEE WAS ASKED TO EXPLAIN THE SOURCES FOR THE SAID DEPOSIT S . THE ASSESSEE EXPLAINED THAT HE WAS SENDIN G HIS ENTIRE SALARY TO HIS MOTHER AND HIS MOTHER HAD DEPOSITED THE ENTIRE AMOUNT OF RS.24 89 500/ - OUT OF THE ACCUMULATED SALARY EARNING S OF THE ASSESSEE OVER THE YEARS AND ALSO OUT OF SALE CONSIDERATION OF PROPERTY SOLD BY HER . THE ASSESSEE WAS ASKED TO EVIDENCE SUCH CLAIM BY FILING OF DOCUMENTS. THE ASSESSEE COULD NOT DO SO AND THEREFORE THE AO TREATED THE ENTIRE AMOUNT OF RS.24 89 500/ - AS UNEXPLAINED CASH CREDIT AND BROUGHT IT TO TAX. AGGRIEVED THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A) BY FILING WRITTEN SUBMISSIONS ALONG WITH THE FOLLOWING ANNEXURES: ANNEXURE 1 : FORM NO.16 ISSUED BY M/S.SAP LABS INDIA P.LTD. IN EVIDENCE OF SALARY INCOME E ARNED BY THE ASSESSEE AFTER TDS. ANNEXURE 2 : RETURN FILED BY THE ASSESSEE FOR THE RELEVANT ASSESSMENT YEAR. ANNEXURE 3 : STATEMENT MADE BY THE ASSESSEE BEFORE THE AO STATING THAT THE ASSESSEE HAS NO OTHER SOURCE OF INCOME OTHER THAN SALARY INCOME RECEIVED DURING THE YEAR UNDER CONSIDERATION. ANNEXURE 4 : AN AFFIDAVIT OF THE PARENTS OF THE ASSESSEE STATIN G THAT THEY DO NOT HAVE ANY BANK ACCOUNTS IN INDIA. ITA NO 239 /BANG/2014 S HRI CHANDRASH EKAR DASARI PAGE 3 OF 5 ANNEXURE 5 : BANK STATEMENT OF THE ASSESSEE EVIDENCING THAT THE ASSESSEE HAS REPAID THE SUM OF RS.21 60 000/ - TO HIS MOTHER SMT.DASARI LAKSHMI IN THE FINANCIAL YEAR 2009 - 10 ON 24/04/2009 VIDE CHEQUE NO.0 759235. THE CIT(A) CONSIDERED THE SAID DOCUMENTS FILED BY THE ASSESSEE BEFORE HIM AND HAS ACCEPTED THE ASSESSEE S CONTENTIONS AND DELETED THE ADDITION. AGAINST THE RELIEF GIVEN BY THE CIT(A) THE REVENUE IS IN APPEAL BEFORE US. 3. AT THE TIM E OF HEARING LEARNED DEPARTMENTAL REPRESENTATIVE RELIED UPON THE ORDER OF THE AO AND SUBMITTED THAT THE ASSESSEE WAS ASKED TO EXPLAIN THE CASH DEPOSITS OF RS.24 89 500/ - AND SINCE THE ASSESSEE HAS FAILED TO PRODUCE ANY DOCUMENTARY EVIDENCE IN SUPPORT OF H IS CLAIM THAT THEY ARE DEPOSITS MADE BY HIS PARENTS OUT OF THEIR SAVINGS AS WELL AS SALE CONSIDERATION OF A PROPERTY THE AO HAS BROUGHT IT TO TAX. HE SUBMITTED THAT THE THOUGH THE ASSESSEE HAS FILED THE ADDITIONAL EVIDENCE BEFORE THE CIT(A) THE CIT(A) H AS NEITHER CALLED FOR ANY REMAND REPORT FROM THE AO NOR HAS HE VERIFIED THE SAME HIMSELF BUT HAS ACCEPTED THE CONTENTIONS OF THE ASSESSEE AND ALSO TREATED THE SUM OF RS.21 60 000/ - ONLY AS EXPLAINED EVEN THOUGH THE DISPUTED AMOUNT IS RS.24 89 500/ - . THUS ACCORDING TO THE LEARNED DEPARTMENTAL REPRESENTATIVE THE CIT(A) HAS ERRED IN GIVING RELIEF TO THE ASSESSEE WITHOUT SUBSTANTIAL PROOF IN SUPPORT OF THE CONTENTION OF THE ASSESSEE. ITA NO 239 /BANG/2014 S HRI CHANDRASH EKAR DASARI PAGE 4 OF 5 4. THE LEARNED COUNSEL FOR THE ASSESSEE ON THE OTHER HAND SUP PORTED THE ORDERS OF THE CIT(A) AND SUBMITTED THAT AROUND RS.10 LAKHS HAS ALREADY BEEN EXPLAINED AS THE SOURCE FOR CASH DEPOSITS BEING SALE CONSIDERATION RECEIVED BY THE ASSESSEE S MOTHER WHICH HAS BEEN DEPOSITED INTO THE ASSESSEE S ACCOUNT AS THE PARENTS OF THE ASSESSEE DID NOT HAVE ANY BANK ACCOUNT IN ANY OTHER PLACE IN INDIA. HE SUBMITTED THAT THE PARENTS OF THE ASSESSEE WERE UNEDUCATED AND WERE AGRICULTURISTS AND THEREFORE DID NOT HAVE ANY BANK ACCOUNT AND THE ASSESSEE WAS SENDING ALL HIS SALARY AMOUN T IN THE PREVIOUS YEARS ALSO TO HIS PARENTS WHO HAVE DEPOSITED THEIR ACCUMULATED SAVINGS INTO THE ASSESSEE S BANK ACCOUNT DURING THE ASSESSMENT YEAR AND AFTER THE PARENTS HAVE OPENED A BANK ACCOUNT IN THEIR NAME THE ASSESSEE HAS RETURNED A SUM OF RS.21 60 000/ - TO THE ASSESSEE S MOTHER WHICH IS EVIDENCED BY ANNEXURE 4 TO THE WRITTEN SUBMISSIONS FILED BEFORE T HE CIT(A). THUS ACCORDING TO HIM THE ASSESSEE HAS SUBSTANTIATED HIS CLAIM BY FILING NECESSARY EVIDENCE AND THE CIT(A) HAS RIGHTLY GRANTED RELIEF TO THE ASSESSEE. 5. HAVING REGARD TO THE RIVAL CONTENTIONS AND ALSO THE MATERIAL ON RECORD WE FIND THAT IT IS NOT DISPUTED THAT THE ASSESSEE HAS NO OTHER SOURCE OF INCOME OTHER THAN SALARY INCOME. HOWEVER THERE HAVE BEEN HUGE DEPOSITS INTO HIS HD FC BANK ACCOUNT AND THE ASSESSEE IS BOUND TO EXPLAIN THE SOURCE OF ITA NO 239 /BANG/2014 S HRI CHANDRASH EKAR DASARI PAGE 5 OF 5 SUCH CASH DEPOSITS. THE ASSESSEE HAS FILED THE DETAILS BEFORE THE CIT(A) AND THE CIT(A) HAS NOT EVEN CALLED FOR A REMAND REPORT FROM THE AO NOR HAS HE VERIFIED THE SAID DETAILS HIMSELF BUT HAS ACCEPTED THE CONTENTION S OF THE ASSESSEE AND HAS GIVEN RELIEF TO THE ASSESSEE. THIS IN OUR VIEW IS ERRONEOUS. THEREFORE WE REMAND TH IS ISSUE TO THE FILE OF THE AO F O R RE - CONSIDER ATION OF THE EVIDENCE FILED BY THE ASSESSEE BEFORE THE CIT(A) AND IS DIRECTED TO DECIDE THE ISSUE IN ACCORDANCE WITH LAW AFTER GIVING THE ASSESSEE A FAIR OPPORTUNITY OF HEARING. 6. IN THE RESULT THE REVENUE S APPEAL IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRON OUNCED IN THE OPEN COURT ON 21 ST OF NOVEMBER 201 4. S D/ - S D/ - ( ABRAHAM P GEORGE ) ( SMT. P.MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER E KSRINIVASULU COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ITAT BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE T RIBUNAL BANGALORE