Dhrubo Alo Day, Kolkata v. D.C.I.T.,Circle-30, Kolkata, Kolkata

ITA 2664/KOL/2013 | 2006-2007
Pronouncement Date: 22-04-2014

Appeal Details

RSA Number 266423514 RSA 2013
Assessee PAN ADRPD2482P
Bench Kolkata
Appeal Number ITA 2664/KOL/2013
Duration Of Justice 4 month(s) 25 day(s)
Appellant Dhrubo Alo Day, Kolkata
Respondent D.C.I.T.,Circle-30, Kolkata, Kolkata
Appeal Type Income Tax Appeal
Pronouncement Date 22-04-2014
Appeal Filed By Assessee
Bench Allotted A
Tribunal Order Date 22-04-2014
Assessment Year 2006-2007
Appeal Filed On 27-11-2013
Judgment Text
A IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: KOL KATA () BEFORE /AND . . . . ' '' ''# '#'# '# $% ) [BEFORE SHRI MAHAVIR SINGH JM & SHRI ABRAHAM P. GEORGE AM] & & & & / I.T.A NO. 2664/KOL/2013 '( )* '( )* '( )* '( )*/ // / ASSESSMENT YEAR: 2006-07 DHRUBO ALO DAY VS. DEPUTY COMMISSIONER OF INCOME -TAX (PAN: ADRPD2482P) CIRCLE-30 KOLKATA ( - /APPELLANT ) (./ -/ RESPONDENT ) DATE OF HEARING: 22.04.2014 DATE OF PRONOUNCEMENT: 22.04.2014 FOR THE APPELLANT: SHRI B. D. GHOSH FOR THE RESPONDENT: SHRI VIKASH KUMAR AGARWAL J CIT SR. DR $0 / ORDER PER SHRI MAHAVIR SINGH JM: THIS APPEAL BY ASSESSEE IS ARISING OUT OF ORDER OF CIT(A)-XIV KOLKATA IN APPEAL NO. 539/CIT(A)-XIV/2008-09 DATED 16.09.2013. ASSESSMEN T WAS FRAMED BY DCIT CIRCLE-30 KOLKATA U/S. 143(3) OF THE INCOME-TAX ACT 1961 (HE REINAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEARS 2006-07 VIDE HIS ORDER DATED 24.12 .2008. 2. THE ONLY ISSUE IN THIS APPEAL OF ASSESSEE IS AGA INST THE ORDER OF CIT(A) UPHOLDING THE ADDITION MADE BY AO ON ACCOUNT OF UNEXPLAINED INVES TMENT OF RS.20.50 LACS. FOR THIS ASSESSEE HAS RAISED VARIOUS GROUNDS AND WHEN HE WAS CALLED U PON TO FILE CONCISE GROUND HE FILED FOLLOWING CONCISE GROUND: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. CIT(A)-XIV KOLKATA HAS ERRED IN UPHOLDING THE ADDITION OF RS.20 50 000/- ON THE TOTAL INCOME OF THE ASSESSEE AS UNEXPLAINED INVESTMENT NOT ACTUALLY INVESTED BY THE ASSESSEE IGNORING ALL THE DOCUMENTARY EVIDENCES SUBMITTED AND NOT PLACING RELIANCE ON THE SAME WHILE ACCEPTING THE IMPUGNED INVESTMENT OF HIS DECEASED BROTHER LATE RANAJIT KR. DAY AS ASSESSEES OWN INVESTMENT. 3. BRIEFLY STATED FACTS ARE THAT THE AO IN HIS ASSE SSMENT ORDER MENTIONED THAT THE ASSESSEE COULD NOT EXPLAIN THE SOURCE OF INVESTMENT OF RS.12 .50 LACS AND RS. 8 LACS WHICH WERE NOT REFLECTED IN THE BANK ACCOUNT OF THE ASSESSEE. THE SE INVESTMENTS ACCORDING TO AO ARE MADE IN UTI BONDS TO THE TUNE OF RS.12.50 LACS AND RS.8 LAC S AS ON 17.01.2006 AND 11.08.2006. ACCORDINGLY THE AO ADDED THESE AS UNEXPLAINED INVE STMENTS TO THE TOTAL INCOME OF THE 2 ITA NO.2664/K/2013 DHRUBO ALO DAY AY:2006-07 ASSESSEE. AGGRIEVED ASSESSEE PREFERRED APPEAL BEF ORE CIT(A) WHO ALSO CONFIRMED THE ACTION OF AO BY OBSERVING AND IGNORING THE SUBMISSIONS OF THE ASSESSEE VIDE PARA 3.3 OF HIS APPELLATE ORDER AS UNDER: 3.3. I HAVE CONSIDERED THE CONTENTION OF THE A.R. OF THE APPELLANT AND IN VIEW OF THE TOTALITY OF FACTS. I HAVE CAREFULLY PERUSED THE AS SESSMENT ORDER WRITTEN ARGUMENT AND SUBMISSION OF THE APPELLANT ON HEARING OF THIS APPE AL. IT IS SEEN THAT THE APPELLANT AT THE TIME ASSESSMENT PROCEEDING VIDE LETTER DATED 10.12. 2008 STATED THAT THOSE INVESTMENT OF RS.12 50 000/- AND RS.8 00 000/- ARE NOT REFLECTED IN THE BANK ACCOUNT. AS THE APPELLANT COULD NOT EXPLAIN THE SOURCES OF THOSE INVESTMENT. THE INVESTMENT MADE IN BOND WITH UTI TO THE TUNE OF RS.12 50 000/- AND RS.8 00 000/- ON 17.01.2006 & 11.08.2005 RESPECTIVELY ADDED BACK BY THE AO TO THE TOTAL INCO ME AS UNEXPLAINED INVESTMENT. IN MY OPINION THAT AS PER AIS INFORMATION THE APPELLANT H AS INVESTMENT OF RS.20 50 000/- WHICH IS NOT REFLECTED IN THE APPELLANTS BANK ACCOUNT AN D THERE IS NO EXPLANATION ABOUT THE SOURCE OF INVESTMENT BY THE APPELLANT THE A.O. HAS RIGHTLY ADDED THE INVESTMENT OF RS.20 50 000/- UNDER THE HEAD UNEXPLAINED INVESTMEN T. THEREFORE I UPHELD THE ADDITION MADE BY THE A.O. THIS GROUND OF APPEAL IS DISMISSE D. AGGRIEVED NOW ASSESSEE IS IN APPEAL BEFORE US. 4. WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. THIS CASE WAS REFIXED FOR HEARING ON 11.04.2014 FIX ING THE DATE OF HEARING FOR 22.04.2014 FOR CALLING OF THE REMAND REPORT FROM THE AO. DURING T HE COURSE OF HEARING NOW LD. SR. DR SHRI VIKASH KR. AGARWAL STATED THAT THE AO HAS ALREADY G IVEN HIS REPORT WHICH IS FORMING PART OF ASSESSEES PAPER BOOK PAGES 94 AND 95. THE RELEVAN T REMAND REPORT NO. IS F. NO. ACIT CIR- 30/KOL/R.REPORT/D.A.DAY/2012-13/371 DATED 12.09.201 2. THE ASSESSEE HAS FILED COMPLETE PAPER BOOK CONSISTING OF PAGES 1 TO 95. THE ASSESS EE IS A RETIRED SENIOR CITIZEN AGED ABOUT 80 YEARS. HIS INCOME CONSISTS OF INTEREST ON FIXED DE POSITS BONDS AND INCOME FROM HOUSE PROPERTY. DURING THE COURSE OF ASSESSMENT PROCEEDI NGS THE AO ADDED BACK A SUM OF RS.20.50 LACS AS UNEXPLAINED INVESTMENT BEING INVESTMENT IN UTI BONDS OF 17.01.2006 AND 11.08.2005. LD. COUNSEL FOR THE ASSESSEE BEFORE CIT(A) CATEGORI CALLY EXPLAINED THAT THESE INVESTMENTS BELONGED TO ASSESSEES BROTHER LATE RANAJIT KR. DAY WHO WAS ALSO ASSESSED TO INCOME TAX AND THESE ARE EXPLAINED INVESTMENTS IN THE ASSESSEES B ROTHERS BANK ACCOUNT. THE ASSESSEE EXPLAINED BEFORE CIT(A) THE RELEVANT INVESTMENTS OF ASSESSEES BROTHER LATE RANAJIT KR. DAY BY FILING DOCUMENTS AND EVIDENCES WHICH READS AS UNDER : 2. UNEXPLAINED INVESTMENT RS.20.50 LACS A. INVESTMENTS OF R. K. DAY (BROTHER OF ASSESSEE) ASSE SSED UNDER OTHER SOURCES IN THE HANDS OF APPELLANT 3 ITA NO.2664/K/2013 DHRUBO ALO DAY AY:2006-07 I) THE ASSESSEE HAD INVESTED RS.69.00 LACS IN UTI (TA XABLE) 8% RBI (TAXABLE) BONDS DURING THE FINANCIAL YEAR ENDING 31 .03.2006 AND EARNED RS.292134 AND SHOWN IN THE DETAILED STATEMENTS OF I NVESTMENT & INCOME ANNEXED TO HIS RETURNED INCOME FOR ASSESSMENT LYEAR 2006-07 (P AGE NOS. 02-06) AS SUMMARIZED BELOW: SL. NO. PARTICULARS PRINCIPAL INCOME (RS. IN LACS) (RS.) A. 8% RESERVE BANK OF INDIA (TAXABLE) BONDS 69.00 29 2134 B. 6.5% RESERVE BANK OF INDIA TAX FREE BONDS 43.50 2 25250 II) THE ASSESSING OFFICER HAS WRONGLY COMPLETED THE ASS ESSMENT OF ABOVE APPELLANT WITH INVESTMENTS OF R.K. DAY RS.20.50 LAC S UNDER OTHER SOURCES AS FOLLOWS: SL. NO. PARTICULARS AMOUNT (RS.) A. INTEREST ON UTI 8% RBI TAXABLE BONDS RS.69.00 LACS AS SHOWN IN RETURN OF INCOME FOR AY 2006-07 292134 B. INTEREST ON FIXED DEPOSITS AS PER RETURN FOR A.Y. 2006-07 33424 INCOME AS PER RETURN 325558 C. INVESTMENTS OF R.K.DEY (BROTHER OF ASSESSEE DIED ON 23.03.08) IN UTI 8% BONDS UNDER UNEXPLAINED INVESTMENTS ALTHOUGH ASSESSED UNDER THE HANDS OF R.K.DEY SEPARATELY. 205000 2375558 THE INVESTMENTS FOR RS.20.50 LACS IN 8% UTI BONDS I N RBI THOUGH UTI BANK WERE MADE BY ASSESSEES BROTHER IN JOINT NAMES OF R.K. D EY AND SRI D.A. DAY AS SECOND HOLDER. THE PARTICULARS OF SAID INVESTMENTS OF RS.2 0.50 LACS AND ITS SOURCES OF R.K.DEY ARE DISCUSSED IN STATEMENT ANNEXED (PAGE NO . 17A-22) SEPARATELY. FURTHER THE ASSESSEE EXPLAINED THE PARTICULAR INVE STMENTS AS UNDER: R.K. DEY (BROTHER EXPIRED OBN 23.03.08) PURCHASED THE PARTICULAR INVESTMENT IN JOINT NAME WITH SRI D. A DAY AS SECOND NAME 17.01.06 1250000 CH. 482215 DT. 17.01.06 ON BOI LATE R.K.DAY SB A/C 3845 TO AXIS BANK 16.02.06 800000 CH. 466848 DT. 11.08.05 ON BOI -DO- 2050000 SB A/C 3845 TO AXIS BANK THE COPY OF AXIS BANK ADVICE WITH APPLICATIONS IS E NCLOSED AT PAGE NOS. 18-22 OF ASSESSEES PAPER BOOK. THE ASSESSING OFFICER OF R. K. DAY HAS RIGHTLY CONS IDERED THE INTEREST OF RS.70111 ON ABOVE 8% RBI SAVINGS (TAXABLE) BONDS 2003 FOR RS.20.50 LACS AS THE INCOME OF R.K. DAY (DECEASED BROTHER) FOR ASSTT YR. 2006-07 (BROKEN PERIOD) NOT OF SRI D.A. DAY APPELLANT (PAGE NO. 24). 4 ITA NO.2664/K/2013 DHRUBO ALO DAY AY:2006-07 5. FROM THE ABOVE FACTS IT IS VERY CLEAR THAT THE ENTIRE INVESTMENT IN RBI SAVINGS (TAXABLE) BONDS 2003 WERE MADE BY ASSESSEES BROTHE R LATE SHRI R. K. DAY AND WHO HAS DECLARED THIS ENTIRE INVESTMENT IN HIS OWN RETURN O F INCOME FOR THIS VERY RELEVANT ASSESSMENT YEAR 2006-07 FILED BEFORE ITO WARD-30(3) KOLKATA ON 07.08.2006. THIS ENTIRE DETAIL WAS BEFORE THE AO DURING REMAND PROCEEDINGS AND AO HAS NOTED THIS FACT BUT HE REJECTED THE CLAIM OF THE ASSESSEE ONLY ON THE BASIS THAT THE ORIGINAL DOCUMENTS OR EVIDENCES WERE NOT PRODUCED. THE RELEVANT PARA OF THE REMAND REPORT DATED 12.09. 2012 READS AS KINDLY NOTE THAT THE ABOVE DETAILS WAS SUBMITTED BEFORE YOUR HONOUR AND ALSO T HE SAME WAS FORWARDED TO THIS OFFICE VIDE YOUR LETTER DATED 03.08.2011. HOWEVER DESPITE OF THE OPPORTUNITIES NO ORIGINAL DOCUMENTS OR EVIDENCES WERE PRODUCED. HENCE THE AUTHENTICITY O F THE ABOVE SUBMISSION CANNOT BE VERIFIED. AND AS LATE R. K. DEYS ASSESSMENT U/S. 143(1) WAS DONE BY ITO WARD-30(3) INFORMATION REGARDING THE MENTIONED INVESTMENT CANNOT BE VERIFI ED BY THIS OFFICE. IT MEANS THAT ENTIRE INFORMATION WAS BEFORE THE AO DURING REMAND PROCEED INGS. THE ASSESSEE ALSO EXPLAINED BEFORE CIT(A) WHICH WAS REFERRED TO THE AO FOR REMAND REP ORT THAT THE INVESTMENTS WERE MADE BY CHEQUES ISSUED FROM BANK OF INDIA SAVINGS BANK A/C . NO. 403510100003845 WHICH BELONGS TO ASSESSEES BROTHER LATE SHRI R. K. DAY WHICH IS EVIDENT FROM XEROX COPIES OF BANK STATEMENT APPLICATION FORMS FOR PURCHASE OF BONDS. EVEN THIS FACT IS CONFIRMED BY AXIS BANK THAT INVESTMENTS IN RBI BOND WERE MADE IN THE NAME OF R. K. DAY. THESE FACTS CLEARLY DEMONSTRATE THAT THE INVESTMENTS IN RBI BONDS TO TH E EXTENT OF RS.20.50 LACS WERE MADE BY ASSESSEES BROTHER LATE SHRI R. K. DAY AND EVEN THA T WAS EXPLAINED. HENCE THERE IS NO POSITION THAT THIS INVESTMENT IS UNEXPLAINED AND PA RTICULARLY IN THE HANDS OF THE ASSESSEE. THIS INVESTMENT BELONGS TO ASSESSEES BROTHER LATE SHRI R. K. DAY AND NOT THAT OF THE ASSESSEE. MOREOVER THIS IS EXPLAINED INVESTMENT. THERE IS N O SCOPE FOR CONFIRMATION OF THIS ADDITION AND HENCE THE SAME IS DELETED. 6. IN THE RESULT APPEAL OF ASSESSEE IS ALLOWED. 7. ORDER IS PRONOUNCED IN THE OPEN COURT. SD/- SD/- . . . . ' '' ''# '#'# '# $% (ABRAHAM P. GEORGE) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 22ND APRIL 2014 12 '3' 4 JD.(SR.P.S.) 5 ITA NO.2664/K/2013 DHRUBO ALO DAY AY:2006-07 $0 5 . 6$ )7- COPY OF THE ORDER FORWARDED TO: 1 . - / APPELLANT- SHRI DHRUBO ALO DAY 8 GURUSADAY ROAD KOLKATA- 700 019. 2 ./ - / RESPONDENT DCIT CIRCLE-30 KOLKATA. 3 . 0' ( )/ THE CIT(A) KOLKATA 4. 5. 0' / CIT KOLKATA <= .' / DR KOLKATA BENCHES KOLKATA / ./ TRUE COPY $0'>/ BY ORDER ' /ASSTT. REGISTRAR .