Shri Sudhir Agarwal, Bhopal v. The ACIT 1(2), Bhopal

ITA 269/IND/2013 | 2005-2006
Pronouncement Date: 21-10-2013 | Result: Allowed

Appeal Details

RSA Number 26922714 RSA 2013
Assessee PAN ADBPA7951N
Bench Indore
Appeal Number ITA 269/IND/2013
Duration Of Justice 5 month(s) 15 day(s)
Appellant Shri Sudhir Agarwal, Bhopal
Respondent The ACIT 1(2), Bhopal
Appeal Type Income Tax Appeal
Pronouncement Date 21-10-2013
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 21-10-2013
Assessment Year 2005-2006
Appeal Filed On 06-05-2013
Judgment Text
1 INCOME TAX APPELLATE TRIBUNAL INDORE BENCH INDORE BEFORE SHRI JOGINDER SINGH JUDICIAL MEMBER AND SHRI R.C. SHARMA ACCOUNTANT MEMBER ITA NO.269/IND/2013 A.Y. 2005-06 SUDHIR AGRAWAL BHOPAL PAN ADBPA 7951 N :: APPELLANT VS ACIT-1(2) BHOPAL :: RESPONDENT ASSESSEE BY SHRI S.S. DESHPANDE REVENUE BY SHRI R.A. VERMA DATE OF HEARING 21 . 10 .2013 DATE OF PRONOUNCEMENT 21 . 10 .2013 O R D E R PER JOGINDER SINGH JUDICIAL MEMBER THE ASSESSEE IS AGGRIEVED BY THE IMPUGNED ORDER DATED 20.12.2012 OF THE LD. FIRST APPELLATE AUTHORITY BHOPAL . THE ONLY GROUND RAISED IN THIS APPEAL PERTAINS TO CONFIRMIN G THE 2 ADDITION OF RS. 2 06 780/- MADE AS UNEXPLAINED EXPENDITURE U/S 69-C OF THE I.T. ACT 1961. 2. DURING HEARING SHRI S.S. DESHPANDE LEARNED COUNSE L FOR THE ASSESSEE CONTENDED THAT THE ASSESSEE IS A SALARIE D EMPLOYEE AND THE ADDITION HAS BEEN MADE BY THE ASSESSIN G OFFICER MERELY ON THE BASIS OF CERTAIN ALLEGED INFORMAT ION THAT THE ASSESSEE MADE TRANSACTION BY WAY OF CREDIT CARD AND THERE IS NO ILLEGALITY ON THE SAME. THE PAYMENTS W ERE ARGUED TO BE MADE THROUGH BOBCARD (CREDIT CARD) THROUGH SAVING BANK ACCOUNT MAINTAINED IN BANK OF BARODA AND SUCH EXPENSES ARE PERSONAL IN NATURE. IT WAS ALSO POINTED OUT THAT THE ASSESSEE HAD INCOME OF RS.17 24 505/- DURING THE RELEVANT PERIOD AND THE PERSONAL EXPENSES THROUGH CREDIT CARD ARE JUST 12% O F THE INCOME. PLEA WAS ALSO RAISED THAT THE PHOTOCOPIES OF THE STATEMENTS WERE ALSO DULY FURNISHED ALONG WITH THE BANK STATEMENTS. ON THE OTHER HAND LD. SR. DR DEFENDED TH E 3 ADDITION BY PLACING RELIANCE UPON THE DECISION OF THE LD. CIT(A) BY SUBMITTING THAT THE ADDITION WAS RIGHTLY CONFIRMED. 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSE D THE MATERIAL AVAILABLE ON RECORD. THE FACTS IN BRIEF ARE THAT THE ASSESSEE IS A SALARIED EMPLOYEE HAVING INCOME FROM M/S. SHARDA SOLVENT LIMITED DECLARED INCOME OF RS.17 24 548/- ON 27.10.2005. AN INFORMATION WAS RECEIVED FROM CENTRAL INFORMATION BRANCH THAT THE ASSES SEE MADE TRANSACTION BY WAY OF CREDIT CARD AMOUNTING TO RS.2 06 780/-. NOTICE U/S 148 OF THE ACT WAS ISSUED TO THE ASSESSEE TO WHICH THE ASSESSEE CLAIMED THAT THE RETURN ALREADY FILED ON 27.10.2005 MAY BE TREATED IN COMPLIAN CE TO NOTICE U/S 148 OF THE ACT. AS PER ASSESSMENT ORDE R (PARA 3 AT PAGE 1) THE ASSESSEE ATTENDED THE PROCEEDINGS FRO M TIME TO TIME FURNISHING COPY OF BANK ACCOUNT AND STATEMENT OF CREDIT CARD. THE ASSESSING OFFICER TREATE D THE 4 AMOUNT OF RS.2 06 780/- AS UNEXPLAINED EXPENDITURE AND ADDED TO THE TOTAL INCOME. ON APPEAL BEFORE THE LD. CI T(A) THE ADDITION WAS CONFIRMED AGAINST WHICH THE ASSESSEE IS IN APPEAL BEFORE THIS TRIBUNAL. WE NOTE THAT WHILE MAKIN G THE ADDITION NO MATERIAL HAS BEEN PRODUCED ON RECORD B Y THE ASSESSING OFFICER EVIDENCING THAT THE CLAIMED EXPENSES/TRANSACTIONS MADE THROUGH CREDIT CARD WAS DON E FROM UNDISCLOSED SOURCES. THE COPY OF BANK STATEMENT AND THE TRANSACTION MADE THROUGH CREDIT CARD WERE DULY PRODUCED BEFORE THE AUTHORITIES THEREFORE IN OUR V IEW THE ADDITION SO MADE IS NOT JUSTIFIED THAT TOO IN THE ABSENCE OF ANY CORROBORATIVE MATERIAL AND PINPOINTING SPECIFIC DEFECTS IN THE ACCOUNTS OF THE ASSESSEE SUCH AN ADDITI ON CANNOT SURVIVE. FOR MAKING ADDITION U/S 69 OF THE AC T IT DEPENDS ON SATISFACTORY EXPLANATION OF THE SOURCE. ON THE FAILURE TO EXPLAIN THE SOURCE OF EXPENDITURE ADDITION CAN BE MADE. HOWEVER NO DEFECT WAS POINTED OUT IN THE STATEM ENT 5 OF ACCOUNTS OF THE ASSESSEE BY THE ASSESSING OFFICER. THE CLAIM OF THE ASSESSEE THAT THE EXPENSES INCURRED THROU GH CREDIT CARD WERE DULY DEBITED IN THE ACCOUNTS OF THE ASSESSEE MAINTAINED WITH THE BANK WAS NOT CONTROVERTED B Y THE REVENUE THEREFORE THERE IS NO JUSTIFICATION T O UPHOLD SUCH ADDITION. FINALLY THE APPEAL OF THE ASSESSEE IS ALLOWED. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD. REPRESENTATIVES AT THE CONCLUSION OF THE HEARING ON 21.10.2013. SD SD (R.C.SHARMA) (JOGINDER SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 22.10.2013 COPY TO: APPELLANT RESPONDENT CIT CIT(A) DR GU ARD FILE !VYS!