Mr. Goverdhan K. Oza., Belgaum v. Income Tax Officer Ward-2 (1), Belgaum

ITA 332/PAN/2013 | 2009-2010
Pronouncement Date: 28-11-2014 | Result: Partly Allowed

Appeal Details

RSA Number 33224114 RSA 2013
Assessee PAN AAGPO6449R
Bench Panaji
Appeal Number ITA 332/PAN/2013
Duration Of Justice 1 year(s) 17 day(s)
Appellant Mr. Goverdhan K. Oza., Belgaum
Respondent Income Tax Officer Ward-2 (1), Belgaum
Appeal Type Income Tax Appeal
Pronouncement Date 28-11-2014
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted DB
Tribunal Order Date 28-11-2014
Date Of Final Hearing 13-11-2014
Next Hearing Date 13-11-2014
Assessment Year 2009-2010
Appeal Filed On 11-11-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH PANAJI BEFORE SHRI P.K. BANSAL HONBLE ACCOUNTANT MEMBER AND SHRI D.T. GARASIA HONBLE JUDICIAL MEMBER ITA NO. 332/PNJ/2013 : (ASST. YEARS : 2009 - 10) MR. GOVARDHAN K. OZA SANT SENA ROAD BELGAUM. (APPELLANT) PAN : AAGPO6449R VS. INCOME TAX OFFICER WARD 2 (1) BELGAUM (RESPONDENT) ASSESSEE BY : S.R. KOKATE ITP REVENUE BY : RATNAKAR DR DATE OF HEARING : 13/11/2014 DATE OF PRONOUNCEMENT : 28 /11/2014 O R D E R PER P.K. BANSAL 1. THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) BELGAUM DT. 14.10.2013 FOR A.Y 2009 - 10 BY TAKING THE FOLLOWING EFFECTIVE GROUNDS OF APPEAL : 1. THE CIT IS NOT JUSTIFIED IN HOLDING THE ENTIRE CASH DEPOSITS OF RS.19 57 370 AS UNEXPLAINED INVESTMENT. 2. THE CIT APPEAL IS NOT JUSTIFIED IN CONFIRMING THE ADDITIONAL RS.5 90 000 WHICH IS TOTALLY BASELESS. 3. THE CIT APPEAL FAILED TO APPRECIATE THE EXPLANATION FILED BY THE ASSESSEE FOR THE SOURCE OF CASH DEPOSITS IN THE BANK ACCOUNT. 2. T HE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE SUBMITTED HIS RETURN AT AN INCOME OF RS. 3 39 080/ - ON 31.3.2010 WHICH INC LUDES A SUM OF RS.1 15 000/ - 2 ITA NO. 332/PNJ/2013 (ASST. YEAR : 2009 - 10) BEING INCOME FROM OTHER SOURCES AND INTEREST INCOME OF RS.2 24 077/ - . THE ASSESSMENT WAS COMPLETED AT AN INCOME OF RS.59 02 207/ - BY ADDING RS.25 00 000/ - AS UNEXPLAINED INVESTMENT U/S 69 AND RS.30 63 127/ - AS UNEXPLAINED MONE Y U/S 69A. THE AO NOTED THAT THE ASSESSEE HAS DEPOSITED A SUM OF RS. 25 LACS WITH M/S. SHREE GENJI ELECTRICALS ON WHICH HE EARNED INTEREST AMOUNTING TO RS.2 24 077/ - . THE DEPOSIT WAS ADMITTED BY THE ASSESSEE IN HIS STATEMENT RECORDED U/S 131 ON 28.12.201 1. THE AO ADDED THE SUM AS DEEMED INCOME OF THE ASSESSEE U/S 69 FOR THE A.Y 2009 - 10. 3. IN RESPECT OF THE SECOND ADDITION OF RS.30 63 127/ - IT WAS NOTED THAT THE ASSESSEE MADE CASH DEPOSIT TO THE EXTENT OF RS.19 87 127/ - OUT OF TOTAL BANK CREDIT OF RS. 33 27 617/ - . THE AO ALSO NOTICED THAT THERE WERE CHEQUE DEPOSITS TO THE EXTENT OF RS.10 76 000/ - ON DIFFERENT DATES AND THEREFORE HE ADDED A SUM OF RS.30 63 127/ - AS UNEXPLAINED MONEY. THE ASSESSEE WENT IN APPEAL BEFORE CIT(A). OUT OF ADDITION OF RS.25 00 000/ - CIT(A) NOTED THAT RS. 19 10 000/ - HAS BEEN ROUTED THROUGH BANK ACCOUNT TO M/S. SHREE GENJI ELECTRICALS IN WHICH THE ASSESSEE HAS MADE THE CASH DEPOSIT AMOUNTING TO RS.19 57 370/ - . SINCE CIT(A) CONFIRMED THE ADDITION OF RS. 19 57 370/ - THEREFORE ADDITION OF RS. 5 90 000/ - WAS CONFIRMED. 4. SO FAR AS ADDITION OF RS. 30 63 127/ - IS CONCERNED CIT(A) ANALYSED THE BANK ACCOUNT OF THE ASSESSEE AND CONFIRMED THE ADDITION OF RS. 20 75 104/ - . 5. THE ASSESSEE HAS COME IN APPEAL AGAINST THE ADDITION OF RS. 19 57 370/ - AND RS. 5 90 000/ - . 6. WE HEARD THE RIVAL SUBMISSIONS AND CAREFULLY CONSIDERED THE SAME ALONGWITH THE ORDER OF THE TAX AUTHORITIES BELOW. WE HAVE ALSO GONE THROUGH THE 3 ITA NO. 332/PNJ/2013 (ASST. YEAR : 2009 - 10) EXTRACT OF THE BANK ACCOUNT MAINTAINED BY THE ASSESSEE. WE NOTE D THAT THE BANK DEPOSITS CAN BE GROUPED INTO FOLLOWING CATEGORIES : OPENING BALANCE RS. 86 297.00 CASH DEPOSITS RS. 19 57 370.00 DEPOSITS BY CHEQUE RS. 12 30 577.00 OTHERS RS. 56 970.00 THE CASH DEPOSIT THEREFORE WERE TO THE EXTENT OF RS. 20 14 340/ - AND BALANCE SUM OF RS.12 30 577/ - WAS THROUGH ACCOUNT PAYEE CHEQUES. THE ASSESSEE EXPLAINED THE SOURCE OF THE CASH DEPOSIT AS UNDER : WITHDRAWALS DURING THE F.Y 2006 - 07 RS. 4 73 063 SALARY EARNINGS OF F.Y 2006 - 07 RS. 84 000 SALARY EARNINGS FOR F.Y 2007 - 08 RS. 1 20 000 WITHDRAWALS FROM UNION BANK OF INDIA RS. 1 35 000 (RS.85 797 ON 2.4.2008 AND RS. 50 000 ON 29.3.2008) INTEREST RECEIVED FROM M/S. GENJI ELECTRICALS RS. 50 000 TOTAL RS. 8 62 063 FOR THE BALANCE SUM NO SOURCE WAS EXPLAINED BY THE ASSESSEE. WE NOTED THAT THERE ARE CASH WITHDRAWALS TO THE EXTENT OF RS.1 35 000/ - ON 2.4.2008 AND 29.3.2008. THEREFORE TO THAT EXTENT WE ALLOW RELIEF TO THE ASSESSEE . THE BALANCE WITHDRAWAL AND THE SALARY RELATE TO THE EARLIER YEAR S . NO EVIDENCE WAS PLACED BEFORE US THAT SALARY RECEIVED BY THE ASSESSEE WAS NOT CONSUMED DURING THOSE YEAR S AND THE ASSESSEE WAS HAVING THE CASH IN HAND. THEREFORE WE CANNOT ACCEPT THE EXPLANATION OF THE ASSESSEE AS THE EXPLANATION GIVEN BY THE ASSESSEE IS NOT PLAUSIBLE ONE. WE ALSO NOTED THAT THE ASSESSEE HAS CLAIMED A SUM OF RS. 50 000/ - BEING THE SOURCE OF CASH DEPOSITED RECEIVED BY HIM AS INTEREST FROM M/S. SHREE GENJI ELECTRICALS B UT NOT SUCH EVIDENCE WAS BROUGHT TO OUR KNOWLEDGE. IN VIEW OF PROVISIONS OF SEC. 269SS AND 269T M/S. SHREE GENJI ELECTRICALS CANNOT MAKE CASH PAYMENT TO THE ASSESSEE. WE THEREFORE ALLOW 4 ITA NO. 332/PNJ/2013 (ASST. YEAR : 2009 - 10) RELIEF TO THE ASSESSEE OF RS. 1 35 000/ - OUT OF THE ADDITION SUSTAI NED BY CIT(A) OF RS. 19 57 370/ - . THUS GROUND NO. 1 IS PARTLY ALLOWED. 7. SO FAR AS GROUND NO. 2 RELATING TO SUSTENANCE OF ADDITION OF RS. 5 90 000/ - IS CONCERNED ALTHOUGH THE LD. AR BEFORE US VEHEMENTLY CONTENDED BUT COULD NOT PROVE THE SOURCE FROM WH ERE THE AMOUNT OF RS. 5 90 000/ - HAS BEEN DEPOSITED WITH M/S. SHREE GENJI ELECTRICALS. WE NOTED THAT THIS ADDITION HAS BEEN MADE BY THE AO ON THE BASIS OF THE STATEMENT RECORDED U/S 131. THE DEPOSIT OF RS. 2 5 LACS WAS EXPLAINED BY THE ASSESSEE ON AD HOC B ASIS WHICH INCLUDES INTEREST ALSO. DURING THE YEAR THE FOLLOWING INTEREST HAS BEEN RECEIVED FROM THE AFORESAID PARTIES IN THE BANK ACCOUNT OF THE ASSESSEE : DATE AMOUNT (RS.) 07.09.2008 63 310/ - 30.10.2008 17 963/ - 29.11.2008 19 865/ - 25.12.2 008 20 803/ - 30.01.2009 36 694/ - 11.02.2009 32 333/ - 28.02.2009 32 109/ - TOTAL 2 24 077/ - WE ALSO NOTED THAT THERE WAS OPENING BALANCE OF RS. 32 254/ - ALSO IN THE ACCOUNT OF M/S. SHREE GENJI ELECTRICALS . THUS THE TOTAL CREDIT AS ON 31.3.2009 IN THE BOOKS OF M/S. SHREE GENJI ELECTRICALS IN THE ACCOUNT OF THE ASSESSEE WAS ONLY RS. 21 66 331/ - . THERE IS NO EVIDENCE EXCEPT THE STATEMENT RECORDED U/S 131 THAT THE ASSESSEE HAS DEPOSITED SUM OF RS. 25 LACS WITH M/S. SHREE GENJI ELECTRICALS. IN FACT WE NOTED THAT THE ASSESSEE HAS DEPOSITED ONLY A SUM OF RS.19 10 000/ - WHICH IS ALSO RECONCILED FROM THE BANK ACCOUNT OF THE ASSESSEE. THERE IS NO CORROBORATIVE EVIDENCE TO HOLD THAT THE ASSESSEE HAS DEPOSITED M ORE THAN RS. 19 10 000/ - WITH M/S. SHREE GENJI ELECTRICALS. WE ACCORDINGLY DELETE THE ADDITION OF RS. 5 90 000/ - . THUS GROUND NO. 2 STANDS ALLOWED. 5 ITA NO. 332/PNJ/2013 (ASST. YEAR : 2009 - 10) 8. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. 9. ORDER PRONOUNCED IN THE OPEN C OURT ON 2 8 /11/2014. S D / - S D / - (D.T.GARASIA) JUDICIAL MEMBER (P.K. BANSAL) ACCOUNTANT MEMBER PLACE : PANAJI / GOA DATED : 2 8 /11/2014 SSL COPY TO : (1) APPELLANT (2) RESPONDENT (3) CIT CONCERNED (4) CIT(A) CONCERNED (5) D.R (6) GUARD FILE TRUE COPY BY ORDER