Smt. Geetaben Bharatkumar Vacchani,, RAJKOT-GUJARAT v. The Income Tax Officer, Ward-1(1),, RAJKOT-GUJARAT

ITA 341/RJT/2014 | 2008-2009
Pronouncement Date: 28-09-2016 | Result: Dismissed

Appeal Details

RSA Number 34124914 RSA 2014
Bench Rajkot
Appeal Number ITA 341/RJT/2014
Duration Of Justice 2 year(s) 3 month(s) 30 day(s)
Appellant Smt. Geetaben Bharatkumar Vacchani,, RAJKOT-GUJARAT
Respondent The Income Tax Officer, Ward-1(1),, RAJKOT-GUJARAT
Appeal Type Income Tax Appeal
Pronouncement Date 28-09-2016
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted DB
Tribunal Order Date 28-09-2016
Assessment Year 2008-2009
Appeal Filed On 29-05-2014
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT [CONDUCTED THROUGH E COURT AT AHMEDABAD] BEFORE SHRI RAJPAL YADAV JUDICIAL MEMBER AND SHRI AMARJIT SINGH ACCOUNTANT MEMBER ./ ITA.NO.341/RJT/2014 / ASSTT. YEAR: 2008-2009 SMT. GEETABEN BHARATKUMAR VACHHANI 301 SURYA TOWER BALMUKUND PLOT RAJKOT. VS ITO WARD - 1(1) RAJKOT. ! / (APPELLANT) '# ! / (RESPONDENT) ASSESSEE BY : SHRI D.M. RINDANI AR REVENUE BY : SHRI D.R. CHHATRE SR.DR / DATE OF HEARING : 23/08/2016 / DATE OF PRONOUNCEMENT: 28/09/2016 $%/ O R D E R PER RAJPAL YADAV JUDICIAL MEMBER: ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST T HE ORDER OF THE LD.CIT(A)-1 DATED 7.3.2014 PASSED FOR THE ASSTT.YEA R 2008-09. 2. THE ASSESSEE HAS PLEADED THAT THE LD.CIT(A) HAS ERRED IN CONFIRMING THE ADDITION OF RS.10 58 400/- WHICH WAS ADDED BY THE A O WITH THE AID OF SECTION 69A OF THE INCOME TAX ACT 1961. 3. WITH THE ASSISTANCE OF LD.REPRESENTATIVES WE HA VE GONE THROUGH THE RECORD CAREFULLY. THE ASSESSEE HAS FILED ITS RETUR N OF INCOME ON 10.10.2008 DECLARING TOTAL INCOME AT RS.2 83 560/-. IT CAME T O THE NOTICE OF THE AO THAT THE ASSESSEE HAS DEPOSITED A SUM OF RS.10 58 400/- IN SAVING BANK ACCOUNT WITH ORIENTAL BANK OF COMMERCE RAJKOT. WHEN THE L D.AO HAS CONFRONTED ITA NO.341/RJT/2014 2 THE ASSESSEE WITH REGARD TO THE SOURCE OF THESE DEP OSITS THE ASSESSEE HAS SUBMITTED THE FOLLOWING REPLY: 4.1 IN RESPONSE TO THE SAME THE AR OF THE ASSESSE E VIDE LETTER DT.26/11/2010 HAS FURNISHED REPLY WHICH IS AS UNDER : 'DURING THE YEAR UNDER SCRUTINY YOUR ASSESSEE HAD R ECEIVED INCOME FROM SHARE OF PROFIT FROM MEGHNA ENTERPRISE IN -WHICH SHE WAS A PARTNER INCOME FROM OTHER SOURCES I.E. DEPOS ITOR INTEREST FROM 1) AJAY INDUSTRIES AND 2) MAYANK CATTLE FOOD P VT.LTD. IN WHICH DEPOSIT WAS GIVE BY HER AND OTHER INCOME. SHE HAS FILED HER RETURN OF INCOME FOR AY 2008-09 BY E-FILING ACKNOWL EDGEMENT NO.4438263 0300908 ON 30/09/2008 DECLARING TOTAL IN COME OF RS.2 83 560/-. BY MISTAKE AN IMMATERIAL HUMAN NATURE SHE HAS FILE D HER RETURN OF INCOME SHE HAD REFLECTED HER OTHER INCOME OF RS. 2 15 600/- AS AGAINST RS.10 58 400/- I.E. SHE HAS MENTIONED LESS OTHER INCOME (RS.10 58 400/-(-)RS.2 15 600/)OF RS.8 42 800/ SHE WOULD LIKE TO OFFER TAX ON THE SAID AMOUNT OF R S.8 42 800/- WHICH IS NOT ADDED IN HER OTHER INCOME. WE REQUEST YOU TO KINDLY ADD THE SAME IN HER TOTAL INCOME AND ISSUE CHALLAN. DUE TO THE CREDIT WORTHYNESS OF HER SOURCE OF INCOM E THE GENUINENESS OF THE TRANSACTION SHOULD NOT BE DOUBTE D. HENCE THERE IS NO QUESTION OF THE TRANSACTION INVITING PE NALTY PROCEEDINGS. HENCE WE REQUEST YOU TO KINDLY DROP TH E PENALTY PROCEEDINGS. 4. THE LD.AO DID NOT ACCEPT THIS STAND OF THE ASSES SEE AND ACCORDINGLY MADE ADDITION OF RS.10 58 400/-. COMPUTATION MADE BY THE AO READS AS UNDER: ITA NO.341/RJT/2014 3 6. AFTER DISCUSSION AND MATERIAL GATHERED THE INC OME OF THE ASSESSEE IS DETERMINED AS UNDER: TOTAL INCOME AS PER STATEMENT OF INCOME RS.2 83 5 60/- ADD: 1) ON ACCOUNT OF UNEXPLAINED CASH AS DISCUSSED IN PARA-4 ABOVE RS.10 58 400/- TOTAL ASSESSED INCOME RS.13 41 960/- 5. APPEAL TO THE LD.CIT(A) DID NOT BRING ANY RELIEF TO THE ASSESSEE. 6. THE LD.COUNSEL FOR THE ASSESSEE AT THE VERY OUT SET SUBMITTED THAT OUT OF TOTAL AMOUNT OF RS.10 58 400/- ASSESSEE HERSELF NO T DISPUTED TO THE EXTENT OF RS.8 42 800/-. SHE HAS DISCLOSED BEFORE THE AO THA T BY WAY OF AN INADVERTENT MISTAKE SHE FAILED TO OFFER THIS AMOUNT FOR TAXATI ON. THE DISPUTES RELATES TO DIFFERENCE OF RS.2 15 600/- I.E. RS.10 58 400/- MIN US RS.8 42 800/-. ACCORDING TO THE ASSESSEE THIS AMOUNT OF RS.2 15 6 00/- IS EMBEDDED IN THE INCOME DISCLOSED BY THE ASSESSEE AT RS.2 83 560/-. THE AO WAS OF THE VIEW THAT IT IS A SEPARATE INCOME WHICH COULD NOT BECOME PART OF THE INCOME DISCLOSED BY THE ASSESSEE. 7. WE HAVE DULY CONSIDERED THE RIVAL CONTENTIONS AN D GONE THROUGH THE RECORD CAREFULLY. THERE IS NO DISPUTE WITH REGARD TO THE FACT THAT IN THE SB ACCOUNT OF THE ASSESSEE A SUM OF RS.10 58 400/- WAS FOUND TO BE DEPOSITED BY THE ASSESSEE. WHEN LD.AO CONFRONTED THE ASSESSEE SHE OFFERED A SUM OF RS.8 42 800/- FOR TAXATION UNDER THE HEAD INCOME F ROM OTHER SOURCES. THE LD.AO ADDED THE TOTAL I.E. RS.10 58 400/- WHICH INC LUDES THE DISCLOSURE MADE BY THE ASSESSEE. BEFORE LD.CIT(A) THE ASSESSEE TO OK A DIFFERENT PLEA THAT SHE WAS IN RETAIL BUSINESS AND HER INCOME SHOULD BE ASS ESSED U/S.44AF. THE LD.CIT(A) HAS REJECTED THIS CONTENTION. WE DO NOT FIND ANY MERIT IN THE ITA NO.341/RJT/2014 4 CONTENTION OF THE ASSESSEE. SHE WAS REQUIRED TO EX PLAIN THE SOURCE OF DEPOSIT INSTEAD OF EXPLAINING THAT SHE PARTLY OFFERED THE A MOUNT FOR TAXATION. SHE DID NOT TAKE ANY PLEA OF RETAIL BUSINESS BEFORE THE AO. HAD HER INCOME WAS ASSESSABLE U/S.44AF ON THESE RECEIPT THEN SHE WOU LD HAVE NOT OFFERED RS.8 42 800/- OUT OF ALLEGED GROSS-RECEIPT OF RS.10 58 400/-. BECAUSE U/S.44AF SHE WAS REQUIRED TO OFFER INCOME AT THE RA TE OF 5% OF GROSS TURNOVER. A PERUSAL OF THE COMPUTATION OF INCOME MADE BY THE AO IT DOES NOT DISCERN THAT HE MADE DOUBLE ADDITION OF RS.8 42 800/-. THE REFORE WE DO NOT FIND ANY MERIT IN THIS APPEAL. IT IS DISMISSED. 8. IN THE RESULT APPEAL OF THE ASSESSEE IS DISMISS ED. ORDER PRONOUNCED IN THE COURT ON 28 TH SEPTEMBER 2016 AT AHMEDABAD. SD/- SD/- (AMARJIT SINGH) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER