ITO, New Delhi v. Sh. Rajiv Prakash Gupta, New Delhi

ITA 3749/DEL/2010 | 2005-2006
Pronouncement Date: 23-03-2011 | Result: Dismissed

Appeal Details

RSA Number 374920114 RSA 2010
Bench Delhi
Appeal Number ITA 3749/DEL/2010
Duration Of Justice 7 month(s) 18 day(s)
Appellant ITO, New Delhi
Respondent Sh. Rajiv Prakash Gupta, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 23-03-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted F
Date Of Final Hearing 23-03-2011
Next Hearing Date 23-03-2011
Assessment Year 2005-2006
Appeal Filed On 05-08-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F DELHI BEFORE SHRI I.P. BANSAL AND SHRI K.G. BANSAL I.T.A.NO.3749(DEL)/2010 ASSESSMENT YEAR: 2005-06 INCOME-TAX OFFICER SHR I RAJIV PRAKASH GUPTA WARD 19(3) NEW DELHI. VS. A-188 SHA STRI NAGAR NEW DELHI. PAN-ALAPG4303P (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI H.K. LAL SR. DR RESPONDENT BY : SH RI RAJIV PRAKASH GUPTA- ASSESSEE. ORDER PER K.G. BANSAL : AM THE REVENUE HAS TAKEN TWO GROUNDS IN THIS APPEA L THE SUM AND SUBSTANCE OF WHICH IS THAT THE LD. CIT(APPEALS) E RRED IN DELETING THE ADDITION OF RS. 14 26 900/- MADE BY THE AO IN R ESPECT OF UNEXPLAINED CASH DEPOSITS IN SAVINGS BANK ACCOUNT EVEN WHEN THE ASSESSEE HAD FAILED TO EXPLAIN THE NATURE AND SOURCE OF THE DEPOSITS. 2. THE FACTS OF THE CASE ARE THAT THE AO RECEIVE D INFORMATION FROM CENTRAL INFORMATION BRANCH THAT THE ASSESSEE HAS DEPOSITED A SUM OF RS. 14 26 900/- BY WAY OF CASH IN THE BANK ACCOUNT MA INTAINED WITH CANARA BANK. AS THE ASSESSEE HAD NOT FILED HIS RETURN O F INCOME A NOTICE WAS ITA NO. 3749(DEL)/2010 2 ISSUED U/S 142(1) REQUIRING HIM TO FILE THE SAME . THERE WAS NO COMPLIANCE TO THIS NOTICE. THEREFORE IN ORDER TO MEET THE PRINCIPLE OF NATURAL JUSTICE ONE MORE NOTICE WAS ISSUED MEN TIONING ABOUT NON-FILING OF THE RETURN DEPOSIT OF RS. 14 26 900/- IN THE B ANK ACCOUNT AND REQUESTING HIM TO EXPLAIN THE NATURE AND SOURCE THEREOF. T HERE WAS NO COMPLIANCE TO THIS NOTICE ALSO. THEREFORE ASSESSMENT WAS COMPLETED U/S 144 AT TOTAL INCOME OF RS. 14 26 900/-. 3. THE ASSESSEE FILED AN APPEAL AGAINST THIS ORD ER. IT WAS SUBMITTED THAT HIS FATHER LATE SHRI VASUDEV GUPTA WHO PA SSED AWAY ON 29.07.2005 HAD OPENED THIS ACCOUNT JOINTLY WITH HIM AS HE W AS AGED ABOUT 78 YEARS. THE TRANSACTIONS IN THE ACCOUNT PERTAIN TO H IS BUSINESS WHICH CAN BE SEEN FROM DEPOSIT BY WAY OF CHEQUE AS WELL AS PAYMENT BY WAY OF CHEQUE IN RESPECT OF SALE AND PURCHASE. HE WAS NOT MAINTAINING BOOKS OF ACCOUNT AND IT WAS STATED THAT THE INCOME MAY B E ASSESSED ON HIM AS LEGAL HEIR UNDER THE PROVISION OF SECTION 44AF OF THE ACT. FOR THE SAKE OF READY REFERENCE THE DETAILS IN THE BANK A CCOUNT ARE REPRODUCED BELOW:- S.NO. PARTICULARS AMOUNT(DR.) AMOUNT (CR.) 1 DEPOSIT BY CASH 14 26 900 2 DEPOSIT BY CHEQUE 39 000 3 BANK INTEREST 30 ITA NO. 3749(DEL)/2010 3 4 PAID TO M/S GANPATI TRADERS 14 01 000 5 BANK CHARGES 53 6 NDPL 2 540 7 MTNL 3 957 8 PAID TO DHARAMPAL 15 591 9 OTHERS 2 892 3.1 THE LD. CIT(APPEALS) CONSIDERED THE FACTS OF THE CASE. IT IS MENTIONED THAT THE FATHER OF THE ASSESSEE WAS C ARRYING ON GLASS-BUSINESS WHICH IS USED IN PHOTO FRAMES AND WALL CLOCKS. T HE RECEIPTS ARE IN RESPECT OF SALE PROCEEDS AND PAYMENT BY WAY OF CHEQUE TO GANAPATI TRADER IS IN RESPECT OF MATERIAL PURCHASED. TH EREFORE THE ASSESSEE IS NOT LIABLE TO BE TAXED IN RESPECT OF THE BUSINESS T RANSACTIONS REFLECTED IN THE BANK ACCOUNT. APPLICATION OF SECTION 44AF ALSO DOES NOT RESULT IN TAXABLE INCOME. THEREFORE THE WHOLE OF THE ADDI TION WAS DELETED. 4. BEFORE US THE LD. DR MERELY REFERRED TO THE FINDINGS OF THE AO AND THE LD. CIT(APPEALS). THE ASSESSEE RELIED ON T HE ORDER OF THE LD. CIT(APPEALS). 5. WE HAVE CONSIDERED THE F ACTS OF THE CASE AND SUBMISSIONS MADE BEFORE US. IT IS SEEN THAT THE ACCOUNT STANDS I N JOINT NAMES OF THE ASSESSEES LATE FATHER AND HIMSELF. THE ENQUIRI ES OF THE LD. CIT(APPEALS) ITA NO. 3749(DEL)/2010 4 LEAD TO THE CONCLUSION THAT THE BANK ACCOUNT WAS MAINTAINED IN THE COURSE OF CARRYING ON THE BUSINESS OF GLASS. THE NAME OF THE ASSESSEE WAS ADDED TO THE BANK ACCOUNT MERELY FOR FACILITATION OF THE OPERATION THEREOF DUE TO OLD AGE OF THE FATHER. NO REBUTTAL HAS BE EN MADE BY THE LD. DR IN RESPECT OF FINDINGS OF THE LD. CIT(APPEALS). THE REFORE WE ARE OF THE VIEW THAT THE LD. CIT(APPEALS) CORRECTLY APPROACHED TH E MATTER AND DELETED THE ASSESSMENT. 6. IN THE RESULT THE APPEAL IS DISMISSED. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT ON 23 RD MARCH 2011. SD/- SD/- (I.P. BANSAL) (K.G.BANSAL) JUDICIAL MEMBER ACCOUNTANT MEMBER DATE OF ORDER: 23RD MARCH 2011. SP SATIA COPY OF THE ORDER FORWARDED TO: MR. RAJIV PRAKASH GUPTA NEW DELHI. ITO WARD 19(3) NEW DELHI. CIT(A) CIT THE DR ITAT NEW DELHI. ASSISTANT REG ISTRAR.