ITO (Ward) 2(1), Panaji v. Shri. Silvano Coelho., Goa

ITA 427/PAN/2013 | 2008-2009
Pronouncement Date: 14-11-2014

Appeal Details

RSA Number 42724114 RSA 2013
Assessee PAN ADQPC3016M
Bench Panaji
Appeal Number ITA 427/PAN/2013
Duration Of Justice 10 month(s) 25 day(s)
Appellant ITO (Ward) 2(1), Panaji
Respondent Shri. Silvano Coelho., Goa
Appeal Type Income Tax Appeal
Pronouncement Date 14-11-2014
Appeal Filed By Department
Bench Allotted DB
Tribunal Order Date 14-11-2014
Date Of Final Hearing 21-07-2014
Next Hearing Date 21-07-2014
Assessment Year 2008-2009
Appeal Filed On 20-12-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH PANAJI BEFORE S/SHRI P.K.BANSAL (AM) AND D.T.GARASIA (JM) I.T.A. NO.427/PAN/2013: ASSESSMENT YEAR 2008 - 2009 INCOME TAX OFFICER WARD - 2(1) PANAJI GOA. VS. SHRI SILVANO COELHO H.NO.179/1 PLOT NO.63 VIDYANAGAR ALTO PORVORIM BARDEZ - GOA PA NO.ADQPC 3016 M APPELLANT RESPONDENT I.T.A. NO.428/PAN/2013: ASSESSMENT YEAR 2008 - 2009 INCOME TAX OFFICER WARD - 2(1) PANAJI GOA. VS. SMT LURLINA CIALIANA COELHO H.NO.179/1 PLOT NO.63 VIDYANAGAR ALTO PORVORIM BARDEZ - GOA PA NO.ADUPC 4968 N APPELLANT RESPONDENT FOR TH E APPELLANTS: SHRI B. BRATHAKUS LD D.R. FOR T HE RESPONDENT: SHRI SANDEEP BHANDARE DATE OF HEARING: 28 . 8 .2014 DATE OF PRONOUNCEMENT: 14 /11/2014 ORDER PER D.T.GARASIA JM THE SE TWO APPEAL S FILED BY THE REVENUE ARE DIRECTED AGAINST SEPARATE ORDER S DATED 22.10.2013 OF LD CIT(A) PANAJI F OR THE ASSESSMENT YEAR 2008 - 09. 2. THE ONLY EFFECTIVE GROUND TAKEN BY THE REVENUE IN BOTH THE APPEALS AGAINST THE DELETION OF EQUAL AMOUNT I.E. RS.68 03 691/ - BY LD CIT(A) TOWARDS UNEXPLAINED CREDIT. 3. SINCE BOTH THE APPEALS FILED BY THE HUSBAND AND WIFE ARE AGAINST SAME ADDITION TOWARDS UNEXPLAINED CREDIT AND FACTS ARE SIMILAR THEY ARE DISPOSED OFF TOG ETHER FOR THE SAKE OF CONVENIENCE. 4. WE TAKE UP THE APPEAL FILED IN ITA NO.427/PNJ/2013 FOR ADJUDICATION AND SAME DECISION WILL APPLY MUTATIS - MATANDIS TO ITA NO.428/PNJ/2013. 2 I.T.A. NO.427 & 428/PAN/2013: AS SESSMENT YEAR 2008 - 2009 2 5 . FACTS IN BRIEF ARE THAT THE ASSESSEE IS A CONTRACTOR AND ENGAGED IN UNDERT AKING THE PWD WORKS. DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE ASSESSING OFFICER NOTICED THAT IN THE BALANCE SHEET THERE APPEARED A CREDIT IN THE CAPITAL ACCOUNT A SUM OF RS.1 36 07 362/ - WITH THE NARRATION RECEIVED FROM PARENTS. WHEN THIS WAS CONFRONTED TO THE ASSESSEE BY THE ASSESSING OFFICER ASSESSEE SUBMITTED THAT HE HAD LOST HIS FATHER IN LAW AND MOTHER IN LAW DURING THE EARLIER YEAR AND DUE TO SOME FAMILY DISPUTE THE BANK ACCOUNTS AND FDRS WERE RECEIVED ONLY IN THE CURRENT YEAR AS FOLLOW S: 6 . ASSESSEE ALSO FURNISHED DEATH CERTIFICATES OF DECEASED FATHER IN LAW AND MOTHER IN LAW AND CERTAIN BANK DOCUMENTS. FROM THE ANALYSIS OF THE ASSESSEES EXPLANA TION AND BANK DOCUMENTS IT REVEAL ED THAT THE ASSESSEE IS SAID TO HAVE RECEIVED THIS M ONEY NOT FROM HIS PARENTS BUT FROM FATHER - IN - LAW SHRI PEDRITO EXPIRED ON 31.5.2006 AND MOTHER IN LAW MS AURO MARTINS EXPIRED ON 1.12.2006. BEFORE THE AO ASSESSEE ALSO SUBMITTED THE EXTRACT COPY OF LEDGER ACCOUNT STARTING FROM 2.4.2007 TILL ASSESSMENT YE AR 2008 - 09 ALL THE CREDITS MENTIONED ABOVE ARE NOTED. THE AO WAS OF THE VIEW THAT AS PER LEDGER ACCOUNT EXTRACT THE CREDITS NOTED ARE RECEIVED FROM VARIOUS BANK ACCOUNTS. HE OBSERVED THAT IN THE ACCOUNT OPENED IN THE CORPORATION BANK ACCOUNT NO. SB 8531 ON 29 - 08 - 2006 THERE WAS A CREDIT OF RS.54 99 462/ - ON 01 - 09 - 2006 IN THE ACCOUNT OF MRS. AURA MARTINS WITH NARRATION BY OCDEF 2886/88 1868 TRF. THIS ACCOUNT WAS HAVING CLOSING BALANCE OF RS.56 45 272/ - AND THE SAME MONEY WAS TRANSFERRED TO DECEASED DAUG HTERS VIZ. LURLINA MARTINS ACCOUNT WITH 3 I.T.A. NO.427 & 428/PAN/2013: AS SESSMENT YEAR 2008 - 2009 3 CORPORATION BANK ON 28 - 06 - 2007. THE ASSESSEE FOR THIS TRANSFER ENTRY CLAIMED THAT THE MONEY HAD BEEN RECEIVED FROM HIS MOTHER - IN - LAW. THE ASSESSEE HAD ONLY TRIED TO GATHER CERTAIN BANK DOCUMENTS OF THE DECEASED AND ATTEMPTED TO PROVE THE SOURCE. THE REAL ISSUE INVOLVED WAS WHEREFROM OR WHAT WAS SOURCE OF CREDIT IN THE HANDS OF MOTHER - IN - LAW. THE ASSESSEE HAD NOT BOTHERED TO EXPLAIN THIS. HE ALSO OBSERVED THAT THE MOTHER - IN - LAWS ACCOUNT WAS OPENED JUST PRIOR TO HER DEATH WITHOUT PROPER EXPLANATION FOR CREDIT IN HER ACCOUNT OF RS.54 99 462/ - . ACCORDINGLY THE AO MADE E NQUIRIES FROM THE CORPORATION BANK UTTORDA WHEREIN BANK ACCOUNT OF MRS. AURA MARTINS WAS OPENED AND AN AMOUNT OF RS.54 99 462/ - WAS CREDITED BY TRANSFER ENTRY. THE AO GATHERED THAT ABOVE AMOUNT WAS TRANSFERRED FROM HONGKONG SHABGHAI BANK CORPN. LTD. MUMBAI AND WAS OF THE OPINION THAT THE ASSESSEE HAD TRANSFERRED HIS OWN FUNDS AND INTRODUCED IT AS ADDITION TO CAPITAL. 7 . THE AO ALSO OBSERVED TH AT AN AMOUNT OF RS.68 00 198/ - HAD BEEN RECEIVED FROM FATHER - IN - LAW OF THE ASSESSEE SHRI PETRITO ANTONIC FELIX. HOWEVER NO BANK STATEMENTS AND CREDITWORTHINESS PERTAINING TO HIS FATHER IN LAW HAD BEEN FILED. 8. THE AO WAS OF THE OPINION ALTHOUGH THE DECE ASED IN LAWS HAD ONE MORE DAUGHTER VIZ: LINNETE IN ADDITION TO THE ASSESSEEW WIFE VIZ; LURLINA HOW THE ENTIRE BALANCE OUTSTANDING IN THE CREDIT OF THE DECEASED CAME ONLY TO THE ASSESSEES WIFE. ALTHOUGH THE AO ASKED THE ASSESSEE TO FURNISH THE ADDRES S OF LINNETE BUT SAME COULD NOT BE FURNISHED. THE AO WAS OF THE VIEW THAT ALTHOUGH THE IDENTITY OF THE PERSON HAS BEEN PROVED BUT THE CREDITWORTHINESS OF THE PERSON HAS NOT BEEN PROVED . THE ASSESSEE HAS NOT BEEN ABLE TO ESTABLISH THE CLAIM OF RS.1 36 07 362/ - BELONGING TO HIM. UNDER THE CIRCUMSTANCES THE AO HELD THAT THE CREDIT ENTRIES IN THE BANKS OF THE ASSESSEE AND HIS WIFE WHICH MONEY HAS BEEN DISCLOSED IN HIS CAPITAL ACCOUNT FOR THE FIRST TIME AS ADDITION TO THE CAPITAL HAS TO BE CONSIDERED AS UNDISCLOSED INCOME AND BROUGHT TO TAX. HENCE THE ENTIRE AMOUNT OF RS.56 45 5221 - AND RS.68 00 098/ - WERE TREATED AS UNDISCLOSED INCOME OF THE ASSESSEE AND BROUGHT TO TAX. FOR THE REMAINING AMOUNT OF RS. 11 61 742/ - OUT OF RS. 1 36 07 362/ - THOUGH THE ASS ESSEE HAD FILED COPIES OF CERTAIN BANK DEPOSITS ETC. AS STATED ABOVE THE CREDIT - WORTHINESS OF THE PERSON IN WHOSE NAME DEPOSITS WERE MADE WAS NOT EXPLAINED SATISFACTORILY. WITH THE CREDIT OF RS.1 36 O7 362J - IN THE BOOKS OF ACCOUNTS THE ASSESSEE HAD BECO ME ABSOLUTE OWNER OF THIS MONEY WHICH WAS NOT OFFERED TO TAX. SINCE THE ASSESSEE COULD NOT FURNISH SATISFACTORY EVIDENCE THE AO TAXED THE AMOUNT OF RS.1 36 07 362/ - CREDITED TO THE CAPITAL ACCOUNT OF THE ASSESSEE AS UNDISCLOSED INCOME. 4 I.T.A. NO.427 & 428/PAN/2013: AS SESSMENT YEAR 2008 - 2009 4 9. AGGRIEVED THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE LD CIT(A). BEFORE LD CIT(A) THE ASSESSEE REITERATED THE SUBMISSIONS MADE BEFORE THE AO. IT WAS ALSO SUBMITTED THAT AFTER THE DEMISE OF ASSESSEE - IN LAWS IT WAS INFORMED BY THE BANK ITSELF THAT CERTAIN DE POSITS WERE LYING IN THE ASSESSEES WIFE AS NOMINEE. SUBSEQUENTLY THE SAID AMOUNT WAS CLAIMED AND ACCOUNTED THEM. SUPPORTING EVIDENCE IN THE FORM OF XEROX COPIES OF ACCOUNTS OF FDRS AND DEATH CERTIFICATES WERE FURNISHED BEFORE LD CIT(A). IT WAS SUBMITT ED THE AMOUNT OF RS.1.36 LAKHS AS INHERITED MONEY. IT WAS SUBMITTED THAT THE MONEY WAS RECEIVED IN SALE OF ONE PROPERTY SOLD BY THE ASSESSEES IN LAWS BEFORE THEY DIED AND THE SAID PROPERTY NOW STANDS TRANSFERRED IN THE NAME OF YASMAK RESORTS PVT LTD. IN SUPPORT OF THIS DOCUMENTARY EVIDENCE WAS FURNISHED BEFORE THE CIT(A). AFTER CONSIDERING THE SUBMISSIONS AND THE DOCUMENTS FURNISHED BY THE ASSESSEE THE CIT(A) DELETED THE ADDITION INTER ALIA OBSERVING AS UNDER: I HAVE GONE THROUGH THE ASSESSMENT ORDER AND THE SUBMISSION OF THE ASSESSEE. THERE IS NO DOUBT ABOUT THE FACT THAT APPELLANTS FATHER - IN - LAW AND MOTHER - IN - LAW EXPIRED AND THE RELEVANT DEATH CERTIFICATES WERE ALSO SUBMITTED BEFORE THE A.O. THERE IS ALSO NO DOUBT ABOUT THE FACT THAT THE AMOUNTS IN QUESTION HAVE COME TO THE APPELLANT FROM THE ACCOUNTS BELONGING TO THE FATHER - IN - LAW AND MOTHER - IN - LAW. ANOTHER FACT IS THAT THE WIFE OF THE APPELLANT WAS NAMED A NOMINEE BY WIFES MOTHER IN THE BANK. THE ASSESSEE IS A SMALL TIME CIVIL CONTR ACTOR. WHICH IS CLEAR FROM THE RETURN OF INCOME FILED BY HIM AND THE AO HAS ALSO NOT BROUGHT OUT ANYTHING IN THE ORDER INDICATING THAT THE APPELLANT WAS IN ANY POSITION TO EARN SUCH SUBSTANTIAL UNACCOUNTED INCOME. ON THE OTHER HAND THE APPELLANT HAS GIVEN EXPLANATION AS TO HOW HE RECEIVED THIS MONEY ON THE DEMISE OF HIS IN - LAWS. THE A.O. HAS IN MY OPINION ERRONEOUSLY TREATED THE AMOUNT CREDITED IN THE CAPITAL ACCOUNT OF THE APPELLANT AS UNEXPLAINED WITHOUT PROVING THAT THE EXPLANATION GIVEN BY THE ASSESSEE WERE FACTUALLY INCORRECT. IN VIEW OF THE ABOVE THE AO IS DIRECTED TO DELETE THE ADDITION OF RS.68 03 691/ - . 10. AGGRIEVED BY THE STAND SO TAKEN BY THE CIT(A) THE ASSESSING OFFICER IS IN APPEAL BEFORE US. 11. HAVING HEARD THE RIVAL CONTENTIONS AND HAVING PERUSED THE MATERIAL ON RECORD WE ARE OF THE CONSIDERED VIEW THAT THE CONCLUSIONS ARRIVED BY THE CIT (A) DO NOT CALL FOR ANY INTERFERENCE. WE FIND THAT THE ASSESSEE HAS FURNISHED TO SUBSTANTIATE THAT THE AM OUNT RECEIVED BY HIM WAS HIS FATHER - IN - LAW & MOTHER - IN - LAW AND THE SAID AMOUNT WAS ALSO RECEIVED BY SELLING A PROPERTY TO YASMAK RESORTS PVT LTD. THE AO HAS ADDED THE MONEY WITHOUT PROVING THAT THE EXPLANATION GIVEN BY THE ASSESSEE IS INCORRECT. IN VIEW OF THIS WE UPHOLD THE ORDER OF LD CIT(A) AND REJECT THE GROUNDS OF APPEAL TAKEN BY THE REVENUE. 5 I.T.A. NO.427 & 428/PAN/2013: AS SESSMENT YEAR 2008 - 2009 5 12. SINCE THE SAME ADDITION WAS MADE BY THE AO IN THE NAME OF MRS LURLINA MARTIN WIFE OF SILVANO COELHO AND DELETED BY LD CIT(A) WE ALSO UPHOLD THE ORDER OF LD CIT(A). 13 . IN THE RESULT APPEAL S FILED BY THE REVENUE ARE DISMISSED. PRONOUNC ED IN THE OPEN COURT ON 1 4 /11/2014 S D / - S D / - (P.K.BANSAL) (D.T.GARASIA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED PANAJI 1 4 /11/2014 B.K.PARIDA SR. PS COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE : SHRI SILVANO COELHO / SMT LURLINA CIALIANA COELHO H.NO.179/1 PLOT NO.63 VIDYAN AGAR ALTO PORVORIM BARDEZ - GOA. 2. THE REVENUE: INCOME TAX OFFICER WARD - 2(1) PANAJI GOA. 3. THE CIT GOA 4. THE CIT(A) GOA 5. DR PANAJI BENCH 6. GUARD FILE. TRUE COPY// BY ORDER ASST. REGISTRAR ITAT PANAJI