ACIT, New Delhi v. Sh. Navneet Chabra, New Delhi

ITA 4497/DEL/2011 | 2006-2007
Pronouncement Date: 16-12-2011 | Result: Dismissed

Appeal Details

RSA Number 449720114 RSA 2011
Assessee PAN AADPC8762C
Bench Delhi
Appeal Number ITA 4497/DEL/2011
Duration Of Justice 2 month(s) 9 day(s)
Appellant ACIT, New Delhi
Respondent Sh. Navneet Chabra, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 16-12-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted E
Tribunal Order Date 16-12-2011
Date Of Final Hearing 12-12-2011
Next Hearing Date 12-12-2011
Assessment Year 2006-2007
Appeal Filed On 07-10-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL [ DELHI BENCH E DELHI ] BEFORE SHRI RAJPAL YADAV JM & SHRI K. D. RA NJAN AM I. T. APPEAL NO. 4497 (DEL) OF 2011 ASSESSMENT YEAR : 2006-07. ASSTT. COMMISSIONER OF INCOME-TAX SHRI NANVEET CHABRA CIRCLE : 47 (1) VS. A25 26 27 DR. MUKHERJEE NAGAR N E W D E L H I. COMMERCIAL COMPLE X NEW DELHI. P A N / G I R NO. AAD PC 8762 C. ( APPELLANT ) ( RESPONDENT ) ASSESSEE BY : N O N E; DEPARTMENT BY : SHRI R. S. NEGI SR. D. R. ; O R D E R. PER K. D. RANJAN AM : THIS APPEAL BY THE REVENUE FOR ASSESSMENT YEAR 2006 -07 ARISES OUT OF THE ORDER OF THE LD. CIT (APPEALS)XXX NEW DELHI. 2. THE GROUNDS OF APPEAL RAISED BY THE REVENUE ARE AS FOLLOWS :- ' ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT (APPEALS) HAS ERRED IN :- (I) DELETING THE ADDITION OF RS.12 00 000/- RIGHTLY MAD E BY THE ASSESSING OFFICER ON ACCOUNT OF CASH CREDITS TREATED AS UNACC OUNTED INCOME OF THE ASSESSEE HOLDING THAT THE DEPOSITS IN THE BANK ACC OUNT WERE MADE OUT OF UNUSED CASH OUT OF THE WITHDRAWALS MADE EARLIER; 2 I. T. APPEAL NO. 4497 (DEL) OF 2011 (II) IGNORING THE FACT THAT THERE WAS NOT ANY DIRECT NEX US BETWEEN THE WITHDRAWALS AND DEPOSITS OF CASH AND THERE WAS A CO NSIDERABLE GAP OF TIME BETWEEN THE DEPOSIT AND THE PREVIOUS WITHDRAWA LS. 3. THE ONLY ISSUE FOR CONSIDERATION RELATES TO DELE TING THE ADDITION OF RS.12 00 000/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF CASH CREDITS TREATED AS UN-ACCOUNTED INCOME OF THE ASSESSEE. THE FACTS OF THE CASE STATED IN BRIEF AR E THAT THE ASSESSING OFFICER DURING THE COURSE OF ASSESSMENT PROCEEDINGS FOUND INVESTMENT IN MUTUAL F UNDS OF RS.6 00 000/- EACH BY WAY OF CASH ON 21 ST AND 22 ND FEBRUARY 2006. THE ASSESSEE WAS ASKED TO FURNISH THE DETAILS OF THE SOURCES OF THE INVESTMENT IN MUTUAL FUND. IT WAS SUBMITTED BY THE ASSESSEE THAT THE ASSESSEE HAD WITHDRAWN TOTAL CASH OF RS.23 00 000/- ON 17/09/2005 16/12/2 005 AND 17/12/2005. THE ASSESSEE STATED THAT THE CASH DEPOSITS WERE OUT OF CASH WITHDRAWAL ON EA RLIER OCCASIONS. THE ASSESSING OFFICER HOWEVER NOTED THAT THERE WAS NO DIRECT NEXUS BETWE EN THE WITHDRAWAL OF CASH PARTICULARLY IN RESPECT OF TWO CASH DEPOSITS OF RS.6 00 000/- EACH MADE ON 21/2/2006 AND 22/2/2006. SINCE THERE WAS NO DIRECT AND IMMEDIATE NEXUS BETWEEN THE CASH WITHDRAWAL AND DEPOSIT IN MUTUAL FUNDS THE AO TREATED THE SUM OF RS.12 00 000/- AS INVESTMENTS OUT OF UNACCOUNTED INCOME OF THE ASSESSEE. HE THEREFORE ADDED THE AMOUNT OF R S.12 00 000/-. 4. DURING THE COURSE OF APPELLATE PROCEEDINGS THE ASSESSEE REITERATED SIMILAR ARGUMENTS. IT WAS SUBMITTED THAT THE AMOUNT OF RS.5 00 000/- WAS WITHDRAWN ON 17/09/2005 RS.9 00 000/- ON 16/12/2005 AND RS.9 00 000/- ON 17/12/2005 AGGREGAT ING TO RS.23 00 000/- FROM CITY BANK ACCOUNT NO. 5001467168 FOR RENOVATION OF THE HOUSE PROPERTY AND FOR CARRYING OUT SOME REAL ESTATE TRANSACTIONS. SUBSEQUENTLY NO TRANSACTIONS WERE DONE BY THE ASSESSEE IN THE REAL ESTATE AND THEREFORE AFTER UTILIZING THE AMOUNT FOR SOME HOUSE-HOLD EXPENSES THE BALANCE AMOUNT OUT OF TOTAL CASH WITHDRAWN WAS DEPOSITED BACK IN THE S AME BANK ACCOUNT BY THE ASSESSEE. THE ASSESSEE FILED COPY OF BANK STATEMENT BEFORE THE LD . CIT (APPEALS). THE ASSESSEE PLACED RELIANCE ON THE DECISION OF HONBLE SUPREME COURT IN THE CAS E OF SUMATI DAYAL VS. CIT 214 ITR 801 (SC). THE LD. CIT (A) AFTER CONSIDERING THE CONTEN TION OF THE ASSESSEE OBSERVED THAT APPLICATION OF SECTION 68 OF THE ACT ON ACCOUNT OF UNEXPLAINED CASH CREDIT ARISES ONLY WHERE ANY SUM IS CREDITED IN THE BOOKS OF ACCOUNTS OF THE ASSESSEE A ND NO SATISFACTORY EXPLANATION IS PROVIDED. SINCE IN THE INSTANT CASE THE ASSESSEE HAD ONLY DEP OSITED HIS UNUSED CASH IN BANK ACCOUNT OUT OF WITHDRAWALS MADE EARLIER WHICH WAS SUBSTANTIATED B Y THE BANK STATEMENT AND ACCOUNTS FURNISHED 3 I. T. APPEAL NO. 4497 (DEL) OF 2011 BY THE ASSESSEE NO ADDITION COULD BE MADE UNDER TH ESE CIRCUMSTANCES. THE LD. CIT (A) ACCORDINGLY DELETED THE ADDITION. 5. BEFORE US WHEN THE CASE CAME UP FOR HEARING NON E ATTENDED ON BEHALF OF THE ASSESSEE. THE LD. SR. DR FILED ADJOURNMENT APPLICATION ON THE GROUND THAT ASSESSMENT RECORD WAS REQUIRED TO BE REFERRED TO FOR ARGUING THE CASE. HAVING REG ARD TO THE FACTS OF THE CASE THE ADJOURNMENT APPLICATION FILED BY THE LD. SR. DR WAS REJECTED AN D THE APPEAL WAS HEARD EX-PARTE QUA THE ASSESSEE. 6. WE HAVE HEARD LD. SR. D. R. FROM THE ASSESSMEN T ORDER IT IS CLEAR THAT THE ASSESSEE HAD WITHDRAWN CASH OF RS.23 LAKHS ON EARLIER OCCASIONS FOR THE PURPOSE OF MEETING THE REPAIRS OF THE BUILDING AND INVESTMENT IN REAL ESTATE. HOWEVER S INCE NO INVESTMENT WAS MADE IN REAL ESTATE THE AMOUNT WAS RE-DEPOSITED AFTER MEETING CERTAIN E XPENSES IN THE SAME BANK ACCOUNT. FROM THE ASSESSMENT ORDER IT IS SEEN THAT THE AO HAD MERELY REJECTED THE EXPLANATION OFFERED BY THE ASSESSEE WITHOUT BRINGING ANY MATERIAL ON RECORD TO PROVE THAT THE AMOUNT WITHDRAWN FROM THE BANK ON EARLIER OCCASION WAS UTILIZED SOMEWHERE ELS E. MERELY BECAUSE THE MONEY WAS WITHDRAWN FEW MONTHS BACK WHICH WAS LYING WITH THE ASSESSEE AND WAS DEPOSITED BACK IN THE BANK ACCOUNT WHEN THERE WAS NO NEED FOR KEEPING THE MONEY IN CASH CANNOT MAKE THE DEPOSIT OUT OF UNDISCLOSED INCOME UNLESS CONTRARY IS PROVED . SINCE NO MATERIAL HAS BEEN BROUGHT ON RECORD TO CONTROVERT THE CONTENTION OF THE ASSESSEE IN OUR CONSIDERED OPINION THE LD. CIT (A) WAS JUSTIFIED IN DELETING THE ADDITION. HENCE WE DO NOT ANY INFIRMITY IN THE ORDER OF CIT(A) DELETING THE ADDITION OF RS 12 00 000/- 7. IN THE RESULT THE APPEAL FILED BY THE REVENUE I S DISMISSED. THE ORDER PRONOUNCED IN THE OPEN COURT ON : 16 TH DECEMBER 2011. SD/- SD/- [ RAJPAL YADAV ] [ K. D. RANJAN ] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 16 TH DECEMBER 2011. *MEHTA * 4 I. T. APPEAL NO. 4497 (DEL) OF 2011 COPY OF THE ORDER FORWARDED TO : - 1. APPELLANT. 2. RESPONDENT. 3. CIT 4. CIT (APPEALS) 5. DR ITAT NEW DELHI. TRUE COPY. BY ORDER. ASSISTANT REGISTRAR ITAT.