RENUKA A MAROO, MUMBAI v. ITO WD 24(3)(4), MUMBAI

ITA 5463/MUM/2010 | 2005-2006
Pronouncement Date: 29-07-2011 | Result: Allowed

Appeal Details

RSA Number 546319914 RSA 2010
Assessee PAN AAJPM6941R
Bench Mumbai
Appeal Number ITA 5463/MUM/2010
Duration Of Justice 1 year(s) 23 day(s)
Appellant RENUKA A MAROO, MUMBAI
Respondent ITO WD 24(3)(4), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 29-07-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted D
Tribunal Order Date 29-07-2011
Date Of Final Hearing 21-07-2011
Next Hearing Date 21-07-2011
Assessment Year 2005-2006
Appeal Filed On 06-07-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH D : MUMBAI BEFORE SHRI R.V. EASWAR (PRESIDENT) AND SHRI RAJENDRA SINGH (ACCOUNTANT MEMBER) ITA NO. 5463/MUM/2010 ASSESSMENT YEAR : 2005-06 MRS. RENUKA A. MAROO B/1201 ANMOL CO-OP HOUSING SOCIETY LTD. PATEL PETROL PUMP S.V. ROAD GOREGAON(W) MUMBAI-400 062. ..( APPELLANT ) P.A. NO. (AAJPM 6941 R) VS. INCOME TAX OFFICER WARD 24(3)(4) MUMBAI. ..( RESPONDENT ) APPELLANT BY : SHRI K. GOPAL AND SHRI JITENDRA SHAH RESPONDENT BY : SHRI C. G.K. NAIR DATE OF HEARING : 21.7.2011 DATE OF PRONOUNCEMENT : 29 TH JULY 2011 O R D E R PER RAJENDRA SINGH (AM). THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER D ATED 25.3.2010 OF CIT(A) FOR THE ASSESSMENT YEAR 2005-06. T HE DISPUTE RAISED IN THE APPEAL IS REGARDING VARIOUS ADDITIONS MAD E IN THE ASSESSMENT SUCH AS ON ACCOUNT OF CASH CREDIT GIFTS DEPOSIT IN BANK ACCOUNT ETC. 2. BRIEFLY STATED FACTS OF THE CASE ARE THAT THE AO DU RING THE ASSESSMENT NOTED THAT THE ASSESSEE HAD SHOWN LONG TERM CAPITA L GAINS OF RS.28 76 296/- ON SALE OF SHARES. THE ASSESSEE COULD NOT GIVE ITA NO.5463/M/10 A.Y:05-06 2 EVIDENCE REGARDING SALE OF SHARES RECEIPT OF MONEY FRO M THE BROKERS AND ABOUT THE HOLDING PERIOD OF THE SHARES. THE AO T HEREFORE ADDED THE SUM OF RS.28 76 296/- AS INCOME OF THE ASSESSEE UNDER SE CTION 68 OF THE INCOME TAX ACT. THE ASSESSEE HAD ALSO SHOWN GIFT OF RS.15.50 LACS FROM HER MOTHER CHANDRAKALA S. BHATAD. THE ASSESSE E HOWEVER COULD NOT FURNISH BANK STATEMENT OF HER MOTHER TO PRO VE THAT THE MONEY HAD BEEN RECEIVED FROM HER AND THEREFORE THE AO ADDED THE SUM OF RS.15.50 LACS TO THE TOTAL INCOME UNDER SECTION68 O F THE ACT. THE AO ALSO NOTED THAT UNSECURED LOANS AS ON 31.3.2004 W ERE RS.27 79 844/- WHICH HAD BEEN REDUCED TO RS.12 60 913/- AS ON 31.3.2005 I.E. AT THE END OF THE ASSESSMENT YEAR . TH E ASSESSEE DID NOT FURNISH THE LOAN CONFIRMATIONS OR PROOF OF REPAYME NT. THE AO THEREFORE TREATED REPAYMENT OF RS.15 18 931/- AS UNE XPLAINED AND ADDED TO THE TOTAL INCOME. 3. IN APPEAL THE ASSESSEE SUBMITTED SOME FRESH DETAILS AND EVIDENCE AND MATTER WAS REMANDED BY CIT(A) TO AO. IN THE REMAND REPORT THE AO REPORTED THAT THE ASSESSEE HAD SUBMITTED ONLY COPY OF DEMAT STATEMENT WHICH DID NOT GIVE COMPLETE DETAILS REG ARDING SALE AND PURCHASE OF SHARES NAME OF SCRIPS HOLDING PERIOD E TC. THE ASSESSEE SUBMITTED THAT THE RECORDS HAD BEEN WASHED AWAY IN THE UNPRECEDENTED RAIN ON 26.7.2005 AND THEREFORE THE A SSESSEE COULD NOT GIVE FULL DETAILS. THE DETAILS AVAILABLE HOWEVE R SUCH AS BANK STATEMENT DIVIDEND RECEIVED BY ECS SALE AND PURCHASE BILL OF THE MAIN BROKER HAD ALREADY BEEN FURNISHED. THE AO THE REFORE REPORTED THAT FROM THE DETAILS GIVEN LONG TERM CAPITAL GAINS COU LD NOT BE ASCERTAINED. THE CIT(A) THEREFORE CONFIRMED THE ADDI TION OF RS.28 76 296/-. ITA NO.5463/M/10 A.Y:05-06 3 3.1 IN REGARD TO GIFT OF RS.15 50 000/- CLAIMED TO HA VE RECEIVED FROM THE MOTHER THE ASSESSEE EXPLAINED THAT SAME WAS OUT OF SA LE PROCEEDS OF RS.13.00 LACS RECEIVED ON ACCOUNT OF SALE OF PRO PERTY AND RS.2.50 LACS ON ACCOUNT OF ACCUMULATED SAVINGS. IN THE R EMAND REPORT AO ON EXAMINATION OF BANK ACCOUNT OF MOTHER NOTED TH AT HER MOTHER HAD RECEIVED A SUM OF RS.12.90 LACS ON ACCOUNT OF SALE OF P ROPERTY FROM WHICH ASSESSEE HAD RECEIVED ONLY RS.3 73 910/- AND T HE BALANCE AMOUNT HAD BEEN PAID TO SEVERAL OTHER PERSONS. FURTHER A SUM OF RS.2 55 150/- PAID BY CHEQUE BY THE MOTHER ON 13.2.20 05 WAS NOT EXPLAINED PROPERLY AS MOTHER HAD NO SOURCE OF INCOME T O EXPLAIN SUCH CASH DEPOSITS IN THE BANK ACCOUNT. THE CIT(A) AFTER CONSID ERING REMAND REPORT ACCEPTED THE SOURCE TO THE TUNE OF RS .3 73 910/- AND ALSO THE SOURCE OF SUM OF RS .2 55 150/- ON THE GROUND THAT THE AO HAD NOT EXAMINED THE DONOR WHILE CONSIDERING SOURCE OF CASH D EPOSIT. THE CIT(A) THEREFORE CONFIRMED THE ADDITION OF RS.9 20 44 0/- AND GAVE RELIEF OF RS.6 29 060/-. (373910 255150). IN THE R EMAND REPORT AO ALSO REPORTED THAT THERE WERE TOTAL DEPOSITS OF RS.1 13 08 393/- IN THE TWO BANK ACCOUNTS OF THE ASSESSEE. THE ASSESSEE EXPLAINED TH E DEPOSITS ON ACCOUNT OF MONEY RECEIVED FROM SALE OF ORNAME NTS SALE OF PREMISES SALE OF FURNITURE CASH LOAN WITHDRAWALS FROM BANKS ETC. AFTER CONSIDERING THE EXPLANATION OF THE ASSESSEE AND THE REMAND REPORT OF THE AO CIT(A) ACCEPTED THE DEPOSITS TO THE E XTENT OF RS.69 01 567/- AND BALANCE AMOUNT OF RS.44 06 826/- WA S DIRECTED TO BE ALLOWED AS PER DETAILS BELOW:- TOTAL CREDIT IN THE BANKS RS.1 13 08 393/- LESS :- SEEMS TO BE EXPLAINED A) TRANSFER FROM BANK B) GIFT FROM MOTHER C) RENT RECEIVED D) DIVIDEND E) SALES OF CARDS & RS.11 71 120/- RS.6 08 405/- RS .42 250/- RS.6 38 920/- RS .3 78 367/- ITA NO.5463/M/10 A.Y:05-06 4 OTHER F) BANK INTEREST G) CASH WITHDRAWAL FROM BANK (RS.1438390(-)RS.20437- EXP.(+)48200): H) LTCG (ALREADY ADDED) RS.389/- RS.11 85 820/- RS.28 76 296/- RS.69 01 567/- TO BE ENHANCED (INCLUDING REPAYMENT OF LOAN) RS.44 06 826/- THUS CIT(A) ENHANCED INCOME BY RS.44 06 826/- (11308393 6901567). THE CIT(A) DID NOT ACCEPT THE EXPLANATION REGARDING RECEIPT OF RS.6 65 000/- ON ACCOUNT OF SALE OF OLD PREMI SES AND RS.2 31 000/- ON ACCOUNT OF SALE OF OLD FURNITURE FOR W ANT OF CONCLUSIVE EVIDENCE. 3.2 AGGRIEVED BY THE DECISION OF CIT(A) THE ASSESSEE IS I N APPEAL BEFORE THE TRIBUNAL. 4. BEFORE US THE LD. AR FOR THE ASSESSEE SUBMITTED THAT SU BSTANTIAL ADDITIONS ON ACCOUNT OF LONG TERM CAPITAL GAIN AND BY W AY OF ENHANCEMENT ETC. HAD BEEN MADE MAINLY BECAUSE THE THE ASSESSEE COULD NOT FILE NECESSARY DETAILS AND EVIDENCES IN RELATION TO SALE OF SHARES WHICH HAD BEEN LOST IN UNPRECEDENTED RAINS. IT W AS ALSO SUBMITTED THAT THE ASSESSEE IN THE MEANTIME HAD MADE EFF ORTS AND OBTAINED THE DETAILS AND EVIDENCE IN RELATION TO SALE AND PURCHASE OF SHARES THROUGH STOCK HOLDING CORPORATION WHICH HAVE BEE N FILED IN THE PAPER BOOK -2 PLACED ON RECORD. IT WAS REQUESTED THAT THESE ADDITIONAL EVIDENCES WHICH ARE RELEVANT FOR DECIDING TH E ISSUE MAY BE ITA NO.5463/M/10 A.Y:05-06 5 ADMITTED IN THE INTEREST OF JUSTICE. IN RELATION TO T HE OTHER GROUNDS IT WAS SUBMITTED THAT THE SAME MAY BE DECIDED OR THESE MAY ALSO BE RESTORED TO CIT(A)/AO ALONGWITH MAIN GROUNDS FOR WHICH ADDITIONAL EVIDENCE HAVE BEEN FILED. THE LD. DR ON THE OTHER H AND PLACED RELIANCE ON THE ORDERS OF AUTHORITIES BELOW. 5. WE HAVE PERUSED THE RECORDS AND CONSIDERED THE RIVAL CONTENTIONS CAREFULLY. IN THE ASSESSMENT ADDITION OF RS.2 8 76 296/- DECLARED BY ASSESSEE AS LONG TERM CAPITAL GAIN FROM SALE OF SHARES HAD BEEN ADDED AS INCOME OF THE ASSESSEE UNDER SECTION 68 OF TH E ACT AS NECESSARY DETAILS AND EVIDENCES COULD NOT BE FILED. CIT(A) CONFIRMED THE ADDITION. HE ALSO MADE ENHANCEMENT OF INCOME TO TH E TUNE OF RS.44 06 826/- ON THE BASIS OF DEPOSITS IN THE BANK ACCOU NTS WHICH WERE NOT EXPLAINED SATISFACTORILY. THE ASSESSEE HAS NOW FI LED ADDITIONAL EVIDENCE RELATING TO DETAILS OF PURCHASE AND SALE OF SHAR ES OBTAINED THROUGH STOCK HOLDING CORPORATION OF INDIA AND HAS RE QUESTED FOR ADMISSION OF THE SAME AS ADDITIONAL EVIDENCE. CONSIDERI NG THE FACTS OF THE CASE THAT RECORDS WERE LOST IN UNPRECEDENTED FLOODS/ RAINS ADDITIONAL EVIDENCE FILED BY THE ASSESSEE WHICH ARE VITA L FOR DECIDING THE GROUNDS WE ADMIT THE ADDITIONAL EVIDENCES IN THE INTEREST OF JUSTICE. THESE ADDITIONAL EVIDENCES HAVE A BEARING ON SU BSTANTIAL ADDITIONS MADE ON ACCOUNT OF CAPITAL GAIN AS WELL AS ON DEPOSITS IN BANK ACCOUNTS. THESE GROUNDS ARE THEREFORE REQUIRED TO BE ITA NO.5463/M/10 A.Y:05-06 6 ADJUDICATED AFRESH AFTER CONSIDERING THE ADDITIONAL EVI DENCES. THE ISSUES ARE THEREFORE RESTORED TO THE FILE OF THE CIT( A) FOR FRESH ADJUDICATION. THE AO HAD ALSO ADDED A SUM OF RS.15 18 931/- BEING REDUCED BALANCE IN THE LOAN ACCOUNT ON THE GROUND THAT RE-PAYMENT DURING THE YEAR WAS NOT EXPLAINED SATISFACTORILY. TH E CIT(A) HAS DIRECTED THAT THE ADDITION MAY BE DELETED AS SAME WAS C OVERED BY THE ENHANCEMENT MADE BY HIM. IN THE APPEAL FILED BEFORE THE TRIBUNAL THE ASSESSEE HAS ALSO DISPUTED THE FINDING OF CIT(A) THAT DEPOSITS OF RS.6 65 000/- AND RS.2 31 000/- IN THE BANK ACCOUNT EX PLAINED ON ACCOUNT OF SALE OF PREMISES AND SALE OF OLD FURNITURE WE RE NOT EXPLAINED SATISFACTORILY. THE GROUNDS RAISED IN RELA TION TO DEPOSITS OF RS.6 65 000/- AND RS.2 31 000/- ARE ALSO LINKED TO BA NK ACCOUNTS IN WHICH SALE PROCEEDS OF THE SHARES HAVE BEEN DEPOSITED. WE THEREFORE RESTORE THESE ISSUE TO THE FILE OF CIT(A) FOR FRESH DECISI ON. AS REGARDS THE GROUND RELATING TO ADDITION OF RS.15 18 931/- ON ACCOUNT OF REPAYMENT OF LOAN THESE ARE ALSO LINKED TO DEPOSITS I N THE BANK ACCOUNT AND CIT(A) HAS ALREADY HELD THAT THIS IS COVERED BY THE ENHANCEMENT MADE BY HIM BUT SINCE THE ISSUE OF ENHANCEMEN T HAS ALREADY BEEN RESTORED BY US TO THE FILE OF CIT(A) TH IS BEING A CONNECTED ISSUE IS ALSO RESTORED TO THE FILE OF CIT(A). W E THEREFORE SET ASIDE THE ORDER OF THE CIT(A) AND RESTORE THE MATT ER TO HIS FILE FOR PASSING A FRESH ORDER AFTER NECESSARY EXAMINATION OF ADDI TIONAL ITA NO.5463/M/10 A.Y:05-06 7 EVIDENCES FILED BY THE ASSESSEE AND AFTER ALLOWING OPPORT UNITY OF BEING HEARD TO THE ASSESSEE . 6. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED FOR STA TISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 29.7.2011. SD/- SD/- (R.V. EASWAR) (RAJENDRA SINGH ) PRESIDENT ACCOUNTANT MEMBER MUMBAI DATED: 29.7.2011. JV. COPY TO: THE APPELLANT THE RESPONDENT THE CIT CONCERNED MUMBAI THE CIT(A) CONCERNED MUMBAI THE DR BENCH TRUE COPY BY ORDER DY/ASSTT. REGISTRAR ITAT MUMBAI.