ITO, Hospet v. Smt. Sharada Pampanna, Sandur

ITA 826/BANG/2010 | 2005-2006
Pronouncement Date: 31-01-2011 | Result: Dismissed

Appeal Details

RSA Number 82621114 RSA 2010
Bench Bangalore
Appeal Number ITA 826/BANG/2010
Duration Of Justice 7 month(s) 8 day(s)
Appellant ITO, Hospet
Respondent Smt. Sharada Pampanna, Sandur
Appeal Type Income Tax Appeal
Pronouncement Date 31-01-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 31-01-2011
Date Of Final Hearing 31-01-2011
Next Hearing Date 31-01-2011
Assessment Year 2005-2006
Appeal Filed On 22-06-2010
Judgment Text
THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH B BEFORE DR. O.K NARAYANAN VICE PRESIDENT AND SMT. P MADHAVI DEVI JUDICIAL MEMBER ITA NO. 826/BANG/2010 (ASST. YEAR 2005-06) THE INCOME-TAX OFFICER WARD-2 HOSPET. . APPELLANT VS. SMT. SHARADA PAMAPANNA TEACHERS COLONY SANDUR. . RESPONDENT APPELLANT BY : SHRI D PRABHAKAR REDDY ADDL. CO MMISSIONER OF INCOME-TAX RESPONDENT BY : SHRI S.R KIRON CHARTERED ACCOUN TANT O R D E R PER DR. O.K NARAYANAN VICE PRESIDENT THIS IS AN APPEAL FILED BY THE REVENUE. THE RELEVA NT ASSESSMENT YEAR IS 2005-06. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE CIT(A) AT HUBLI DATED 31.03.2010. THE APPEAL ARISES OUT OF THE ASSESSMENT COMPLETED U/S 144 OF THE INCOME-TAX ACT 1961. ITA NO.826/B/10 2 2. IN THE PRESENT CASE AN AMOUNT OF RS.18 13 114/- WAS FOUND IN THE S.B ACCOUNT OF THE ASSESSEE. NOTICE WAS SERVED ON THE ASSESSEE TO EXPLAIN THE NATURE AND SOURCE OF THE DEPOSITS. AS NO EXPLANATION WAS FORTHCOMING FROM THE ASSESSEE THE ASSESSING OFFICE R COMPLETED AN ASSESSMENT EX-PARTE U/S 144 AND TREATED THE SAID AM OUNT OF RS.18 13 114/- AS THE INCOME OF THE ASSESSEE U/S 69 OF THE INCOME-TAX ACT 1961. 3. IN FIRST APPEAL THE CIT(A) FOUND THAT THE AMOUN TS WERE DIVERTED BY ASSESSEES HUSBAND WHO IS A P.W.D CONTRACTOR. HE FOUND THAT THE DEPOSITS REFLECTED IN THE S.B ACCOUNT OF THE ASSESS EE IN FACT BELONGED TO THE BUSINESS FUNDS OF THE ASSESSEES HUSBAND. T HERE WERE WITHDRAWALS FROM THE SAID S.B ACCOUNT JUST LIKE DEP OSITS. IN THE ABOVE CIRCUMSTANCES THE CIT(A) HELD THAT THE ENTIRE AMOU NT CANNOT BE HELD AS INCOME IN THE HANDS OF THE ASSESSEE BUT ONLY TH E PROFIT ATTRIBUTABLE TO THAT MUCH CONTRACT WORK ALONE COULD BE HELD AS INCOME LIABLE FOR TAX. ACCORDINGLY HE DIRECTED THE ASSESSING AUTHOR ITY TO DETERMINE THE INCOME ESTIMATING NET PROFIT AT 8% ON THE GROSS REC EIPTS OF RS.24 48 114/-. 4. THE REVENUE IS AGGRIEVED AND THEREFORE THIS AP PEAL BEFORE US. ITA NO.826/B/10 3 5. WE HEARD SHRI D PRABHAKAR REDDY THE LEARNED ADD L. COMMISSIONER OF INCOME-TAX APPEARING FOR THE REVENU E AND SHRI S.R KIRON THE LEARNED CHARTERED ACCOUNTANT APPEARING F OR THE RESPONDENT ASSESSEE. 6. WE AGREE WITH THE CIT(A) THAT THERE IS NO PROBAB ILITY FOR THE ASSESSEE TO HAVE RAISED THAT MUCH FUNDS TO MAKE HUG E DEPOSITS IN HER S.B ACCOUNT AS ALLEGED BY THE ASSESSING OFFICER. A S THE CIRCUMSTANCES SPEAK THOSE DEPOSITS REFLECTED IN TH E S.B ACCOUNT OF THE ASSESSEE IN FACT RELATED TO THE BUSINESS FUNDS OF T HE ASSESSEES HUSBAND WHO WAS CARRYING ON HIS BUSINESS AS A P.W. D CONTRACTOR. WHEN THESE FACTS WERE BROUGHT OUT FROM THE RECORDS AND ON A REASONABLE APPRECIATION OF THOSE FACTS THE CIT(A) IS JUSTIFIED IN TREATING THE CREDITS IN THE S.B ACCOUNT OF THE ASSE SSEE AS THE CONTRACT RECEIPTS OF ASSESSEES HUSBAND. WHEN THE AMOUNTS A RE THUS FUND AS GROSS COLLECTION THE ENTIRE AMOUNT CANNOT BE TAXED . WHAT IS TO BE TAXED IS ONLY A REASONABLE ESTIMATE OF THE PROFIT A TTRIBUTABLE TO THOSE GROSS RECEIPTS. THE CIT(A) HAS ESTIMATED THE PROFI T AT 8 %. WE FIND IT IS REASONABLE. ITA NO.826/B/10 4 7. IN THE FACTS AND CIRCUMSTANCES OF THE CASE WE D O NOT FIND ANY GROUND TO INTERFERE IN THE ORDER PASSED BY THE CIT( A). THIS APPEAL FILED BY THE REVENUE IS LIABLE TO BE DISMISSED. 8. IN RESULT THE APPEAL FILED BY THE REVENUE IS D ISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING ON MONDAY THE 31ST DAY OF JANUARY 2011 AT BANGALORE. SD/- SD/- (P MADHAVI DEVI) (DR. O .K NARAYANAN) JUDICIAL MEMBER VICE PRESIDENT VMS. COPY TO : 1. THE ASSESSEE 2. THE REVENUE 3.THE CIT CONCERNED. 4.THE CIT(A) CONCERNED. 5.DR 6.GF BY ORDER ASST. REGISTRAR I TAT BANGALORE.