KUSUMBEN H. VAGADIYA, DHORAJI,RAJKOT-GUJARAT vs. THE INCOME TAX OFFICER, WARD-2(4), RAJKOT-GUJARAT

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ITA 25/RJT/2014Status: DisposedITAT Rajkot28 February 2020AY 2009-103 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found merit in the assessee's argument that the income could be from agricultural operations and decided to restore the matter to the AO for fresh adjudication. The assessee was directed to produce necessary evidence to justify the source of the cash deposit.

What were the facts?

The assessee, an individual engaged in cotton trading, deposited Rs. 16,05,500/- in her bank account, which was not disclosed in her return. She claimed it was gift money and past savings from agricultural operations, but the AO treated it as unexplained cash credit under Section 68.

What were the issues?

Whether the cash deposit of Rs. 16,05,500/- in the bank account constitutes an unexplained cash credit under Section 68 of the Income Tax Act, 1961.

Which sections of the Income-tax Act were involved?

Section 68,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT

Before: SHRI WASEEM AHMED

Hearing: 27/02/2020Pronounced: 28/02/2020

आयकर अपील�य अ�धकरण, राजकोट �यायपीठ, राजकोट । IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER And Ms MADHUMITA ROY, JUDICIAL MEMBER आयकर अपील सं./ (�नधा�रण वष� / Assessment Year 2009-10) बनाम/ Kusumben H. Vagadiya, I.T.O, Vokla Kantha, Ward-2(1), Vs. Kansara Chowk, Rajkot. Dhoraji. �थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AEGPV4172A (अपीलाथ� /Appellant) (��यथ� / Respondent) अपीलाथ� ओर से / Appellant by : Written Submission ��यथ� क� ओर से/Respondent by : Shri Suhas Mistry, Sr. D.R. सुनवाई क� तार�ख / Date of Hearing 27/02/2020 घोषणा क� तार�ख /Date of Pronouncement 28/02/2020 आदेश / O R D E R PER BENCH:

The captioned appeal has been filed at the instance of the Assessee against the order of the Learned Commissioner of Income Tax (Appeals)-III, Rajkot [Ld. CIT(A) in short] dated 20/11/2013 arising in the matter of assessment order passed under s. 143(3) of the Income Tax Act, 1961 (hereinafter referred to as "the Act") dated 20/12/2011 relevant to the Assessment Years (A.Y.) 2009-10.

2.

The effective issue raised by the assessee is that the learned CIT (A) erred in treating the amount of cash deposit amounting to Rs. 16,05,500/- as unexplained cash credit under section 68 of the Act.

2 - 3. The facts in brief are that the assessee in the present case is an individual and engaged in the business of trading of cotton under the name and style of M/s “ Khedut Brothers”. The assessee has also declared the agriculture income of Rs. 3,49,990.00 in her income tax return. The assessee during the year under consideration has deposited the sum of Rs. 16,05,500/- in the bank account maintained with Bank of Baroda bearing saving bank account No. 08620100003666 which was not disclosed in the income tax return. On question by the AO the assessee explained that such income represents the gift received from the brothers, past saving from the agricultural operations. However the AO did not believe the contention of the assessee as it was without the supporting evidence. Accordingly the AO treated the same as unexplained cash credit under section 68 of the Act and added to the total income of the assessee.

4.

Aggrieved assessee preferred an appeal to the learned CIT (A) who confirmed the order of the AO.

5.

Being aggrieved by the order of the learned CIT (A) the assessee is in appeal before us.

6.

The learned AR before us submitted as under: 5. In either case the matter appears to be fully covered by the decision of Hon. IT.A.T. Indore Bench in the case of Shri Rameshwar Chaudhry date of order 28-3-20 17 (copy enclosed with submission made on 29-11-2018) as mentioned at para. 14. page no .10 the Hon. Bench has been pleased to restore the matter to the Ld. A.O. for further verification. Even the most Hon. ITAT 'E' Bench Rajkot (present Bench) has also been kind enough to restore the matter for fresh adjudication in demanding circumstances in the case of Shri Ghelabhai Popatbhai Shingala (copy enclosed) If deemed fit the appeal of the assessee in the present case may also kindly be considered to restore to the Ld. A.O. before whom all- out efforts will be made to produce further evidence as he wish. In either case the matte may kindly be adjourn as prayed for.

3 - 7. On the other hand the learned DR raised no objection if the matter is set aside to the file of the AO for fresh adjudication as per the provisions of law.

8.

We have heard the rival contentions of both the parties and perused the materials available on record. Admittedly, the assessee has declared agriculture income of Rs. 3,49,990/- in the return of income which can be verified from the order of the assessment framed under section 143(3) of the Act. Accordingly, we find some force in the argument of the learned AR for the assessee that such income was disclosed out of the agricultural operations of the earlier areas. Accordingly, in the interest of justice and fair play we are of the view that the matter of the assessee needs reconsideration at the level of the AO as per the provisions of law. We also direct the assessee to produce the necessary evidences on which she wants to rely in support of her contention to justify the source of cash deposited in the impugned bank account. It is needless to mention that the assessee shall cooperate during the assessment proceedings. Accordingly, we set aside the issue to the file of the AO for fresh adjudication as per the provisions of law. Hence the ground of appeal of the assessee is allowed for the statistical purposes.

9.

In the result, the appeal of the assessee is allowed for statistical purposes.

This Order pronounced in Open Court on 28/02/2020

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