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Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD
Before: SHRI AMARJIT SINGH&
PER Ms. MADHUMITA ROY - JM:
The instant appeal filed by the assessee is against the order dated 18.07.2014 passed by the Commissioner of Income Tax (Appeals)-V, Baroda arising out of the assessment order dated 24.02.2014 passed by the ITO, Ward-5(3), Baroda under section 143(3) r.w.s. 147 of the Income Tax Act, 1961 (hereinafter referred as to “The Act”) for the Assessment Year 2009-10.
The appeal has been filed by the assessee against the confirmation of addition on account of unexplained cash credit of Rs.4,51,461/- made by the Income Tax Officer.
- 2 - ITA No.2747/A/14 Shri Vijaykant Bhagvanlal Padia vs. ITO Asst.Year – 2009-10
The brief facts leading to the case is this that the assessee being an individual has not filed his return of income for the A.Y. 2009-10 in terms of the provisions of Section 139(1) of the Act. A notice u/s 148 of the Act dated 09.04.2012 was issued directing the assessee to file its return of income for A.Y. 2009-10 within 30 days pursuant to which on 26.12.2013 declaring net taxable income at Rs.93,925/-, the assessee before us filed the return of income. Notice u/s 143(2) and u/s 142(1) of the Act along with the detailed questionnaire was issued upon the assessee.
In terms of the Annual Information Return, it was noticed that during the previous year relevant to the assessment year under consideration an amount of Rs.12,55,357/- cash was deposited by the assessee with the Saving Bank account lying with the Bank of Baroda, R. V. Desai Road, Baroda. Source of such cash deposited in the account was, therefore, directed to be furnished by the assessee during the assessment proceeding along with the supporting documentary evidence. Whereupon, the assessee submitted as follows: "During this financial year, my son Alpit Padia sent money from Australia, through UAE Exchange which I received through various agencies and cash credited in my Bank of Baroda Account. Copy of my son 's letter and copy of receipt of payments are attached. During the Financial Year, Simms Engineering Pvt. Ltd., Porbandar, were having Maintenance Contract of 66 KV S/S of Suzlon Sez, Waghodia Road, Baroda. The Engineer-In-Charge left in 2008 December, hence on request from Simms Engg, I was looking after that Job from Dec. 2008 to March, 2009. Some cash transactions were done in my account for salary and expenditure. In March, 2009, two persons from Saurashtra side met electrical accident and were admitted in Metro Hospital, Baroda. To meet day In day expenses, cash were deposited in my account on various dates in March, 2009. Both the cases failed. A letter of cash deposited in my a/c. by Simms Engineering Pvt. Ltd., is attached. This was done on humanative ground to help the suffering people. From both these letters, you can see that almost all the cash deposited in your 1st notice is matching.
- 3 - ITA No.2747/A/14 Shri Vijaykant Bhagvanlal Padia vs. ITO Asst.Year – 2009-10
Subsequently, a fresh opportunity vide office questionnaire date 03.02.2014 were also served upon the assessee, whereupon following facts were also placed: "1. On perusal of the bank statement of Bank of Baroda (A/c. No.01990100008084), it is seen that you have deposited cash aggregating to Rs.12,55,357/- during the previous year relevant to the assessment year under consideration. Please furnish source of cash deposits made with supporting documentary evidence. 2. Phase furnish explanation for all the debit and credit entries as appearing in the above statements. 3. During the course of assessment proceedings held before the ITO. Ward-7(3), Baroda, you have explained that out of the cash deposited of Rs.12,55,357/-, a sum of Rs.4,28,397/-are deposited by SIMMS Engineering Pvt. Ltd. directly in your above bank account for salary and medical expenses for electoral accident of employee hospitalized at Metro Hospital, Baroda. Please furnish documentary evidence to prove your claim. 4. During the course of assessment proceedings held before the ITO, Ward – 7(3), Baroda, you have submitted a confirmation from your son Shri Alpit Vijaykant Padia andin his confirmation he has stated that he has transferred funds to you totaling to Rs.7,94,604/- on various dates. Please prove the same. In his latter, he has further stated that he has attached his appointment letter and also few salary slips from A.Y. 2008-09. However, you have not furnished the same. Please furnish the same.” 5. On 07.02.2014, the assessee further submitted before the Learned AO that the source of income has already been submitted by the assessee before the Assessing Officer along with cogent document. It was further contended that his son wanted to invest and hence sent tax paid money through UAE Exchange, Money Gram, Money Transfer. The assessee also stated the facts of transferring money directly by M/s. Simmi Engineering Pvt. Ltd. to the account of the assessee for labour payment and for treatment of two persons admitted in Metro Hospital. The submission made by the assessee was partly accepted towards cash deposit by M/s. Simmi Engineering Pvt. Ltd. of Rs.4,28,397/-. However, as regards the balance cash deposit of Rs.5,71,961/- payments whereof were claimed to have been received from his son, working abroad was not found genuine and the same was considered as unexplained investment by the assessee from undisclosed sources and the same was added to the total income of the assessee. In appeal, an amount
- 4 - ITA No.2747/A/14 Shri Vijaykant Bhagvanlal Padia vs. ITO Asst.Year – 2009-10 of Rs.1,20,500/- was found explained and thus deleted by the Learned CIT(A). Hence, the instant appeal before us.
At the time of hearing of the instant appeal, the Learned Counsel appearing for the assessee submitted before us that the assessee is a salaried person; the salary certificate in support of the same is also part of the paper book before us. Apart from that the confirmation being a letter dated 14.06.2013 written by the son of the assessee to the Tax Commissioner, Baroda confirming such transfer of funds along with supporting documents as also on record. In view of such confirmation the addition made by the authorities below is not sustainable in the eye of law as also contended by the Learned AR before us.
On the contrary, the Learned DR relied upon the order passed by the Learned AO. He, further relied on the order passed by the Hon’ble Gujarat High Court in the case of Bhagwandas D. Vachhani-vs-ACIT reported in [2015] 56 taxmann.com 284 (Gujarat).
We have heard the learned counsel appearing for the respective parties and also perused the relevant materials available on record. It appears from the records that the confirmation by way of letter dated 14.06.2013 has been duly submitted by the assessee before the revenue authorities which the authorities below failed to consider in its proper prospective. The details of cash flow statement was also placed on record before Learned CIT(A) which is being part of the record before us. It is evident on record that the appellant submitted the receipts of the money received from Thomas Cook, Money Gram and UAE Exchange before the authorities below as also the cash flow statement showing cash receipt and deposited by him in the bank as per the instruction of his son before the authorities below. However, some amount of money was kept at home which was
- 5 - ITA No.2747/A/14 Shri Vijaykant Bhagvanlal Padia vs. ITO Asst.Year – 2009-10
deposited in pieces as and when required by the assessee for investment in the shares as per the understanding between the assessee and his son. The assessee had received an amount of Rs.7,94,615/- out of which Rs.5,71,961/- was claimed to have been deposited in the Bank of Baroda. Apart from that the following details has also been placed before us by the assessee: Total Cash deposited in Rs.12,55,357/- Bank Less: Cash received from Rs.4,28,397/- Rs.6,83,396/- Company Remittance from Son at Rs.2,54,357/- Australia (49,999 + 1,00,000 + 1,05,000) Balance treated 5,71,961/- Unexplained by AO Cash deposits out of Rs.33,500 Credited in Bank on remittance as per chart 19.06.2008 P/44 33500 Rs.44,000/- Credited in Bank on 04.07.2008 P/45 44000 Credited in bank on 31.07.2008 P/45 101024 Rs.40,000 credited in bank on 30.07.2008 P/45 40000 Rs.50,000 credited in bank on 23.08.2008 P/45 50000 Rs.99,000 Credited in Bank on 10.09.2008 P/46 99000 Rs.50,000 credited in bank on 04.10.2008 P/46 50000 Rs.50,000/- credited in bank on 07.03.2009 P/49 50000 4,67,524 Total Balance Rs.1,04,437/-
We find that only an amount of Rs.1,04,437/- remains unexplained by the assessee towards deposits with the saving bank account lying with the Bank of Baroda. We have also carefully considered the judgments relied upon by the Learned DR, passed by the
- 6 - ITA No.2747/A/14 Shri Vijaykant Bhagvanlal Padia vs. ITO Asst.Year – 2009-10 Jurisdictional High Court wherein we find that factually the case is not identical to that of the matter in hand before us. We do not find any reason as to why such judgment is applicable to the instant case. Thus, upon considering the entire aspect of the matter including the details as submitted before us and on the basis of the discussion in the foregoing paragraph, we are of the considered view that the assessee has been able to justify the source of his deposits except to the tune of Rs.1,04,437/- and hence we restrict the addition to such sum of Rs.1,04,437/-. We thus partly allow the appeal preferred by the assessee.
In the result, assessee’s appeal is partly allowed. This Order pronounced in Open Court on 30/04/2019
Sd/- Sd/- ( AMARJIT SINGH ) ( Ms. MADHUMITA ROY ) ACCOUNTANT MEMBER JUDICIAL MEMBER TRUE COPY Ahmedabad; Dated 30/04/2019 Priti Yadav, Sr.PS आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त(अपील) / The CIT(A)-V, Baroda. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 5. 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER, स�या�पत ��त //True Copy// उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील�य अ�धकरण, अहमदाबाद / ITAT, Ahmedabad