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Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT
Before: SHRI PRAMOD KUMAR & SHRI MAHAVIR PRASAD
आदेश / O R D E R
PER MAHAVIR PRASAD, JUDICIAL MEMBER: This is an appeal by the assessee against the order of the Commissioner of Income Tax(Appeals)-3, Rajkot, vide appeal no.CIT(A)-3/Rjt/0027/2011-12 dated 09/01/2015 for the Assessment Year (AY) 2009-10, on the following Grounds: “1. That, the learned CIT(A) has wrongly confirmed additions without affording proper opportunity of being heard. 2. That, the learned CIT(A) has wrongly confirmed addition of Rs.20,42,611/- on account of cash deposits in bank account u/s.69 of the I.T. Act.
ITA No.144/Rjt/2015 Shri Deepal Indrakumar Bhagchandani vs. ITO Asst.Year – 2009-10 - 2 - 3. That, the learned CIT(A) has wrongly confirmed addition of Rs.55,0507- towards commission and insurance income of the I.T. Act. 4. That, the findings of the learned CIT(A) are unjustified and required to be deleted 2. There is delay of 16 days for filing of appeal. Ld. AR submitted an application for condonation of delay. We are satisfied with the reasons contained therein. Therefore, we condone the delay.
The brief facts of the case are that the assessee is a salaried person. During the year under consideration the assessee has shown salary income of Rs.1,68,000/- and Interest income from partnership firm of Rs.25,789/-. The assessee has also claimed deduction under chapter VI-A to the tune of Rs.46,356/-. Thus total income offered for taxation is of Rs.1,47,440/-. The case, was selected for scrutiny on the basis of AIR data. During the course of proceedings several notices were issued to the assessee. Details of same areas under: Notice u/s. Date of Date Remarks issue of hearing
Notice u/s.143(2) issued 24-09-2010 28-09-2010 No body attended
Notice u/s.142(1) along with 28-02-2011 23-03-2011 No body attended questioner issued
Notice u/s.129 13-07-2011 19-07-2011 No body attended
Notice u/s.271(l)(b) 13-09-2011 19-09-2011 No body attended
ITA No.144/Rjt/2015 Shri Deepal Indrakumar Bhagchandani vs. ITO Asst.Year – 2009-10 - 3 - Notice u/s.271(l)(b) 10-10-2011 17-10-2011 No body attended, A letter was filed Final Show Cause Notice 17-11-2011 24-11-2011 No body attended
3.1 Addition of Rs.20,42.611/- as unexplained cash credit u/s. 69: In this case, AIR information related to cash deposit of Rs.14,66,611/- in Kotak Mahindra Bank, Savings Bank Account was available. As per the ITR filed the assessee had offered total income for taxation of Rs.1,47,440/-. To verify the source of cash deposit and to verify the books, the assessee was issued several notices. As the assessee did not prefer to submit any details as called for in-spite of sufficient opportunities given as above and the amount of cash deposited in Kotak Mahindra Bank S.B. account (as per AIR report) was much higher than the gross income of the assessee for the year under consideration, therefore the details of the Kotak Mahindra Bank account were gathered from the Kotak Mahindra Bank u/s.133(6). From the data furnished by the bank, it was gathered that the assessee was having an Saving account number 08220110001382, in which cash amount of Rs.14,66,611/- was deposited on various dates during the year. A cheque of Rs.5,76,000/- was also credited in to Bank account on 05-11-2008 which was subsequently encashed on the same day. In the absence of any clarification the source of this cheque deposited was also doubtful. Further the amount of Rs.5,76,000/- was not re deposited in Bank as no cash was deposited in the bank after this withdrawal during the rest of the year. On perusal of the bank statement,
ITA No.144/Rjt/2015 Shri Deepal Indrakumar Bhagchandani vs. ITO Asst.Year – 2009-10 - 4 - it was also noticed that the cash deposits were subsequently utilized for investments in shares though Kotak Securities. From the above discussion it is very much clear that assessee had deposited cash of Rs.14 66,611/- and cheque of Rs.5,76,000/- in the Kotak Mahindra Bank S.B. account on various dates for which no explanation was offered by the assessee. Considering the income of the assessee for the year, it appears that the total sum of Rs.20,42,611/- (14,66,611 + 5,76,000/- ) has been deposited in the Kotak Mahindra Bank savings account from unexplained sources of income and therefore an addition of Rs.20,42,611/- is made to the total income of the assessee as unexplained cash credit u/s.69.
3.2 Addition of Rs.55,050/- towards commission and insurance income. On verification of 26AS data available on record in the case, it was gathered that the assessee had received a commission income of Rs.52,800/- from Vodafone Essar Gujarat Limited and Insurance Commission income of Rs.2,250/- from Max New York Life Insurance on which Total TDS amount of Rs.6,239/- was deducted. This income was not found reflected in the ITR filed by the assessee with the department. Hence I also made an addition of Rs.55,050/- to the total income of the assessee as income not offered for taxation. Penalty u/s. 271(l)(c) is initiated for concealment of income.
3.3 Finally AO made an addition of Rs.20,97,661/-.
ITA No.144/Rjt/2015 Shri Deepal Indrakumar Bhagchandani vs. ITO Asst.Year – 2009-10 - 5 - 4. Against the said order assessee preferred first statutory appeal before the ld. CIT(A). Ld. CIT(A) passed ex-parte order and confirmed the addition made by the ld. AO.
We have gone through the relevant record and impugned order. Both the lower authorities have passed ex-parte as assessee have been failed to appear before the AO and as well as CIT(A). In the interest of justice, we would like to give one more chance to the assessee to appear before the ld. CIT(A). Order of the ld. CIT(A) set aside and ld. CIT(A) has directed to decide the matter afresh after giving notice to the assessee and assessee is also directed to co-operate with the ld. CIT(A) and submit the papers in support of his contention.
In the result, appeal of the assessee is allowed. This Order pronounced in Open Court on 12/02/2018
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ITA No.144/Rjt/2015 Shri Deepal Indrakumar Bhagchandani vs. ITO Asst.Year – 2009-10 - 6 -
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)-3, Rajkot. �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 1. Date of dictation 29/01/2018 (dictation-pad 1 pages attached at the end of this appeal-file) 2. Date on which the typed draft is placed before the Dictating Member …30/01/2018 3. Other Member… 4. Date on which the approved draft comes to the Sr.P.S./P.S…………….. 5. Date on which the fair order is placed before the Dictating Member for pronouncement…… 6. Date on which the fair order comes back to the Sr.P.S./P.S……. 7. Date on which the file goes to the Bench Clerk………………… 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order…………………….. 10. Date of Despatch of the Order………………