SHRUTIBEN V PATEL,AHMEDABAD vs. THE ITO, WARD-4(2)(5), AHMEDABAD

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ITA 656/AHD/2019Status: DisposedITAT Ahmedabad13 July 2022AY 2015-164 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the issue of TDS non-deduction was to be dealt with in separate proceedings under Section 201 and 276C of the Act, and thus the ground was not maintainable. However, the addition for the difference in opening cash balance was deleted as the assessee had provided an explanation regarding a revised return.

What were the facts?

The assessee purchased a property for Rs. 2.35 crores and did not deduct TDS, claiming her share was less than Rs. 50 lakhs. Additionally, a difference in opening cash balance of Rs. 2,14,250/- was treated as unexplained cash credit.

What were the issues?

Whether TDS was deductible on property purchase when the assessee's share was below the threshold, and whether a difference in opening cash balance due to a revised return constituted an unexplained cash credit.

Which sections of the Income-tax Act were involved?

Section 194IA,Section 201,Section 271(1)(c),Section 276C,Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD

Before: SMT.ANNAPURNA GUPTA & T.R. SENTHIL KUMAR

Hearing: 19/04/2022Pronounced: 13/07/2022

(Applicant) (Responent) : Shri Suchit Patel, AR Assessee by Revenue by : Shri R.R. Makwana, Sr.DR सुनवाई क� तार�ख/Date of Hearing : 19/04/2022 घोषणा क� तार�ख /Date of Pronouncement: 13/07/2022 आदेश/O R D E R

PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER

1.

The present appeal has been filed by the Assessee against the order passed by the Commissioner of Income Tax (Appeals)-4, Ahmedabad (in short referred to as CIT(A)), dated 7.3.2019 pertaining to Assessment Year 2015-16.

2.

Ground No.1 raised by the assessee in her appeal reads as under: “1. The ld.CIT(A) erred in confirming the stand of the AO that the assessee has not deducted TDS on purchase of property, though value of consideration paid by the assessee was less than Rs.50 lakhs.”

2 3. As transpires from the orders of the authorities below, the issue raised in the above ground is that the assessee had purchased a property whose value was of Rs.2.35 crores and no TDS was deducted thereon on the payment made for the same, under section 194IA of the Income Tax Act, 1961 ("the Act" for short). The assessee had contended that her share in the said property was only Rs.32,25,000/- since she was joint holder with others, and the amount paid was less than Rs.50 lakhs, and therefore, provisions of section 194IA were not attracted. Her contention was dismissed and it was held that the assessee was liable to deduct TDS on the amount paid for the purchase of the property and having not done so, the AO had noted in his order that intimation of non-deduction of TDS was being forwarded to the concerned TDS Officer for passing order under section 201 of the Act and for levy of penalty under section 271(1)(c) of the Act. Against this, the assessee went in appeal before the ld.CIT(A) who found no infirmity in the order of the AO.

4.

We have considered facts before us and we hold that on account of finding of the AO below that the assessee was required to deduct TDS under section 194IA of the Act and he has intimated to the concerned TDS Officer, no grievance arose to the assessee. Necessary action, if any, to be taken by the assessee, is to be taken in the concerned proceedings under section 201 and 276C of the Act. This ground raised by the assessee is dismissed as non- maintainable.

5.

Ground No.2 raised in the appeal reads as under:

“2. The ld.CIT(A) erred in confirming the action of the AO treating difference of opening cash balance mentioned in cash

3 book and closing cash balance mentioned in the Income Tax Return for Asst.Year 2014-15 of Rs.2,14,250/- as unexplained cash credit.”

6.

The orders of the authorities below reveal that addition to the income of the assessee was made of Rs.2,14,250/- on account of difference in opening cash balance in the books of the assessee. The AO found that the assessee had overstated the opening balance by Rs.2,14,250/-. To this, the ld.counsel for the assessee had contended that original return filed for Asst.Year 2014-15 had been subsequently revised; but while filing revised return, the consultant had incorporated figures of the old balance sheet and had not incorporated the figures of revised balance sheet in the said return. Copy of original & revised return was filed to the AO. The AO was not satisfied with the same, and made addition of the difference as unexplained credits, and unexplained income of the assessee for year, under section 68 of the Act. The same was upheld by the ld.CIT(A) stating that no cogent explanation was filed by the assessee to explain the difference.

7.

Before us, the ld.counsel for the assessee reiterated contentions made before the lower authorities that difference had been explained as being on account of revised return filed for the said year without incorporating changes in the figure of the balance sheet on account of revised figures.

8.

We have heard both the parties; we have noted that authorities below have, without considering reply of the assessee, made and confirmed addition on account of opening cash balance overstated by the assessee in the impugned year. It is not denied that the assessee had furnished explanation that the difference was on account of revision of return of income and the balance sheet figures

4 not being revised in the return filed. The assessee had demonstrated the fact of Revision of Return also. But the authorities below did not even care to consider the same; not a whisper in both the orders as to why the explanation was unsatisfactory for the said purpose. In view of the same, we find no reason to uphold the addition. Impugned addition made is therefore directed to be deleted. This ground is allowed.

9.

In the result, appeal of the assessee is partly allowed. Order pronounced in the Court on 13th July, 2022 at Ahmedabad.

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