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Income Tax Appellate Tribunal, ‘B’ SMC BENCH, CHENNAI
Before: SHRI N.R.S. GANESAN
आदेश /O R D E R
This appeal of the assessee is directed against the order of the Commissioner of Income Tax (Appeals) – 4, Chennai, dated 07.01.2016 and pertains to assessment year 2011-12.
Shri S. Sridhar, the Ld.counsel for the assessee, submitted that the Assessing Officer made addition of `15,11,000/- being the 2 I.T.A.No.944/Mds/16 aggregate of cash deposits in the savings bank account maintained by the assessee in IDBI Bank and also a further addition of `18,21,000/- being the aggregate cash deposits in the bank account maintained with Punjab National Bank. According to the Ld. counsel, the assessee filed all the details before the Assessing Officer with regard to the source for making the cash deposits in IDBI Bank and Punjab National Bank. Referring to the order of the CIT(Appeals), the CIT(Appeals) found that the assessee has not proved the genuineness of the source of cash paid and creditworthiness of the creditors.
According to the Ld. counsel, the assessee has produced material document to establish the possession of agricultural land and cultivation. The creditors have given conformation letters. The Village Administrative Officer has certified the possession of the land. The adangal register shows that the land was cultivated. These material documents were not examined by the Assessing Officer and the CIT(Appeals). According to the Ld. counsel, the matter may be remitted back to the file of the Assessing Officer to re-examine the matter in the light of the material filed by the assessee.
On the contrary, Shri M. Murugaboopathy, the Ld. Departmental Representative, submitted that the assessee deposited
3 I.T.A.No.944/Mds/16 cash in IDBI Bank and Punjab National Bank. The details of month wise cash deposits in the savings bank account in both the banks were reproduced by the Assessing Officer at page 3 of the impugned assessment order. The assessee could not explain the source for making the deposits. The assessee filed declaration from the creditors claiming that the money was received from them. The creditworthiness of the declarants was also established.
Referring to the declaration given by Shri S. Hariharan, the Ld. D.R. submitted that the said Shri Hariharan was aged about 76 years and said to have gifted a sum of `10,60,000/- from and out of his funds at the time of expiry of his wife Smt. Lalitha. The said Shri Hariharan is none other than father of the assessee. According to the Ld. D.R., the declaration does not indicate when the amount was actually given. In the absence of any other details, the Assessing Officer rightly came to a conclusion that the deposits made by the assessee in the bank accounts belong to the assessee. The Ld. D.R. further pointed out that whenever the assessee deposits in the bank, it is for the assessee to prove the genuineness of the transactions, identification of the creditors and creditworthiness of creditors. Since these factors were 4 I.T.A.No.944/Mds/16 not established, according to the Ld. D.R., the CIT(Appeals) has rightly confirmed the addition made by the Assessing Officer.
I have considered the rival submissions on either side and perused the relevant material available on record. Admittedly, there was cash deposit of `15,11,000/- in IDBI Bank and `18,21,000/- in Punjab National Bank. The assessee explained before the lower authorities that the source of income was the gift given by her father- in-law out of his agricultural income. To support the source of agricultural income, the assessee now produced before this Tribunal a certificate issued by the Village Administrative Officer and copy of Village adangal. The assessee has also said to have received gifts from her father and her mother-in-law, who are living with her. The assessee also claims the receipt of gifts on ceremonial occasions like birthday, wedding day, Deepavali, Pongal, etc. The material now filed before this Tribunal shows that the assessee’s father-in-law was holding agricultural land and the same was subjected to cultivation.
The adangal register shows that paddy was cultivated in the land.
From the impugned order it appears that the assessee has deposited cash in regular intervals. Therefore, it is for the assessee to 5 I.T.A.No.944/Mds/16 explain the source for the deposits in the bank account. From the order of the lower authorities it appears that the cash deposits in the banks were mainly diverted to fixed deposits in the name of the assessee and her husband Shri N. Srinivasan. It is also found by the Assessing Officer that transactions were made by investing the money in stock market through Karvy stocks. When the assessee has deposited huge money in the bank, it is for the assessee to explain the source of the money received. This Tribunal is of the considered opinion that giving one more opportunity to the assessee would not prejudice interest of the Revenue in any way. Giving opportunity to the assessee to explain the source of money, which was used in making deposits in the bank accounts, would promote the cause of justice.
Accordingly, the orders of the authorities below are set aside and the entire issue is remitted back to the file of the Assessing Officer. The Assessing Officer shall re-examine the matter afresh in the light of the material that may be filed by the assessee with regard to source of income and thereafter decide the issue afresh after giving a reasonable opportunity to the assessee.
In the result, the appeal of the assessee is allowed for statistical purposes.
6 I.T.A.No.944/Mds/16
Order pronounced on 18th August, 2016 at Chennai.