Income Tax Appellate Tribunal - Indore
Atul Verma, Bhopal vs Assessee on 4 July, 2013
IN THE INCOME TAX APPELLATE TRIBUNAL,
INDORE BENCH, INDORE
BEFORE SHRI JOGINDER SINGH, J.M. AND SHRI R.C.SHARMA, A.M.
PAN NO. : AANPV0217D
I.T.A.No.129/Ind/2013
A.Y. : 2007-08
Shri Atul Verma, ITO,
C/o R.N. Gupta, C.A., vs. 1(2),
6, New Market, Bhopal
1st Floor, T.T.Nagar,
Bhopal.
Appellant Respondent
Appellant by : Shri R.N.Gupta, C. A.
Respondent by : Shri R. A. Verma, Sr. DR
Date of Hearing : 04.07.2013
Date of : 16.07.2013
pronouncement
ORDER
PER R. C. SHARMA, A.M.
This is an appeal filed by the assessee against the order of CIT(A) dated 18.1.2013 for the assessment year 2007-08 in the matter of order passed u/s 143(3) of the Income-tax Act, 1961.
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2. The Rival contentions have been heard and records perused. During the course of scrutiny assessment, an addition of Rs. 70,000/- was made in respect of amount deposited in PPF A/c. The Assessing Officer noticed that the assessee deposited Rs. 70,000/- in cash on 20.06.2006 for credit to his PPF account maintained at SBI, Shivaji Nagar Branch out of cash withdrawal of Rs. 60,000/- from his mother's bank account and balance out of withdrawals from his salary for house hold expenses. The assessee admitted that he has no other source of income or no other bank account except account at State Bank of India, Vindhyachal Bhawan Branch.
3. Before the CIT(A), the ld. Authorized Representative submitted copy of the Bank account maintained at Punjab National Bank at Bhopal jointly held with mother Smt. Shantidevi Verma as additional evidence and contended that the alleged sum was withdrawn from this bank. On reference to Assessing Officer commented the submission made at the appellate stage is an afterthought and hence, not acceptable.
However, the CIT(A) confirmed the action of the Assessing 2
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Officer by observing that the assessee does not maintain the books of account.
4. The assessee is in further appeal before us.
5. We have considered the rival submissions and have gone through the orders of the authorities below and found from record that the assessee is unmarried. He has aged mother Smt. Shanti Devi Verma (85 years old) & one sister, Ms. Sushma Verma aged about 56 years old. His sister is patient of Paranoid Schizophrenia. The assessee has two elder brothers viz. Avinash Verma and Sr. Ashutosh Verma. Mr. Avinash Verma is settled in Untied States and he is there for last about 30 years. Dr. Ashutosh Verma is an orthopedic surgeon, presently working in M.Y. Hospital. The father of the assessee was a doctor and he was working in the Department of Health, Government of M.P. as Joint Director. The father of the assessee died in the year 1988. The mother of the assessee Shanti Devi is having income from family pension from Government of Madhya Pradesh having monthly pension of Rs. 2945/-.
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6. During the year, the assessee made deposit of Rs.
70000 in PPF account on 20.06.2006. This deposit was made in cash. Cash deposited out of withdrawal of Rs. 60000/- on 19.06.2006 from the Punjab National Bank Account No.059100-0100145817 of Smt. Shanti Devi Verma and rest Rs. 10000/- from his personal savings. In the relevant year, the assessee's drawing from his salary bank account with SBI were Rs. 168460/-. The copy of bank account is at paper book page no.39192 and the abstract of withdrawal is at paper book page no.37 and from his mother's pension bank account with BOI, the withdrawals were Rs. 35000/-. The copy of the said bank account of mother is at paper book page no. 44146. The tabulation of cash withdrawal of Rs. 35000/- is at paper book page no. 38. Thus, the aggregate withdrawals of the assessee and his mother were Rs. 198500/-. The assessee submits that the cash of Rs. 10000/- was deposited out of the funds available with him from the aforesaid withdrawal of Rs. 198500/-.
7. In view of the total withdrawal of cash of Rs. 1,98,500/- from the Bank accounts, we do not find any merit 4
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in the action of lower authorities for making addition of Rs. 70000/- on account of cash deposited with the PPF account.
8. An addition of Rs. 4 lakhs was also made in respect of amount deposited in Tata Mutual Funds. During the course of assessment, the Assessing Officer had information as per AIR data that the assessee has invested Rs. 4,00,000/- and Rs. 2,00,000/- on 07.07.2006 & 19.06.2006 in Tata Mutual Funds and SBI Mutual Funds. The investments were not appearing in the bank account of the assessee. The Assessing Officer made an addition of Rs. 4 lakhs.
9. Before the ld. CIT(A), the ld. Authorized Representative submitted the bank statement of the joint account with mother and evidence relating to source of deposits in the aforesaid account which were utilized for investment in mutual funds. Assessee made application under Rule 46A and prayed for permission to admit the same as additional evidence. However, the Assessing Officer found the outcome of the evidence at appellate stage as afterthoughts. The ld. CIT(A) confirmed the action of the Assessing Officer, without verifying the bank statement indicating issue of cheque in favour of 5
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respective mutual funds. Therefore, assessee is in further appeal before us.
10. Rival contentions have been heard and records perused. From the record, we found that the mother of the assessee Shanti Devi Verma is having bank account with Punjab National Bank. The bank account number is 0591000100145817. It was from the aforesaid bank account with Punjab National Bank that the mother of the assessee made an investment of Rs. 4,00,000/- in Tata Mutual Funds. The assessee's name has been included just for the sake of convenience as the mother is aged. The copy of the investment receipts and the investment certificates were attached. From the said bank account investment of Rs. 2,00,000/- in SBI Mutual Fund was also made by his mother Smt. Shanti Devi Verma. Both the investments were made by issue of account payee cheques in favour of Tata Mutual Funds and SBI mutual funds. Copy of the acknowledgement and the investment certificates as placed on record had also been verified by us.
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11. In view of the above, considering the documentary evidence placed on record, we do not find any justification in the action of lower authorities for treating the investment in Mutual Funds as unexplained. The Assessing Officer is directed to delete the same.
12. The Assessing Officer has also made an addition of Rs. 2 lakhs invested in SBI Mutual Funds. In view of our discussion in the foregoing paragraphs, considering the cheque issued by the assessee out of Bank account of mother, cheque no. 830143 towards SBI Mutual Fund account amounting to Rs. 2 lakhs on 21.6.2006, we do not find any justification on the part of lower authorities for making addition of Rs. 2 lakhs on the plea of unexplained investment.
13. With regard to claim of deduction u/s 80-C on account of investment in PPF account amounting to Rs. 70,000/-, we found that the assessee is not eligible for deduction since it was not an investment out of his own income of the year. Accordingly, we do not find any infirmity in the order of lower authorities for decline of claim of deduction u/s 80-C. 7
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14. In the result, the appeal of the assessee is allowed in part.
This order has been pronounced in the open court on 16th July, 2013.
Sd/- sd/-
(JOGINDER SINGH) (R. C. SHARMA)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Dated : 16th July, 2013.
CPU*
910167
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