Income Tax Appellate Tribunal - Agra
Laxminarayan Garg , Shivpuri vs Department Of Income Tax on 13 May, 2013
IN THE INCOME TAX APPELLATE TRIBUNAL
AGRA BENCH, AGRA
BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMMBER AND
SHRI A.L. GEHLOT, ACCOUNTANT MEMBER
ITA No. 471 Agra/ 2012
Assessment Year 2009-10
Income Tax Officer . Vs. Shri Laxmi Narayan Garg,
Shivpuri, Behind Collector Bunglow,
Sheopur, M.P.
(PAN -ADBPG2015M)
(Appellant) (Respondent)
Appellant by : Shri K.K. Mishra Jr. D.R.
Respondent by : None
Date of hearing : 13.05.2013
Date of pronouncement : 17.05.2013
ORDER
PER BHAVNESH SAINI, JUDICIAL MEMBER
This appeal by the Revenue is directed against the order of learned CIT(A) Gwalior dated 06.07.2012 for A.Y. 2009-10.
2. On the last date of hearing, on 25.03.2012, the appeal was adjourned on the request of learned counsel for the assessee to 13.05.2013. However, on the date of hearing on 13.05.2013, none appeared on behalf of the assessee, despite service of notice, therefore, the assessee is proceeded ex-parte. 2 ITA No.471/Agra/2012
A.Y.2009-10
3. We have heard learned D.R. and perused the findings of authorities below.
4. On Ground No.1, Revenue challenged the deletion of addition of Rs.53,462/- on account of disallowance of depreciation. The assessee filed return of income declaring income from pension, private practice and interest. The A.O. disallowed the depreciation without giving any plausible reasons. The learned CIT(A) found that the claim of the assessee for depreciation is allowable as business expenses since business/professional receipts and ownerships of the car by the assessee have not been disputed by the A.O. The claim of the assessee for depreciation is accordingly allowed.
5. On consideration of the above facts, we do not find any infirmity in the order of the learned CIT(A) in deleting the addition on account of claim of depreciation. Since the assessee declared the business/professional receipts and ownership of the vehicle with the assessee is not disputed which is stated to be used for the purpose of business, therefore, learned CIT(A) correctly allowed depreciation in favour of the assessee.
6. Ground No.1 of appeal of the Revenue is accordingly dismissed. 3 ITA No.471/Agra/2012
A.Y.2009-10
7. On Ground No.2, the Revenue challenged the deletion of Rs.18,37,000/- on account of unexplained bank deposits. The A.O. considering several deposits in the Bank account stated to be belonging to the assessee and in the absence of any explanation considered the entire deposits as unexplained deposits/investment in the bank account and accordingly made addition of Rs.18,37,000/- in the case of the assessee. It was submitted before learned CIT(A) that the A.O. raised the query regarding transactions in bank account of State Bank of India, Account No. 53052339073.The assessee filed detailed reply before A.O. on the basis of statement of receipts and payments accounts, capital account and balance sheet of all family members and HUF of the assessee available with him but the A.O. did not consider the same to be proper. The assessee explained each and every details and bank entries, therefore, the addition was wholly unjustified. It was submitted that aforesaid bank account is joint bank account of assessee along with his wife Late Smt. Indu Garg, daughter Gunjal Garg and L.N. Garg HUF. The account is operated by any one or the survivor. It was further submitted that transactions in the bank account were related to all the joint account holders for the sake of convenience of the assessee. It was also submitted that all the family members along with assessee were regular assessees and assessed at Income Tax Office, Shivpuri. Copy of receipts and payments 4 ITA No.471/Agra/2012 A.Y.2009-10 account, capital account and balance sheet alongwith acknowledgement of filing of the return for all family members were filed before A.O. in support of the explanation. The assessee also filed details of amount received from the maturity of KVP and post office, FDRs of all family members with the reply. The assessee made deposits of Rs.2,25,000/- on 19.11.2008 from the amount received of MIS matured Rs.2,22,720/- and rest amount Rs.2,280/- was deposited out of cash available with the assessee. The details of the same were filed before A.O.
8. Learned CIT(A) considering the evidence and material available on record accepted the contention of the assessee that all the deposits in the Bank account are explained along with sources, therefore, addition was accordingly deleted. The findings of learned CIT(A) in para 4.2 of the appellate order are reproduced as under :-
"4.2 Appellant's submissions along with assessment order have been considered carefully. Assessment records have also been perused. On perusal, appellant's submissions are found acceptable. Vide letter dt. 2.11.2011 the appellant has given details of assessment of his late wife Smt. Indu Garg and his daughter Gunjal Garg. Copy of return, income computation, receipts and payments account, capital accoun and balance sheet for A.Y. 2007-08, 2008-09 & 2009-10 have also been enclosed along with order dated 24.06.2008 passed u/s 144 for A.Y. 2006- 07 in case of Smt. Indu Garg. AO has obtained bank statement of the appellant from State Bank of India, Shoepurkalaln u/s 133(6) vide letter dt.28.10.2011. Vide letter dt.28.11.2011 the appellant 5 ITA No.471/Agra/2012 A.Y.2009-10 has been asked to give details of deposits/withdrawal in the said bank account totaling Rs.56,71,741/-. In response the appellant has submitted detailed reply on 24.12.2011 stating the fact that source of deposit on various dates as mentioned by the A.O. The said bank account is stated to be a joint account in the name of the appellant, his wife -Smt. Indu Garg, daughter -Gunjal Garg and HUF -Shri L.N. Garg (HUF). Copy of returns along with income computation, receipts and payment account, capital account and balance sheet reflecting investments made in KVP, FDRs, MIS (PO), UTI funds etc. have also been enclosed in respect of Ld AO arbitrarily has not considered all the things submitted before him and she made an addition of Rs. 18,37,000/- on account of unexplained investment.
That the Ld. AO made on addition of following deposits in bank account.
Date Amount
25.08.2008 14,30,000/-
19.11.2008 2,25,000/-
19.12.2008 1,82,000/-
Total Rs. 18,37,000/-
That during the course of assessment proceedings the assessee made following submission regarding above deposits.
25.08.2008 14,30,000/- Cash deposited out of the maturity amount of KVP of Smt. Indu Garg Rs.5,12,000/-, the assessee 1,28,000/-, Gunjal Garg 1,60,000/- and Post Office FDR matured of the assessee Rs.3,22,350/- and Gunjal Garg Rs.3,22,350/-. TotalRs.14,44,700/- 19.11.2008 2,25,000/- Out of Post Office FDR matured on a/c of L.N. Garg HUF 19.12.2008 1,82,000/- Cash deposited out of maturity amount of MIS, Post Office on a/c of Smt. Indu Garg and the assessee.6 ITA No.471/Agra/2012
A.Y.2009-10 The details of payment received from post office as per certificates issued by the Sub-Post Master, Poster Office, Sheopur are as under:
Details of deposits made on 25.08.2008 Date Amount Name of account holder Amount received from 14.08.2008 5,12,640/- Smt. Indu Garg KVP matured 14.08.2008 1,60,200/- Gunjal Garg KVP matured 14.08.2008 1,28,160/- Dr. L.N. Garg KVP matured 14.08.2008 3,22,348/- Gunjal Garg 3 years TDR matured 14.08.2008 3,22,348/- Dr. L.N. Garg 3 years TDR matured Total Rs. 14,45,696/-
The assessee deposited Rs.14,30,000/- on 25.08.2008 out of above amount received from post office.
Details of deposits made on 19.11.2008 Date Amount Name of account holder Amount received from 17.11.2008 48,720/- Smt. Indu Garg MIS matured 17.11.2008 48,720/ Smt. Indu Garg MIS matured 17.11.2008 27,840/ Smt. Indu Garg MIS matured 17.11.2008 48,720/ Smt. Indu Garg MIS matured 17.11.2008 48,720/ Smt. Indu Garg MIS matured Total Rs. 2,22,720/-
all the account holders. AO has passed the order on 26.12.2011 without bringing any adverse material on record before rejecting appellant's submissions or making any enquiry from post office etc. During the course of appeal proceedings, on being asked, certificate of concerned Post Office has also been brought on record whereby deposits in KVP, interest earned thereon along with payment on maturity have also been certified by Sub-Post Master. In my view the 7 ITA No.471/Agra/2012 A.Y.2009-10 appellant has duly explained deposits in his joint bank account, operated by anyone or survivor, made on various dates. Addition of Rs.18,37,000/- made by the AO treating these deposits as unexplained is not found sustainable and is, hereby deleted."
9. The learned D.R. relied upon the order of the A.O.
10. On consideration of the facts of the case, in the light of the findings of learned CIT(A), we do not find any justification to interfere with the order of learned CIT(A) in deleting the addition. The assessee submitted complete details of the source of the deposits made in the bank account on different dates. All the deposits made in the Bank account have been explained through the known sources. The learned CIT(A) on proper appreciation of the facts and material available on record rightly deleted the addition. It is a departmental appeal and no material or evidences have been produced before us to contradict or rebut the findings of the learned CIT(A). In the absence of any material on record in favour of the Revenue, we do not find any justification to interfere in the order of the learned CIT(A) in deleting the addition. Ground no.2 appeal of the Revenue is accordingly dismissed.
8 ITA No.471/Agra/2012
A.Y.2009-10
11. In the result, departmental appeal is dismissed.
(Order pronounced in the open Court)
Sd/- Sd/-
(A.L. GEHLOT) (BHAVNESH SAINI)
Accountant Member Judicial Member
Amit/
Copy of the order forwarded to:-
1. Appellant
2. Respondent
3. CIT (Appeals) concerned
4. CIT concerned
5. D.R., ITAT, Agra Bench, Agra
6. Guard File. By Order
Sr. Private Secretary
Income Tax Appellate Tribunal, Agra
True Copy