Vaijayanthi Badri, Kottayam vs Assessee

1 ITA No .507 /Coch/2014

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN

Before Shri V Durga Rao, JM and Shri B.R. Baskaran, AM

I.T.A. No. 507/Coch/2014 (Assessment year 2010-11)

Vaijayanthi Badri vs The ITO, Wd.3 Ammu House Kottayam Thekkumgopuram Kottayam PAN : ADPPV8500L (Appellant) (Respondent)

Appellant by : Shri Mathew Joseph Respondent by : Shri K.K. John

Date of hearing : 14-05-2015 Date of pronouncement : 15-05-2015

ORDER Per Shri V Durga Rao, JM

This appeal filed by the assessee is directed against the order of the

CIT(A)-V, Ernakulam dated 31-10-2014 for the assessment year 2010-11.

2. The facts in brief are that the assessee Smt. Vaijayanthi Badri is an

individual and wife of Shri R Badri, one of the partners of M/s JR & Sons, Kochi.

The assessee had filed return of income declaring total income of Rs.1,95,000

consisting of income from salary received from her employer, M/s JR & Sons

amounting to Rs.1,80,000 and other income of Rs.15,000. The return filed by the

assessee was processed u/s 143(1). Thereafter, the assessee's case was

selected for scrutiny. In the assessment order, the assessing officer has 2 ITA No .507 /Coch/2014

observed that on verification of the bank accounts revealed huge cash deposits

made in the name of the assessee in ICICI Bank, M.G. Road, Ernakulam

amounting to Rs.7,71,565, in IDBI Bank, M.G. Road, Ernakulam of Rs.39,38,820.

The assessing officer asked the assessee to explain the source of deposits. The

assessee explained before the assessing officer that she is an employee of JR &

Sons. Sale proceeds were received on behalf of M/s JR & Sons and the same

were deposited in her bank account. Subsequently, the same was transferred to

the account of M/s JR & Sons. However, the assessing officer did not believe

the explanation given by the assessee and came to a conclusion that the

assessee failed to discharge the onus cast upon her and accordingly, the amount

deposited in the bank accounts of the assessee has been added as undisclosed

income. The addition amounted to Rs.47,10,385.

3. The assessee carried the matter in appeal before the CIT(A). The

ld.CIT(A) confirmed the order of the assessing officer on the ground that there is

no linkage between the firm's business and the customers' deposits in the bank

accounts of the assessee. Aggrieved, the assessee filed appeal before the

Tribunal.

4. The ld.counsel for the assessee submitted that the assessee is an

employee of M/s JR & Sons and the amounts received from the clients were

immediately deposited in the bank account of the assessee which were

subsequently transferred to the firm, M/s JR & Sons' account. The assessee's 3 ITA No .507 /Coch/2014

counsel filed paper book and pointed out from page 56 to that the amount

deposited in the ICICI bank was subsequently transferred to M/s JR & Sons'

Canara Bank account (paper book 4). The ld.counsel further submitted that he is

able to establish the link between the deposits made in the bank account of the

assessee, which were subsequently transferred to the firm's account and

requested for remitting the issue back to the file of the assessing officer. On the

other, the ld.DR has relied upon the orders of the authorities below.

5. We have heard both the sides, perused the records and the orders of

authorities below. The assessee is an individual and during the course of

assessment proceedings, the assessing officer has found that the assessee has

deposited in her bank account held with ICICI Bank, M.G. Road, Ernakulam an

amount of Rs.7,71,565, and in the IDBI Bank, M.G. Road, Ernakulam an amount

of Rs.39,38,820 totalling Rs.47,10,385. When the assessee was asked to

explain the source of deposits she submitted that the amounts deposited

belonged to the company in which she is working. However, the assessing

officer did not believe the version of the assessee. The action of the assessing

officer is confirmed by the CIT(A). It is a fact that the assessee is an employee of

M/s JR & Sons. The assessing officer and the CIT(A) not believed the version of

the assessee for the reason that she was not able to establish the amounts

deposited which were subsequently transferred to the account of JR & Sons'

account. Now the assessee has filed all the details and books of account of JR &

Sons, IDBI bank account statement and account copy of Auto Spare Agencies 4 ITA No .507 /Coch/2014

from whom the assessee received the amounts, ICICI bank statement, etc. In

view of the details filed by the assessee before us we find that in the interest of

justice, these details are necessary to be examined by the assessing officer.

Therefore, we set aside the order passed by the CIT(A) and remit the matter

back to the file of the assessing officer. The assessing officer is directed to

examine the details filed by the assessee and then decide the issue afresh in

accordance with law after giving opportunity of hearing to the assessee.

6. In the result, the appeal filed by the assessee is allowed for statistical

purpose.

Order pronounced on 15th day of May, 2015.

Sd/- sd/-

( B.R. Baskaran) ( V. Durga Rao) ACCOUNTANT MEMBER JUDICIAL MEMBER

Cochin, Dt : 15th May, 2015 pkj/-

Copy to: 1. Vaijayanthi Badri, Ammu House, Kottayam 2. ITO Wd.3, Kottayam 3. The CIT, Kottayam 4. The CIT(A)-V, Ernakulam 5. The DR (True copy) By order

Asstt. Registrar, ITAT, Cochin Bench