Case Law Details
JCIT Vs Durga Charitable Society & Vice-Versa (ITAT Delhi)
Referring to the second addition of Rs. 28 lakh also based on the same bank account it was submitted that the assessee through SIP has invested on different dates a total amount of Rs. 70,000/- , Rs. 35,000/- & Rs. 1 lakh in HDFC Long Term Advantage Fund, Franklin India Flexi Cap Fund, HSBC Midcap Equity Fund and HSBC Floating Rate Fund respectively. Apart from this the assessee had also made investment by SIP through its Citi Bank A/c No. 5-53355-1116 amounting to Rs. 6,000/-, Rs. 48,000/- and Rs. 36,000/- in Birla Advantage Growth Fund, Birla Sunlife Equity Fund and HDFC Top 200 Fund respectively thereby making a total investment of Rs. 12,30,000/- and not Rs. 28 lakh as considered by the AO. Out of this total investment it was explained Rs. 11,40,000/- was invested through the HSBC Bank Account which is the only account of the assessee where all the salary income has been credited and the remaining amount of Rs. 90,000/- has been made through Citi Bank Account which is in the name of Master Devansh Srivastava under the guardian of the assessee. It was contended how the AO has arrived at a figure of Rs. 28 lakh is not evident as the assessee has only invested Rs. 12,30,000/- only.
I have verified the bank statement of the appellant and it is found that the appellant had made all his credit card expenses out of his HSBC Bank Account by cheques (Page no. 6). The appellant had also invested Rs. 12,30,000/- in mutual fund and not Rs. 28 lakh as claimed by the AO from AIR. There is a mistake of getting the information through AIR which was collected by the appellant’s AR from bank. The transaction reported in the AIR was wrongly reported by the department. The AO should inform DGIT(System) to verify such information from the department server and correct it in future. The appellant investments of Rs. 12,30,000/- (page no. 8) is out of his bank amounts through SIP (Systematic Investment Plan) by the cheques. The appellant’s all the investments made by the appellant stands explained. I deem it proper to delete the additions made by the AO.
FULL TEXT OF THE ITAT JUDGMENT
This is an appeal filed by the Revenue against the order dated 21.12.2012 of CIT(A)-XXX, New Delhi pertaining to 2007-08 assessment year on the following grounds:-
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