HIRANMOY BHATTACHERJEE,KOLKATA V. ITO, WARD 52(2), KOLKATA

ITA 2598/KOL/2024

AI Insights

The case involves an appeal by Hiranmoy Bhattacherjee against the order of the CIT(A), National Faceless Appeal Centre, Delhi, concerning the assessment year 2017-18. The primary issue was the addition made by the Assessing Officer regarding unexplained cash deposits during the demonetization period. The assessee, supported by his advocate, argued that both he and his wife, employees of Kolkata Port Trust, habitually withdrew their salaries in cash and held substantial amounts as cash in hand, which was reflected in their balance sheets. The revenue, represented by the Senior Departmental Representative, contested the plausibility of such cash handling by individuals. The Tribunal, after considering the submissions and evidence, sided with the assessee, allowing the appeal and deleting the addition.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 705829 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2017-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S.B. CHAKRABORTHY
• Assessee Lawyers: SOMNATH GHOSH
• Keywords: Condonation of delay

Judgement Text

" आयकर अपीलीय अधिकरण, “एस.एम.सी” न्यायपीठ, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH KOLKATA श्री जाजज माथन, न्याययक सदस्य क े समक्ष । BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER आयकर अपील सं/ITA No.2598/KOL/2024 (नििाारण वर्ा / Assessment Year :2017-18) Hiranmoy Bhattacherjee C/o S.N. Ghosh & Associates, Advocates, 2, Garstin Place, 2nd Floor, Suite No.203, Off hare Street, Kolkata-700001, West Bengal Vs ITO, Ward 52(2), Kolkata Income Tax office, 169, AJC, Bose road, Bamboo Villa, Central Revenue Building, Second Floor, Kolkata-700014, West Bengal PAN No. :ACYPB 5405 C (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) नििााररती की ओर से /Assessee by : Shri Somnath Ghosh, Adv. राजस्व की ओर से /Revenue by : Shri S.B. Chakraborthy, Addl. CIT-Sr.DR सुनवाई की तारीख / Date of Hearing : 03/07/2025 घोषणा की तारीख/Date of Pronouncement : 03/07/2025 आदेश / O R D E R This is an appeal filed by the assessee against the order of the ld CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 26.01.2024, passed for the assessment year 2017-18. 2. Shri Somnath Ghosh, ld. AR appeared on behalf of the assessee and Shri S.B.Chakraborthy, ld.Sr. DR appeared on behalf of the revenue. 3. The appeal of the assessee is barred by 263 days. In this regard, the assessee has filed an application for condonation of delay supported with an affidavit stating sufficient reasons for delay which are not found false. Ld.Sr. DR also did not raise any serious objection. Accordingly, the delay of 263 days in filing the appeal is condoned and the appeal of the assessee is admitted for hearing. ITA No.2598/KOL/2024 2 4. It was submitted by the ld.AR that the assessee is an individual. It was the submission that he and his wife are both employees of Kolkata Port Trust. It was the submission that the Assessing Officer also recognized that the assessee is a government servant for the last 38 years. It was the submission that the assessee does not have any children. It was the submission that the assessee was in habit of withdrawing his salary from the bank account and holding as cash in hand in home. It was the submission that the bank account of the assessee itself shows that the assessee makes continuous cash withdrawals. Ld. AR placed before me the copy of the balance sheet of the assessee as on 31.03.2015 which reads as follows :- 5. It was the submission that the balance sheet of the assessee as on 31.03.2016 shows cash in hand at Rs.14,53,153/-, which reads as under :- ITA No.2598/KOL/2024 3 . 6. It was the submission that the bank account of the assessee clearly shows that the assessee continuously withdraws cash and there is no deposit of the same in the bank. It was the submission that the wife of the assessee is also in habit of holding cash in hand in home. It was submitted that during the demonetization period assessee deposited Rs.14 lakhs out of the total amount as shown in the balance sheet as on 31.03.2015. It was submitted that the addition may be deleted insofar as the assessee has no other source of income and the amount deposited in the bank account is only out of his withdrawals from his bank account. 7. In reply, ld.Sr. DR supported the orders of the ld. Assessing Officer and ld. CIT(A). It was the submission that it is impossible for an individual to withdraw his salary and hold the same as cash in hand. ITA No.2598/KOL/2024 4 8. I have considered the rival submissions. A perusal of the balance sheet of the assessee clearly shows that the assessee is holding cash in hand of Rs.14,53,153/-. It is also an admitted fact that the assessee and his wife are the employees of the Kolkata Port Trust and they have no children. As the assessee has also clearly shown in the balance sheet that he is holding cash in hand and the bank account of the assessee clearly shows the withdrawals of cash, I am of the view that the assessee has adequate source to explain the deposit of Rs.14,01,000/- in cash during the demonetization period. In such circumstances the addition made by the Assessing Officer and confirmed by the ld. CIT(A) stands deleted. 9. In the result, appeal of the assessee is allowed. Order dictated and pronounced in the open court on 03/07/2025. Sd/- (जाजज माथन) (GEORGE MATHAN) न्यानयक सदस्य / JUDICIAL MEMBER कोलकाता Kolkata; ददनाांक Dated 03/07/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशािुसार/ BY ORDER, (Assistant Registrar) Income Tax Appellate Tribunal, Kolkata 1. अपीलाथी / The Appellant- 2. प्रत्यथी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कोलकाता / DR, ITAT, Kolkata 6. गार्ज फाईल / Guard file. सत्यापपत प्रयत //True Copy// "