SHRI ANIL TYAGI, Bhopal V. THE ACIT 3(1), Bhopal

ITA 10/IND/2015

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 4381 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 6 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-08-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 06-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MOHD JAVED
• Assessee Lawyers: S S DESHPANDE
• Keywords: Principle of natural justice

Judgement Text

ANIL TYAGI ITA NO. 10/IND/2015 1 IN THE INCOME TAX APPELLATE TRIB UNAL SMC BENCH, INDORE BEFORE SHRI D.T. GARASIA, HON JUDICIAL MEMBER ITA NO. 10/IND/2015 A.Y.2011-12 ANIL TYAGI BHOPAL PAN AAKPT 9391B ::: APPELLANT VS ASSTT. COMMISSIONER OF INCOME TAX 3(1),BHOPAL ::: RESPONDENT APPELLANT BY SHRI S.S. DESHPANDE RESPONDENT BY SHRI MOHD. JAVED DATE OF HEARING 20.7.2016 DATE OF PRONOUNCEMENT 3 .8.2016 O R D E R THIS IS AN APPEAL PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED CIT(A)-II, BHOPAL, DATED 10.11.2 014. ANIL TYAGI ITA NO. 10/IND/2015 2 2. THE ONLY GROUND TAKEN BY THE ASSESSEE IS THAT THE LEARNED CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ADD ITIONS OF RS.2279000/- TOWARDS CASH DEPOSITED IN BANK ACCOUNT OF THE ASSESSEE TREATING THE SAME AS UNVERIFIABLE. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A SALARIED EMPLOYEE HAVING WORKED WITH M/S ADANI POWER LIMITED DURING THE YEAR UNDER CONSIDERATION. THE RE TURN DECLARING INCOME OF RS.13,25,505/- EARNED FROM SALARY (RS.15,50,872/-), HOUSE PROPERTY (-) RS.1,50,000/-) AND OTHER SOURCES (RS.24,633/-) WAS FILED AFTER CLAIMING DEDUCTION OF RS. 1 THE LEARNED COUNSEL FOR THE ASSES SEE UNDER CHAPTER VI-A. THE ASSESSING OFFICER MADE THE ADDITION OF RS. 25,79,000/- U/S 68 OF THE ACT ON THE GROUND THAT THERE WERE HUGE CASH DEPOSITS OF RS. ANIL TYAGI ITA NO. 10/IND/2015 3 25.79,000/- NOTICED IN THE SAVINGS BANK ACCOUNT OF THE ASSESSEE HELD WITH ICICI BANK, CENTRE POINT, NEW MARK ET, BHOPAL, ACCOUNT NO. 028301519551. THE ASSESSING OFF ICER ISSUED SHOW CAUSE NOTICE TO THE ASSESSEE IN RESPONSE TO WHICH THE ASSESSEE SUBMITTED THAT HE HAS DEPOSITED THE CASH IN SAVINGS BANK ACCOUNT WITH ICICI BANK OUT OF HIS INCOME AND WITHDRAWALS MADE BY HIM IN EARLIER TIME. THE ASSESSEE ALSO FURNISHED COPY OF BANK ACCOUNT AND CASH FLOW STATEMENT. THE ASSESSEE SUBMITTED THAT THE ASSESSE E HAS ADEQUATE CASH WITH HIM OUT OF WHICH THE ABOVE DEPOSITS WERE MADE. TO VERIFY WHETHER THE ASSESSEE HAS GIVEN CHEQUE TO SHRI RAJESH MISHRA OR NOT, THE STATEME NT OF SHRI RAJESH MISHRA WAS RECORDED BY THE ASSESSING OFFI CER WHEREIN HE ADMITTED THAT HE HAS GIVEN THE LOAN BY CHEQUE AND RECEIVED THE SAME BACK BUT ONE SHIVANI MANHAS COULD NOT REMAIN PRESENT INSPITE OF SUMMONS. THEREFORE, HE R STATEMENT WAS NOT RECORDED. THEREFORE, THE ASSESSING ANIL TYAGI ITA NO. 10/IND/2015 4 OFFICER MADE THE ADDITION. THE LEARNED CIT(A) CONFIRME D THE SAME. NOW THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL . 4. BEFORE ME, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT DURING THE CORUSE OF ASSESSMENT PROCEEDINGS THE ASSESSEE HAS FURNISHED THE SUMMARY OF CASH FLOW ALONG WITH DATEWISE STATEMENT OF CASH INCORPORATING ALL CASH TRANSACTIONS OF THE ASSESSEE IN T HE SAME. ALL THE CASH DEPOSITED IN THE BANK ACCOUNT WAS DU LY RECORDED IN SUCH CASH STATEMENT AND THE SOURCE FROM WHICH SAID DEPOSIT WAS MADE WAS ALSO DULY RECORDED AND EXPLAINED. THE SUMMARY OF CASH AND CASH STATEMENT WAS ALSO SUBMITTED BEFORE THE ASSESSING OFFICER. COPIES OF OPENING CASH FLOW STATEMENT IN WHICH RS. 2 LACS WERE WITHDRAWN FROM HIS BANK ACCOUNT, REPAYMENT OF ADVANCE FROM RAJESH MISHRA AND REPAYMENT OF ADVANCE FROM SHIVANI MANHAS AND REFUND OF CAR ADVANCE WERE ALSO ANIL TYAGI ITA NO. 10/IND/2015 5 SUBMITTED BEFORE THE ASSESSING OFFICER. DURING THE COURSE OF HEARING, THE LEARNED COUNSEL FOR THE ASSESSEE WAS ASK ED TO FILE THE COPY OF BANK STATEMENT. ON THE OTHER HAND , THE LEARNED DR RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW. 5. I HAVE HEARD BOTH THE SIDES. AS PER AIR INFORMATION THE ASSESSEE HAS SOLD IMMOVABLE PROPERTY AT RS. 34 LACS ON 3.7.2010 THE ASSESSEE DEPOSITED RS. 25,79,000/- IN SAVINGS BANK ACCOUNT WITH ICICI. THE SOURCE OF THIS D EPOSIT IS AVAILABLE FROM THE REPAYMENT OF LOAN WHICH WAS RECEIV ED FROM SHIVANI MANHAS OF RS. 3,40,000/-, FROM RAJESH MISHRA OF RS. 1 LAC AND REFUND OF CAR ADVANCE AND CASH WITHDRAWN. I FIND THAT THE STATEMENT OF SHRI RAJESH MISHRA WAS RECORDED WHEREIN HE HAS CONFIRMED REPAYMENT OF RS .1 LAC. THEREFORE, NO ADDITION CAN BE MADE IN RESPECT OF RS.1 LAC. IN CASE OF REFUND OF CAR ADVANCE RS.1,75,000/-, THE ASSESSEE HAS DEPOSITED THIS AMOUNT. THEREFORE, THIS ANIL TYAGI ITA NO. 10/IND/2015 6 AMOUNT HAS TO BE VERIFIED FROM THE ASSESSEE WHETHER HE HAS RECEIVED CAR ADVANCE BY CASH OR CHEQUE AND IF HE HAS RECEIVED IN CASH THEN NECESSARY EVIDENCE HAS TO BE PRODUCED BEFORE THE ASSESSING OFFICER AND ON VERIFIC ATION OF THE SAME, IF FOUND IN ORDER, THE SAME MAY BE DELETED. IN RESPECT OF CASH DEPOSITED, THE ASSESSEE SUBMITTED THAT THE ASSESSEE WAS HAVING SUFFICIENT CASH BALANCE ON VARIOUS DATES AND CASH DEPOSITS WERE MADE FROM WITHDRAWING THIS AMOUNT FROM THE SAME BANK. THEREFORE, THE ASSESSING OFFICER IS DIRECTED TO VERIFY THE STATEMENT AND IF TH E ASSESSEE IS ABLE TO SHOW THAT THE SAME IS DEPOSITED BY THE ASSESSEE THEN NO ADDITION IS CALLED FOR. THEREFORE, TH E ASSESSING OFFICER IS DIRECTED TO VERIFY THE SAME AND IF THE ASSESSEE HAS CREDITED THE CASH AMOUNT BY WITHDRAWING FROM HIS BANK ACCOUNT THEN NECESSARY CREDIT HAS TO BE GIVEN. THE ASSESSING OFFICER IS DIRECTED ACCORDINGLY . NEEDLESS TO SAY THAT SUFFICIENT OPPORTUNITY OF HEARIN G BE ANIL TYAGI ITA NO. 10/IND/2015 7 AFFORDED BY THE ASSESSING OFFICER TO THE ASSESSEE IN THE INTEREST OF NATURAL JUSTICE. PRONOUNCED IN OPEN COURT ON 3 AUGUST, 2016 SD/- (D.T. GARASIA) JUDICIAL MEMBER 3 AUGUST, 2016 DN/- ANIL TYAGI ITA NO. 10/IND/2015 8