Mr. Rajesh Bansal, Delhi V. ITO, New Delhi

ITA 1052/DEL/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2841 (ITAT-DELHI)
• Duration Of Justice: 9 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-12-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 29-05-2017
• Assessment Year: 2012-2013
• Appeal Filed On: 23-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : SMC : NEW DELHI BEFORE SHRI R.S. SYAL, VICE PRESIDENT ITA NO.1052/DEL/2017 ASSESSMENT YEAR : 2012-13 RAJESH BANSAL, LUV-303, AGRASEN APARTMENTS, 66, IP EXTN, PATPARGANJ, DELHI. PAN: AAHPB7993C VS. ITO, WARD-71(2), NEW DELHI. ASSESSEE BY : SHRI S.S. GUPTA, CA DEPTT. BY : SHRI AMIT JAIN, SR. DR DATE OF HEARING : 20.12.2017 DATE OF PRONOUNCEMENT : 21.12.2017 ORDER THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PASSED BY THE CIT(A) ON 29.12.2016 IN RELATION TO THE ASSE SSMENT YEAR 2012-13. ITA NO.1052/DEL/2017 2 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE CONFIRMATION OF ADDITION OF RS.6,35,000/-. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSEE IS A MANAGING DIRECTOR OF M/S MINING ASSOCIATES PVT. LTD . CERTAIN CASH DEPOSITS TOTALLING TO RS.6,35,000/- WERE FOUND TO H AVE BEEN MADE IN THE ASSESSEES BANK ACCOUNTS, NAMELY, ICICI BANK AND HD FC BANK. ON BEING CALLED UPON TO SUBSTANTIATE THE SOURCE OF DEP OSITS, THE ASSESSEE SUBMITTED THAT AS A MANAGING DIRECTOR, HE WAS WITHD RAWING MONEY FROM THE COMPANY ACCOUNT AS IMPREST FOR THE BUSINESS OF THE COMPANY AND THEN DEPOSITING THE SAME IN HIS BANK ACCOUNTS TO BE USED FOR INCURRING EXPENSES AT REMOTE AND FAR OFF PLACES WHERE BANKING FACILITY WAS NOT AVAILABLE. NOT CONVINCED WITH THE ASSESSEES SUBMI SSIONS, THE ASSESSING OFFICER MADE AN ADDITION FOR A SUM OF RS.6,35,000/- . THE LD. CIT(A) CONFIRMED THE ADDITION. 4. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED T HE RELEVANT MATERIAL ON RECORD. PAGE 61 OF THE PAPER BOOK IS T HE ASSESSEES IMPREST ACCOUNT IN THE BOOKS OF ACCOUNT OF THE COMPANY. TH IS SHOWS GIVING OF A ITA NO.1052/DEL/2017 3 SUM OF RS.6,64,000/- TO THE ASSESSEE THROUGH VARIOU S ENTRIES ON DIFFERENT DATES. THE OTHER SIDE OF THE ACCOUNT REPRESENTS TH E DETAILS OF EXPENSES MADE BY THE ASSESSEE FOR AND ON BEHALF OF THE COMPA NY, LEAVING A NET CLOSING BALANCE OF RS.695/-. PAGE 31 ONWARDS OF TH E PAPER BOOK IS A COPY OF THE ASSESSEES BANK ACCOUNTS IN WHICH THE A MOUNT RECEIVED BY THE ASSESSEE FROM THE COMPANY WAS DEPOSITED AND THE N THERE ARE CORRESPONDING WITHDRAWALS ON DIFFERENT DATES. THE ESSENCE OF THE MATTER IS THAT THE COMPANY WAS INCURRING EXPENSES IN FAR O FF PLACES THROUGH THE ASSESSEE; AND FOR DOING THIS, CERTAIN IMPREST AMOU NTS WERE GIVEN WHICH THE ASSESSEE WAS SIMULTANEOUSLY DEPOSITING IN HIS B ANK ACCOUNT TO BE USED FOR INCURRING EXPENSES THROUGH HIS ATM. WHEN THE COMPANY HAS CERTIFIED THAT THE AMOUNT DEPOSITED BY THE ASSESSEE IN HIS BANK ACCOUNT IS FROM THE IMPREST ISSUED BY IT AND FURTHER WHEN THER E IS AMPLE EVIDENCE OF ADJUSTMENT BY THE COMPANY OF SUCH IMPREST WITH T HE EXPENSES INCURRED, I FAIL TO COMPREHEND AS TO HOW AN ADDITIO N CAN BE MADE IN THE HANDS OF THE ASSESSEE ON ACCOUNT OF CASH DEPOSITS I N HIS BANK ACCOUNTS BY TREATING THE SAME AS UNEXPLAINED. I, THEREFORE, ORDER FOR THE DELETION OF ADDITION. ITA NO.1052/DEL/2017 4 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 21.12.2017. SD/- [R.S. SYAL] VICE PRESIDENT DATED, 21 ST DECEMBER, 2017. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.