The Income-tax Officer, Dasuya V. Sh. Harmit Singh Aulakh, Dasuya

ITA 119/ASR/2014

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 1433 (ITAT-AMRITSAR)
• Duration Of Justice: 1 year(s) 6 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-09-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 08-09-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 26-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: I S ARORA
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH(SMC); AMRITSAR BEFORE SH. A.D.JAIN, HONBLE JUDICIAL MEMBER I.T.A. NO. 119(ASR)/2014 ASSESSMENT YEAR: 2009-10 PAN: AGPPA9504Q INCOME TAX OFFICER, DASUYA VS. SHRI HARMIT SINGH A ULAKH VILL: SHAHBAZPUR P.O:-AHIYAPUR, TEH.DASUYA (APPELLANT) (RESPONDENT) APPELLANT BY: SH. TARSEM LAL (DR) RESPONDENT BY: SH. I.S. ARORA, (CA) DATE OF HEARING: 0 8.09.2015 DATE OF PRONOUNCEM ENT: 08.09.2015 ORDER PER A.D.JAIN (JM): THIS IS ASSESSEES APPEAL FOR ASST. YEAR 2009-10, CONTENDING THAT THE LEARNED CIT(A) HAS ERRED IN DELETING THE ADDITION O F RS.9,15,023/- OUT OF TOTAL ADDITION OF RS.11,45,558/- CORRECTLY MADE BY THE A. O ON ACCOUNT OF UNEXPLAINED CASH DEPOSITS IN THE BANK ACCOUNT. 2. AS PER THE RECORD, THE ASSESSEE INDIVIDUAL, DUR ING THE YEAR, EARNED INCOME FROM RETAIL BUSINESS. VIDE ORDER DATED 13.12 .2011, PASSED UNDER SECTION 143(3) OF THE I.T. ACT, THE A.O MADE ADDITI ON OF RS.11,45,558/- TO THE ASSESSEES RETURN INCOME OF 1,55,020/- + AGRICULTUR AL INCOME OF 1,50,000/-. THE ADDITION WAS MADE ON ACCOUNT OF UNEXPLAINED CAS H DEPOSITS IN THE BANK ACCOUNT OF THE ASSESSEE MAINTAINED BY HIM WITH HDFC BANK. WHILE DOING SO, 2. ITA NO. 119(ASR)/2014 ASST. YEAR 2009-10 THE AO OBSERVED THAT IT WAS A NO ACCOUNT CASE, WHER E TOTAL RECEIPTS HAD BEEN SHOWN AT RS. 1,70,000/- AND NET PROFIT, AT RS.1,50, 000/-; THAT THE CASH IN HAND SHOWN AS ON 31.03.2009 WAS ONLY RS.20,000/- AS PER THE INFORMATION FURNISHED IN THE RETURN OF INCOME; THAT NO SUPPORTI NG DOCUMENT HAD BEEN ATTACHED WITH THE CASH FLOW STATEMENT FILED AND SO , THE CASH FLOW STATEMENT HAD NO EVIDENTIARY VALUE; THAT IT WAS ALSO NOT UNDE RSTOOD AS TO HOW THE ASSESSEE HAD DEPOSITED CASH OF RS.11,45,558/- IN HI S BANK ACCOUNT AGAINST THE TOTAL RECEIPTS OF RS.1,70,000/- FROM RETAIL BUSINES S AND AGRICULTURAL INCOME OF RS.1,50,000/-, FOR WHICH ALSO, NO DOCUMENTARY EVIDE NCE HAD BEEN FILED. 3. THE LEARNED CIT(A) DELETED THE ADDITION BY VIRTU E OF THE IMPUGNED ORDER. 4. THE LEARNED DR HAS CONTENDED THAT WHILE WRONGLY DELETING THE ADDITION CORRECTLY MADE, THE LEARNED CIT(A) HAS FAILED TO TA KE INTO CONSIDERATION THE CATEGORICAL OBSERVATIONS OF THE A.O TO THE EFFECT T HAT THE CASH FLOW STATEMENT FILED HAD NO SUPPORTING DOCUMENTS AND SO, IT DID NO T HAVE ANY EVIDENTIARY VALUE; AND THAT THE ASSESSEE HAD FAILED TO EXPLAIN AS TO HOW HE HAD BEEN ABLE TO DEPOSIT IN HIS BANK ACCOUNT, CASH OF RS.11,45,55 8/-, WHEN HE HAD TOTAL RECEIPT OF ONLY RS. 1,70,000/- FROM HIS RETAIL BUSI NESS AND HIS AGRICULTURAL INCOME, SHOWN AT RS.1,50,000/-, WAS ALSO NOT SUPPOR TED BY ANY DOCUMENTARY EVIDENCE. 5. THE LEARNED COUNSEL FOR THE ASSESSEE, ON THE OTH ER HAND, HAS PLACED STRONG RELIANCE ON THE IMPUGNED ORDER, CONTENDING T HAT THE CASH FLOW STATEMENT FILED BY THE ASSESSEE BEFORE THE A.O WAS ILLEGALLY NOT TAKEN INTO 3. ITA NO. 119(ASR)/2014 ASST. YEAR 2009-10 CONSIDERATION BY HIM, WHEREAS WHILE RIGHTLY DELETIN G THE ADDITION WRONGLY MADE, THE LEARNED CIT(A) HAS CORRECTLY TAKEN THE SA ME INTO ACCOUNT ALONGWITH THE ASSESSEES BANK STATEMENT PERTAINING TO THE ASS ESSEES BANK ACCOUNT MAINTAINED WITH HDFC BANK. 6. HAVING CONSIDERED THE RIVAL SUBMISSIONS IN THE LIGHT OF THE MATERIAL PLACED ON RECORD, I FIND THAT AS TAKEN NOTE OF BY THE LEAR NED CIT(A), THE CASH FLOW CHART FILED BY THE ASSESSEE REFLECTED NUMEROUS DEPOSITS A ND WITHDRAWALS MADE BY THE ASSESSEE DURING THE ENTIRE YEAR UNDER CONSIDERATION FROM THE ASSESSEES BANK ACCOUNT WITH HDFC BANK. THIS REMAINS UNDISPUTED. TH AT THE BANK STATEMENT OF THE ASSESSEE ITSELF SHOWS NUMEROUS DEPOSITS AND WITHDRAWALS ALSO REMAINS UNHINGED. THE LEARNED CIT(A) ALSO RIGHTLY TOOK NOTE OF THE FACT THAT WHEREAS ACCORDING TO THE A.O, THE DEPOSITS IN THE BANK WORK ED OUT TO THE TUNE OF RS.11,45,558/-, IN FACT, THESE WERE OF RS.14,10,258 /-. THE A.O DID NOT POINT OUT ANY MATERIAL TO SHOW THAT THE ASSESSEE HAD USED THE CASH WITHDRAWALS FOR ANY OTHER PURPOSE AND, THEREFORE, THE LEARNED CIT(A ) CORRECTLY OBSERVED TO THE EFFECT THAT THE ADDITION MADE IN THE ABSENCE OF ANY MATERIAL SUGGESTING THAT THE ASSESSEE HAD USED THE CASH WITHDRAWAL FOR OTHER PUR POSES, OUGHT NOT TO HAVE BEEN MADE BY THE A.O. IT HAS NOT BEEN SHOWN OTHERWI SE. BESIDES, THE A.O ALSO DID NOT CONSIDER THE MULTIPLE WITHDRAWALS, MADE BY THE ASSESSEE FROM THE SAME BANK ACCOUNT. TOO, NO BENEFIT OF AGRICULTURAL INCOM E SHOWN BY THE ASSESSEE FOR THE YEAR, WAS ALLOWED BY THE A.O. THESE FACTORS HAV E ALSO BEEN TAKEN INTO CONSIDERATION BY THE CIT(A), FOR WHICH, NO FAULT HA S BEEN FOUND IN THE IMPUGNED ORDER. PLUS, NO BENEFIT OF HOUSEHOLD WITHD RAWAL WAS ALSO FOUND TO 4. ITA NO. 119(ASR)/2014 ASST. YEAR 2009-10 HAVE BEEN GIVEN TO THE ASSESSEE BY THE A.O. THERE C AN BE NO TWO OPINIONS IN THIS REGARD ALSO. THE LEARNED CIT, FINDING THE A.O NOT TO HAVE WORKOUT THE UNEXPLAINED CASH DEPOSITS PROPERLY, HAS HIMSELF CAR RIED OUT THIS EXERCISE, AS FOLLOWS: DATE PARTICULARS REIPT/WIT HDRAWAL PAYMENT/D EPOSIT BALANCE REMARKS 01.04.2008 OPENING BALANCE - - NIL NO EVIDENCE HAS BEEN PRODUCED IN RESPECT OF CASH IN HAND 02 & 03.04.2008 CASH WITHDRAWN/DEPOSITED FROM/INTO HDFC A/C 900 10000 (-)1000 UNEXPLAINED DEPOSIT 04.04.2008 TO 09.04.2008 CASH WITHDRAWN FROM HDFC A/C 9000 9000 12.04.2008 TO 18.04.2008 CASH WITHDRAWN FROM HDFC A/C 8000 17000 18.04.2013 AGRICULTURAL INCOME (AS PER ITR) 75000 92000 92000 BENEFIT OF 50% AGRICULTURE INCOME IS BEING GIVEN 23.04.2008 TO 28.04.2008 CASH WITHDRAWN/DEPOSITED FROM/INTO HDFC A/C 7000 198000 (-)99000 UNEXPLAINED DEPOSIT 29.04.2018 CASH WITHDRAWN/DEPOSITED FROM/INTO HDFC A/C 25000 49000 (-)24000 UNEXPLAINED DEPOSIT 30.04.2008 CASH WITHDRAWN FROM HDFC A/C 49000 (-)49000 UNEXPLAINED DEPOSIT 02.05.2008 TO 06.05.2008 CASH WITHDRAWN FROM HDFC A/C 98000 98000 08.05.2008 TO 09.05.2008 CASH DEPOSIT INTO HDFC A/C 122000 (-)2400 UNEXPLAINED DEPOSIT 10.05.2008 CASH WITHDRAWN/DEPOSITED 33000 49000 (-)16000 UNEXPLAINED 5. ITA NO. 119(ASR)/2014 ASST. YEAR 2009-10 TO 15.-5.2008 FROM/INTO HDFC A/C DEPOSIT 17.05.2008 TO 02 06.2008 CASH WITHDRAWN/DEPOSITED FROM/INTO HDFC A/C 4000 4000 03.06.2008 CASH DEPOSITED INTO HDFC A/C 49000 (-)9000 UNEXPLAINED DEPOSIT 04.06.2008 TO 19.06.2008 CASH WITHDRAWN FROM/INTO HDFC A/C 117665 117665 20.06.2008 CASH DEPOSITED INTO HDFC A/C 49000 68665 24.06.2008 TO 04.07.2008 CASH WITHDRAWN FROM HDFC A/C 22000 90665 10.07.2008 CASH DEPOSITED INTO HDFC A/C 18000 72665 14.07.2008 TO 15.07.2008 CASH WITHDRAWN FROM HDFC A/C 1000 82665 17.07.2008 CASH DEPOSIT INTO HDFC A/C 2000 62665 18.07.2008 TO 25.07.2008 CASH WITHDRAWN FROM HDFC A/C 27000 89665 28.07.2008 CASH DEPOSITED INTO HDFC A/C 98200 (-)8535 UNEXPLAINED DEPOSIT 29.07.2008 TO 22.08.2008 CASH WITHDRAWN FROM HDFC A/C 26.08.2008 CASH DEPOSITED INTO HDFC A/C 135000 21000 03.09.2008 TO 11.09.2008 CASH WITHDRAWN FROM HDFC A/C 317500 338500 13.09.2008 CASH DEPOSITED INTO HDFC A/C 30778 307722 13.09.2008 TO 30.09.2008 CASH WITHDRAWN FROM HDFC A/C 85000 392722 1.10.2008 CASH DEPOSITED INTO HDFC A/C 11000 381722 03.10.2008 TO CASH WITHDRAWN FROM HDFC A/C 6000 387722 6. ITA NO. 119(ASR)/2014 ASST. YEAR 2009-10 20.10.2008 20.10.2008 TO 23.10.2008 CASH DEPOSITED INTO HDFC A/C 96000 291722 23.10.2008 TO 28.10.2008 CASH WITHDRAWN FROM HDFC A/C 24000 315722 31.10.2008 CASH DEPOSITED INTO HDFC A/C 17000 298722 1.11.2008 CASH WITHDRAWN FROM HDFC A/C 34000 332722 01.11.2008 CASH DEPOSITED INTO HDFC A/C 49000 283722 04.11.2008 CASH WITHDRAWN FROM HDFC A/C 105000 388722 26.11.2008 TO 01.12.2008 CASH DEPOSIT INTO HDFC A/C 75750 312972 03.12.2008 CASH WITHDRAWN FROM HDFC A/C 50000 362972 08.12.2008 TO 09.12.2008 CASH DEPOSITED INTO HDFC A/C 59830 303142 09.12.2008 TO 30.12.2009 CASH WITHDRAWN FROM HDFC A/C 56800 359942 02.01.2008 CASH DEPOSITED INTO HDFC A/C 11200 348742 03.01.2009 TO 09.01.2009 CASH WITHDRAWN FROM HDFC A/C 16000 364742 12.01.2009 CASH DEPOSIT INTO HDFC A/C 14000 3505742 12.01.2009 TO 18.01.2009 CASH WITHDRAWN FROM HDFC A/C 8000 358742 22.01.2009 CASH DEPOSIT INTO HDFC A/C 100000 258742 27.01.2009 TO CASH WITHDRAWN FROM HDFC A/C 8000 338742 7. ITA NO. 119(ASR)/2014 ASST. YEAR 2009-10 10.02.2009 12.02.2009 TO 16.02.2009 CASH DEPOSIT INTO HDFC A/C 99500 233242 28.02.2009 TO 31.03.2009 CASH WITHDRAWN FROM HDFC A/C 19000 252242 THE DEPARTMENT HAS NOT BEEN ABLE TO POINT OUT ANY D ISCREPANCY IN THIS WORKING OF THE UNEXPLAINED CASH FROM 14.07.2008 TO 15. 07.2008, AS DONE BY THE LEARNED CIT(A). THEREFORE, THE ACTION OF THE LE ARNED CIT(A) IN RESTRICTING THE ADDITION ON ACCOUNT OF UNEXPLAINED DEPOSITS IN THE BANK ACCOUNT, FROM THAT OF RS.11,45,558/-, TO THAT OF RS.2,30,535/-, REMAINS F IRM AND IT IS SUSTAINED. THIS AMOUNT OF RS.2,30,535/- HAS BEEN ARRIVED AT BY ADDI NG THE UNEXPLAINED CASH DEPOSITS OF RS.1000/-, RS.99,000/-, RS.24,000/-, RS .49,000/-, RS.24,000/-, RS.16,000/-, RS.9,000/- AND RS.8,535/-, AS WORKED O UT BY THE LEARNED CIT(A), WHICH WORKING HAS NOT BEEN SHOWN BY THE DEPARTMENT TO BE INVALID IN ANY MANNER. IN THIS VIEW OF THE MATTER, FINDING NO MERI T IN THE GRIEVANCE SOUGHT TO BE RAISED BY THE DEPARTMENT, THE SAME IS REJECTED. 7. IN THE RESULT, THE APPEAL FILED BY THE DEPARTMEN T IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 8 TH SEPTEMBER, 2015. SD/- (A.D. JAIN) JUDICIAL MEMBER DATED:08.09. 2015 /PK/ PS. COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE: SHRI HARMIT SINGH AULAKH 2. THE INCOME TAX OFFICER, DASUYA. 8. ITA NO. 119(ASR)/2014 ASST. YEAR 2009-10 3. THE CIT(A), 4. THE CIT, 5. THE SR DR, I.T.A.T., TRUE COPY BY ORDER (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH: AMRITSAR.