PAIDISETHY ANIL KUMAR, BERHAMPUR V. ITO, Ward-1, Berhampur

ITA 124/CTK/2021

• Counselvise Citation: [2022] 103 COUNSELVISE.COM (IT) 8974 (ITAT-CUTTACK)
• Duration Of Justice: 11 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-11-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 03-11-2022
• Assessment Year: 2017-2018
• Appeal Filed On: 17-11-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

आयकर अऩीऱीय अधधकरण, कटक न्यायऩीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK श्री जाजज माथन, न्याययक सदस्य एवं श्री अरुण खोड़पऩया ऱेखा सदस्य के समक्ष । BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI ARUN KHODPIA, ACCOUNTANT MEMBER आयकर अऩीऱ सं/ITA No.124/C TK/2021 (ननधाारण वषा / Asses s m ent Year :2017-2 018) Paidisethy Anil Kumar, Kapileswarpeta, Berhampur, Ganjam-760009, Orissa Vs ITO, Ward-1, Berhampur PAN No. :AHSPK 3182 E (अऩीऱाथी /Appellant) .. (प्रत्यथी / Respondent) ननधााररती की ओर से /Assessee by : Shri S.K.Sarangi, CA राजस्व की ओर से /Revenue by : Shri Charan Dass, Sr. DR स ु नवाई की तारीख / Date of Hearing : 04/11/2022 घोषणा की तारीख/Date of Pronouncement : 04/11/2022 आदेश / O R D E R Per Bench : This an appeal filed by the assessee against the order of the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 23.09.2021, passed in ITBA/NFAC/S/250/2021-22/1035821157(1) for the assessment year 2017-2018. 2. It was submitted by the ld. AR that the assessee is in the business of plying Government buses on contract basis. It was the submission that the assessee has disclosed Rs.10,32,320/- from the business of plying of buses. It was the submission that the turnover of the assessee from plying of buses was Rs.4,05,70,520/-. It was the submission that the AO had estimated the income of the assessee and had increased the total income of the assessee by Rs.87,808/-. It was the submission that the AO had ITA No.124/CTK/2021 2 also added an amount of Rs.8,23,000/- being the specified bank notes deposited by the assessee in the bank account of the assessee. It was the submission that the total deposit of specified bank notes in both the bank accounts of the assessee was Rs.10,73,000/- out of which the AO accepted Rs.2,50,000/- as opening balance and disallowed the balance of Rs.8,23,000/-. It was submitted that the assessee had no other business other than plying of the Government buses which has been taken on contract basis. The specified bank notes are the money given to the assessee by the passengers. It was the submission that the RBI by Circular dated 08.11.2016 has permitted the transport operators, such as the assessee, who are running Government undertaking buses and public sector buses to accept the specified bank notes. It was the submission that these notes which have been given by the passengers cannot be treated as undisclosed income of the assessee. It was the prayer that the addition made by the AO in respect of the addition representing the specified bank notes may be deleted. 3. In reply, ld. Sr. DR vehemently supported the order of the ld. AO and CIT(A). It was the submission that it was for the assessee to show that the specified bank notes were obtained from the passengers. It was also submitted that the AO has reasonably granted the assessee benefit of Rs.2,50,000/- as opening balance. It was, therefore, the prayer of the ld. Sr. DR that the addition made by the AO and as confirmed by the ld. CIT(A) deserves to be upheld. ITA No.124/CTK/2021 3 4. We have considered the rival submissions. A perusal of the Circular issued by the RBI on 08.11.2016 clearly shows that the public sector transport operators and government transport operators have been permitted to accept the specified bank notes as legal tender during the demonetisation period. The assessee admittedly is a contractor, who operates the government buses on contract. The assessee very much falls within the specified category which is an exempted category as per the Circular issued by the RBI. Once the assessee falls within the exempted category as provided by the RBI then the deposit of such specified bank notes by such exempted category persons cannot be treated as undisclosed income of such person. This being so, we are of the view that the addition as made by the AO and as confirmed by the ld. CIT(A) is unsustainable and we delete the same. Even otherwise, the turnover of the assessee is more than Rs.4.05 crores. The deposit of the specified bank notes is about 5% of the total turnover of the assessee. When the AO himself has estimated the income of the assessee at 2.25%, it would be farfetched even presumed that 5% of the assessee’s turnover could be an undisclosed income of the assessee from the operation of the contracted Government buses. 5. In the result, appeal of the assessee is allowed. Order dictated and pronounced in the open court on 04/11/2022. Sd/- (अरुण खोड़पऩया) (ARUN KHODPIA) Sd/- (जाजज माथन) (GEORGE MATHAN) ऱेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER कटक Cuttack; ददनाांक Dated 04/11/2022 Prakash Kumar Mishra, Sr.P.S. ITA No.124/CTK/2021 4 आदेश की प्रनतलऱपऩ अग्रेपषत/Copy of the Order forwarded to : आदेशान ु सार/ BY ORDER, (Assistant Registrar) आयकर अऩीऱीय अधधकरण, कटक/ITAT, Cuttack 1. अऩीऱाथी / The Appellant- Paidisethy Anil Kumar, Kapileswarpeta, Berhampur, Ganjam-760009, Orissa 2. प्रत्यथी / The Respondent- ITO, Ward-1, Berhampur 3. आयकर आय ु क्त(अऩीऱ) / The CIT(A), 4. आयकर आय ु क्त / CIT 5. पवभागीय प्रयतयनधध, आयकर अऩीऱीय अधधकरण, कटक / DR, ITAT, Cuttack 6. गार्ज पाईऱ / Guard file. सत्यापऩत प्रयत //True Copy//