Sh. Joginder Pal, Kharar V. ITO, W-6(4), Mohali

ITA 1268/CHANDI/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 5095 (ITAT-CHANDIGARH)
• Duration Of Justice: 6 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 29-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCHB, CHANDIGARH BEFORE SMT. DIVA SINGH, JUDICIAL MEMBER AND SHRI B.R.R. KUMAR, ACCOUNTANT MEMBER ITA NO.1268/CHD/2017 ASSESSMENT YEAR: 2010-11 SHRI. JOGINDER PAL VS. THE ITO H.NO. 57, MANDER NAGAR WARD-6(4), MOHALI WARD NO. 1, SECTOR-15 KHARAR, MOHALI PAN NO. ANDPP8401G (APPELLANT) (RESPONDENT) ASSESSEE BY : SH. PARIKSHIT AGGARWAL REVENUE BY : SH. MANJIT SINGH DATE OF HEARING : 22/03/2018 DATE OF PRONOUNCEMENT : 27/03/2018 ORDER PER B.R.R. KUMAR A.M. THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE A GAINST THE ORDER OF THE LD. CIT(A)-2, CHANDIGARH DT. 22/06/2017. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. THAT ON THE FACTS, CIRCUMSTANCES OF THE CASE AND IN LAW, THE WORTHY CIT(A) THROUGH HIS ORDER DT. 22/06/2017 HAS ERRED IN PASSI NG THAT ORDER IN CONTRAVENTION OF THE PROVISIONS OF SECTION 250(6) OF THE INCOME T AX ACT, 1961. 2. THAT ON LAW, FACTS AND CIRCUMSTANCES OF THE CASE, T HE WORTHY CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ADDITION OF RS. 16, 55,200/- ON ACCOUNT OF ALLEGED UNEXPLAINED SOURCE OF CASH DEPOSIT IN THE BANK ACCO UNT EVEN WHEN SAID DEPOSIT WAS NOT FROM UNEXPLAINED SOURCES. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A RETIRED ARMED FORCE PERSON AND ASSESSMENT WAS COMPLETED WITH AN ADDITIO N OF RS. 16,55,200/- BEING 2 THE CASH DEPOSITS FOUND IN THE VARIOUS BANK ACCOUNT S NAMELY SBI AND ICICI BANK BELONGING TO THE ASSESSEE. 4. THE LD. CIT(A) HAS CONFIRMED THE ADDITION O N TH E GROUNDS THAT ASSESSEE HAS NOT BROUGHT ANY MATERIAL ON RECORD TO CONTRAVER T THE FINDINGS OF THE ASSESSING OFFICER. 5. BEFORE US THE LD. AR HAS SUBMITTED THAT THESE TR ANSACTIONS IN THE BANK ACCOUNT OF THE ASSESSEE PERTAINS TO THE RETIREMENT BENEFITS. HE ARGUED THAT WHILE DETERMINING THE CASH DEPOSITS, THE OPENING CA SH BALANCE HAS NOT BEEN TAKEN INTO CONSIDERATION. FURTHER IT WAS SUBMITTED BEFORE US THAT THE ASSESSEE HAS BEEN MAINTAINING TWO BANK ACCOUNTS AS MENTIONED ABOVE AND THERE HAVE BEEN WITHDRAWALS ON 02/02/2010 OF RS. 5,40,000/-, A ND DEPOSIT OF RS. 4,90,000/- ON 13/10/2010. SIMILARLY THE ASSESSEE HAD WITHDRAWA LS ON 13/02/2010 OF RS. 3,20,000/- AND DEPOSITS ON 27/02/2010 OF RS. 5,00,0 00/-. THE ASSESSEE HAS ALSO SHOWN THE CASH WITHDRAWALS ON 01/02/2010 OF RS. 44, 000/- AND 1,20,000/-. IT WAS SUBMITTED THAT THERE HAS BEEN INTER EXCHANGE OF DEP OSITS AND WITHDRAWALS AMONG THE TWO BANK ACCOUNTS AND BOTH ACCOUNTS HAVE TO BE TAKEN INTO CONSIDERATION WHILE DETERMINING THE CASH DEPOSITS. 6. LD. DR HAS RELIED ON THE ORDER OF THE LD. CIT(A) . 7. FROM THE ABOVE WITHDRAWALS AND DEPOSITS IT CAN BE SAFELY ASSUMED THAT THE BENEFIT OF WITHDRAWALS HAVE TO BE GIVEN FOR THE CASH DEPOSITS MADE BY THE ASSESSEE AS THE TIME LEG BETWEEN THE TRANSACTIONS I S MINIMAL. HENCE WE DEEM IT FIT TO RESTORE THE MATTER TO THE FILE OF THE WITH T HE DIRECTIONS TO GIVE THE BENEFIT OF WITHDRAWALS WHILE DETERMINING THE PEAK CASH CREDIT. 8. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (DIVA SINGH) (B.R.R.KUM AR) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 27/03/2018 AG COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT, TH E CIT(A), THE DR