Satish Sarjerao Choudhari, Parbhani V. Income-tax Officer, Ward - Parbhani, Parbhani

ITA 1296/PUN/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9023 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 5 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 03-07-2019
• Assessment Year: 2008-2009
• Appeal Filed On: 10-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ARISES OUT OF PASSED
• Keywords: Business income; Reassessment proceedings
• Section: 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT . / ITA NO. 1296/PUN/2018 / ASSESSMENT YEAR : 2008-09 SATISH SARJERAO CHOUDHARI, CHAUDHARI GALLI, A/P. BORI, TALUKA JINTUR, DIST. PARBHANI, PAN : AJSPC4761F VS. ITO, WARD, PARBHANI (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PASSE D BY THE CIT(A)-1, AURANGABAD ON 04-06-2018 IN RELATION TO THE ASSESSMENT YEAR 2008-09. 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE CONFIRMATION OF ADDITION OF RS.8,30,538/- MADE TOWARDS PEA K BALANCE IN THE ASSESSEES BANK ACCOUNT. APPELLANT BY SHRI PRAMOD SHINGTE RESPONDENT BY SHRI S.P. WALIMBE DATE OF HEARING 13-01-2020 DATE OF PRONOUNCEMENT 14-01-2020 ITA NO.1296/PUN/2018 SATISH S. CHOUDHARI 2 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS ENGAGE D IN THE TRADING OF AGRICULTURAL PRODUCE. THE ASSESSING OFFICER RECEIVED INFORMATION THAT THE ASSESSEE HAD DEPOSITED A SUM OF RS.15,30,300/- IN HIS SAVINGS BANK ACCOUNT MAINTAINED WITH STATE BANK OF HYDERABAD, BRANCH BORI. NO RETURN OF INCOM E WAS FILED. REASSESSMENT PROCEEDINGS WERE INITIATED. PURSUAN T TO THE SAME, THE ASSESSEE FILED HIS RETURN DECLARING TOTAL INCOM E OF RS.57,500/- APART FROM AGRICULTURAL INCOME OF RS.3,90, 768/-. THE ASSESSEE SUBMITTED 7/12 EXTRACTS AND SALE PATTIES OF AGRICULTURAL PRODUCE SOLD. THE ASSESSEE ALSO FURNISHED PU RCHASE BILLS OF APMC, JINTUR WITH REGARD TO TOOR, UDID, JAWAR AND MOONG. ON BEING CALLED UPON TO EXPLAIN THE SOURCE OF DEPO SIT IN THE BANK ACCOUNT, THE ASSESSEE SUBMITTED THAT THE DEPOSITS WERE MADE OUT OF HIS AGRICULTURAL INCOME AND OTHER BUSINESS INCOME ARISING FROM TRADING ACTIVITIES. THE ASSESSING OFFICER COMPUTED THE PEAK BANK BALANCE OF RS.8,30,538/- ON 08.12.2007 AND MADE ADDITION FOR THE SAME. THE LD. CIT (A) CONFIRMED THE ABOVE ADDITION, AGAINST WHICH THE ASSESSEE HA S COME UP IN APPEAL BEFORE THE TRIBUNAL. ITA NO.1296/PUN/2018 SATISH S. CHOUDHARI 3 4. I HAVE HEARD BOTH THE SIDES AND GONE THROUGH THE RELE VANT MATERIAL ON RECORD. IT IS SEEN FROM THE ASSESSMENT ORDER THAT THE ASSESSEE DECLARED SALE OF RS.15,30,300/- AND SHOWED P ROFIT @ 5% AMOUNTING TO RS.76,500/-. THE ASSESSING OFFICER HAS NOT DISPUTED THE MAKING OF CASH SALES TO THE ABOVE EXTENT. IN ADDITION, THE ASSESSEE ALSO DECLARED AGRICULTURAL INCOME OF RS.3,90,768/-, WHICH HAS ALSO BEEN ACCEPTED BY THE ASS ESSING OFFICER. THIS SHOWS THAT AS AGAINST THE ADDITION OF RS.8,30,538/- TOWARDS CASH DEPOSIT IN THE BANK, THE ASSE SSEE DURING THE YEAR ITSELF MADE CASH SALE OF RS.15,30,000/- A ND EARNED NET AGRICULTURAL INCOME OF RS.3,90,768/-. SUCH AN AMOUNT OF CASH AVAILABLE IN THE HANDS OF THE ASSESSEE FOR MORE THAN RS.19.00 LAKH IS MUCH HIGHER THAN THE AMOUNT OF ADDITION OF RS.8,30,538/- MADE BY THE ASSESSING OFFICER TOWARDS PEAK BANK DEPOSIT IN CASH. SINCE THE ASSESSING OFFICER DID AC CEPT THE FACTUM OF CASH SALES OF RS.15,30,000/- AND AGRICULTUR AL INCOME TO THE TUNE OF RS.3,90,768/-, I AM SATISFIED THAT THE SOURCE OF THE CASH DEPOSIT IN THE BANK ACCOUNT IS AUTOMATICA LLY PROVED OUT OF SUCH RECEIPTS. I, THEREFORE, OVERTURN THE IMPUGNED ORDER AND DELETE THE ADDITION. ITA NO.1296/PUN/2018 SATISH S. CHOUDHARI 4 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 14 TH JANUARY, 2020. SD/- (R.S.SYAL) / VICE PRESIDENT PUNE; DATED : 14 TH JANUARY, 2020 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT (APPEALS)-1, AURANGABAD 4. THE PR.CIT-1, AURANGABAD 5. , , SMC / DR SMC, ITAT, PUNE; 6. / GUARD FILE. // TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE DATE 1. DRAFT DICTATED ON 13-01-2020 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 13-01-2020 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER -- JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. -- JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8. FILE SENT TO THE BENCH CLERK SR.PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK 10. DATE ON WHICH FILE GOES TO THE A.R. 11. DATE OF DISPATCH OF ORDER. *