Sh. Trilok Singh Malhi, Jalandhar V. The Income Tax Officer, Jalandhar

ITA 152/ASR/2016

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 0537 (ITAT-AMRITSAR)
• Duration Of Justice: 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 19-05-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 11-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P N ARORA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR BEFORE SH. A.D.JAIN, JUDICIAL MEMBER AND SH. T.S. KAPOOR, ACCOUNTANT MEMBER I.T.A NO.152(ASR)/2016 ASSESSMENT YEAR: 2009-10 SHRI TIRLOK SINGH MALHI 207, MODEL TOWN, JALANDHAR-144410 PAN:AJRPM2648A VS. ITO, WARD III(2), JALANDHAR- 144001. (APPELLANT) (RESPONDENT) APPELLANT BY: SH. P. N. ARORA (ADV.) RESPONDENT BY: SH. UMESH TAKYAR (DR.) DATE OF HEARING: 17.05.2016 DATE OF PRONO UNCEMENT: 14.07.2016 ORDER PER T. S. KAPOOR (AM): THIS IS AN APPEAL FILED BY ASSESSEE AGAINST THE OR DER OF LEARNED CIT(A), JALANDHAR, DATED 01.01.2016 FOR ASST. YEAR: 2009-10. 2. THE ASSESSEE IS AGGRIEVED WITH THE ACTION OF LEA RNED CIT(A), BY WHICH HE HAD CONFIRMED AN ADDITION OF RS.3,75,000/- ON ACCOUNT OF UNEXPLAINED BANK DEPOSITS MADE ON 19.12.2008. 3. THE BRIEF FACTS AS NOTED IN THE ASSESSMENT ORDER ARE THAT THE ASSESSEE IS AN AGRICULTURIST AND IS ALSO EARNING IN COME FROM DIARY, FARMING. DURING THE YEAR UNDER CONSIDERATION, THE A SSESSING OFFICER HAD ITA NO.152 (ASR)/2016 ASST. YEAR : 2009-10 2 NOTED THAT ASSESSEE HAD MADE VARIOUS DEPOSITS IN HI S BANK ACCOUNT WITH ORIENTAL BANK OF COMMERCE AND THEREFORE, THE ASSESS ING OFFICER MADE AN ADDITION OF RS.17,36,000/- AS UNEXPLAINED DEPOSITS IN BANK. 4. AGGRIEVED THE ASSESSEE FILED APPEAL BEFORE LEARN ED CIT(A), WHO RESTRICTED THE ADDITION TO RS.3,75,000/- AFTER NOTI NG DOWN CASH FLOW STATEMENT FOR THE FINANCIAL YEARS 2007-08 AND 2008- 09. FROM THE CASH FLOW STATEMENT THE LEARNED CIT(A) HELD THAT THE DEP OSITS TO THE EXTENT OF RS.13,61,000/- STOOD EXPLAINED WHEREAS DEPOSITS TO THE EXTENT OF RS.3,75,000/- WERE NOT EXPLAINABLE. 5. AGGRIEVED THE ASSESSEE IS IN APPEAL BEFORE US. 6. AT THE OUTSET, THE LEARNED AR SUBMITTED THAT LEA RNED CIT(A) WHILE NOTING DOWN THE CASH FLOW STATEMENT DID NOT TAKE IN TO ACCOUNT THE OPENING BALANCE OF CASH IN HAND AS ON 1.4.2007 WHIC H HE HIMSELF HAD DETERMINED IN THE FINANCIAL YEAR ENDING ON 31.3.200 7 AND IN THIS RESPECT FILED A COPY OF LEARNED CIT(A) ORDER IN THE CASE OF ASSESSEE FOR ASST. YEAR 2007-08. THE LEARNED AR, TOOK US TO PAGE 14 OF THIS ORDER AND INVITED OUR ATTENTION TO BALANCE OF CASH IN HAND AVAILABLE AS O N 31.3.2007 AT RS.240080/-. THE LEARNED AR SUBMITTED THAT SINCE TH E LEARNED CIT(A) HIMSELF HAD DETERMINED THIS AMOUNT OF CLOSING CASH IN HAND, THEREFORE, HE SHOULD HAVE TAKEN THIS AMOUNT AS OPENING BALANCE FOR THE DETERMINATION OF CASH BALANCES AVAILABLE FOR DEPOSI T IN BANK. HE FURTHER ITA NO.152 (ASR)/2016 ASST. YEAR : 2009-10 3 SUBMITTED THAT LEARNED CIT(A) HAS ALSO NOT CONSIDER ED THE RETURN OF INCOME OF RS.1,20,000/- FOR THE PURPOSES OF DETERMI NATION OF AVAILABILITY OF CASH. HE SUBMITTED THAT IF BOTH THESE FACTORS AR E CONSIDERED THERE WILL NOT BE ANY UNEXPLAINED CASH DEPOSITS. 7. THE LEARNED DR, HEAVILY PLACED HIS RELIANCE ON T HE ORDER OF AUTHORITIES BELOW. 8. WE HAVE HEARD THE RIVAL PARTIES AND HAVE GONE TH ROUGH THE MATERIAL PLACED ON RECORD. WE FIND THAT FOR ASST. Y EAR 2007-08, THE LEARNED CIT(A) HAS HIMSELF AT PAGE 14 OF HIS ORDER HAS DETERMINED THE AVAILABLE CASH BALANCE AT RS.240080/- AS ON 31.3.20 07WHICH HE HAS IGNORED TO TAKE INTO ACCOUNT FOR THE PREPARATION OF CASH FLOW STATEMENT FOR FINANCIAL YEARS 2007-08 AND 2008-09. HE HAS STA RTED THE CASH FLOW STATEMENT FROM 20.06.2007 ONLY AND HAS NOT CONSIDER ED THE OPENING BALANCE OF RS.240080/-. FURTHER, WE FIND THAT ASSES SEE HAD FILED RETURN OF INCOME DECLARING INCOME OF RS.1,20,000/- WHICH A LSO SHOULD HAVE BEEN CONSIDERED BY LEARNED CIT(A) FOR THE PURPOSES OF CONSIDERING THE AVAILABILITY OF CASH. IF WE TAKE UP THESE TWO FIGUR ES THE CASH AVAILABILITY WITH THE ASSESSEE WILL IMPROVE BY RS.3,60,080/-. TH E LEARNED CIT(A) HAS CONFIRMED THE ADDITION OF RS.3,75,000/- AND IF WE R EDUCE THE AMOUNT OF AVAILABLE CASH FROM THE ADDITION THE DIFFERENCE WIL L ONLY REMAIN ABOUT RS.15,000/- WHICH IS A VERY NEGLIGIBLE DIFFERENCE A ND CAN BE IGNORED FOR ITA NO.152 (ASR)/2016 ASST. YEAR : 2009-10 4 SUCH A MAN WHO IS EARNING A HUGE AMOUNT FROM AGRICU LTURE INCOME. IN VIEW OF THE ABOVE FACTS AND CIRCUMSTANCES, WE ARE I N AGREEMENT WITH THE ARGUMENTS OF LEARNED AR AND THEREFORE, WE ALLOW THE APPEAL FILED BY ASSESSEE. 9. IN VIEW OF THE ABOVE, THE APPEAL FILED BY ASSESS EE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 14 .07.2016. SD/- SD/- (A.D. JAIN) (T. S. KAPOOR) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 14.07.2016. /PK/ PS. COPY OF THE ORDER FORWARDED TO: (1) THE ASSESSEE: (2) THE (3) THE CIT(A), (4) THE CIT, (5) THE SR DR, I.T.A.T., TRUE COPY BY ORDER