Sri Rammohan Kordale, Bangalore V. Assistant Commissioner of Income-Tax, Circle-5(3)(2), Bangalore

ITA 161/BANG/2023

AI Insights

The case involves an appeal by Sri Rammohan Kordale against the order of the National Faceless Appeal Centre (NFAC), which confirmed the addition of Rs. 1,82,952 as unexplained money for the assessment year 2017-18. The addition was initially made by the Assessing Officer (AO) following the discovery of a deposit of US $ 2700 in the assessee's bank account, which the assessee could not initially explain. The assessee argued that the amount was a transfer from his own savings account to his checking account, both held in the same bank and jointly with his wife. The Tribunal accepted the assessee's explanation, leading to the deletion of the addition.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 129273 (ITAT-BANGALORE)
• Duration Of Justice: 3 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-06-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 12-06-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 07-03-2023
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 234B; 69A

Judgement Text

ITA No.161/Bang/2023 Sri Rammohan Kordale, Bangalore IN THE INCOME TAX APPELLATE TRIBUNAL “C’’ BENCH: BANGALORE BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER ITA No.161/Bang/2023 Assessment Year:2017-18 Sri Rammohan Kordale, #001, Block 1H Divyashree Elan Apts Sarjapur, Sarjapur Road Bangalore 560 102 PAN NO : AKWPK2157N Vs. ACIT Circle-5(3)(2) Bangalore APPELLANT RESPONDENT Appellant by : Shri Ravishankar, A.R. Respondent by : Smt. Priyadarshini Baseganni, D.R. Date of Hearing : 13.06.2023 Date of Pronouncement : 13.06.2023 O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: This appeal by assessee is directed against order of NFAC for the assessment year 2017-18 dated 15.12.2021. The assessee has raised following grounds: 1. The order passed by the authorities below in so far as it is against the Appellant is opposed to law, weight of evidence, probabilities, facts and circumstances of the Appellant's case. 2. The appellant denies himself to be assessed at Rs. 1,10,19,330/- as against the returned income of Rs. 1,08,36,380/- for the assessment year 2017-18 on the facts and circumstances of the case. 3. The learned CIT(A) was not justified in confirming the addition of Rs. 1,82,952/-as unexplained money, which was a transfer from the ITA No.161/Bang/2023 Sri Rammohan Kordale, Bangalore Page 2 of 6 appellants own bank account and within the same bank, on the facts and circumstances of the case. 4. The learned CIT(A) was not justified in appreciating the bank account filed as part of the appeal, was sufficient to demonstrate that the transfer was made - between the bank accounts of the appellant, held in the same sank on the facts and circumstances of the case. 5. The learned CIT(A) failed to appreciate that the balances available in the bank account were sufficient to make the transfer, between the accounts, and no deposits have been made to fund the deposits, on the facts and circumstances oof the case. 6. The authorities below failed to appreciate that the provisions of section 69A of the Act, were not attracted in the instant case, since the money deposited into the bank account was received from the appellant himself, being a transfer from the same link, on the facts and circumstances of the case. 7. The authorities below failed to appreciate that the invocation of the provisions of section 115BBE of the Act, was bad in law, on the facts and circumstances of the case. 8. The learned CIT(A) was not justified in passing a cryptic order and ought to have obtained a remand report from the assessing officer, in respect of the bank accounts filed, on the facts and circumstances of the case. 9. The appellant denies the liability to pay interest under section 234A, 234B and 234C of the Act in view of the fact that there is no liability to additional tax as determined by the learned assessing officer. Without prejudice the rate, period and on what quantum the interest has been levied are not in accordance with law and further are not discernible from the order and hence deserves to be cancelled on the facts and circumstances of the case. 10. The appellant craves to add, alter, amend, substitute, change and delete any of the grounds of appeal. 11. For the above and other grounds that may be urged at 'tie time of hearing of the appeal, the Appellant prays that the appeal may be allowed and justice rendered. ITA No.161/Bang/2023 Sri Rammohan Kordale, Bangalore Page 3 of 6 2. The crux of above grounds is with regard to addition of Rs.1,82,952/- as unexplained money u/s 69A of the Income-tax Act,1961 ['the Act' for short]. 3. Facts of the issue are that during assessment proceedings, it was found by the AO that the assessee had a deposit of US $ 2700 into his bank account of Bank of America bearing account No.000144812786 on 17.10.2016. The assessee has not furnished source of the same. The addition was made by AO at Rs.1,82,952/- . The assessee carried the appeal to NFAC. Before the NFAC, the assessee filed submissions that said amount is nothing but inter- bank transfer from SB account No.000144808401 to Checking Account No.000144812786. However, the NFAC not agreeing with the contention of the assessee sustained the addition and confirmed the order of the AO. Against this, assessee is in appeal before us. 4. We have heard the rival submissions and perused the materials available on record. The assessee filed a copy of account No.000144808401, wherein an amount of US $ 2700 has been transferred on 27.10.2016, thereby said amount has been reduced from this account. This statement has been placed in assessee’s paper book at page 32. This amount was transferred to SB account No.000144812786 into Bank of America on the same day i.e. 27.10.2016. Now the contention of the ld. A.R. is that the amount transferred from the Account No.000144808401 was assessee’s own account with his wife Mrs. Savita Jayaram and it was opening balance as on 1.4.2016. To support this claim, assessee filed the account copy of 000144808401, which reads as follows: ITA No.161/Bang/2023 Sri Rammohan Kordale, Bangalore Page 4 of 6 ITA No.161/Bang/2023 Sri Rammohan Kordale, Bangalore Page 5 of 6 4.1 As seen from the above, this account No.000144808401 is assessee’s joint account with Mrs. Savita Jayaram and the opening balance as on 1.4.2016 was at US $ 9255.96. When this amount of US $ 2700 has been transferred to account bearing No.000144812786, which is also assessee’s joint account with assessee’s wife Mrs. Savita Jayaram, it cannot be considered as an unexplained money u/s 69A of the Act. Being so, in our opinion, ITA No.161/Bang/2023 Sri Rammohan Kordale, Bangalore Page 6 of 6 assessee explained the sources as the opening balance standing in the assessee’s own account No.000144808401 at US $ 9255.96. Accordingly, we find merit in the argument of ld. A.R. and the addition made u/s 69A of the Act is deleted. 5. In the result, appeal of the assessee is allowed. Order pronounced in the open court on 13 th June, 2023 Sd/- (Beena Pillai) Judicial Member Sd/- (Chandra Poojari) Accountant Member Bangalore, Dated 13 th June, 2023. VG/SPS Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The CIT(Judicial) 5. The DR, ITAT, Bangalore. 6. Guard file By order Asst. Registrar, ITAT, Bangalore.