Shri Shivam Rajnikant Patel, Anand V. The ITO, Ward-5, Anand

ITA 170/AHD/2022

AI Insights

The case involves Shivam Rajnikant Patel, an employee of Bharat Sanchar Nigam Limited (BSNL), who appealed against the order of the CIT(A), National Faceless Appeal Centre, Delhi, for the Assessment Year 2011-12. The primary contention was the addition of Rs. 23,95,000 as unexplained cash deposit under Section 69A of the Income Tax Act, 1961, which was initially added by the Assessing Officer following an ex-parte assessment. The Tribunal noted that the same amount had been deposited by the assessee's father in a joint account and had been previously accepted as genuine in the father's assessment. Therefore, the Tribunal ruled in favor of the assessee, allowing the appeal and reversing the addition.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 129281 (ITAT-AHMEDABAD)
• Duration Of Justice: 8 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 22-01-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 12-05-2022
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Salary income
• Section: 147; 144; 69A

Judgement Text

ITA No.170/Ahd/2022 Assessment Year: 2011-12 Page 1 of 3 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “SMC” BENCH, AHMEDABAD BEFORE Ms. SUCHITRA KAMBLE, JUDICIAL MEMBER ITA No.170/Ahd/2022 Assessment Year: 2011-12 Shivam Rajnikant Patel, vs. The Income Tax Officer, Maruti Krupa, Ward – 5, Anand. 7, Gokul Nagar, B/h. Panchal Hall, Anand – 388 001. [PAN – AOEPP 5553 R] (Appellant) (Respondent) Assessee by : Shri Dinal Shah, AR Revenue by : Shri Rakesh Jha, Sr. DR Date of hearing : 23.01.2023 Date of pronouncement : 08.02.2023 O R D E R This appeal is filed by the Assessee against order dated 14.03.2022 passed by the CIT(A), National Faceless Appeal Centre (NFAC), Delhi for the Assessment Year 2011-12. 2. The Assessee has raised the following grounds of appeal :- “1. On the facts and in the circumstances of the case and in law, the order under Section 147 read with Section 144 of the Income Tax Act, 1961 (‘Act’) passed by learned Assessing Officer (‘AO’) and confirmed by Hon’ble National Faceless Appeal Centre, Delhi (‘NFAC’) is bad in law and void-ab-initio. 2. On the facts and in the circumstances of the case and in law, the addition of Rs.23,95,000/- made by the learned AO under Section 69A of the Act and upheld by Hon’ble NFAC is not sustainable in law. 3. On the facts and in the circumstances of the case and in law, Hon’ble NFAC has erred in law in confirming the addition of Rs.23,95,000/-, without appreciating the fact that cash was deposited by Mr. Rajnikant Patel (father of Appellant) in a bank account jointly held by Appellant and Mr. Rajnikant Patel and said deposit of cash has already been examined during the course of assessment proceedings in case of father of appellant and same were found to be in order. 3. The assessee is serving in Bharat Sanchar Nigam Limited (BSNL) since 1979 and source of income is salary income during the year. The assessee filed return of ITA No.170/Ahd/2022 Assessment Year: 2011-12 Page 2 of 3 income on 27.07.2011 declaring total income of Rs.3,82,190/-. The Assessing Officer observed that on verification of the Bank Statement of Axis Bank Account, interest income of Rs.3,654/- was not included in the total income. The Assessing Officer issued show cause notice in respect of AIR information which revealed that the assessee deposited Rs.23,95,000/- in his savings account. The assessee did not appear before the Assessing Officer and hence the Assessing Officer passed ex-parte assessment under Section 144 read with Section 147 of the Income Tax Act, 1961 thereby making addition of Rs.23,95,000/- as unexplained cash deposit under Section 69A of the Act. 4. Being aggrieved by the Assessment Order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. 5. The Ld. AR submitted that the assessment order is ex-parte as well as the CIT(A) erred in confirming the addition without appreciating the fact that cash was deposited by father of the assessee in bank account jointly held by assessee and Shri Rajnikant Patel i.e. father of the assessee. The said deposit of cash has already been examined during the course of assessment proceedings in the case of father of the assessee and the same was found genuine. The Ld. AR pointed out at page no.3 of the Paper Book which has given the details of the assessee’s bank account thereby showing that the father of the assessee has deposited the amount. 6. The Ld. DR relied upon the Assessment Order and the order of the CIT(A). Ld. DR further submitted that NFAC i.e. CIT(A) has rightly confirmed the addition as the assessee did not give the details related to the cash transactions/deposits. 4. Heard both the parties and perused all the relevant material available on record. It is seen that there was two Savings Bank Account held by the assessee of his Father as well as his Mother. It is undisputed fact that the assessee’s Father has deposited certain amounts and the reason for depositing the same was also given by the assessee during the assessment proceedings as well as before the CIT(A). In fact, the cash deposit made by the Father of the assessee was accepted by the Revenue in assessee’s Father’s case. Thus, the cash deposits were already held as genuine and the Department cannot take a different stand in assessee’s case. Hence, ITA No.170/Ahd/2022 Assessment Year: 2011-12 Page 3 of 3 the addition made by the Assessing Officer and confirmed by the CIT(A) is not justifiable. Appeal of the assessee is, therefore, allowed. 5. In the result, appeal filed by the assessee is allowed. Order pronounced in the open Court on this 8 th day of February, 2023. Sd/- (SUCHITRA KAMBLE) Judicial Member Ahmedabad, the 8 th day of February, 2023 PBN/* Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPY Assistant Registrar Income Tax Appellate Tribunal Ahmedabad benches, Ahmedabad