Deelip Vishwanath Davle, Latur V. Income-tax Officer, Ward - 2, Latur

ITA 1727/PUN/2017

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 3704 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 7 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-02-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 14-01-2019
• Assessment Year: 2010-2011
• Appeal Filed On: 14-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ARISES OUT OF PASSED
• Keywords: Peak credit
• Section: 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT . / ITA NO.1727/PUN/2017 / ASSESSMENT YEAR : 2010-11 SHRI DEELIP VISHWANATH DAVLE, AT POST KARAJGAON, TALUKA AUSA, DIST. LATUR PAN : AEIPD3519B VS. ITO, WARD -2, LATUR (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PASSE D BY THE CIT(A)-2, AURANGABAD ON 06-04-2017 IN RELATION TO THE ASSESSMENT YEAR 2010-11. 2. THE ASSESSEE HAS FILED ADDITIONAL REVISED GROUNDS. 3. GROUND NO.2 IS AGAINST SUSTENANCE OF ADDITION OF RS.7,39,250/- ON ACCOUNT OF CASH DEPOSITS IN BANK. 4. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE AO GOT AIR INFORMATION ABOUT THE ASSESSEE HAVING DEPOSITED CASH OF APPELLANT BY SHRI PIYUSH BAFNA RESPONDENT BY SHRI RAJESH GAWLI DATE OF HEARING 20-02-2019 DATE OF PRONOUNCEMENT 21-02-2019 ITA NO.1727/PUN/2017 SHRI DEELIP V. DALVE 2 MORE THAN RS.10.00 LAKH IN HIS SAVINGS BANK ACCOUNT. NOTIC E U/S. 148 WAS ISSUED. IN THE ASSESSMENT PROCEEDINGS, THE ASSESSEE WAS CALLED UPON TO FURNISH SOURCE OF CASH DEPO SITS OF RS.10.47 LAKH MADE ON DIFFERENT DATES STARTING FROM 21-04- 2009 TO 09-03-2010. THE ASSESSEE TENDERED SOME EXPLAN ATION, WITH WHICH THE ASSESSING OFFICER (AO) WAS NOT SATISFIED. CONSIDERING THE AGRICULTURAL INCOME OF THE ASSESSEE AS PER CERTAIN ESTIMATIONS AT RS.1,56,431/-, THE AO MADE ADDITION OF THE REMAINING AMOUNT OF RS.8,90,569/-. (RS.10.40 LAKH, B EING, CASH DEPOSITED IN SAVINGS ACCOUNT AS REDUCED BY AGRICULTU RAL INCOME AS ESTIMATED BY HIM AT RS.1,56,431/-). THE LD. CIT(A) ACCEPTED THE ASSESSEES EXPLANATION ABOUT THE AGRICULTURAL INCOME AT RS.1,67,000/- AND RS.1,40,750/- AGGREGATING TO RS.3,07,750/- ON THE BASIS OF PHOTOCOPIES OF TWO BILLS GIVE N BY M/S. RAMESH NARAYAN DAHE. ADDITION OF RS.7,39,250/- W AS SUSTAINED, AGAINST WHICH THE ASSESSEE HAS COME UP IN APPEA L BEFORE THE TRIBUNAL. 5. I HAVE HEARD BOTH THE SIDES AND GONE THROUGH THE RELEVANT MATERIAL ON RECORD. IT IS NOTICED THAT THE SOLE BASIS F OR THE ADDITION IS CASH DEPOSITS MADE BY THE ASSESSEE IN HIS ITA NO.1727/PUN/2017 SHRI DEELIP V. DALVE 3 SAVINGS BANK ACCOUNT ON DIFFERENT DATES. COPY OF BANK ACCOUNT IS AVAILABLE ON PAGE 33 ONWARDS OF THE PAPER BOOK , FROM WHICH IT CAN BE SEEN THAT THERE ARE SEVERAL CASH DEP OSITS COUPLED WITH CASH WITHDRAWALS. THE AO HAS CONSIDERED ONLY CASH DEPOSITS TO THE EXCLUSION OF CASH WITHDRAWALS. THE ASSESSEE HAS DRAWN A STATEMENT SHOWING PEAK BALANCE IN SUPPORT OF CASH DEPOSITS AND CASH WITHDRAWALS FROM/TO THE SAVINGS ACCOUNT, WHICH SHOWS THE PEAK BALANCE AT RS.2,39,700/-. IT IS AXIOMATIC THAT IF CERTAIN CASH DEPOSITS ARE MADE AND THEREAFTER CERTAIN WITHDRAWALS ARE ALSO MADE WHICH ARE RE-DEPOSITED IN THE BANK ACCOUNT, THE AO CANNOT MAKE ADDITION ON ACCOUNT OF UNEXPLAINED EXPLANATION IN RESPECT OF ONLY DEPOSITS BY IGNORING THE WITHDRAWAL SIDE ALSO WHICH WAS RE-DEPOSITED, UNLESS IT IS SHOWN THAT THE CASH WITHDRAWALS WE RE USED ELSEWHERE. ADVERTING TO THE FACTS, IT IS SEEN THAT THE PE AK BALANCE IS RS.2,39,700/-. WHEN I VIEW THE PEAK BALANCE OF RS.2,39,700/- IN THE LIGHT OF AGRICULTURAL INCOME ACCEPTED BY THE LD. CIT(A) AT RS.3,07,750/-, IT BECOMES EVIDENT THAT TH E CASH DEPOSITS IN THE BANK ACCOUNT WERE MADE OUT OF THE AGRICULTURAL INCOME, WHICH IS MUCH MORE THAN PEAK CREDIT. I, THEREFORE, ORDER TO DELETE THE ADDITION. ITA NO.1727/PUN/2017 SHRI DEELIP V. DALVE 4 6. IN THE RESULT, THE APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 21 ST FEBRUARY, 2019 SD/- (R.S.SYAL) / VICE PRESIDENT PUNE; DATED : 21 ST FEBRUARY, 2019 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT (APPEALS)-2, AURANGABAD 4. THE PR. CIT-2, AURANGABAD 5. , , SMC / DR SMC, ITAT, PUNE; 6. / GUARD FILE. // TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE ITA NO.1727/PUN/2017 SHRI DEELIP V. DALVE 5 DATE 1. DRAFT DICTATED ON 20-02-2019 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 21-02-2019 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. *