Sh Jatinderpal Singh, Amritsar. V. The Income Tax Officer, Amritsar.

ITA 195/ASR/2017

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 0543 (ITAT-AMRITSAR)
• Duration Of Justice: 2 year(s) 8 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 17-12-2019
• Assessment Year: 2008-2009
• Appeal Filed On: 17-04-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: P N ARORA
• Keywords: Peak credit
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR BEFORE SH. N. K. CHOUDHRY, JUDICIAL MEMBER AND SH. O. P. MEENA ACCOUNTANT MEMBER I.T.A. NO. 195/ASR/2017 AS SESSMENT YEAR: 2008-09 SH. JATINDERPAL SINGH VPO NAUSHERA KHURD MAJITHA ROAD, AMRITSAR [PAN: ATCPS 2524C] VS. INCOME TAX OFFICER, WARD 4(2), AMRITSAR (APPELLANT) (RESPONDENT) APPELLANT BY : SH. P. N. ARORA (ADV.) RESPONDENT BY: SH. ALOK KUMAR CIT-DR DATE OF HEARING: 17.12.2019 DATE OF PRONOUNCEMENT: 19.12.2019 ORDER PER O. P. MEENA, AM: THIS APPEAL BY THE ASSESSEE IS FILED AGAINST THE OR DER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-2, AMRITSAR DA TED 06.02.2017 FOR THE ASSESSMENT YEAR 2008-09. 2. GROUND NO. 1 & 3 TO 7 ARE NOT PRESSED BEFORE US HENCE SAME ARE TREATED AS DISMISSED AS NOT PRESSED. 3. GROUND NO. 2 AND AMENDED GROUND NO. 1 RELATES TO CONFIRMING THE ADDITION OF RS.2,26,205/- OUT OF THE ADDITION MADE AT RS.10,45, 305/-. 4. THE AO NOTICED THAT THE ASSESSEE HAS MADE CASH D EPOSITS AGGREGATING TO RS.10,45,300/- IN HIS BANK ACCOUNT WITH ICICI BANK DURING YEAR UNDER ITA NO. 195/ASR/2017 (AY 2008-09) SH. JATINDERPAL SINGH V. ITO 2 CONSIDERATION. THEREFORE, A SHOW-CAUSE NOTICE WAS I SSUED TO THE ASSESSEE TO EXPLAIN THE SAME HOWEVER NO COMPLIANCE WAS MADE BY THE ASSE SSEE. THE ASSESSMENT WAS MADE U/S 144 OF THE ACT BY MAKING ADDITION OF RS.10 ,45,300/-. 5. BEING AGGRIEVED THE ASSESSEE FILED AN APPEAL BEF ORE CIT(APPEAL). HOWEVER, CIT(APPEAL) OBSERVED THAT THE WITHDRAWALS FROM THE SAID BANK ACCOUNT ARE ONLY RS.3,14,000/- WHICH AS BY WAY OF CASH. THEREFORE, T HE SET OFF OF THE CASH WITHDRAWAL IS ALLOWED FOR THE APPELLANT FOR WORKED OUT PEAK BALANCE IN THE BANK ACCOUNT AS THE AO HAD NOT ESTABLISHED THAT THESE WI THDRAWALS HAVE BEEN UTILIZED BY THE ASSESSEE ELSEWHERE. THEREAFTER, THE CIT(APPEAL) OBSERVED THAT THE PEAK BALANCE WAS AT RS.2,26,205/- HENCE THE ADDITION WAS CONFIRM ED AND BALANCE WAS DELETED. 6. BEING AGGRIEVED THE ASSESSEE HAS FILED THIS APPE AL BEFORE THIS TRIBUNAL. RELYING ON THE DECISION OF ITAT AMRITSAR IN THE CAS E OF KULWANT SINGH V. ITO IN ITA NO. 519/ASR/2014 DATED 19.02.2015 SUBMITTED THA T THE CREDIT OF THE INCOME RETURNED BY THE ASSESSEE SHOULD HAVE BEEN ALLOWED F ROM THE PEAK CREDIT BALANCE SUSTAINED BY THE CIT(APPEAL). IT WAS SUBMITTED THAT THE ASSESSEE HAS OPENING SAVING BALANCE, THEREFORE, THE SAME SHOULD HAVE BEE N ALLOWED AGAINST THE PEAK CREDIT BALANCE SUSTAINED BY THE CIT(APPEAL). 7. PER CONTRA THE LEARNED SR. DR RELIED ON THE CIT( APPEAL). 8. WE HAVE HEARD THE RIVAL SUBMISSIONS AND FIND THA T THE ASSESSEE MIGHT HAVE SOME SAVING IN THE PRECEDING YEAR, THEREFORE FOLLOW ING THE DECISION OF ITAT IN THE CASE OF KULWANT SINGH, WE ALLOW FURTHER DEDUCTION O F RS.1,55,120/- OF RETURNED INCOME SHOWN BY THE ASSESSEE AS DEDUCTION OUT OF PE AK CREDIT ADDITION OF RS. RS.2,26,205/- SUSTAINED BY THE LD. CIT(APPEAL). AC CORDINGLY, THIS APPEAL IS PARTLY ALLOWED. ITA NO. 195/ASR/2017 (AY 2008-09) SH. JATINDERPAL SINGH V. ITO 3 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON DECEMBER 19, 2019 SD/- SD/- (N. K. CHOUDHRY) (O. P. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATE: 19.12.2019 /GP/SR. PS. COPY OF THE ORDER FORWARDED TO: (1) THE APPELLANT: (2) THE RESPONDENT: (3) THE CIT(APPEALS), (4) THE CIT CONCERNED (5) THE SR. DR, I.T.A.T. TRUE COPY BY ORDER