Bhimrao Arjunrao Bhakare, Aurangabad V. Income-tax Officer,

ITA 2160/PUN/2016

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 7581 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 1 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-10-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 18-09-2019
• Assessment Year: 2011-2012
• Appeal Filed On: 14-09-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: PRASHANT GANDHALE
• Assessee Lawyers: HARI KRISHAN
• Keywords: Revised return
• Section: 69C; 143(3); 69A

Judgement Text

] IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER . / ITA NO.2160/PUN/2016 / ASSESSMENT YEAR : 2011-12 BHIMRAO ARJUNRAO BHAKARE, C/O.PRINCIPAL, PRABHAT HIGH SCHOOL, NIDHONA, TALUKA PHULAMBRI, DIST. AURANGABAD. PAN : AHLPB8759P. . / APPELLANT V/S THE INCOME TAX OFFICER, WARD 2(3), AURANGABAD. . / RESPONDENT ASSESSEE BY : SHRI HARI KRISHAN. REVENUE BY : SHRI PRASHANT GANDHALE. / ORDER PER ANIL CHATURVEDI, AM : 1. THIS APPEAL FILED BY ASSESSEE IS EMANATING OUT OF THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) 2, AURANGABAD DATE D 04.07.2016 FOR A.Y. 2011-12. 2. THE RELEVANT FACTS AS CULLED OUT FROM THE MATERIAL ON RE CORD ARE AS UNDER :- ASSESSEE IS AN INDIVIDUAL, WHO ELECTRONICALLY FILED HIS RETURN OF INCOME FOR A.Y. 2011-12 ON 11.11.2011 DECLARING A TOTAL INCOME OF RS .1,91,320/-. SUBSEQUENTLY, ON SAME DAY ASSESSEE FILED REVISED RETURN OF INCOME REVISING THE TOTAL INCOME AT RS.1,62,970/-. THE CASE WAS SELECTED FOR SCRUTINY AND / DATE OF HEARING : 18.09.2019 / DATE OF PRONOUNCEMENT: 18.10.2019 2 THEREAFTER, ASSESSMENT WAS FRAMED U/S 143(3) OF THE ACT V IDE ORDER DT.31.12.2013 AND THE TOTAL INCOME WAS DETERMINED AT RS.18 ,46,091/-. AGGRIEVED BY THE ORDER OF AO, ASSESSEE CARRIED THE MATT ER BEFORE LD.CIT(A), WHO VIDE ORDER DT.04.07.2016 (IN APPEAL NO. ABD/CIT(A)-2/383 /2013-14) GRANTED PARTIAL RELIEF TO THE ASSESSEE. AGGRIEVED BY THE ORDER OF LD.CIT(A), ASSESSEE PREFERRED APPEAL BEFORE THE TRIBUNAL. THE TRIBU NAL VIDE ORDER DT.17.05.2018 IN ITA NO.2160/PUN/2016 DISMISSED THE APPEA L OF THE ASSESSEE. THEREAFTER, ASSESSEE FILED MISCELLANEOUS APPLICATIO N CONTENDING THAT THERE WERE CERTAIN ERRORS IN THE ORDER AND THERE FORE PRAYED FOR RECALLING OF THE ORDER. CONSEQUENTLY, THE TRIBUNAL VIDE M.A. NO.83/ PUN/2018 ORDER DT.12.03.2019 RECALLED THE EARLIER ORDER DATED 17.05.2018. T HUS, ASSESSEE IS NOW IN SECOND APPEAL. NOW THE ASSESSEE HAS REVISED T HE GROUNDS WHICH READ AS UNDER : THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS E RRED IN CONFIRMING THE ADDITION TO THE EXTENT OF RS.10,17,000/- ON ACCOUNT OF CASH DEPOSITS MADE IN THE BANK ACCOUNT OF THE ASSESSEE. 3. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, AO NOTIC ED THAT ASSESSEE HAS DEPOSITED CASH AGGREGATING TO RS.11,50,000/ - IN HIS SAVINGS BANK ACCOUNT MAINTAINED WITH DEOGIRI NAGARI SAHAKARI BANK LTD., AND RS.14,17,000/- IN THE SAVING BANK ACCOUNT MAINTAINED WITH C ENTRAL BANK OF INDIA. THE ASSESSEE WAS ASKED TO EXPLAIN THE SOURCE OF DEPOSITS IN THOSE BANKS. AO NOTED THAT WITH RESPECT TO THE SOURCE OF DEPOSITS OF RS.2,66,121/- WITH DEOGIRI NAGARI SAHAKARI BANK, ASSESSEE COULD NOT EXPLAIN WITH SATISFACTION THE DETAILS AND SOURCE OF DEPOSITS. HE THEREFORE MADE THE ADDITION OF THE AFORESAID AMOUNT AS AN UNEXPLAIN ED MONEY U/S 69C OF THE ACT. WITH RESPECT TO CASH DEPOSITS WITH CEN TRAL BANK OF INDIA, AO NOTED THAT ASSESSEE COULD NOT EXPLAIN THE SOURCE OF DEPOSITS OF RS.14,17,000/-. HE ACCORDINGLY MADE ADDITION OF RS.14,17,000 /- U/S 69A 3 OF THE ACT. AGGRIEVED BY THE ORDER OF AO, ASSESSEE CAR RIED THE MATTER BEFORE LD.CIT(A), WHO AFTER CONSIDERING THE REMAND REPORT RECEIVE D FROM AO AND ASSESSEES REPLY TO REMAND REPORT HELD THAT ASSESSEE HAD EXPLAINED THE CASH DEPOSITS WITH RESPECT TO RS.4 LAKHS. HE ACCORDINGLY CONF IRMED THE CASH BALANCE OF RS.10,17,000/-. AGGRIEVED BY THE ORDER OF LD .CIT(A), ASSESSEE IS NOW IN APPEAL. 4. BEFORE ME, LD.A.R. REITERATED THE SUBMISSIONS MADE BEFORE AO AND LD.CIT(A) AND POINTED TO THE OBSERVATIONS OF THE REMAND R EPORT WHICH ARE RE-PRODUCED BY THE LD.CIT(A) AND FROM IT HE POINTED OUT T HAT SHRI ARJUN BHIMRAO, FATHER OF THE ASSESSEE HAD STATED THAT HE OWNE D AGRICULTURAL LAND AND HIS AGRICULTURAL INCOME WAS ABOUT 4 TO 5 LAKHS. HE FU RTHER SUBMITTED THAT AO IN THE REMAND REPORT HAS ACCEPTED THE FACT OF INCOME FROM AGRICULTURE OF HIS FATHER AT RS.4 LAKHS PER YEAR AND THU S, TOTAL CASH AVAILABILITY FOR TWO YEARS AT RS.8 LAKHS STANDS EXPLAINED. IN SUCH A SITUATION, HE SUBMITTED THAT ASSESSEES EXPLANATION WITH R ESPECT TO THE CASH DEPOSITS AGGREGATING TO RS.8 LAKHS NEEDS TO BE ACCEPTED . LD. D.R. ON THE OTHER HAND, SUPPORTED THE ORDER OF AO AND LD.CIT(A). 5. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE M ATERIAL ON RECORD. THE ISSUE IN THE PRESENT GROUND IS WITH RESPECT TO THE ADDITION MADE ON ACCOUNT OF UNEXPLAINED CASH DEPOSITS BY THE AS SESSEE IN CENTRAL BANK OF INDIA. AS AGAINST THE TOTAL DEPOSITS OF RS.14,17,000/ -, WHICH WAS ADDED AS INCOME BY AO. LD.CIT(A) AFTER CONSIDERING THE REMA ND REPORT, GRANTED RELIEF TO THE EXTENT OF RS.4 LAKHS AND CONFIRMED TH E ADDITION TO THE EXTENT OF RS.10,17,000/-. THE PERUSAL OF THE REMAND REPOR T WHICH IS REPRODUCED BY THE LD.CIT(A) REVEALS THAT DURING THE REMA ND PROCEEDINGS, ARJUN BHIMRAO, THE FATHER OF THE ASSESSEE STATED THAT H E OWNED AGRICULTURAL LAND AND HAD AGRICULTURAL INCOME OF RS.4 TO 5 LAKHS PER Y EAR. AFTER 4 CONSIDERING THE SUBMISSION OF ASSESSEES FATHER ARJUN BHIM RAO, AO HAS NOTED THAT THE TOTAL CASH AVAILABILITY FOR TWO YEARS WAS A BOUT RS.8 LAKHS. IN SUCH A SITUATION, I AM OF THE VIEW THAT TO THE EXTENT OF RS.8 LAKHS, THE CASH DEPOSITS IN CENTRAL BANK OF INDIA BY THE ASSESSEE STAN DS EXPLAINED. I THEREFORE, DIRECT THE DELETION OF ADDITION TO THE EXTENT OF RS. 8 LAKHS. BEFORE ME FOR THE BALANCE ADDITION OF RS.2,17,000/- SINCE NO EXPLANA TION HAS BEEN OFFERED BY LD.A.R. NOR HAS HE POINTED TO ANY ERROR / FALLAC Y IN THE FINDINGS OF LOWER AUTHORITIES, I UPHOLD THE ADDITION TO THE EXTENT OF RS.2,17,000/-. THUS, THE GROUND OF THE ASSESSEE IS PARTLY ALLOWED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED ON 18 TH DAY OF OCTOBER, 2019. /- SD/- ( ANIL CHATURVEDI ) ' / ACCOUNTANT MEMBER PUNE; DATED : 18 TH OCTOBER, 2019. YAMINI #$%&'(' % / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. 4. 5 6. CIT(A)-2, AURANGABAD. PR. CIT-2, AURANGABAD. '#$ %%&',) &', *+ / DR, ITAT, SMC PUNE; $-.// GUARD FILE. / BY ORDER // TRUE COPY // 012%3&4 / SR. PRIVATE SECRETARY ) &', / ITAT, PUNE.