Nirpal Singh, Delhi V. ITO, New Delhi

ITA 2177/DEL/2017

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 9208 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 11 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-03-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2012-2013
• Appeal Filed On: 11-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SOHIL MALIK
• Keywords: Additional evidence; Corroborative evidences
• Section: 13; 68; 69; 145

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH E NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER I.T.A. NO.2177/DEL/2017 ASSESSMENT YEAR: 2012-2013 NIRPAL SINGH, 2405 HUDSON LANE KINGSWAY CAMP, DELHI. VS. ITO, WARD-36(1), NEW DELHI. TAN/PAN: BIQPS4248P (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI LALIT MOHAN, CA RESPONDENT BY: SHRI SOHIL MALIK, SR.D.R. DATE OF HEARING: 27 01 2021 DATE OF PRONOUNCEMENT: 18 03 2021 O R D E R PER AMIT SHUKLA, JM THE AFORESAID APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE IMPUGNED ORDER DATED 28.03.2017, PASSED BY LD. COMMISSIONER OF INCOME TAX (APPEALS)-XII, NEW DELHI FOR THE QUANTUM OF ASSESSMENT PASSED U/S.143(3) FOR THE ASSESSMENT YEAR 2012-13. IN THE GROUNDS OF APPEAL, FOLLOWING ISSUES HAVE BEEN RAISED:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW THE CIT(A) WAS INCORRECT AND UNJUSTIFIED IN:- A) CONFIRMING THE ADDITION OF RS. 52,00,000/- INCOR RECTLY AND UNJUSTIFIABLY MADE BY THE ASSESSING OFFICER EVEN WH EN THE BANK DEPOSITS HAVE BEEN MADE OUT OF THE CASH BOOK WHICH HAS BEEN NOT FOUND TO BE INCORRECT AND NOR REJECTED. I.T.A. NO.2177/DEL/2017 2 B) CONFIRMING THE ADDITION OF RS. 1,20,000/- MADE O N ACCOUNT OF HOUSE HOLD EXPENSES REJECTING THE EXPLANATION OF TH E ASSESSEE ON THE BASIS OF ASSUMPTION AND PRESUMPTION AND WITHOUT FIN DING THE EXPLANATION OF THE ASSESSEE INCORRECT OR UNTRUE. C) CONFIRMING THE ADDITION OF RS. 12,000/- ON THE B ASIS OF ESTIMATE WITHOUT FINDING THE EXPLANATION OF THE ASSESSEE UNT RUE AND ALSO WHEN THE PAYMENT OF RENT UNDER QUESTION WAS NOT FOUND TO BE UNTRUE. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E THE ORDER PASSED BY THE CIT(A) APPEAL UNDER REFERENCE IS BAD IN LAW, PERVERSE AND NOT SUSTAINABLE IN LAW SINCE THIS HAS BEEN PASSED ON 28 .03.2017 AS PER DATE GIVEN AT THE TOP OF THE APPEAL ORDER WHEREAS W E HAVE RECEIVED THE APPEAL ORDER ON 15.03.2017. 2. THE FACTS IN BRIEF ARE THAT THE ASSESSEE IS DERI VING INCOME FROM PROPRIETORSHIP CONCERN, NAMELY, M/S. KN T OVERSEAS, WHO IS ENGAGED IN THE BUSINESS OF EXPORT OF FABRIC, GARMENTS AND MISCELLANEOUS ITEMS. AIR INFORMATION W AS RECEIVED THAT ASSESSEE HAS PURCHASED IMMOVABLE PROP ERTY FOR CONSIDERATION OF RS.4.60 CRORES AND ASSESSEE WAS AS KED TO FURNISH DETAILS OF PAYMENT AND ITS SOURCE WITH EVID ENCE. THE ASSESSEE IN REPLY SUBMITTED THAT IT HAS PURCHASED P ROPERTY ALONG WITH M/S. GLAZE TRADING INDIA (P) LTD. FOR A CONSIDERATION OF RS.4.60 CRORES IN WHICH ASSESSEE I S HAVING ONLY 25% SHARE. THE COPY OF SALE DEED DATED 15.12.2 011WAS ALSO PLACED ON RECORD. REGARDING THE SOURCE, THE AS SESSEE SUBMITTED THAT HE HAS MADE DRAWING OF RS.110,84,978 /- FROM THE CURRENT ACCOUNT OF M/S. KNT OVERSEAS, HIS PROPR IETORSHIP CONCERN, WHICH WAS SUBSEQUENTLY TRANSFERRED TO HIS SAVINGS BANK ACCOUNT FROM WHERE THE PAYMENT HAS BEEN MADE. LD. I.T.A. NO.2177/DEL/2017 3 ASSESSING OFFICER OBSERVED THAT THERE ARE CASH DEPO SITS FOR SUMS AGGREGATING TO RS.52,75,000/-. AS PER THE ASSE SSING OFFICER, THE ASSESSEE COULD GIVE PROPER EXPLANATION FOR THE SOURCE OF CASH DEPOSITS. HOWEVER, HE ACKNOWLEDGED F ROM THE BANK ACCOUNT ENTRIES THAT THE ASSESSEE HAS DEPOSITE D THE CASH IN CURRENT ACCOUNT AND TRANSFERRED THE AMOUNT TO HIS SAVINGS BANK ACCOUNT FOR THE PURPOSE OF PURCHASING OF PROPERTY, HOWEVER, HE HELD THAT THE SOURCE STILL RE MAINS UNEXPLAINED. ACCORDINGLY, HE TREATED THE ENTIRE CAS H DEPOSITS AMOUNTING TO RS.52,75,000/- AS UNEXPLAINED MONEY U/ S.69A WHICH WAS ADDED TO TOTAL INCOME OF THE ASSESSEE. 3. LD. ASSESSING OFFICER FURTHER NOTED FROM THE COP Y OF RENT AGREEMENT WHEREIN MENTIONS RENT PER MONTH OF RS.900 0/-, I.E., ANNUAL RENT OF RS.108,000/- WHEREAS ASSESSEE HAS DEBITED RENT OF RS. 1,20,000/- IN HIS P&L ACCOUNT. ACCORDINGLY, DIFFERENCE OF RS.12,000/- WAS ADDED. 4. APART FROM THAT, FROM THE PERUSAL OF THE STATEME NT OF CURRENT ACCOUNT FILED BY THE ASSESSEE, HE NOTICED T HAT ASSESSEE HAS WITHDRAWN RS.110,84,978/- OUT OF WHICH HE HAS PURCHASED HIS SHARE OF PROPERTY AND FROM THIS HE IN FERRED THAT ASSESSEE WAS LEFT WITH NO BALANCE TO MEET HIS HOUSEHOLD EXPENSES. ACCORDINGLY, HE ESTIMATED THE MONTHLY EXP ENSE AT RS.10,000/- AND MADE THE ADDITION OF RS.1,20,000/- TO THE TOTAL INCOME OF THE ASSESSEE. I.T.A. NO.2177/DEL/2017 4 5. BEFORE THE LD. CIT(A) IN SO FAR AS THE ISSUE REL ATING TO CASH DEPOSIT OF RS.52,75,000/- AND ON OTHER TWO ISS UES SUBMITTED AS UNDER: 1. THE ASSESSEE CARRIES ON THE BUSINESS OF FABRIC AND GARMENTS IN THE NAME OF KNT OVERSEAS OF WHICH HE IS THE PROPRIETOR IN THE CURRENT ACCOUNT WITH THE BANK OF INDUSIND BANK LTD, HE DEPOSITED CASH OF RS 5275000/- ON VARIOUS D ATES AS PER DETAILS EXTRACTED AT PAGE NO.2 OF THE ASSESSMENT OR DER. THE ASSESSING OFFICER REQUIRED THE ASSESSEE TO EXPLAIN THE SOURCE OF DEPOSITED CASH AMOUNT IN HIS CURRENT BANK ACCOUNT, EVEN THOUGH THE EXPLANATION BY ITSELF WAS AVAILABLE IN THE CASH BOOK AS PRODUCED AND SEEN BY THE ASSESSING OFFICER AT THE T IME OF ASSESSMENT, YET THE ASSESSING OFFICER DID NOT LISTE N AND EVEN AFTER POINTING OUT HIS ATTENTION TO THE CASH BOOK H E PROCEEDED TO MAKE THE ADDITION. THE ASSESSING OFFICER THEREFORE IGNORING THE CASH BOOK HELD THAT THE ASSESSEE HAD NOT FILED ANY CONFIRMATION RELATING TO THE DEPOSIT IN THE BANK TREATED THE AMO UNT OF RS. 5275000/- AS UNEXPLAINED MONEY LIABLE TO BE TAXED U /S 69 OF THE INCOME TAX ACT. WE ARE NOW IN APPEAL AND SUBMIT AS UNDER. WE HAVE FILED THE RETURN OF INCOME ALONG WITH DETAI LS OF AUDITED BOOKS OF ACCOUNT. DURING ASSESSMENT PROCEEDINGS BOO KS OF ACCOUNT INCLUDING THE CASH BOOK WAS PRODUCED AND EX AMINED. EACH DEPOSIT IN THE BANK IS SUPPORTED FROM THE BALA NCE AVAILABLE IN THE CASH BOOK. TO PUT IT DIFFERENTLY THE DEPOSIT IS OUT OF CASH BOOK AUDITED AND MAINTAINED IN THE REGULAR COURSE O F BUSINESS. THE BOOKS OF ACCOUNT WERE PRODUCED BEFORE THE ASSES SING OFFICER AND EXAMINED. AFTER EXAMINATION THE ASSESSING OFFIC ER ENQUIRED ABOUT SEVERAL DETAILS AND ALL SUCH DETAILS FILED, E XAMINED AND PLACED ON RECORD AS IS EVIDENT FROM THE ASSESSMENT ORDER ITSELF. I.T.A. NO.2177/DEL/2017 5 THE, ASSESSING OFFICER DID NOT FIND ANY DEFECT OR D ISCREPANCY OF ANY KIND OR OF ANY NATURE AND THEREFORE ACCEPTED TH E BOOKS OF ACCOUNT AND ALSO THE BOOK RESULTS. NO PROVISO TO SE CTION 145 HAS BEEN APPLIED. WE ARE NOW AGAIN ENCLOSING A COPY OF CASH BOOK WHIC H IS AN EVIDENCE AND EXPLANATION TO THE SOURCE OF DEPOSIT I N THE BANK. HENCE THE SOURCE OF DEPOSIT IN THE BAN EXPLAINED AN D THE ADDITION MAY KINDLY BE DELETED. 2. ANOTHER ADDITION HAS BEEN MADE ON ACCOUNT OF NO WITHDRAWAL FOR HOUSEHOLD EXPENSES. IN THE ABSENCE OF ANY DETAI LS SUCH EXPENSES ARE ESTIMATED AT RS. 120000/- AND ADDED TO THE TOTAL INCOME. BUT THIS IS UNWARRANTED SINCE THE ASSESSEE LIVES WITH HIS FATHER WHO IS RESPONSIBLE FOR MEETING THE HOUSE HOLD EXPENSES. HENCE THIS ADDITION MAY ALSO BE DELETED. 3. AN ADDITION OF RS 12000.00 HAS ALSO BEEN MADE ON ACCOUNT OF RENT DIFFERENCE. THE ASSESSING OFFICER OPINES THAT THE RENT ACCOUNT HAS BEEN DEBITED FOR RS 120000/- WHEREAS AS PER THE RENT AGREEMENT THE SAME CANNOT BE MORE THAN RS 1080 00/- BEING @ RS. 9000/- PER MONTH. HENCE THE ASSESSEE HA S DEBITED THE RENT ACCOUNT BY AN EXCESS AMOUNT OF RS 12000/-A ND THE SAME IS THEREFORE DISALLOWED. THE RENT AGREEMENT IS DT. 20.11.2009 WHICH ALSO PROVIDES THAT AFTER THE EXPIR Y OF A PERIOD OF ELEVEN MONTHS FRESH RENT WOULD BE PAID. THEREFOR E, I HAVE PAID RENT @ 10000/- PER MONTH TOTALING TO RS 120000 /- HENCE IT IS REQUESTED THAT THE ADDITION MAY KINDLY BE DELETE D. 6. HOWEVER, THE LD. CIT(A) MADE THE ADDITION OF RS. 52 LAC AFTER OBSERVING AND HOLDING AS UNDER: I.T.A. NO.2177/DEL/2017 6 9.4 I HAVE CAREFULLY CONSIDERED THE OBSERVATIONS O F THE ASSESSING OFFICER AND SUBMISSION OF THE APPELLANT. IT IS SEEN THAT APPELLANT HAS PURCHASED A PROPERTY ALONGWITH M/S GL AZE TRADING INDIA (P) LTD. FOR A CONSIDERATION OF RS.4. 60 CRORES IN WHICH APPELLANT WAS HAVING 25% SHARES. APPELLANT HA S MADE DRAWINGS OF RS.1,10,84,978/- FROM THE CURRENT ACCOU NT OF M/S KNT OVERSEAS AND APPELLANT HAS DEPOSITED RS.52,75,0 00/- IN CASH IN HIS BANK ACCOUNT IN INDUSIND BANK LTD. ON D IFFERENT DATES WHICH ARE MENTIONED IN PAGE 2 OF THE ASSESSME NT ORDER. FROM THE PERUSAL OF THE CASH BOOK OF THE APPELLANT, IT IS SEEN THAT THERE ARE HUGE CASH RECEIVED BY APPELLANT ON DIFFER ENT DATES OUT OF WHICH CASH HAS BEEN DEPOSITED IN THE INDUSIND BA NK LTD. HOWEVER, SOURCE OF THE CASH IN THE CASH BOOK HAS NO T BEEN SUBMITTED. DURING THE COURSE OF APPELLATE PROCEEDIN GS, AR OF THE APPELLANT WAS ASKED TO SUBMIT THE SOURCE OF CASH DE POSITS. AR OF THE APPELLANT HAS STATED THAT RS. 10,00,000/- AN D RS.5,00,000/- WERE RECEIVED FROM M/S PAM FASHION ON 31.05.2011 AND 02.01.2012 RESPECTIVELY. REGARDING T HE CLAIM THAT AMOUNT OF RS. 15,00,000/- WAS RECEIVED FROM M/ S PAM FASHIONS, IT IS SEEN THAT APPELLANT HAS NOT MADE AN Y APPLICATION FOR ADMISSION OF ADDITIONAL EVIDENCE NEITHER ANY EV IDENCE REGARDING THE RECEIPT OF CASH FROM M/S PAM FASHIONS HAS BEEN SUBMITTED. APART FROM THIS, NO SUBMISSION REGARDING THE BALANCE AMOUNT OF RS.37,75,000/- HAS BEEN SUBMITTED BY THE APPELLANT. APPELLANT HAS TO JUSTIFY HIS CLAIM THAT AMOUNTS OF CASH DEPOSITED AS PER CASH BOOK ARE IN THE REGULAR COURSE OF BUSIN ESS WITH SUPPORTING EVIDENCES. IT IS SEEN THAT EITHER AMOUNT S HAVE BEEN WITHDRAWN FROM THE BANK OR RECEIVED FROM M/S PAM FA SHIONS. HOWEVER, APPELLANT HAS NOT SUBMITTED ANY EVIDENCE A S TO THE SOURCE OF DEPOSITS NOR HE HAS SHOWN THAT THE AMOUNT S ARE ON I.T.A. NO.2177/DEL/2017 7 ACCOUNT OF SALE AND LOAN ETC. NEITHER HE HAS CORREL ATED THE ENTRIES WITH THE LEDGER FOR SALE ETC. THERE IS NO B ASIS IN THE CLAIM OF APPELLANT THAT EXPLANATION WAS AVAILABLE IN THE CASH BOOK AND THE BOOKS OF ACCOUNT ARE AUDITED. HONBLE DELHI HIG H COURT IN THE CASE OF GOODYEAR INDIA LTD., 246 ITR 116 (DEL) HAVE HELD THAT THE BROAD PROPOSITION THAT ONCE THERE IS TAX AUDIT U/S 44AB, AO SHOULD NOT INSIST UPON PRODUCTION OF RECORDS OR DET AILS CANNOT BE LAID DOWN AND MERELY BECAUSE AN AUDIT REPORT IS AVA ILABLE, THERE IS NO FETTER ON THE POWER OF ASSESSING OFFICER TO R EQUIRE THE ASSESSEE TO JUSTIFY ITS CLAIM WITH REFERENCE TO REC ORDS, MATERIALS AND EVIDENCE AS SUCH POWER IS INHERENT IN AN ASSESS ING OFFICER IN THE SCHEME OF THE ACT. THEREFORE, IT WAS INCUMBE NT ON THE APPELLANT TO ESTABLISH HIS CLAIM THAT CASH WAS RECE IVED IN THE REGULAR COURSE OF HIS BUSINESS WITH DOCUMENTARY EVI DENCES. FURTHER, FROM PERUSAL OF THE BALANCE SHEET, IT IS S EEN THAT THERE IS NEGATIVE CAPITAL OF RS. 1,00,04,188/- AT THE END OF THE YEAR AS APPELLANT HAS WITHDRAWN RS. 1,10,84,978/- FROM M/S KNT OVERSEAS, ITS PROPRIETARY FIRM DURING THE YEAR. IT IS ALSO SEEN THAT TURNOVER OF THE APPELLANT DURING THE YEAR WAS RS. 2 ,15,08,041/- AND AGAINST IT APPELLANT HAS WITHDRAWN AN AMOUNT OF RS.1,10,84,978/-. THEREFORE, THE CLAIM OF THE APPEL LANT LACKS SUBSTANCE. ONUS IS ON THE APPELLANT TO PROVE THE SO URCE OF ANY CASH DEPOSIT IN HIS BANK ACCOUNT WHICH HAS NOT BEEN DISCHARGED. 9:5 MOREOVER, WHEN THERE IS DEPOSIT OF CASH IN THE CASH BOOK OF THE APPELLANT, THE PROVISIONS OF SECTION 68 WILL OP ERATE UNLESS APPELLANT DISCHARGES HIS ONUS. APPELLANT HAS NOT SU BMITTED ANY EVIDENCE TO EXPLAIN THE SOURCE OF CASH DEPOSITS IN HIS BANK ACCOUNT AND CASH BOOK AND, THEREFORE, INITIAL BURDE N OF PROVING I.T.A. NO.2177/DEL/2017 8 THE TRANSACTION HAS NOT BEEN DISCHARGED BY THE APPE LLANT. THERE IS ALSO NO REQUIREMENT TO REJECT THE BOOKS OF ACCOU NT FOR MAKING ADDITIONS ON ACCOUNT OF DEPOSIT IN THE BANK ACCOUNT . THEREFORE, IN VIEW OF THE FACTS AND CIRCUMSTANCES OF THE CASE, DISALLOWANCE OF RS.52,00,000/- IS SUSTAINED. 7. IN SO FAR AS ADDITION OF RS.1,20,000/- IS CONCER N ON HOUSEHOLD EXPENSES, LD. CIT(A) HAS CONFIRMED THE AD DITION ON THE GROUND THAT ASSESSEE HAS NOT SHOWN HOUSEHOLD EX PENSES. 8. AS REGARDS ADDITION OF RS.12,000/-, HE OBSERVED THAT THE LEASE AGREEMENT WAS FOR 11 MONTHS AND THERE WAS NO RENEWAL OF LEASE AGREEMENT AS PER THE CLAUSE MENTIONED THER EIN THAT FRESH DEED SHALL BE EXECUTED. SINCE ASSESSEE COULD NOT FURNISH ANY FRESH DETAIL FOR RENT AGREEMENT AFTER THE EXPIR Y OF EARLIER AGREEMENT. ACCORDINGLY, HE SUSTAINED THE ADDITION. 9. LD. COUNSEL BEFORE US SUBMITTED THAT DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSEE HAD GIVEN F OLLOWING DETAILS OF CASH DEPOSITS AND DRAWING. THE COPY OF W HICH IS APPEARING AT PAGE 33 OF THE PAPER BOOK. 7. DETAIL OF CASH DEPOSIT AND DRAWINGS IN CURRE NT A/C A. OPENING BALANCE OF CASH IN HAND 746238.39 DRAWINGS FROM BANK 5360000.00 TOTAL 6106238.39 ADD-CASH DEPOSIT IN CURRENT A/C AND EXPENDITURE ON VARIOUS DATES DURING THE YEAR 5995858.00 CLOSING BALANCE OF CASH AS AT 31.03.2014 11 0380.00 I.T.A. NO.2177/DEL/2017 9 10. THUS, HE SUBMITTED THAT OUT OF TOTAL CASH DEPOS ITS MADE DURING THE YEAR FOR SUMS AGGREGATING TO RS.52,75,00 0/-, THE SOURCE OF CASH DEPOSITS OF RS.37,75,000/- WAS FROM OPENING CASH BALANCE OF RS.7,46,238/- AND CASH WITHDRAWAL O F RS.34,34,000/- FROM THE BANK ACCOUNT AND REMAINING CASH DEPOSITS OF RS.15 LAC IS RECEIVED FROM PAM FASHIONS . IN SUPPORT, HE HAS FILED THE SUMMARY OF CASH TRANSACTI ON MADE DURING THE YEAR AND THE DATE-WISE DETAIL REPRODUCED HEREUNDER: SR. NO. PARTICULARS AMOUNT (IN RS.) I) OPENING BALANCE AS ON 1.4.2011 7,46,238 II) ADD: CASH WITHDRAWAL 34,40,000 ADD: CASH RECEIPT FROM PAM FASHION 15,00,000 49,40,000 III) TOTAL 58,86,238 IV) LESS: CASH DEPOSIT 52,75,000 56,35,651 LESS; CASH PAYMENT 3,60,651 V) CASH BALANCE AS ON 5.3.2012 (LAST DATE OF CASH DEPOSIT) HE ALSO SUBMITTED A DATE WISE DETAILS OF CASH BOOK WHICH IS TABULATED HEREUNDER IN SUPPORT OF THE AFORESAID SUMMARY: SR. NO. DATE/PERIOD OPENING BALANCE CASH WITHDRAWAL CASH RECEIVED CASH DEPOSIT CASH PAYMENT CLOSING BALANCE 1. 01.04.2011 7,46,238 -- -- -- -- 7,46,238 2. 06.04.2011 TO 14.04.2011 7,46,238 -- - -- 19,380 7,46,238 I.T.A. NO.2177/DEL/2017 10 3. 15.04.2011 7,26,858 -- -- 2,50,000 -- 4,76,85 8 4. 18.04. 2011 TO 25.04.2011 4,76,858 -- -- -- 1,950 474908 5. 26.04.2011 4,74,908 3,00,000 -- -- -- 7,74,90 8 6. 29.04.2011 7,74,908 -- -- -- 720 7,74,188 7. 30.04.2011 7,74,188 2,00,000 -- -- 10,290 9,6 3,898 8. 05.05.2011 9,63,898 -- -- -- 650 9,63,248 9. 07.05.2011 9,63,248 -- -- 3,00,000 17,405 6,45,843 10. 15.05.2011 TO 20.05.2011 6,45,843 -- -- -- 1630 6,44,213 11. 23.05.2011 6,44,213 -- -- 1,00,000 -- 5,44,213 12. 25.05.2011 5,44,213 -- -- -- 410 5,43,803 13. 30.05.2011 5,43,803 -- -- 2,50,000 -- 2,93,803 14. 31.05.2011 2,93,803 -- 10,00,000 -- 10,510 12,83,293 15. 04.06.2011 12,83,293 -- -- 1,02,000 530 11,80,763 16. 08.06.2011 11,80,763 -- -- 3,00,000 -- 8,80,7 63 17. 09.06.2011 8,80,763 -- -- 3,10,000 17,705 5,53,058 18. 11.06.2011 TO 19.06.2011 5,53,058 -- -- -- 1,500 5,51,558 19. 23.06.2011 5,51,558 -- -- 3,00,000 -- 2,51,558 I.T.A. NO.2177/DEL/2017 11 20. 25.06.2011 2,51,558 -- -- 1,10,000 -- 1,41,55 8 21. 26.06.2011 TO 06.07.2011 1,41,558 -- -- -- 12,270 1,29,288 22. 07.07.2011 1,29,288 4,00,000 -- -- 17,320 5,1 1,968 23. 08.07.2011 5,11,968 5,30,000 -- -- 480 10,41,488 24. 12.07.2011 10,41,488 5,20,000 -- -- -- 15,61, 488 25. 15.07.2011 TO 22.07.2011 15,61,488 -- -- -- 1,645 15,59,843 26. 23.07.2011 15,59,843 -- -- 15,000 -- 15,44,84 3 27. 25.07.2011 TO 8.9.2011 15,44,843 -- -- - 63,115 14,81,728 28. 09.09.2011 14,81,728 -- -- 4,00,000 -- 10,81,72 8 29. 13.09.2011 10,81,728 -- -- 2,00,000 -- 8,81,728 30. 15.09.2011 TO 20.09.2011 8,81,728 -- -- -- 1,680 8,80,048 31. 23.09.2011 8,80,048 6,00,000 - -- -- 14,80,048 32. 24.09.2011 14,80,048 -- -- -- 430 14,79,618 33. 26.09.2011 14,79,618 3,50,000 -- --- -- 18,29,6 18 34. 28.9.2011 18,29,618 -- -- -- 395 18,29,223 35. 29.09.2011 18,29,223 1,60,000 -- -- -- 19,89,22 3 36. 30.09.2011 19,89,223 -- -- -- 10,295 19,78,928 37. 01.10.2011 19,78,928 3,80,000 -- -- -- 23,58,92 8 38. 06.10.2011 TO 07.10.2011 23,58,928 -- -- -- 17,805 23,41,123 39. 12.10.2011 23,41,123 -- -- 12,70,000 -- 10,71,123 40. 14.10.2011 10,71,123 -- -- 3,51,000 470 7,19,65 3 41. 16.10.2011 7,19,653 -- -- -- 380 7,19,273 42. 17.10.2011 7,19,273 -- -- 1,00,000 ---- 6,19,273 43. 21.10.2011 6,19,273 -- -- -- 350 6,18,923 44. 22.10.2011 6,18,923 -- -- 1,05,000 -- 5,13,923 I.T.A. NO.2177/DEL/2017 12 45. 24.10.2011 TO 21.11.2011 5,13,923 -- -- -- 31,267 4,82,656 46. 26.11.2011 4,82,656 -- -- 1,50,000 905 3,31,7 51 47. 28.11.2011 TO 30.11.2011 3,31,751 -- -- -- 10,990 3,20,761 48. 05.12.2011 3,20,761 -- -- 1,50,000 950 1,69,8 11 49. 07.12.2011 TO 22.12.2011 1,69,811 -- -- -- 19,385 1,50,426 50. 26.12.2011 TO 30.12.2011 1,50,426 -- -- 72,000 10,765 67,661 51. 02.01.2012 67,661 -- 5,00,000 -- 905 5,66,756 52. 06.01.2012 5,66,756 -- -- 80,000 -- 4,86,756 53. 07.01.2012 TO 11.01.2012 4,86,756 -- -- -- 29,259 4,57,497 54. 12.01.2012 4,57,497 -- -- 85,000 -- 3,72,497 55. 16.01.2012 TO 23.01.2012 3,72,497 -- -- -- 3,620 3,68,877 56. 24.1.2012 3,68,877 -- -- 1,00,000 610 2,68,267 57. 30.01.2012 TO 22.2.2012 2,68,267 -- -- -- 30,920 2,37,347 58. 23.02.2012 2,37,347 -- -- 1,60,000 -- 77,347 59. 27.02.2012 TO 28.02.2012 77,347 -- -- -- 10,940 66,407 60. 05.03.2012 (LAST CASH DEPOSIT DURING THE YEAR UNDER CONSIDERATION) 66,407 -- -- 15,000 50,587 TOTAL -- 34,40,000 15,00,000 52,75,000 3,60,651 -- I.T.A. NO.2177/DEL/2017 13 11. THUS, HE SUBMITTED THAT THE SOURCE AND THE CASH DEPOSITS WERE FULLY EXPLAINABLE FROM THE CASH BOOKS . HE ALSO RELIED UPON THE VARIOUS CASE LAWS WHICH ARE NOT BEI NG DISCUSSED BY US AS THE ISSUES INVOLVED IS PURELY BA SED ON FACTS AND MATERIAL ON RECORD. 12. REGARDING ADDITION OF RS.1,20,000/- MADE ON ACCOUNT OF HOUSEHOLD EXPENSES, HE SUBMITTED THAT BEFORE THE AS SESSING OFFICER FOLLOWING EXPLANATION WAS GIVEN:- 12.1 IT IS SUBMITTED THAT APPELLANT DURING THE YEAR UNDER CONSIDERATION IS LIVING WITH HIS PARENTS AND IS NOT HAVING ANY CHILD. IT IS FURTHER SUBMITTED THAT DURING THE COURSE OF ASSESSMENT PROCEEDINGS VIDE HIS REPLY PLACED AT PAGE 32 OF PAPER BOOK HAS SUBMITTED AS UNDER: 2. DETAIL OF DRAWINGS MADE IN CAPITAL ACCOUNT OF P ROPRIETOR FROM KNT OVERSEAS A. AMOUNT TRANSFERRED FROM CURRENT A/C TO SAVING ACCOUNT SHOWN IN DRAWINGS: 10,62,5 00 B. LIC PAID 22,478 TOTAL 1,10,84,978 . 4. DETAIL OF HOUSEHOLD EXPENSES LIC PAID FROM KNT OVERSEAS 22,478 LIC 12,262 HOUSEHOLD EXPENSES CASH DRAWING FROM SAVING A/C. 60,000 THUS, HE SUBMITTED THAT THE ADDITION IS BASED ON ASSUMPTION FROM BARE PERUSAL OF THE CURRENT ACCOUNT , AND THEREFORE, SAME CANNOT BE SUSTAINED. I.T.A. NO.2177/DEL/2017 14 13. LASTLY, WITH REGARD TO ADDITION OF RS.12,000/ - ON THE BASIS OF DIFFERENCE AS PER THE AMOUNT MENTIONED IN RENT AGREEMENT AND SHOWN IN THE P&L ACCOUNT, HE SUBMITTE D THAT RENT AGREEMENT WAS EXECUTED ON 30.11.2009 WHICH WAS FOR THE PERIOD OF 11 MONTHS. HE DREW OUR ATTENTION TO T HE LAST CLAUSE OF THE AGREEMENT WHEREIN THERE WAS A STIPULA TION THAT THE RENT WAS INCREASED 10% PER MONTH AND THE INCREM ENT OF RS.1000/- PER MONTH HAS BEEN MADE AS PER THE AGREEM ENT ITSELF AND INSTEAD OF RENT OF RS.9,000/- THE SAME W AS PAYABLE AT RS.10,000/-. 14. ON THE OTHER HAND, LD. DR HAS STRONGLY RELIED U PON THE OBSERVATION AND THE FINDING GIVEN BY THE ASSESSING OFFICER AND CIT(A) AND SUBMITTED THAT THE ONUS WAS HEAVILY UPON THE ASSESSEE TO PROVE THE SOURCE OF THE CASH DEPOSITS W HICH HAS NOT BEEN PROPERLY EXPLAINED. 15. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND ON PERUSAL OF THE RELEVANT FINDING GIVEN IN THE IMPUGNED ORDER S AS WELL AS DOCUMENTS REFERRED TO BEFORE US, WE FIND THAT THE E NTIRE PAYMENT FOR PURCHASE OF PROPERTY HAS BEEN MADE BY T HE ASSESSEE FROM HIS BANK ACCOUNT AND THE DETAILS OF C ASH DEPOSITS HAS BEEN INCORPORATED ABOVE. THE SOURCE OF CASH DEPOSITS WAS FROM THE BUSINESS CARRIED OUT BY THE A SSESSEE FOR WHICH THE ASSESSEE HAS GIVEN DETAILS OF SALES W ITH THE NAME OF THE PARTIES WHICH WAS TO THE TUNE OF RS.2.1 3 CRORES. THE SUMMARY OF CASH TRANSACTIONS ALONG WITH DATE-WI SE DETAIL OF CASH BOOK WHICH WAS PRODUCED BEFORE THE AUTHORIT IES BELOW I.T.A. NO.2177/DEL/2017 15 HAS ALREADY BEEN INCORPORATED ABOVE. FROM THE PERUS AL OF THE SAME, IT IS SEEN THAT ALL THE SOURCE OF THE CASH DE POSITS ARE FROM THE REGULAR BOOKS OF ACCOUNT AND CASH BOOKS EN TRY IS ALSO MATCHING WITH THE BANK STATEMENT FILED BY THE ASSESSEE IN THE PAPER BOOK. IN THE LIGHT OF THE CLEAR CUT EX PLANATION WHICH IS DULY SUPPORTED BY; FIRSTLY, THE SALE RECEI PT OF THE ASSESSEE; AND SECONDLY, THE AMOUNT WHICH HAS BEEN TRANSFERRED FROM CURRENT ACCOUNT TO HIS SAVINGS BAN K ACCOUNT WHICH WAS DULY APPEARING IN CASH BOOK, EXPLAINS THE ENTIRE SOURCE. THEREFORE, IT CANNOT BE HELD THAT THE CASH DEPOSITS REMAIN UNEXPLAINED. IN THE LIGHT OF THE AFORESAID E XPLANATION AS SUBMITTED BY THE LD. COUNSEL DULY CORROBORATED B Y THE EVIDENCE ON RECORD, WE HOLD THAT THE ENTIRE CASH DE POSITS OF RS.52 LAC STANDS EXPLAINED. ACCORDINGLY, THIS ISSUE IS IN THE FAVOUR OF THE ASSESSEE. 16. IN SO FAR AS ADDITION ON ACCOUNT OF HOUSEHOLD W ITHDRAWAL OF RS.1,20,000/- IS CONCERNED, WE FIND THAT THE ASS ESSEE HAD SHOWN HOUSEHOLD EXPENSES AND CASH DRAWINGS FROM SAV INGS BANK ACCOUNT AT RS.60,000/- AND APPROXIMATELY RS.35 ,000/- FOR LIC PAYMENTS. APART FROM THAT, ASSESSEE HAS ALS O EXPLAINED THAT HE WAS STAYING WITH HIS FATHER AND M AJORITY OF THE HOUSEHOLD EXPENSES WAS BORNE OUT BY HIM. WITHOU T THERE ANY SPECIFIC FINDING OR MATERIAL, THE ADDITION BASE D ON PURE SURMISES AND PRESUMPTION CANNOT BE SUSTAINED. ACCOR DINGLY, THE SAME IS DIRECTED TO BE DELETED. I.T.A. NO.2177/DEL/2017 16 17. ON THE ISSUE OF DIFFERENCE OF RS.12,000/-, IT I S CLEAR FROM THE RENT AGREEMENT ITSELF THAT ON THE EXPIRY OF THE PERIOD MENTIONS RENT WILL BE FURTHER INCREASED BY 10% PER ANNUM. THE RENT AGREEMENT WAS DATED 20.11.2009 AND YEAR UN DER CONSIDERATION IS ASSESSMENT YEAR 2012-13, THEREFORE , INCREMENT OF 10% AS PER THE CLAUSE OF THE RENT AGRE EMENT ITSELF JUSTIFIES THE PAYMENT OF RS.10,000/- PER MON TH WHICH HAS BEEN DULY SHOWN BY THE ASSESSEE. ACCORDINGLY, T HERE IS NO REASON FOR MAKING THE ADDITION OF RS.12,000/-, SAME IS DELETED. 18. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 18 TH MARCH, 2021 SD/- SD/- [PRASHANT MAHARISHI] [AMIT SHUKLA] [ACCOUNTANT MEMBER] JUDICIAL MEMBER DATED: 18/03/2021 PKK: