Sat Paul Sachdev, Jamshepur V. DCIT, Jamshepur

ITA 23/RAN/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 67336 (ITAT-RANCHI)
• Duration Of Justice: 1 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-05-2013
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 11-03-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A K TRIVEDI SR S C
• Assessee Lawyers: R N GUPTA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI CIRCUI T BENCH, RANCHI (BEFORE SHRI P.K.BANSAL, HONBLE A.M.& SHR I D,T. GARASIA, HONBLE J.M.) I.T.A. NO. 23/RAN/2013 : AS SESSMENT YEAR 2009-10 SAT PAUL SACHDEV, JAMSHEDPUR -VS- D. C.I.T., CIRCLE-1, JAMSHEDPUR (APPELLANT) PAN :AIOPS 7740P (RESPONDENT) APPELLANT BY : SHRI R.N.GUPTA, ADVOCA TE RESPONDENT BY : SHRI A.K.TRIVEDI, SR.S.C. DATE OF CONCLUDING THE HEARING : 01.05.2013 DATE OF PRONOUNCING THE ORDER : 01.05.2013 O R D E R PER BENCH : THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A), JAMSHEDPUR DATED 28.01.2013 FOR THE ASSESSMENT YEAR 2009-10. 2. THE ONLY ISSUE INVOLVED IN THIS APPEAL RELATES T O THE ADDITION OF RS.23 LAKHS. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSING O FFICER ON VERIFICATION OF THE BANK ACCOUNT OF THE ASSESSEE FOUND THAT THE ASSESSE E HAD DEPOSITED CASH IN THE BANK ACCOUNT AMOUNTING TO RS.25,47,666/- BUT MADE T HE ADDITION OF RS.23 LAKHS. THE MATTER TRAVELED TO THE CIT(A) WHO HAS CONFIRMED THE ADDITION. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULL Y CONSIDERED THE SAME. WE HAVE ALSO GONE THROUGH CASH FLOW STATEMENT SHOWI NG THE OPENING BALANCE AS WELL AS CLOSING BALANCE IN HAND AS WELL AS THE AMOU NT WITHDRAWN AND DEPOSITED BY THE ASSESSEE DATE-WISE IN HIS BANK ACCOUNT IN CE NTRAL BANK OF INDIA AS WELL AS 2 IN THE INDUSIND BANK LTD. THE ASSESSING OFFICER DID NOT ACCEPT THE EXPLANATION THAT THE CASH DEPOSITS WERE OUT OF THE CASH WITHDRA WN WHILE HE NOTED THAT THERE WAS DIFFERENCE IN THE CASH WITHDRAWAL AND CASH DEPO SITED FROM THE BANK FROM ZERO A DAY TO AT THE MOST MAXIMUM 10 DAYS. THE ASSE SSEE HAS DEPOSITED CASH IN THE BANK ACCOUNT TO THE EXTENT OF RS.53,85,666/- AN D HAS WITHDRAWN THE CASH TO THE EXTENT OF RS.48,46,395/-. THERE WAS OPENING BAL ANCE IN HAND TO THE EXTENT OF RS.8,94,831/-. THE ASSESSEE HAS ALSO INCURRED CERTA IN EXPENSES IN CASH TO THE EXTENT OF RS.5,12,335/-. THE ASSESSEE HAS SHOWN CAS H RECEIPT FROM A FIRM IN WHICH THE ASSESSEE IS A PARTNER, NAMELY AUTO TYRE C ENTRE AMOUNTING TO RS.5,50,000/- 25.05.2008. AFTER CONSIDERING OVER TH IS EXPLANATION, THE FOLLOWING SUMMARY POSITION IS EMANATED. OPENING CASH IN HAND 894,831.00 ADD: CASH WITHDRAW 4,846,395.00 CASH RECEIVED 550,000.00 5,396,395.00 6,291,226.00 LESS: CASH DEPOSITED 5,385,666.00 905,560.00 LESS : EXPENSES 512,335.00 BALANCE AS PER CASH BOOK 393,225.00 5. FROM THIS, WE ARE OF THE OPINION THAT THE SOURCE OF THE DEPOSITS MADE BY THE ASSESSEE IN HIS BANK ACCOUNT STANDS DULY EXPLAINED EXCEPT THE SUM OF RS.5,50,000/- WHICH HE CLAIMED TO HAVE RECEIVED FRO M AUTO TYRE CENTRE. THE ASSESSEE HAS NOT PRODUCED ANY CONFIRMATION FROM AUT O TYRE CENTRE, EVEN THOUGH THE ASSESSEE CLAIMED BEFORE US THAT THIS AMOUNT HAS BEEN RECEIVED BY THE ASSESSEE FROM AUTO TYRE CENTRE WHICH IS WITHDRAWAL FROM THE PARTNERSHIP FIRM AND SHOWN IN THE ACCOUNT OF THE ASSESSEE BY THE FIRM AS WITHD RAWN. IN VIEW OF THIS APPARENT FACT, WE SET ASIDE THE ORDER OF THE CIT(A) AND DELE TE THE ADDITION EXCEPT THE SUM OF RS.5,50,000/-. IN RESPECT OF SUM OF RS.5,50,000/ -, WE RESTORE THE ISSUE TO THE FILE OF THE ASSESSING OFFICER WITH THE DIRECTION TH AT THE ASSESSEE SHALL PRODUCE THE 3 NECESSARY EVIDENCE THAT THE ASSESSEE HAD WITHDRAWN A SUM OF RS.5,50,000/- FROM AUTO TYRE CENTRE IN WHICH THE ASSESSEE IS PARTNER, THE PA NUMBER OF THE PARTNERSHIP FIRM AS WELL AS THE CONFIRMATION OF THE PARTNERSHIP FIRM. THE ASSESSEE IS ALSO FREE TO ADDUCE ANY EVIDENCE ON WHICH HE MAY RELY TO PROVE THAT THE ASSESSEE HAS ACTUALLY RECEIVED CASH ON 25.05.2008 F ROM THE PARTNERSHIP FIRM. IF THE ASSESSING OFFICER IS SATISFIED WITH THE EVIDENC E SO PRODUCED, THE ASSESSING OFFICER IS DIRECTED TO DELETE THE SUM OF RS.5,50,00 0/- ALSO. THUS, THIS GROUND TAKEN BY THE ASSESSEE IS PARTLY ALLOWED FOR STATIST ICAL PURPOSES. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 1 ST MAY, 2013. SD/- SD/- [D.T.GARASIA] [P.K.BANSAL] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 1 ST MAY, 2013 COPY OF ORDER FORWARDED TO : 1. SAT PAUL SACHDEV, JAMSHEDPUR 2. D.C.I.T., CIRCLE-1, JAMSHEDPUR 3. C.I.T.(A), 4. THE C.I.T., 5. THE D.R., I.T.A.T., TRUE COPY, BY ORDER, SR. PRIVATE SECRETARY, ITAT, RANCHI [MST, SR.PS]