Shri. Shardul Sinha, Bengaluru V. Assessing Officer, 4(1)(3), Bengaluru

ITA 2354/BANG/2019

• Counselvise Citation: [2020] 129 COUNSELVISE.COM (IT) 9864 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-11-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 14-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R PREMI
• Keywords: Unexplained cash credit; Opportunity of being heard; Onus to prove
• Section: 142(1); 143(2); 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI CHANDRA POOJARI , ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER ITA NO.2354/BANG/2019 ASSESSMENT YEAR : 2014 15 SHARDUL SINHA, NO.24, KH ROAD, SHANTHI NAGAR, BENGALURU-560 027. PAN AMZPS 8493 G VS. THE INCOME TAX OFFICER, WARD-4(1)(3), BENGALURU. APPELLANT RESPONDENT APPELLANT BY : NONE RESPONDENT BY : SMT. R PREMI, JCIT (DR) DATE OF HEARING : 18-11-2020 DATE OF PRONOUNCEMENT : 19-11-2020 ORDER PER BEENA PILLAI, JUDICIAL MEMBER PRESENT APPEAL HAS BEEN FILED BY ASSESSEE AG AINST ORDER DATED 20/08/2019 PASSED BY LD. ACIT (A)-4, BANGALOR E FOR ASSESSMENT YEAR 2014-15 ON FOLLOWING GROUNDS OF APP EAL: 1. CIT APPEAL'S ORDER IS OPPOSED TO THE LAW AND FA CTS OF THE CASE. 2. APPELLANT SUBMITTED DETAILS OF DEPOSIT AND THE S OURCES FOR SUCH DEPOSIT. CIT(A) FAILED TO EXAMINE THE SAME. 3. CIT (A) HAS NOT GIVEN FINDING ON THE SUBMISSION OF DETAILS OF DEPCIT AND SOURCES. 4. CIT(A) ON SURMISE ACCEPTED THE FINDING OF ASSESS ING OFFICER PAGE 2 OF 5 ITA NO.2354/BANG/2019 5. APPELLANT CRAVES TO ADD OR DELETE ANY GROUNDS OF APPEAL AT THE TIME HEARING. 6. HON'BLE ITAT MAY KINDLY ALLOW THE APPEAL AND REN DER JUSTICE TO THE APPEAL. BRIEF FACTS OF THE CASE ARE AS UNDER: 2. ASSESSEE IS AN INDIVIDUAL AND FILED HIS RETURN O F INCOME FOR YEAR UNDER CONSIDERATION ON 01/10/2014 DECLARING TO TAL INCOME OF RS.13,89,340/-. THE CASE WAS SELECTED FOR SCRUTI NY AND STATUTORY NOTICE UNDER SECTION 143(2) WAS ISSUED TO ASSESSEE. NOTICE UNDER SECTION 142(1) OF THE ACT WAS ALSO ISS UED TO ASSESSEE IN RESPONSE TO WHICH REPRESENTATIVE OF ASSESSEE APP EARED BEFORE LD.AO AND FILED REQUISITE DETAILS AS CALLED FOR. 3. DURING THE ASSESSMENT PROCEEDINGS IT WAS FROM AI R INFORMATION AVAILABLE WITH REVENUE, LD.AO NOTED THA T ASSESSEE HAD MADE CASH DEPOSITS OF RS.43,93,000/- IN CORPORA TION BANK AND RS.17,06,000/-IN INDUSIND BANK LTD. ASSESSEE WA S A ACCORDINGLY CALLED UPON TO EXPLAIN THE NATURE AND S OURCE OF CASH DEPOSITS MADE IN THESE BANKS AND WAS REQUESTED TO F URNISH COPY OF THE BANK ACCOUNTS. ON VERIFICATION OF THE BANK S TATEMENTS, LD.AO NOTED THAT ASSESSEE FAILED TO EXPLAIN THE NAT URE AND SOURCES OF THE DEPOSITS. HE THEREFORE MADE ADDITION OF CASH DEPOSITS AMOUNTING TO RS.60,99,000/- UNDER SECTION 68 OF THE ACT AS UNEXPLAINED CASH CREDITS. 4. AGGRIEVED BY ORDER OF LD.AO, ASSESSEE PREFERRED APPEAL BEFORE LD.CIT(A). 5. BEFORE LD.CIT(A) ASSESSEE FILED STATEMENT DEPOSI TS AND WITHDRAWALS PREPARED BY HIM AND SUBMITTED THAT THES E WERE FROM PAGE 3 OF 5 ITA NO.2354/BANG/2019 GENUINE SOURCES. LD.CIT(A) OBSERVED THAT ASSESSEE N EITHER PRODUCED ANY CREDIBLE PROOF NOR APPEARED BEFORE THE AUTHORITY IN SUPPORT OF HIS SUBMISSIONS. LD.CIT(A) THUS CONCLUDE D THAT NOTHING SUBSTANTIAL DOCUMENTS/EVIDENCES ARE AVAILAB LE WITH ASSESSEE TO SUPPORT THE CLAIM. HE ACCORDINGLY UPHEL D THE ADDITION MADE BY LD.AO. 6. AGGRIEVED BY ORDER OF LD.CIT (A) ASSESSEE IS IN APPEAL BEFORE US NOW. 7. WE NOTE THAT ASSESSEE HAS NOT FILED ANY DOCUMENT ARY EVIDENCES IN ORDER TO DISCHARGE HIS BURDEN UNDER SE CTION 68 BY ESTABLISHING, SOURCE, GENUINENESS, CREDITWORTHINES S OF THE CASH CREDITS IN THE BANK ACCOUNTS OF ASSESSEE. NOTHING H AS BEEN PLACED ON RECORD TO ESTABLISH THE SAME BY ASSESSEE BEFORE AUTHORITIES BELOW. HOWEVER IN THE INTEREST OF JUSTI CE WE FEEL THAT ONE MORE OPPORTUNITY MUST BE GRANTED TO ASSESSEE IN ORDER TO ESTABLISH THE 3 INGREDIENTS NECESSARY FOR BURDEN OF PROOF TO BE DISCHARGED BY ASSESSEE UNDER SECTION 68 OF THE ACT. 8. WE THEREFORE REMAND THIS ISSUE TO LD.AO TO CONSI DER THE CLAIM OF FRESH. ASSESSEE IS DIRECTED TO FILE/PRODUC E PERSONS IN ORDER TO DISCHARGE HIS BURDEN UNDER SECTION 68 OF T HE ACT BY ESTABLISHING ALL THE 3 NECESSARY INGREDIENTS BEING THE SOURCE, GENUINENESS OF THE TRANSACTION AND CREDITWORTHINESS . LD.AO SHALL THEN VERIFY THE DETAILS/EVIDENCES FILED BY ASSESSEE IN ACCORDANCE WITH LAW. PAGE 4 OF 5 ITA NO.2354/BANG/2019 9. NEEDLESS TO SAY THAT PROPER OPPORTUNITY OF BEING HEARD MUST BE GRANTED TO ASSESSEE. ACCORDINGLY GROUNDS RAISED BY ASSESSEE STANDS ALLOW ED FOR STATISTICAL PURPOSES. IN THE RESULT APPEAL FILED BY ASSESSEE STANDS ALLOW ED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH NOV, 2020 SD/- SD/- (CHANDRA POOJARI) (BEENA PILLAI) ACCOUNTANT MEMBER JUDICIAL ME MBER BANGALORE, DATED, THE 19 TH NOV, 2020. /VMS/ COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE PAGE 5 OF 5 ITA NO.2354/BANG/2019 DATE INITIAL 1. DRAFT DICTATED ON ON DRAGON SR.PS 2. DRAFT PLACED BEFORE AUTHOR -11-2020 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER -11-2020 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. -11-2020 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS -11-2020 SR.PS/PS 6. KEPT FOR PRONOUNCEMENT ON -11-2020 SR.PS 7. DATE OF UPLOADING THE ORDER ON WEBSITE -11-2020 SR.PS 8. IF NOT UPLOADED, FURNISH THE REASON -- SR.PS 9. FILE SENT TO THE BENCH CLERK -11-2020 SR.PS 10. DATE ON WHICH FILE GOES TO THE AR 11. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 12. DATE OF DISPATCH OF ORDER. 13. DRAFT DICTATION SHEETS ARE ATTACHED NO SR.PS