Pradeep Jain, Kanpur V. Astt. Commissioner of Income Tax, Kanpur

ITA 248/LKW/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 3968 (ITAT-LUCKNOW)
• Duration Of Justice: 5 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-10-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 19-10-2016
• Assessment Year: 2004-2005
• Appeal Filed On: 09-05-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH SMC, LUCKNOW BEFORE SHRI P. K. BANSAL, ACCOUNTANT MEMBER ITA NO.248/LKW/2016 ASSESSMENT YEAR:2004-05 SHRI PRADEEP JAIN, 54/1, NAYA GANJ, KANPUR. PAN:AALPJ7651B VS. A.C.I.T., C.C.-II, KANPUR. (APPELLANT) (RESPONDENT) APPELLANT BY SHRI ASHISH JAISWAL, ADVOCATE RESPONDENT BY SHRI AMIT NIGAM, D. R. DATE OF HEARING 19/10/2016 DATE OF PRONOUNCEMENT 21/10/2016 O R D E R THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A)-I, KANPUR DATED 21/12/2015 RELATING TO ASSES SMENT YEAR 2004-2005. 2. THE ONLY ISSUE INVOLVED IN THIS APPEAL RELATES T O THE SUSTENANCE OF ADDITION OF RS.2,00,000/- U/S 68 OF THE I.T. ACT. 3. THE FACTS OF THE CASE, IN BRIEF, ARE THAT THE AS SESSING OFFICER NOTED FROM THE SAVINGS BANK ACCOUNT OF THE ASSESSEE THAT THE ASSESSEE HAS DEPOSITED THE CASH ON 21/10/2003 AMOUNTING TO RS.2 LAKH IN THE BANK ACCOUNT IN THE NAME OF PRIYANKA JAIN BEING THE MINO R DAUGHTER OF THE ASSESSEE. THE ASSESSEE SUBMITTED THE COPY OF THE B ANK ACCOUNT AS WELL AS CASH FLOW STATEMENT AND STATED THAT THE SAID AMOUNT HAS ARISEN OUT OF THE CASH WITHDRAWAL FROM THE BANK AND OUT OF THE CASH FLO W STATEMENT. THE 2 ASSESSING OFFICER WAS NOT SATISFIED BUT MADE THE ADD ITION FOR THE SAME. WHEN THE MATTER WENT BEFORE THE CIT(A), THE CIT(A) S USTAINED THE ADDITION. 4. I HAVE HEARD THE RIVAL SUBMISSIONS, CAREFULLY CO NSIDERED THE SAME ALONG WITH THE ORDERS OF THE TAX AUTHORITIES BELOW. I HAVE ALSO GONE THROUGH THE PAPER BOOK, ESPECIALLY THE PAGES WHICH WE RE REFERRED TO DURING THE COURSE OR HEARING. I FOUND THAT DURING THE ASS ESSMENT YEAR ENDING ON 31/03/2003, THE ASSESSEE WAS HAVING CASH IN HAND RS. 1,51,872/- AS IS APPARENT FROM PAGES 24 & 25 OF THE PAPER BOOK WHICH CONTAINS THE CASH FLOW AS WELL AS THE COPY OF BALANCE SHEET. THE ASSES SEE HAS BEEN ASSESSED FOR THE ASSESSMENT YEAR 2003-04, THE COPY OF WHICH I S AVAILABLE AT PAGE NO. 22 OF THE PAPER BOOK AND NO ADDITION HAS BEEN MADE REJECTING THE BALANCE SHEET OF PRIYANKA JAIN, DAUGHTER OF THE ASSESSEE. THE ASSESSEE HAS ALSO SUBMITTED THE COPY OF THE BANK STATEMENT OF PRIYANK A JAIN WHICH ARE AVAILABLE AT PAGES 16 & 17 OF THE PAPER BOOK. THE ASSESSEE HAS ALSO SUBMITTED THE COPY OF ACCOUNT OF PRIYANKA JAIN IN T HE BOOKS OF SHRI PANNA LAL BANARSIDAS JEWELLERS, COPY OF WHICH IS AVAILABLE AT PAGE NO. 20 OF THE PAPER BOOK. COPY OF CASH FLOW STATEMENT FOR THE YEA R ENDING ON 31/03/2004 IS AVAILABLE ON PAGE NO. 12 OF THE PAPER BOOK. ON THE BASIS OF THE CASH FLOW STATEMENT THE ASSESSEE HAS SHOWN A DEP OSIT IN THE BANK AMOUNTING TO RS.2 LAKH IN THE ACCOUNT OF PRIYANKA J AIN AND CORRESPONDINGLY OPENING CASH BALANCE OF RS.1,51,872/- WAS SHOWN. TH E ASSESSEE HAS SHOWN IN THE HANDS OF PRIYANKA JAIN A SUM OF RS.50,0 00/- RECEIVED FROM THREE PERSONS NAMELY PRACHI JAIN, R. P. JAIN AND KU SUM LATA JAIN. THE CLOSING CASH IN HAND HAS BEEN SHOWN AT RS.1,872/-. THE ASSESSEE EVEN THOUGH HAS SUBMITTED THE CONFIRMATION FROM PRACHI J AIN, R. P. JAIN AND 3 KUSUM LATA JAIN IN RESPECT OF THE AMOUNT ADVANCED O F RS.50,000/- BUT I NOTED THAT ALL THE AMOUNT HAS BEEN RECEIVED BY PRIY ANKA JAIN IN CASH. FROM THE CONFIRMATION FILED BY THE ASSESSEE RELATIN G TO PRIYANKA JAIN IN RESPECT OF THE SUM OF RS.50,000/- RECEIVED BY HEAR DURING THE YEAR FROM THREE PERSONS, THE ASSESSEE IS NOT ABLE TO PROVE TH E CREDITWORTHINESS AS WELL AS GENUINENESS OF THE TRANSACTION. AT THE MOST , WE CAN GIVE THE CREDIT IN RESPECT OF THE OPENING BALANCE OF PRIYANKA JAIN AMOUNTING TO RS.1,51,872/- OUT OF WHICH THERE WAS CLOSING BALANCE OF RS.1,872/-. I, THEREFORE, DELETE THE ADDITION OF RS.1,50,000/- OUT OF THE SUM OF RS.2 LAKH DEPOSITED BY THE ASSESSEE IN THE BANK ACCOUNT OF PR IYANKA JAIN. THUS, THE GROUND TAKEN BY THE ASSESSEE IS PARTLY ALLOWED. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS PARTLY ALLOWED. (ORDER PRONOUNCED IN THE OPEN COURT ON 21/10/2016) SD/. ( P. K. BANSAL ) ACCOUNTANT MEMBER DATED:21/10/2016 *SINGH COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR ASSISTANT REGISTRAR