GANGADHAR SUMAN, BUNDI V. ITO, BUNDI

ITA 259/JPR/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 5109 (ITAT-JAIPUR)
• Duration Of Justice: 4 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 21-03-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: O P BHATEJA CIT DR DHK
• Assessee Lawyers: M K JAIN

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH HKKXPUN] YS[KK LNL; DS LE{K BEFORE: SHRI BHAGCHAND, ACCOUNTANT MEMBER VK;DJ VIHY LA-@ ITA NO. 259/JP/2016 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2007-08 SHRI GANGADHAR SUMAN PROP. M/S. SUMAN PROPERTIES CHITTOR ROAD, BUNDI CUKE VS. THE ITO BUNDI LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AZCPS 5998 J VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY: SHRI M.K. JAIN, ADVOCATE JKTLO DH VKSJ LS@ REVENUE BY :SHRI O.P. BHATEJA, ADDL CIT-. DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 26/07/2016 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 27/07/2016 VKNS'K@ ORDER PER BHAGCHAND, AM THE ASSESSEE HAS FILED AN APPEAL AGAINST THE ORDER OF THE LD. CIT(A), KOTA DATED 11-01-2016 FOR THE ASSESSMENT Y EAR 2007-08 RAISING THEREIN FOLLOWING GROUND:- UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ADD ITION ON ACCOUNT OF CASH DEPOSITS TO THE EXTENT OF RS. 6,31 ,516/-. 2.1 BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE F ILED THE RETURN OF INCOME DECLARING TOTAL INCOME OF RS. 99,040/- ON 24 -04-2008. THE SOURCE OF INCOME OF THE ASSESSEE IS FROM COMMISSION AGENT AND AGRICULTURE. THE AO MADE ADDITION OF RS. 11.55 LACS ON ACCOUNT O F UNEXPLAINED CASH ITA NO. 259/JP/2016 SHRI GANGADHAR SUMAN VS. ITO , BUNDI . 2 DEPOSITED IN THE BANK ACCOUNTS OF THE ASSESSEE BASE D ON THE AIR INFORMATION RECEIVED. THE LD. CIT(A) GRANTED PART R ELIEF TO THE ASSESSEE BY REDUCING THE ADDITION TO THE EXTENT OF RS. 6,31, 516/- ON THE BASIS THAT THE ASSESSEE WAS NOT INTO ANY ORGANIZED BUSINESS AN D HE WAS NOT BOUND TO MAINTAIN ANY BOOKS OF ACCOUNTS. THE ASSESSEE WAS HA VING OPENING BALANCE AVAILABLE WITH HIM AND ALSO SELF WITHDRAWAL S FROM DIFFERENT ACCOUNTS. THE THEORY OF FUND CIRCULATION WAS ACCEPT ED BY THE LD. CIT(A) . 2.2 BEFORE ME, THE LD. AR OF THE ASSESSEE PLEADED T HAT THE ASSESSEE WAS HAVING SUFFICIENT OPENING BALANCE TO THE TUNE OF RS . 8,87,376/- IN DIFFERENT BANK ACCOUNTS. THEREFORE, DELETION OF PAR T ADDITION WAS NOT JUSTIFIED. THE ASSESSEE SHOULD HAVE BEEN GIVEN FULL RELIEF. 2.3 THE LD. DR RELIED ON THE ORDER OF THE LD. CIT(A ). 2.4 I HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. I HAVE ANALYZED THE OPENING BA LANCE AS WELL AS CASH WITHDRAWALS AND CASH DEPOSITS IN VARIOUS BANKS ON DIFFERENT DATES. THERE WAS WITHDRAWAL OF RS. 5.00 LACS ON 19-04-2006 FROM BANK ACCOUNT NO.10739 HELD AT BRKG BANK, KHOJA GATE, BUNDI. THE RE WERE CASH DEPOSITS OF RS. 3.00 LACS ON 20-04-2006 AND RS. 2.0 0 LACS ON 25-04-2006 IN THE BANK ACCOUNT NO. 2134 MAINTAINED WITH BRKG BANK, NEEM KA KHERA. THERE ARE CASH DEPOSITS OF RS. 4.05 LACS ON 23-12-2006 AND RS. 2.00 LACS ON 16-01-2007 IN A/C NO. 10739 HELD AT BRKG BANK, ITA NO. 259/JP/2016 SHRI GANGADHAR SUMAN VS. ITO , BUNDI . 3 KHOJA GATE. THE LD. AR SUBMITTED THAT THERE WAS A W ITHDRAWAL OF RS. 1.00 LACS ON 7-08-2008 IN A/C NO. 51021106742 MAIN TAINED WITH SBBJ, BUNDI. EXCEPT THIS WITHDRAWAL OF RS. 1.00 LAC, THE LD. AR HAD NOT GIVEN ANY SOURCE OF CASH DEPOSITS OF RS. 5,05,000/- (RS. 6,05,000 MINUS RS. 1,00,000). IN VIEW OF THE ABOVE DELIBERATIONS AND IN ABSENCE OF ANY PROPER EXPLANATION REGARDING SOURCE OF CASH DEPOSIT ED IN THE BANK ACCOUNTS OF RS. 5.05 LACS, THE ADDITION IS SUSTAI NED TO THAT EXTENT. THE CASH DEPOSITED OF RS. 5.05 LACS IS TREATED AS UNEXP LAINED CASH DEPOSITS IN THE BANK ACCOUNTS OF THE ASSESSEE DURING THE RELEV ANT FINANCIAL YEAR. THEREFORE, THE ADDITION OF RS. 5.05 LACS IS SUSTAIN ED. THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. 3.0 IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PA RTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 27 /07/201 6 SD/- HKKXPUN ( BHAGCHAND) YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 27/07/ 2016 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- SHRI GANGADHAR SUMAN, BUNDI 2. IZR;FKHZ@ THE RESPONDENT- THE ITO, BUNDI 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 259/JP/2016) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ @ ASSISTANT. REGISTRAR