Sujit Kumar Behera, Bhubaneswar V. ITO, Ward-2(2), Bhubaneswar

ITA 280/CTK/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 7210 (ITAT-CUTTACK)
• Duration Of Justice: 6 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-01-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 24-01-2017
• Assessment Year: 2011-2012
• Appeal Filed On: 18-07-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: D K PRADHAN
• Assessee Lawyers: C PARIDA
• Keywords: Peak credit

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK SMC BENCH, CUTTACK BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER ITA NO.280 /CTK/2016 ASSESSMENT YEAR : 2011 - 12 SRI SUJIT KUMAR BEHERA, PLOT NO.A - 356, SAHEED NAGAR, BHUBANESWAR. VS. ITO, WARD 2(2), BHUBANESWAR. PAN/GIR NO. AFFPB 6168 Q (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI C.PARIDA, AR REVENUE BY : SHRI D.K.PRADHAN, DR DATE OF HEARING : 24 /01/ 2017 DATE OF PRONOUNCEMENT : 24 /01/ 2017 O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - 2, BHUBANESWAR , DATED 23.3.2016 , FOR THE ASSESSMENT YEAR 2011 - 12. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. THAT THE ORDER PASSED BY THE CIT(A) IS ARBITRARY, EXCESSIVE, CONTRARY TO FACTS AND BAD IN LAW. 2 . THAT THE CIT(A) IS ERRED IN CALCULATING THE PEAK CREDIT WITHOUT CONSIDERING THE GENUINE RECEIPT AND THE OPENING BANK BALANCE IN THE BANK ACCOUNT AND WITHDRAWN SUBSEQUENTLY TO REDEPOSIT THE SAID IN THE SAID BANK ACCOUNT. 2 ITA NO.280 /CTK/2016 ASSESSMENT YEAR :2011 - 12 3. THAT THE CIT(A) IS ERRED IN CON FIRMING THE ADDITION OF OPENING CASH IN HAND TO THE TUNE OF RS.4,20,000/ - MADE BY THE AO WITHOUT CONSIDERING THE CASH FLOW STATEMENT AND OTHER SUPPORTING DETAILS IN RESPECT OF THE SAME. 3. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF LOWER AUTHORITIES AND MATERIALS AVAILABLE ON RECORD. IN THE INSTANT CASE, THE ASSESSING OFFICER FOUND THAT THE ASSESSEE HAS MADE CASH DEPOSIT IN THE SAVING BANK ACCOUNT NO.2977000101014291 WITH PUNJAB NATIONAL BANK, CHANDRASEKHARPUR BRANCH, BHU BANESWAR AND HENCE, HE TREATED THE SAME AS UNEXPLAINED DEPOSIT AND MADE AN ADDITION OF THE ENTIRE CASH DEPOSIT OF RS.33,02,620/ - TO THE INCOME OF THE ASSESSEE. 4. ON APPEAL, LD CIT(A) HELD THAT THE PEAK DEPOSIT AS ON 31.3.2011 OF RS.24,06,873/ - SHOULD BE T REATED AS UNDISCLOSED INCOME OF THE ASSESSEE. BEING AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 5. LD A.R. OF THE ASSESSEE SUBMITTED THAT FROM THE PEAK CREDIT, FOLLOWING AMOUNTS SHOULD BE REDUCED AND THE BALANCE AMOUNT MAY BE TREATED AS UNDI SCLOSED INCOME OF THE ASSESSEE: DATE AMOUNT (RS.) SOURCES 1.4.2010 5,04, 035.18 OPENING BANK BALANCE 28.7.2010 3,30,800 LOAN FROM SISTER - SASMITA BEHERA 5.8.2010 59,272 LOAN FROM FRIEND 5.9.2010 3,003 BANK SB INTEREST 26.10.2010 1,34,494 SURRENDER VALUE OF INSURANCE POLICY 27.1.2011 5,00,000 REFUND OF LOAN TAKEN BY FATHER 2.3.2011 3,519 BANK SB INTEREST 3 ITA NO.280 /CTK/2016 ASSESSMENT YEAR :2011 - 12 6. ON THE OTHER HAND, LD D.R. SUPPORTED THE ORDERS OF LOWER AUTHORITIES. 7. I FIND THAT LD A.R. OF THE ASSESSEE HAS POINTED OUT FROM ANNEXURE - 1 OF THE PAPER BOOK WHICH IS THE COPY OF BANK ACCOUNT OF THE ASSESSEE WITH PUNJAB & NATIONAL BANK, WHICH SHOWS THAT THERE WAS OPENING BALANCE OF RS.5,04,035.18. FURTHER, FROM ANNEXURE - 4 OF THE PAPER BOOK , WHICH IS THE COPY OF BANK STATEMENT, IT IS OBSERVED THAT THE ASSESSEE HAS EARNED INTEREST FROM BANK OF RS.3,003.00. FROM ANNEXURE - 5 OF THE PAPER BOOK , WHICH IS THE COPY OF FIRST PREMIUM RECEIPT OF BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED, IT IS OBSE RVED THAT THE ASSESSEE HAS PAID RS.30,000/ - TOWARDS PREMIUM AMOUNT. IN THE SUBSEQUENT PAGE TO THIS ANNEXURE IS THE BANK STATEMENT WHICH SHOWS THAT ON 26.10.2010, RS.1,34,494/ - HAS BEEN PAID BY THE SAID BAJAJ ALLIANZ LIFE INSURANCE COMPANY LIMITED. FURTHE R, ANNEXURE - 6 OF THE PAPER BOOK IS THE PASSBOOK OF UCO BANK, BHUBANESWAR, S.B. ACCOUNT NO.09230102005904, OF SHRI SRIDHAR BEHERA, FATHER OF THE ASSESSEE, WHEREIN, IT IS OBSERVED THAT RS.5,00,000/ - WAS PAID ON 7.1.2011 TO THE ASSESSEE. FURTHER, ANNEXURE - 7 OF THE PAPER BOOK IS THE COPY OF PASS BOOK OF THE ASSESSEE, WHICH SHOWS THAT THE CREDIT OF INTEREST OF RS.3,519.00. THUS, FROM THE ABOVE EVIDENCE S , IT IS OBSERVED THAT THE SOURCE OF DEPOSIT FOR RS.11,45,051.18 IS EXPLAINED AND THE SOURCE OF DEPOSIT OF RS. 3,30,800/ - BEING LOAN FROM SISTER SASMITA BEHERA AND LOAN OF RS.59,272/ - FROM FRIEND IS NOT EXPLAINED BY FILING ANY EVIDENCE. IN MY CONSIDERED VIEW, OUT OF PEAK DEPOSIT 4 ITA NO.280 /CTK/2016 ASSESSMENT YEAR :2011 - 12 OF RS. 15,35,123.18 , THE ASSESSEE SHOULD BE ALLOWED CREDIT FOR RS.11,45,051.18 AND ADD ITION FOR BALANCE AMOUNT OF RS.12,61,822/ - SHOULD BE SUSTAINED. I, THEREFORE, MODIFY THE ORDER OF LD CIT(A) AND PARTLY ALLOW THE GROUNDS OF APPEAL OF THE ASSESSEE. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCE D IN T HE OPEN COURT ON 24 / 01/2017 IN THE PRESENCE OF PARTIES. SD/ - ( N.S SAINI) A CCOUNTANT MEMBER CUTTACK; DATED 24 /01 /2017 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, ASST.REGISTRAR, ITAT, CUTTACK 1. THE APPELLANT : SRI SUJIT KUMAR BEHERA, PLOT NO.A - 356, SAHEED NAGAR, BHUBANESWAR. 2. THE RESPONDENT: ITO, WARD 2(2), BHUBANESWAR. 3. THE CIT(A) - 2, BHUBANESWAR. 4. PR. CIT , BHUBANESWAR. 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//