Mr. Rajeev Khurana, New Delhi V. ITO, New Delhi

ITA 2906/DEL/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 87158 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 10 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 26-03-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 10-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIKRAM SAHAY
• Assessee Lawyers: DINESH CHANDRA AGARWAL
• Keywords: Income from undisclosed sources; Peak credit; Additional evidence
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : F : NEW DELHI BEFORE SH. R.S. SYAL , A.M. & SH. A.T. VARKEY , J.M. ITA NO. 2906 /DEL / 2013 ASSESSMENT YEAR: 2009 - 10 RAJEEV KHURANA , VS. INCOME TAX OFFICER, B - 1/499, JANAK PURI, WARD - 33(3), NEW DELHI NEW DELHI (PAN: AAIPK0033B ) (APPELLANT) (RESPONDENT) APPELLANT BY : SH. DINESH CHANDRA AGARWAL, CA RESPONDEN T BY : SH. VIKRAM SAHAY, SR. DR DATE OF HEARING: 26.03.2015 DATE OF PRONOUNCEMENT: 27 . 03.02015 ORDER PER R.S. SYAL, A.M. : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PASSED BY THE CIT(A) ON 28.02.2013 IN RELATION TO THE ASSESSMENT YEAR 2009 - 10. 2. THE ONLY ISSUE RAISE D IN THIS APPEAL IS AGAINST THE CONFIRMATION OF ADDITION OF RS. 45,50,775/ - TOWARDS UNEXPLAINED CASH DEPOSITS IN BANK , AS INCOME FROM UNDISCLOSED SOURCES. 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT THE ASSESSING O FFICER FOUND DURING THE COURSE OF ASSESSMENT PROCEEDINGS THAT THE ASSESSEE HAD DEPOSITED A SUM OF RS. 34 ,65,775/ - IN ICICI BANK LTD. AND RS. 10,85,000/ - IN HDFC BANK LTD. SINCE THE ASSESSEE DID NOT PARTICIPATE IN THE ASSESSMENT PROCEEDINGS, THE ASSESSMENT WAS FINALIZED UNDER SECTION 144 OF THE INCOME - TAX ACT, 1961 (FOR 2 ITA NO. 2906/DEL /2013 AY : 2009 - 10 SHORT THE ACT ) MAKING ADDITION, INTER ALIA , FOR A SUM OF RS. 45,50,775/ - . THE L EARNED CIT(A) REQUIRED THE ASSESSING OFFICE R TO SUBMIT REMAND REPORT ON THE ADDITIONAL EVIDENCE FILED BY THE ASSESS EE DURING THE COURSE OF THE FIRST APPELLATE PROCEEDINGS. AFTER CONSIDERING THE RELEVANT FACTS, REMAND REPORT AND ASSESSEE S REJOINDER, HE SUSTAINED THE ADDITION O F RS. 45,50,775/ - . THE A SSESSEE IS AGGRIEVED AGAINST THE SUSTENANCE OF THIS ADDITION . 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RELEVANT MATERIAL ON RECORD. THE ONLY DISPUTE IN THIS APPEAL IS AGAINST THE ADDITION MADE BY THE ASSESSING OFFICER TOWARDS CERTAIN DEPO SITS MADE IN TWO BANK ACCOUNTS MAINTAINED BY THE ASSESSEE , TOTALING RS. 45.50 LAKHS. THE ASSESSEE FURNISHED CASH FLOW STATEMENT BEFORE THE LEARNED CIT(A) BY CONTEND ING THAT THE WITHDRAWAL S FROM THESE BANK ACCOUNTS CONSTITUTED THE SOURCE OF DEPOSITS THEREIN . WE HAVE SEEN A COPY OF THE BANK ACCOUNT MAINTAINED BY TH E ASSESSEE WITH ICICI BANK LTD., FROM WHICH I T IS APPARENT THAT THERE ARE SEVERAL ITEMS OF DEPOSITS AND WITHDRAWALS. THE ASSESSING OFFICER HAS SIMPLY PICKED UP THE DEPOSIT SIDE OF THE PASS - BOOK AND MADE THE ADDITION FOR ALL THE DEPOSITS MADE IN THE BANK ACCOUNTS, IGNORING THAT THERE ARE SEVERAL WITHDRAWALS ALSO. THIS COURSE OF ACTION ADOPTED BY THE ASSESSING OFFICER IN MAKING THE ADDITION FOR ALL THE DEPOS IT ENTRIES IN THE BANK ACCOUNTS, HA S NO SANCTION OF LAW. IF THERE ARE CERTAIN DEPOSITS AND WITHDRAWALS AS WELL AND THERE IS NOTHING IN THE ASSESSMENT ORDER TO CO - RELATE THESE WITHDRAWALS WITH ANY INVESTMENTS MADE BY THE ASSESSEE, THE PRESUMPTION 3 ITA NO. 2906/DEL /2013 AY : 2009 - 10 IS THAT SUCH WITHDRAWALS WERE UTILIZED FOR M AKING DEPOSITS. IN SUCH CIRCUMSTANCES, THE MAKING OF ADDITION TO THE EXTENT OF PEAK CREDIT IS A MORE RATIONAL WAY RATHER THAN ALL THE DEPOSIT ENTRIES . WE, THEREFORE, SET ASIDE THE IMPUGNED ORDER ON THIS SCORE AND SEND THE MATTER TO THE FILE OF ASSESSING OF FICER FOR MAKING AN ADDITION FOR AN AMOUNT EQUAL TO PEAK BALANCE IN THESE BANK ACCOUNTS. NEEDLESS TO SAY , THE ASSESSEE WILL BE ALLOWED A REASONABLE OPPORTUNI TY OF BEING HEARD IN SUCH FRESH PROCEEDINGS. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. THE DECISION IS PRONOU NCE D IN THE OPEN COURT ON 2 7 T H MARCH , 2015. S D / - S D / - ( A.T. VARKEY ) ( R.S. SYAL ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 2 7 T H MARCH , 2015. RK/ - COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI