Malkeet Singh, Ambala City V. ITO, Ambala

ITA 292/CHANDI/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 86178 (ITAT-CHANDIGARH)
• Duration Of Justice: 10 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 03-02-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 25-03-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S K MITTAL
• Assessee Lawyers: GAURAV SAIN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES A CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI T.R. SOOD, ACCOUNTANT MEMBER ITA NO. 292/CHD/2014 ASSESSMENT YEAR: 2008-09 SHRI MALKEET SINGH, VS THE ITO, WARD-1, AMBALA CITY AMBALA PAN NO. AYIPS0317G (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI GAURAV SAIN RESPONDENT BY : SHRI S.K. MITTAL DATE OF HEARING : 03.02.2015 DATE OF PRONOUNCEMENT : 06.02.2015 ORDER PER T.R.SOOD, A.M. THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINS T THE ORDER DATED 18.05.2012 OF CIT(A) PANCHKULA. 2. IN THIS APPEAL THE ASSESSEE HAS RAISED THE FOLLO WING GROUND:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E, THE LD. CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ADDITION OF RS. 17,89,000/- ON ACCOUNT OF CASH DEPOSITS IN THE BANK ACCOUNT PARTICULARLY WHEN APPELLANT IS MAINTAINING REGULAR BOOKS OF ACCOUNT AND BANK ACCOUNT IS CONNECTED WITH REGULAR BOOKS OF ACCOUNT AND ALL THE DEPOSITS AND WITHDRAWALS IN THE SAID ACCOUNT HAVE BEEN ROUTED THROUGH BOOKS OF ACCOUNT. 3. AFTER HEARING BOTH THE PARTIES WE FIND THAT DURI NG ASSESSMENT PROCEEDINGS THE ASSESSING OFFICER NOTICED THAT ASSESSEE HAS DEP OSITED CASH AMOUNTING TO RS. 17,89,000/- IN HIS BANK ACCOUNT NO.442167944 WITH T HE INDIAN BANK, AMBALA. ON ENQUIRY, IT WAS STATED THAT ASSESSEE WAS ENGAGED IN THE BUSINESS OF SELLING 2 RETA, RORI, BAJRI ETC ON RETAIL BASIS AND THE DEPOS ITS HAVE BEEN MADE OUT OF THE SALE PROCEEDS. THE ASSESSING OFFICER REPRODUCED THE DETAILS OF DEPOSITS AT PAGAES 2 & 3 IN THE ASSESSMENT ORDER WHICH IS AS UN DER:- DATE DEPOSIT (RS.) WITHDRAWAL (RS.) 5.5.2007 1,00,000 9.4.07 1250 2.5.07 1200 2.5.07 3000 17.5.07 220000 10.5.07 50,000 15.5.07 600000 11.6.07 50,000 20.6.07 165000 22.6.07 5000 29.6.07 54000 7.7.07 1200 18.7.07 30000 24.7.07 24000 27.07.07 10000 30.7.07 30000 01.8.07 10000 8.8.07 5000 11.8.07 5000 17.8.07 5000 08.11.07 90000 20.11.07 200000 06.12.07 80000 27.12.07 80000 19,01.08 200000 12.02.08 40000 08.03.08 20000 25.3.08 10000 TOTAL 17,89,000 3,45,650 3 THE ASSESSING OFFICER OBSERVED THAT ASSESSEE WAS NO T ABLE TO RECONCILE THE DEPOSITS WITH THE SALES AND, THEREFORE, ADDED THIS SUM TO THE INCOME OF THE ASSESSEE. 4. ON APPEAL, THE SUBMISSIONS MADE BEFORE ASSESSING OFFICER WERE REITERATED. IT WAS FURTHER SUBMITTED THAT ASSESSEE HAD AGRICULTURAL INCOME OF RS. 2,25,750/. IT WAS ALSO SUBMITTED THAT THERE WAS NO SUBSTANTIAL CHANGE IN THE CASH IN HAND AND STOCK AND THE FOLLOWING FIGURES WE RE ANNEXED WITH THE COPY OF THE RETURN. AS ON 1.4.2007 AS ON 31.3.2008 CASH IN HAND 56,849 2,14,438 BANK BALANCE 7,213 54,378 CAPITAL 8,46,866 11,07,537 STOCK 6,88,710 6,48,975 5. THE LD. CIT(A) DID NOT FIND FORCE IN THE SUBMISS IONS MADE AND CONFIRMED THE ADDITION. 6. BEFORE US, SUBMISSIONS MADE BEFORE CIT(A) WERE R EITERATED. IT WAS FURTHER SUBMITTED THAT AMOUNTS WERE WITHDRAWN FROM THE BAN K ACCOUNT FOR THE PURPOSE OF BUSINESS AND SALE PROCEEDS WERE DEPOSITED THEREI N. 7. ON THE OTHER HAND LD. DR STRONGLY SUPPORTED THE ORDER OF CIT(A). 8. AFTER CONSIDERING THE RIVAL SUBMISSIONS WE FIND THAT IT IS POSSIBLE THAT ASSESSEE MAY HAVE DEPOSITED VARIOUS SUMS OF CASH OU T OF THE SALE PROCEEDS. HOWEVER, AT THE SAME TIME ASSESSEE HAS NOT BEEN AB LE TO RECONCILE THE DEPOSITS MADE IN THE BANK AS WELL AS SALE, THEREFORE, IN OUR OPINION IN THIS CASE ONLY AN ESTIMATED ADDITION IS REQUIRED TO BE MADE. AFTER CO NSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE WE ARE OF THE OPINION THA T IF AN ADDITION OF RS. 6 LAKHS 4 IS MADE THE SAME WOULD MEET THE ENDS OF JUSTICE. AC CORDINGLY WE SET ASIDE THE ORDER OF LD. CIT(A) AND DIRECT THE ASSESSING OFFIC ER TO MADE ADDITION OF RS. 6 LAKHS TOWARDS UNDISCLOSED SOURCES FOR THE DEPOSITS IN THE BANK. 9. IN THE RESULT, APPEAL IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 06/02/2015 SD/- SD/- (BHAVNESH SAINI) (T.R. SOOD) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 06 TH FEBRUARY,2015 RKK COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT, TH E CIT(A), THE DR