Ashok Agrawal, Jamshedpur V. ACIT CIR-3, Jamshedpur

ITA 301/RAN/2016

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 7781 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 6 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-05-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 04-11-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A K MOHANTY
• Assessee Lawyers: S K PODDAR
• Section: 142(1); 147

Judgement Text

1 ITA NO. 301 /RAN/ 201 6 IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI BEFORE SHRI N.S.SAINI , ACCOUNTANT MEMBER & SHRI PAVAN KUMAR GADALE , JUDICIAL MEMBER ITA NO. 301 /RAN/201 6 A .Y. : 20 09 - 201 0 ASHOK AGARWAL, MAHATO PARA ROAD, JUGSALAI, JAMSHEDPUR V S ACIT, CIRCLE - 3, JAMSHEDPUR P AN NO. : AKFPA 5902 J (APPELLANT ) . RESPONDENT ASSESSEE BY : SHRI S.K.PODDAR & DEVESH PODDAR , ADV. REVENUE BY :SHRI A.K.MOHANTY , JCIT DATE OF HEARING : 2 2 . 05 .201 8 DATE OF PRONOUNCEMENT : 24.05 .201 8 O R D E R PER PAVAN KUMAR GADALE, JM : TH IS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A), JAMSHEDPUR , DATED 16.08.2016 , FOR THE ASSESSMENT YEAR 20 09 - 1 0 . 2. AT THE TIME OF HEARING, THE LD. AR OF THE ASSESSEE DID NOT P RESS GROUND NOS.1, 4 & 5, THEREFORE, WE DISMISS THE GROUND NOS.1, 4 & 5 AS NOT PRESSED. 3 . THE EFFECTIVE GROUNDS OF APPEAL ARE AS UNDER : - 2. FOR THAT LD. CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ADDITION OF RS. 27,02,849/ - BEING THE MAXIMUM CREDIT BALAN CE IN THREE SEPARATE ACCOUNTS ON 03.02.2009. LD. A.O. VIDE PARA - 3 OBSERVED THAT APPELLANT WAS JUSTIFIED IN GIVING EXPLANATION FOR THE DEPOSITS MADE IN TWO BANK ACCOUNTS, HOWEVER, HE MADE THE ADDITIONS OF THE MAXIMUM DEPOSITS ON THE PARTICULAR DATE. THE 2 ITA NO. 301 /RAN/ 201 6 ADD ITION AS CONFIRMED BY LD. CIT(A) IS UNJUSTIFIED, ILLEGAL AND INCORRECT. 3. FOR THAT THE ENTIRE BANK DEPOSITS MADE BY THE APPELLANT STANDS EXPLAINED AND BANK ACCOUNTS WERE DISCLOSED IS AN UNDISPUTED FACT. ADDITION MADE AS UNEXPLAINED CASH DEPOSIT IS ILLEGA L AND INCORRECT. LD. CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS.27,02,849/ - . THE EXPLANATION FILED BY THE APPELLANT BEFORE LD. A.O. AS WELL AS BEFORE LD. CIT(A) WAS NOT CONSIDERED JUDICIOUSLY. THE COPIES OF BANK ACCOUNTS WERE FILED TO EXPLAIN THE DEPOSI TS WHICH WERE NOT LOOKED INTO. 4 . BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE, AN INDIVIDUAL, DERIVES INCOME FROM CONTRACT JOB WORK AND INTEREST INCOME AND FILED THE RETURN OF INCOME FOR THE ASSESSMENT YEAR 2009 - 2010 ELECTRONICALLY ON 24.03.2011 SHOWI NG A TOTAL INCOME OF RS.2,96,880/ - . SUBSEQUENTLY A NOTICE U/S.148 OF THE ACT WAS ISSUED IN THIS CASE ON THE BASIS OF AN INFORMATION RECEIVED FROM ACIT, CIRCLE - 3, JAMSHEDPUR AND IN RESPONSE TO THAT THE ASSESSEE HAS STATED THAT THE RETURN OF INCOME FILED ON 24.03.2011 MAY KINDLY BE TREATED AS RETURN IN RESPONSE TO NOTICE U/S.148 OF THE ACT AND ACCORDINGLY NOTICE U/S.143( 2 ) & 142(1) OF THE ACT WERE ISSUED TO THE ASSESSEE. IN COMPLIANCE THE AR OF THE ASSESSEE APPEARED FROM TIME TO TIME AND FILED THE RELEVANT DOCUMENTS. THE AO ON PERUSAL OF BANK STATEMENT FOUND THAT IN THE ABSENCE OF ANY SUCH DOCUMENTARY EVIDENCE, THE CONTRACT RECEIPTS AS DECLARED BY THE ASSESSEE ARE REJECTED AS UNVERIFIABLE AND UNSUBSTANTIATED AND MADE ADDITION OF RS.3,42,400/ - . FURTHER THE AO FOUND THAT THE ASSESSEE S CLAIM REGARDING THE SOURCE OF CASH DEPOSIT MADE IN BANK ACCOUNTS MAINTAINED WITH UNION BANK OF INDIA A/C NO.301101010555874 WAS OUT OF THE AMOUNT WITHDRAWN FROM TH E BANK IS QUITE JUSTIFIED AND THE 3 ITA NO. 301 /RAN/ 201 6 SAME IS ACCEPTED, HOWEVER, T HE CASH DEPOSIT MADE IN THE BANK ACCOUNT MAINTAINED WITH ICICI BANK ACCOUNT AND UNION BANK OF INDIA REMAINS UNEXPLAINED. THEREFORE, THE AO MADE THE ADDITION ON ACCOUNT OF UNEXPLAINED CASH DEPOSIT OF RS.27,02,849/ - AND ALSO BANK INTEREST OF RS.45,583/ - AND ASSESSED TOTAL INCOME OF RS. 30,90,832/ - AND PASSED ORDER U/S. 147 /143(3) OF THE ACT, DATED 24.03.2015 . 5 . AGGRIEVED BY THE ASSESSMENT ORDER, THE ASSESSEE HAS FILED AN APPEAL WITH THE CIT(A). IN THE APPELLATE PROCEEDINGS LD. AR OF THE ASSESSEE ARGUED THE GR OUNDS AND REITERATED THE SUBMISSIONS AND LD.CIT(A) HAVING CONSIDERED THE FINDINGS AND THE SUBMISSIONS OF THE ASSESSEE DEALT ON THE DISPUTED ISSUES AND PARTLY ALLOWED THE APPEAL OF THE ASSESSEE. 6. AGGRIEVED BY THE ORDER OF CIT(A), THE ASSESSEE HAS FILED AN APPEAL BEFORE THE TRIBUNAL. 7 . BEFORE US, LD.AR SUBMITTED THAT THE AO HAS MADE THE ADDITION IN RESPECT OF DEPOSITS IN THE BANK ACCOUNTS TREATING AS UNEXPLAINED CASH DEPOSIT AND THE ASSESSEE HAS DULY EXPLAINED THE DEPOSITS MADE IN TWO BANK ACCOUNTS AN D THE ASSESSEE HAS FILED COPIES OF BANK ACCOUNTS TO EXPLAIN THE DEPOSITS WHICH WERE NOT LOOKED INTO AND PRAYED FOR ALLOWING THE APPEAL. 8. CONTRA, LD. DR RELIED ON THE ORDER OF LOWER AUTHORITIES. 9. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATE RIAL ON RECORD. ON THE ISSUE OF ADDITION ON ACCOUNT OF UNEXPLAINED CASH DEPOSIT, LD. AR FILED PAPER BOOK AND BANK STATEMENTS OF ICICI BANK AND UNION BANK 4 ITA NO. 301 /RAN/ 201 6 OF INDIA. ON PERUSAL OF THE SAME, IT DEMONSTRATES THAT THE AO MADE ADDITION IN RESPECT OF DEPOSIT OF B ALANCE WHICH WAS REFERRED BEFORE US AND THE LD.AR ALSO POINTED OUT THAT THIS ACCOUNT MAINTAINED WITH UNION OF BANK OF INDIA BEARING NO.301101010555874 IS A LOAN ACCOUNT, THEREFORE, DEBIT BALANCE IN THE ACCOUNT CANNOT BE CONSIDERED AS DEPOSIT. WE FOUND SOME STRENGTH IN THE SUBMISSION OF LD. AR. ON PERUSAL OF THE ASSESSMENT ORDER, WE FIND THAT THE AO HAD MADE ADDITION IN RESPECT OF THREE ACCOUNTS REFERRED AT PARA 3 OF THE ORDER WHICH READS AS UNDER : - ACCOUNT NO. DATE AMOUNT 301101010555874 03.02.2009 22,97 ,628/ - 008905006943 03.02.2009 4,04,200/ - 301102010912644 03.02.2009 1,021/ - TOTAL 27,02,849/ - FROM THE PERUSAL OF THE ABOVE, THE AO HAS MADE THE ADDITION O F DEBIT BALANCE I.E. RS.22,97,628/ - . THEREFORE, WE ARE OF THE OPINION THAT THE AO CANNOT MAKE THE ADDITION OF DEBIT BALANCE AND IN THE INTEREST OF JUSTICE, WE DIRECT THE AO TO DELETE THE ADDITION, WHEREAS THE ADDITION MADE BY THE AO IN RESPECT OF OTHER TWO ACCOUNTS OF RS.4,04,200/ - AND RS.1,021/ - , WE FOUND THAT THESE AMOUNTS ARE OUT OF CASH DEPOSI T MADE AND IS CREDIT BALANCE. THEREFORE, WE FIND NO OTHER OPTION BUT TO CONSIDER THE OBSERVATIONS OF THE CIT(A) ON THIS GROUND AND ACCORDINGLY WE CONFIRM THE ADDITION TO THE EXTENT OF RS.4,05,221/ - AND PARTLY ALLOWED THE APPEAL OF THE ASSESSEE. 5 ITA NO. 301 /RAN/ 201 6 10 . IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 24 / 05 /201 8 S D/ - SD/ - ( N.S.SAINI ) ( PAVAN KUMAR GADALE ) ACCOUNTANT MEMBER JUDICIAL MEMBER RANCHI , DATED 24 / 05 /201 8 PRAKASH KUMAR MISHRA , SR. PS COPY OF THE ORDER FORWARDED TO : BY ORDER, //TRUE COPY// SR.PS, ITAT, RANCHI 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) CONCERNED 4. CIT , CONCERNED 5. DR, ITAT, RANCHI 6. GUARD FILE.