Dr. Virender Bansal, Rohtak V. ITO, Rohtak

ITA 3142/DEL/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 4192 (ITAT-DELHI)
• Duration Of Justice: 10 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-05-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Next Hearing Date: 05-05-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 24-06-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K RAVI RAMCHANDRA
• Assessee Lawyers: A K JAIN
• Keywords: Peak credit

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: H BENCH, NEW DELHI BEFORE SHRI C.L.SETHI, JUDICIAL MEMBER AND SHRI B.C.MEENA, ACCOUNTANT MEMBER ITA NO: 3142/DEL/2010 ASSESSMENT YEAR : 2007-08 SH. VIRENDER BANSAL VS. ITO, WARD 2 S/O SH. BHAGWAN DASS WARD 2, R OHTAK 45, HUDA COMPLEX ROHTAK ( PAN: AAMPB 5283 A ) (APPELLANT) (RESPONDE NT) APPELLANT BY : SH. AK JAIN, ADV. RESPONDENT BY : SH. K.RAVI RAMCHANDRA, SR. D.R. O R D E R PER B.C. MEENA, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE ARISING OUT OF ORDER OF CIT(A), ROHTAK DATED 12.5.2010 PERTAINING TO A.Y. 2007-08. THE GROUNDS OF APPEAL READ AS UNDER. 1. THE ORDER OF LD.CIT(A) UNDER APPEAL IS AGAINST FACTS AND IS BAD IN LAW. 2. THE LD.CIT(A) ERRED IN RETAINING AN ADDITION OF RS. 3,44,898/- REPRESENTING THE MAXIMUM AMOUNT OF RS. 3,45,914/- DEPOSITED ON 23.8.2006 IN HIS ACCOUNT WI TH STATE ITA 3142/DEL/2010 PAGE 2 OF 4 A.Y. 2007-2008 SH. VIRENDER BANSAL, ROHTAK BANK OF PATIALA, PANIPAT AFTER GIVING ALLOWANCE BEI NG THE OPENING BALANCE OF RS. 1,016/- THEREIN, WITHOUT ANY JUSTIFICATION FOR THE SAME. 3. THE APPELLANT CRAVES LEAVE TO ADD, AMEND OR FOR EGO ANY GROUND OF APPEAL AT THE TIME OF HEARING. 2. AT THE OUTSET OF HEARING THE LD.A.R. FOR THE ASS ESSEE SUBMITTED THAT THE FACTS OF THIS CASE ARE SIMILAR TO THE FACTS OF THE CASE OF SHRI RAJESH KUMAR, ROHTAK IN ITA 3143/DEL/2010 A.Y. 2007-08 IN WHICH THE HONBLE ITAT HAS REMITTED THE ISSUE BACK TO THE FILE OF A.O . WITH THE DIRECTIONS TO DECIDE THE ISSUE DENOVO AFTER PROVIDING A REASONABL E OPPORTUNITY OF HEARING TO THE ASSESSEE. LD.D.R. WAS ALSO NOT HAVI NG ANY OBJECTION TO THIS PROPOSITION. 3. AFTER HEARING BOTH THE SIDES WE FIND THAT THE HO NBLE ITAT IN THE CASE OF SHRI RAJESH KUMAR IN ITA 3143/DEL/2010 (SUP RA) HAS DECIDED THE ISSUE AS UNDER. 2. DURING THE RELEVANT PERIOD THERE WERE DEPOSITS OF RS. 25,25,000/- IN THE BANK ACCOUNT OF ASSESSEE MAINTAI NED WITH STATE BANK OF PATIALA. THE A.O. MADE AN ADDIT ION OF RS. 9,15,000/- TREATING THE SAME AS UNEXPLAINED INC OME OF ASSESSEE. THE LD.CIT(A) GRANTED PART RELIEF AND SUSTAINED THE ADDITION OF RS. 3,25,023/-. THIS WAS THE AMOUNT OF PEAK CREDIT OF ASSESSEES BANK ACCOUNT AS ON 23 RD AUGUST, 2006. THE ASSESSEE SUBMITTED A PAPER BOOK CONTAINING 7 PAGES BEFORE THE LD.CIT(A). IN PAGE NO.6 THE ITA 3142/DEL/2010 PAGE 3 OF 4 A.Y. 2007-2008 SH. VIRENDER BANSAL, ROHTAK ASSESSEE HAS MADE A CASH FLOW STATEMENT. DURING TH E HEARING THE LD.A.R. SUBMITTED THAT THE CASH DEPOSIT ED IN THE BANK WAS FROM CASH AVAILABLE WITH THE ASSESSEE. HE DREW OUR ATTENTION TO P.NO.6 OF THE PAPER BOOK. FR OM THE RECORDS WE FIND THAT THE A.O. HAS NOT CONSIDERED TH E CASH FLOW STATEMENT WHILE DECIDING THE ISSUE. PROPER S CRUTINY OF THE CASH FLOW STATEMENT IS A MUST TO ARRIVE AT A NY CONCLUSION. THE CASH FLOW STATEMENT IS TO BE SCRUT INIZED AT A.O. LEVEL TO REACH AT THE ROOT OF THE ISSUE. THER EFORE, IN THE INTEREST OF JUSTICE AND EQUITY WE SET ASIDE THE ORD ER OF AUTHORITIES BELOW AND RESTORE THE ISSUE BACK TO THE FILE OF A.O. FOR DECIDING THE ISSUE DENOVO AFTER PROVIDING A REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. SINCE THE FACTS ARE THE SAME AND THE LD.CIT(A) HAS ALSO MENTIONED IN HIS ORDER IN THIS REGARD, THEREFORE, IN THE INTEREST OF JUSTICE AND EQUITY WE RESTORE THE ISSUE BACK TO THE FILE OF A.O. TO DECID E THE SAME AFRESH AFTER PROVIDING AN OPPORTUNITY OF HEARING TO THE ASSESSEE . 4. IN THE RESULT THE APPEAL OF THE ASSESSEE STAND S ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 05/05/2011. SD/- SD/- (C.L.SETHI ) (B.C.MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 5 TH MAY, 2011 *MANGA ITA 3142/DEL/2010 PAGE 4 OF 4 A.Y. 2007-2008 SH. VIRENDER BANSAL, ROHTAK COPY OF THE ORDER FORWARDED TO: 1. APPELLANT; 2. RESPONDENT; 3. CIT; 4. CIT(A); 5. DR; 6. GUARD FILE BY ORDER DY. REG ISTRAR // C O P Y //