Shri Manik Kashinath Pote, V. ITO, Wd 2(2), Nashik,

ITA 319/PUN/2009

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 3090 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 9 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-12-2010
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 1996-1997
• Appeal Filed On: 12-03-2009
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: CULTIVATED
• Keywords: Business income

Judgement Text

!'#$% &'' #% '()*+ +,--*#..//'!0)**12*3% SHRI MANIK KASHINATH POTE, HOUSE NO. A/624/435/3A NDC COLONY PIMPALGAON, BASWANT DIST., NASHIK PAN : NOT AVAILABLE .. APPELLANT V/S. THE INCOME TAX OFFICER, WARD 2(2), NASHIK RESPONDENT 4 PER SHAILENDRA KUMAR YADAV JM THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A)-I,NASHIK DT. 30-01-2009 WHEREIN RETAINING OF ADDITION OF RS. 1,52,500/- IN THE HAND OF THE ASSESSEE HAS BEEN OPP OSED. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS AN INDIVIDUAL EARNING SALARY FROM INDIA SECURITY PRESS AND PENSIO N FROM ARMY. A.O. HAS NOTED FROM THE ANNUAL INFORMATION RETURN FURNIS HED U/. 285BA OF THE ACT THAT ASSESSEE HAS DEPOSITED CASH OF RS. 28,37,6 00/- IN HIS BANK SAVINGS ACCOUNT. ASSESSEE CLAIMED THAT THESE DEPOS ITS WERE FROM AGRICULTURAL INCOME FROM ANCESTRAL LAND HOLDING BEL ONGING TO POTE FAMILY WHICH WAS DEPOSITED IN THE BANK FROM TIME TO TIME A ND ALSO WITHDRAWN FOR AGRICULTURAL PURPOSES. A.O HELD THAT ASSESSEE HAS CARRIED OUT SOME UNDISCLOSED BUSINESS AND HAS TREATED HIGHEST AMOUNT OF CASH DEPOSIT DURING THE YEAR I.E. CASH DEPOSIT IN BANK ACCOUNT O N 07.02.2005 OF RS.3,05,000/- AS UNEXPLAINED DEPOSIT AND HAS FURTHE R ESTIMATED THE ITA NO 319/PN/2009 SHRI MANIK KASHINATH POTE, A.Y 1996-97 PAGE OF 3 2 PROFIT FROM ALLEGED UNDISCLOSED BUSINESS AT 10% OF THE WITHDRAWALS FROM THE BANK ACCOUNT AT RS. 3,05,550/-. A.O.HAS ALSO T AXED THE INTEREST RECEIVED ON BANK SAVINGS ACCOUNT AT RS. 6,222/-. 3. MATTER WAS CARRIED BEFORE FIRST APPELLATE AUTHO RITY, WHO AFTER TAKING INTO CONSIDERATION THE SUBMISSIONS FILED ON BEHALF OF ASSESSEE HAS RESTRICTED THE ADDITION TO 50% I.E. RS. 1,52,500/-. SAME HAS BEEN OPPOSED BEFORE US. AS STATED ABOVE, A.O MADE ADDIT ION OF RS. 3,05,550/- AND RS.3,05000/- ON ACCOUNT OF UNDISCLOS ED BUSINESS INCOME AND ALLEGED UNEXPLAINED CASH DEPOSIT IN BANK ACCOUNT RESPECTIVELY. WHILE MAKING THE ABOVE ADDITION, A.O HAS HELD THAT DEPOSITS AND WITHDRAWALS APPEARING IN STATE BANK OF INDIA SAVING ACCOUNT ARE NOT RELATED TO AGRICULTURAL ACTIVITY. HOWEVER, ASSESSEE, ON THE OTHER HAND, FILED EVIDENCES IN SUPPORT OF AGRIC ULTURAL ACTIVITIES CARRIED OUT IN THE FORM OF 7/12 EXTRACTS OF LAND OW NED AND CULTIVATED BY POTE FAMILY TO THE EXTENT OF 45 ACRES, SUBSTANTIAL LOAN OBTAINED FROM CREDIT CO-OPERATIVE SOCIETIES FOR AGRICULTURAL PURP OSES, LOAN FOR TWO TRACTORS PURCHASED FOR THE PURPOSE OF AGRICULTURAL ACTIVITIES, RECEIPTS FOR CROPS SOLD TO KRISHI UTTPANNA BAZAR SAMITI, PIMPALG AON, STATEMENT OF COMPUTATION OF INCOME FOR RELEVANT ASSESSMENT YEAR WHEREIN ASSESSEE HAS CLAIMED THAT AMOUNTS OF MORE THAN 10 LACS WERE DEPOSITED IN STATE BANK OF INDIA ACCOUNT MAINED IN SBI PIMPALGAON AND THE ACCOUNT RELATE TO AGRICULTURAL ACTIVITIES CARRIED OUT BY POTE FAMI LY. A.O DID NOT BROUGHT ON RECORD ANY EVIDENCE IN SUPPORT OF HIS CLAIM THAT ASSESSEE HAS CARRIED OUT ANY UNDISCLOSED BUSINESS. IN VIEW OF THIS, CIT (A) AGREEING TO THE ARGUMENTS OF THE ASSESSEE THAT DEPOSITS AND WITHDRA WALS IN STATEBANK ITA NO 319/PN/2009 SHRI MANIK KASHINATH POTE, A.Y 1996-97 PAGE OF 3 3 OF INDIA ACCOUNT ARE RELATED TO AGRICULTURAL ACTIV ITY CARRIED OUT BY POTE FAMILY AND ASSESSEE HAS NOT CARRIED OUT ANY BUSINES S ACTIVITY. HOWEVER, CIT(A) NOTICED THAT ASSESSEE HAS NOT FULLY ESTABLIS HED SUBSTANTIAL CASH DEPOSIT OF RS. 28,37,600/- IN HIS BANK ACCOUNT. AS SESSEE COULD ALSO NOT SUBSTANTATE ITS AGRICULTURE INCOME TO THE EXTENT OF RS. 28,37,600/-. 4. IN VIEW OF THE ABOVE, ADDITION OF RS. 3,05,550 /- ON ACCOUNT OF ALLEGED UNDSCLOSED BUSINESS INCOME WAS DELETED WHIC H HAS NOT BEEN DISPUTED BEFORE US. FURTHER, IN THE INTEREST OF JUS TICE, ADDITION OF RS. 3,05,000/- ON ACCOUNT OF ALLEGED UNEXPLAINED CASH D EPOSIT IN BANK WAS RESTRICTED TO 50% I.E. CIT(A) HAS RESTRICTED THE A DDITION TO RS. 1,52,500/- . SAME IS UPHELD. 5. IN RESULT, APPEAL IS DISMISSED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 22ND DECEMBER 2010. +2 +2 #&'' % # 4!45% $4 ! ' #$ $ !% & % & '% & #(&)(* +% & #(&,-.(* +% & %%/010 2% 3 0 (&4&