Ashutosh Patra, Nayagarh V. ITO, Khurda Ward, Khurda

ITA 348/CTK/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 3871 (ITAT-CUTTACK)
• Duration Of Justice: 6 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-04-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 04-04-2017
• Assessment Year: 2011-2012
• Appeal Filed On: 19-09-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: D K PRADHAN
• Assessee Lawyers: G NAIK R KAR
• Keywords: Unexplained investment; Gift; Principle of natural justice
• Section: 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK SMC BENCH, CUTTACK BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER ITA NO.348 /CTK/2016 ASSESSMENT YEAR : 2011 - 12 SRI ASHUTOSH PATRA, PATRA JEWELLERY, KHANDAPARA ROAD, NAYAGARH. VS. ITO, KHURDA WARD, KHURDA PAN/GIR NO. AMHPP 5680 Q (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI G.NAIK, R.KAR REVENUE BY : SHRI D.K.PRADHAN , DR DATE OF HEARING : 04 /04 / 2017 DATE OF PRONOUNCEMENT : 04 /04 / 2017 O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - 1, BHUBANESWAR , DATED 21.6.2016 , FOR THE ASSESSMENT YEAR 2011 - 12 . 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL IS THAT THE LD CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS.13,38,370/ - MADE BY THE ASSESSING OFFICER AS UNEXPLAINED INVESTMENT IN RESPECT OF CASH DEPOSITS IN S.B. ACCOUNT. 3. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF LOWER AUTHORITIES AND MATERIALS AVAILABLE ON RECORD. THE ASSESSING OFFICER OBSERVED THAT THE ASSESSEE WAS MAINTAINING AN SB ACCOUNT' 2 ITA NO.348/CTK/2016 ASSESSMENT YEAR : 2011 - 12 NO.078001500085 WITH ICICI BANK , NAYAGARH. THE ASSESSEE DID NOT DISCLOSE THE CLOSING CASH BALANCE IN THIS ACCOUNT IN HIS RETURN OF INCOME. HE OBSERVED THAT ASSESSEE'S WAS A CASE OF NO ACCOUNTS. ON VERIFICATION OF THE TRANSACTION DETAILS IN THE AFORESAID BANK ACCOUNT, THE ASSESSING OFFIC ER FOUND THAT THERE WERE CASH DEPOSITS TOTALING RS.32,78,335/ - DURING THE RELEVANT PRE VIOUS YEAR. THE ASSESSEE WAS ASKED TO EXPLAIN THE S OURCE OF THESE DEPOSITS. NO SATISFACTORY EXPLANATION BACKED WITH EVIDENCE WAS FURNISHED. THE ASSESSEE TRIED TO EXPLAIN THE DEPOSITS BUT THE ASSESSING OFFICER REJECTED THE SAME ON THE GROUND THAT THE SUBMISSIONS WERE VAGUE . HE NOTED THAT THE GROSS RECEIPTS FROM BUSINESS DI SCLOSED BY THE ASSESSEE WAS RS.2,69,698/ - ONLY. THEREFORE, IN ABSENCE OF ANY EXPLANATION, HE ADDED RS.13,38,370/ - AS UNEXPLAINED CASH DEPOSITS IN BANK. WHILE DOING SO , HE PRESUMED THAT KEEPING IN VIEW THE PRINCIPLE OF NATURAL JUSTICE, THA T ALL CASH WITHDRAWALS FROM THE ACCOUNT HAD BEEN DEPOSITED BACK BY WAY OF CASH DEPOSITS. 4. ON APPEAL, THE CIT(A) CONFIRMED THE ACTION OF THE ASSESSING OFFICER ON THE GROUND THAT NO EVIDENCE WAS PRODUCED TO EXPLAIN THE SOURCE OF CASH DEPOSITS IN THE BANK ACCOUNT. 5. BEFORE ME, LD AUTHORISED REPRESENTATIVE EXPLAINED THAT RS.5,20,000/ - DEPOSITED ON 31.3.2011 WAS FROM GIFTS RECEIVED FROM FRIENDS AND RELATIVES ON MARRIAGE. HOWEVER, NO EVIDENCE FOR THE SAME WAS FILED BEFORE ME. IN THE ALTERNATE, IT WAS HIS SUBMISSION THAT THE ENTIRE AMOUNT 3 ITA NO.348/CTK/2016 ASSESSMENT YEAR : 2011 - 12 OF UNEXPLAINED DEPOSIT IN BANK CANNOT BE TAXED AS INCOME OF THE ASSESSEE AND THAT THE PROFIT EMBEDDED IN THE SAME SHOULD BE ESTIMATED AND THAT ITSELF SHOULD BE BROUGHT TO TAX 6. NO MATERIA L WAS BROUGHT ON RECORD TO EXPLA IN THE SOURCE OF CASH DEPOSIT OF RS.13,38,370/ - IN TH E BANK ACCOUNT WITH ICICI BANK. FURTHER, NO POSITIVE MATERIAL WAS ALSO BROUGHT ON RECORD TO SHOW THAT THE AMOUNT DEPOSITED IN ICICI BANK WAS THE SALE PROCEEDS OF THE BUSINESS OF THE ASSESSEE AND, THEREF ORE, I FIND NO GOOD AND JUSTIFIABLE REASON TO INTERFERE WITH THE ORDER OF THE CIT(A), WHICH IS HEREBY CONFIRMED AND THE GROUND OF APPEAL OF THE ASSESSEE IS DISMISSED. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED . ORDER PRO NOUNCED IN THE OPEN COURT ON 04 /04 /2017 IN THE PRESENCE OF PARTIES. SD/ - ( N.S SAINI) A CCOUNTANT MEMBER CUTTACK; DATED 04 /04 /2017 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PRIVATE SECRETARY ITAT, CUTTACK 1. THE APPELLANT : SRI ASHUTOSH PATRA, PATRA JEWELLERY, KHANDAPARA ROAD, NAYAGARH. 2. THE RESPONDENT. ITO, KHURDA WARD, KHURDA 3. THE CIT(A) - 1, BHUBANESWAR. 4. PR.CIT , - 1, BHUBANESWAR 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//