Paresh C. Maniar, Rajkot V. Income Tax Officer, Ward-2(3)(3), Rajkot

ITA 351/RJT/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 3050 (ITAT-RAJKOT)
• Duration Of Justice: 6 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-05-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 16-10-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PMN
• Keywords: Peak credit; Additional evidence; Reason to believe
• Section: 147; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH, RAJKOT [CONDUCTED THROUGH E-COURT AT AH MEDABAD] (BEFORE SHRI P. K. KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER) ITA. NO: 351/RJT/2017 (ASSESSMENT YEAR: 2009-10) SHRI PARESH C. MANIAR, BLOCK NO. 120, RAILNAGAR, RAJKOT V/S ITO, WARD-2(3)(3), RAJKOT (APPELLANT) (RESPONDENT) PAN: ABYPM9590N APPELLANT BY : SHRI CHETAN AGARWAL, A.R. RESPONDENT BY : SMT. USHA SHROTE, D.R. ( )/ ORDER DATE OF HEARING : 14 -03-201 8 DATE OF PRONOUNCEMENT : 04 -05-2018 PER MAHAVIR PRASAD, JUDICIAL MEMBER 1. THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST TH E ORDER OF THE LD. CIT(A)-2, RAJKOT DATED 24.08.2017 PERTAINING TO A.Y. 2009-10 AND FOLLOWING GROUNDS HAVE BEEN TAKEN: ITA NO. 351/ RJT/2017 . A.Y.2009-10 2 1. LD. CIT(A) ERRED IN LAW AS WELL AS ON FACT BY U PHOLDING ADDITION OF RS. 14,12,355 BEING CASH DEPOSITED IN BANK ACCOUNT OF A PPELLANT FOR WHICH ADDITION U/S.68 WAS MADE BY AO. HE OUGHT TO HAVE APPLIED PEA K THEORY ON FACTS AND CIRCUMSTANCES OF THE CASE. 2. LD. CIT ERRED IN LAW AS WELL AS ON FA CT IN OBSERVING THAT BANK STATEMENT WAS NOT FURNISHED IN APPEAL PROCEEDINGS, IT WAS VER Y WELL ATTACHED WITH SUBMISSION MADE BEFORE ID. CIT(A). 3. LD. CLT ERRED IN LAW AS WELL AS ON FACT IN OBS ERVING THAT ADDITIONAL EVIDENCES WERE FURNISHED IN APPEAL PROCEEDINGS REGARDING EXPL ANATION THAT CASH DEPOSITED WAS MADE FROM EARLIER WITHDRAWAL FROM BANK. THE SAI D EXPLANATION WAS ON APPRECIATION OF FACTS FROM BANK STATEMENT. 2. THE FACTS OF THE CASE ARE THAT THE ASSESSEE HAS NOT FILED RETURN OF INCOME FOR A.Y. 2009-10. ON THE BASIS OF INFORMATION AS PER IT D DATABASE (AIR-CIB) THAT THE ASSESSEE HAS MADE CASH DEPOSIT OF RS. 14,12,355 /-DURING THE FINANCIAL YEAR 2008-09. ASSESSEE IS A GOVERNMENT SALARIED EMPLOYEE . THE ASSESSEE HAS NOT FILED RETURN OF INCOME THROUGH HE IS HAVING TAXABLE INCOME. SO IT IS REASON TO BELIEVE THAT THE SOURCES OF CASH DEPOSIT MADE IN HI S BANK ACCOUNT HAVE ESCAPED THE ASSESSMENT. IN VIEW OF THE ABOVE, REASONS TO BE LIEVE THAT THE INCOME CHARGEABLE TO TAX AS ABOVE HAS ESCAPED THE ASSESSME NT WITHIN THE MEANING OF PROVISIONS OF SECTION 147 OF THE INCOME TAX ACT FOR THE ASSESSMENT YEAR 2009- 10 AND THEREAFTER, THE LD. A.O. ISSUED NOTICE U/S. 148 AND SERVED UPON THE ASSESSEE. BUT IN RESPONSE TO SAID NOTICE, THE ASSES SEE NEITHER ATTENDED NOR SUBMITTED ANY WRITTEN SUBMISSION AND FINALLY LD. A. O. MADE AN ADDITION OF RS. 14,12,355/-. 3. AGAINST THE SAID ORDER, APPELLANT PREFERRED FIRST S TATUTORY APPEAL BEFORE THE LD. CIT(A)BUT TO NO AVAIL. ITA NO. 351/ RJT/2017 . A.Y.2009-10 3 4. WE HAVE GONE THROUGH THE IMPUGNED ORDER AND RELEVAN T RECORD. IN THIS CASE, THE APPELLANT IS AN INDIVIDUAL AND GOVERNMENT SALAR IED EMPLOYEE . LD. A.O. MADE AN ADDITION OF ENTIRE CASH DEPOSITED IN BANK A CCOUNT AND AS PER THE BANK STATEMENT SUBMITTED BY THE APPELLANT HAS DEPOSITED CASH IN PIECEMEAL VIZ. 15,000, 20,000, 22,000, 25,000 AND MAXIMUM 49,000 O N VARIOUS DATES AND SAME WERE WITHDRAWN SUBSEQUENTLY IN CASH THROUGH ATM AND AGAIN RE-DEPOSITED IN BANK. LOOKING INTO PATTERN OF TRANSACTIONS, SAME FU NDS APPEARS TO HAVE BEEN REUTILIZED FOR DEPOSITS MADE IN BANK. AS WE CAN SEE FROM THE BANK STATEMENT PEAK BALANCE WHICH IS RS. 1,19,667/-.WE RESTRICT TH E ADDITION OF PEAK BALANCE OF RS. 1,19,667/- INSTEAD OF RS. 14,12,355/-. A.O. IS DIRECTED TO GIVE EFFECT AS ABOVE STATED. 5. IN THE RESULT, THE APPEAL FILED BY THE APPELLANT IS ACCORDINGLY ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 04- 05 - 2018 SD/- SD/- (P. K. KEDIA) (MAHAVIR PRASAD) ACCOUNTANT MEMBER TRUE COPY JUDICIAL MEMBER AHMEDABAD DATED: 04/05/2018 RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT, RAJ KOT