Siddappa Bhimappa Khilari, Belgavi V. ITO, Ward 2(1), Belgavi

ITA 384/PAN/2017

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 8377 (ITAT-PANAJI)
• Duration Of Justice: 3 year(s) 10 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-11-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 25-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: B.B. CHANDARGI
• Section: 68; 143(3); 13

Judgement Text

आयकर अपीऱीय अधिकरण न्यायपीठ पणजी म ें । IN THE INCOME TAX APPELLATE TRIBUNAL, PANAJI (Through Virtual Court) BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपीऱ सं. / ITA No.384/PAN/2017 नििाारण वषा / Assessment Year : 2008-09 Siddappa Bhimappa Khilari, No. 368, Sector No. 2, Shivabasav Nagar, Belagavi – 590010 PAN : AKBPK8445N .......अऩीऱाथी / Appellant बिाम / V/s. Income Tax Officer, Ward – 2(1), Belagavi ......प्रत्यथी / Respondent Assessee by : Shri B.B. Chandargi Revenue by : Shri Sourabh Nayak स ु नवाई की तारीख / Date of Hearing : 09-11-2021 घोषणा की तारीख / Date of Pronouncement : 16-11-2021 आदेश / ORDER PER S.S. VISWANETHRA RAVI, JM : This appeal by the assessee against the order dated 17-10-2017 passed by the Commissioner of Income Tax (Appeals), Gulbarga [‘CIT(A)’] for assessment year 2008-09. 2 ITA No. 384/PAN/2017, A.Y. 2008-09 2. The assessee raised four grounds of appeal amongst which the only issue emanates for our consideration is as to whether the CIT(A) justified in confirming the addition u/s. 68 of the Act in the facts and circumstances of the case. 3. Heard both the parties and perused the material available on record. We note that the assessee is an individual and derives income from LIC agency and agriculture. The assessee filed return of income declaring a total income of Rs.1,08,070/- and the AO completed the original assessment u/s. 143(3) of the Act determining the total income of Rs.3,04,190/- vide its order dated 20-07-2020. While matter stood thus, the CIT, Belgaum set aside the said original assessment under 263 proceedings and directed the AO to verify the source of deposits found in the Corporation Bank to an extent of Rs.3,00,000/- and also repayment of loan amounting to Rs.3,00,000/-. We note that in the consequential order in pursuance of 263 directions in Para Nos. 2 and 3 it is established that there was no opportunity for the assessee to explain the source of cash deposits as per the directions of CIT, Belgaum. It is also noted that the assessee filed confirmatory letters showing the receipt of loans from persons wherein the assessee could not produce the said 13 persons as sought by the AO. Therefore, it is clear from the record there was no proper explanation as offered by the assessee in terms of cash deposits found in Corporation Bank before the AO in the consequential assessment proceedings. Thereby, the AO proceeded to add said Rs.3,00,000/- to the income of the assessee. 3 ITA No. 384/PAN/2017, A.Y. 2008-09 4. Against the said order the assessee preferred an appeal before the CIT(A) contending that the AO erred in treating the cash deposits in Bank account as income of the assessee without appreciating the provisions of law, judgments and disregarding the fresh evidence given by the assessee. The CIT(A) adjudicated the said issue and basing on the submissions of assessee in the appeal proceedings for A.Y. 2010-11, wherein, we note that the assessee claimed that the detailed account of the circulation of money among the various groups of chits and also of the cash deposits in the bank accounts and withdrawals from the bank accounts has been prepared by the assessee and vehemently contended the filing of confirmation of loan amounts by way of farmer’s letters basing on wrong advice given by a Tax Consultant. Further, it is also claimed that the assessee had not borrowed any loans at all from the said farmers but the cash deposits as found in the Corporation Bank were out of loans raised from chits and also the consequential withdrawals. The CIT(A) held the facts and circumstances of the A.Y. 2010-11 are entirely different to the year under consideration and held that the assessee had no explanation in support of his claim regarding the source of cash deposits. We note that admittedly the addition u/s. 68 of the Act requires explanation to the satisfaction of the AO, wherein in the present case, as noted above there was no opportunity for the assessee for rendering satisfactory explanation in terms of directions of 263 proceedings. It was contended before the CIT(A) that the evidences in respect of details of account of the circulation of money among the various groups of chits and also involving the cash deposits of the bank account and withdrawals thereon are prepared on the basis of bank accounts, still, the CIT(A) held the same constitutes no proper explanation in support of grounds of appeal raised, therefore, in our 4 ITA No. 384/PAN/2017, A.Y. 2008-09 opinion, the assessee had no occasion to offer satisfactory explanation before the authorities and in view of the submissions of ld. AR that the assessee is ready to produce all accounts prepared on the basis of bank account supporting the claim, we deem it proper to remand the matter to the file of AO with a direction to verify books of account as prepared by the assessee for its fresh adjudication. The assessee is liberty to file evidence, if any, in support of its claim. Thus, the ground raised by the assessee is allowed for statistical purpose. 5. In the result, the appeal of assessee is allowed for statistical purpose. Order pronounced in the open court on 16 th November, 2021. Sd/- Sd/- (Inturi Rama Rao) (S.S. Viswanethra Ravi) ACCOUNTANT MEMBER JUDICIAL MEMBER ऩ ु णे / Pune; ददनाांक / Dated : 16 th November, 2021. RK आदेश की प्रनिलऱपप अग्रेपषि / Copy of the Order forwarded to : 1. अऩीऱाथी / The Appellant. 2. प्रत्यथी / The Respondent. 3. The CIT(A), Gulbarga 4. The Pr. CIT, Belgavi 5. ववभागीय प्रतततनधध, आयकर अऩीऱीय अधधकरण, ऩणजी, / DR, ITAT, Panaji. 6. गार्ड फ़ाइऱ / Guard File. //सत्यावऩत प्रतत// True Copy// आदेशान ु सार / BY ORDER, तनजी सधिव / Private Secretary, आयकर अऩीऱीय अधधकरण, ऩ ु णे / ITAT, Pune