SHRIPRAKASH THAKURDASJI ZANWAR, AMRAVATI V. INCOME TAX OFFICER, WARD-5, AMRAVATI

ITA 389/NAG/2017

AI Insights

The case involves Shri Prakash Thakurdasji Zanwar, who appealed against the decision of the Commissioner of Income Tax (Appeals)-1, Nagpur, which affirmed the Assessing Officer's addition of Rs. 13,00,000 under section 69 read with section 115BBE of the Income Tax Act, 1961, for the Assessment Year 2013-14. The addition was based on unexplained cash deposits in the assessee's bank account. The Tribunal examined the sources of the cash deposits and found that they were adequately explained by the cash received from the sale of agricultural land, thus ruling in favor of the assessee.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 133444 (ITAT-NAGPUR)
• Duration Of Justice: 16 year(s) 2 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-12-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 14-11-2022
• Assessment Year: misc
• Appeal Filed On: 19-09-2006
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Corroborative evidences
• Section: 69; 133(6)

Judgement Text

आयकर अपीलीय अिधकरण Ɋायपीठ नागपुर मŐ। IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH : NAGPUR BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI DR.DIPAK P. RIPOTE, ACCOUNTANT MEMBER आयकर अपीलसं. / ITA No.389/NAG/2017 िनधाᭅरणवषᭅ / Assessment Year : 2013-14 Shri Prakash Thakurdasji Zanwar, Dhanraj Lane, Sabanpura, Amravati, Maharashtra – 444601. PAN: AAAPZ 4260 D Vs. The Income Tax Officer, Ward-5, Amravati. Appellant/ Assessee Respondent /Revenue Assessee by Shri R.B.Atal – AR Revenue by Shri G.J.Ninawe – DR Date of hearing 15/11/2022 Date of pronouncement 09/12/2022 आदेश/ ORDER Per S.S.Godara, JM: This assessee’s appeal for Assessment Year 2013-14 is directed against the Commissioner of Income Tax(Appeal)-1, Nagpur’s dated 18.08.2017 in case no.CIT(A)-1/128/2016-17, in proceedings u/s.143(3) of the Income Tax Act, 1961 [in short “the Act”]. Heard both the parties. Case file perused. 2. Coming to the assessee’s sole substantive ground challenging both the Lower Authorities action making section 69 r.w.s 115BBE addition and Rs.13 lakhs, we note that the CIT(A) detailed discussion affirming the Assessing Officer’s finding to this effect reads as follows: ITA No.389/NAG/2017 for A.Y. 2013-14 Shri Prakash Thakurdasji Zanwar [A] 2 “4.2 Appellant’s submissions alongwith assessment order and records have been considered carefully. The appellant has been giving varying explanation to explain the source of cash deposit of Rs. 13,00,000/- found in his saving bank account at Dena Bank. In the initial stages of assessment proceedings, it has been stated as receipts from sister concern without giving any details and evidences, whatsoever, in its support. Later on, it is stated to be out of sale proceeds of agricultural land at Changpur which is not found correct for the reasons mentioned by the AO. In appeal proceedings, the appellant has again changed his version and stated it to be out of withdrawal from his proprietory business concern viz. M/s Shriram Agencies. The source of it has been explained through cash receipt on sale of 21 acres of agricultural land. It is to be noted that the appellant has not declared any LTCG on sale of this land in his return. In fact, AO has obtained copy of deeds from Sub-Registrar office u/s 133(6) of the Act. During the entire course of assessment proceedings, the appellant has tried to mislead the AO regarding earning of this LTCG, as is evident from assessment order. It is only when he has been cornered from all sides, the appellant has admitted of having earned these LTCG. Further, the appellant has also claimed Long Term Capital Loss of Rs.56,29,580/- in his return whereas he has already claimed this loss at Rs.41,59,369/- on same plot of land. 4.3 There is no denying the fact that the appellant has received cash amount of Rs.1,85,00,000/- on 02.02.2012 and Rs.1,45,00,000/- on 14.02.2012 as per sale deed of land dt.18.06.2012. In appeal, while enclosing balance sheet of M/s Shreeram Agencies, the appellant has shown cash-in-hand of Rs.1,79,55,758/- as on 31.03.2012. The appellant has also shown cash deposits of Rs.13,00,000/- on 05.06.2012 as per cash withdrawal of same amount made on 05.06.2012 from M/s Shreeram Agencies. It is to be noted that the appellant has received ITA No.389/NAG/2017 for A.Y. 2013-14 Shri Prakash Thakurdasji Zanwar [A] 3 total cash of Rs.2,30,00,000/- in month of February out of which only Rs.13,00,000/- been deposited in his bank account in the month of June 2012. Further, despite being specifically asked for by the undersigned, the appellant has not been able to satisfactorily explain its purpose and utilisation of this cash amount alongwith earlier year’s books of account of M/s Shreeram Agencies justifying opening cash balance of Rs.1,79,55,753/- when net profit of Rs.96,500/- only been shown on total annual turnover of Rs. 12,05,600/- and there being no opening as well as closing stock of any of the items traded by him. Thus, this explanation of the appellant is also found to be merely an afterthought without any supporting evidence and thus not found acceptable. 4.3.1 Keeping in view facts of the case, conduct of the appellant and his varying submissions, AO is found justified in treating these cash deposits as unexplained. Accordingly, addition of Rs.13,00,000/- is, hereby, confirmed.” 3. Suffice to say, it is noted by the CIT(A) himself that the assessee had in fact received total cash of Rs.2,30,00,000/- in the month of February 2012 out of which only Rs.13 lakhs ( forming subject matter of addition before us) has been found to have been deposited as on 05.06.2012. We make it clear that this is not the Revenue’s case at all that the assessee’s cash flow statement from the month of February 2012 onwards has in any way diverted the foregoing cash receipts in entirety for some other purposes. We thus hold that the assessee’s cash in hand of Rs.2.3 crores very well forms source of these cash deposits of Rs.13 laksh. The impugned addition stands deleted therefore. ITA No.389/NAG/2017 for A.Y. 2013-14 Shri Prakash Thakurdasji Zanwar [A] 4 4. This assessee’s appeal is allowed. Order pronounced in the open court on 9 th December, 2022. Sd/- Sd/- (DR.DIPAK P. RIPOTE) (S.S.GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; ᳰदनांक / Dated : 9 th Dec, 2022/ SGR* आदेशकᳱᮧितिलिपअᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. 5. िवभागीयᮧितिनिध, आयकर अपीलीय अिधकरण, नागपुर बᱶच, नागपुर / DR, ITAT, Bench, Nagpur. 6. गाडᭅफ़ाइल / Guard File. आदेशानुसार / BY ORDER, // TRUE COPY // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे/ITAT, Pune.