Shri S.K.Panchratan, V. CIT -I,

ITA 4/JAB/2012

• Counselvise Citation: 422914 RSA 2012
• Duration Of Justice: 2 year(s) 2 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2002-2003
• Appeal Filed On: 13-01-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K K UPADHYAY
• Assessee Lawyers: DR H S MODH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, JABALPUR BENCH, JABALPUR BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI T.S. KAPOOR, ACCOUNTANT MEMBER ITA NO.04/JAB/2012 ASSESSMENT YEAR: 2002-03 SHRI S.K. PANCHRATAN, VS. ASSTT, COMMISSIONER OF INCOME TAX-I, LIC DEVELOPMENT OFFICER, SAGAR (M.P.). VASUNDHRA COMPLEX, GOPAL GANJ, SAGAR (M.P.) (PAN ABKPP 2026 L). (APPELLANT) (RESPONDENT) APPELLANT BY : DR. H.S. MODH, ADVOCATE RESPONDENT BY : SHRI K.K. UPADHYAY, D.R. DATE OF HEARING : 25.03.2014 DATE OF PRONOUNCEMENT : 27.03.2014 ORDER PER T.S. KAPOOR, ACCOUNTANT MEMBER: THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT(A) DATED 01.08.2011. 2. THE ONLY GROUND TAKEN BY THE ASSESSEE IS THE GRI EVANCE CAUSED TO HIM BECAUSE OF THE ACTION OF THE LD. CIT(A) IN UPHOLDIN G THE ADDITION OF RS.2,63,000/- ON ACCOUNT OF CREDIT APPEARING IN BANK ACCOUNT OF T HE ASSESSEE. ITA NO.04 /JAB/2012 A.Y. 2002-03 2 3. AT THE OUTSET, THE LD. AUTHORISED REPRESENTATIVE INVITED OUR ATTENTION TO LD. CIT(A) S ORDER PAGE NO.5 AND STATED THAT THE ENTRY OF RS.10,000/- MENTIONED AGAINST 26.06.2001 WAS IN FACT AMOUNT OF RS.1,00,00 0/- WHICH HAS BEEN WRONGLY MENTIONED BY THE LD. CIT(A) AS RS.10,000/-. IN THI S RESPECT, HE TOOK US TO COPY OF THE BANK STATEMENT PLACED AT PAPER BOOK PAGE NO.6 W HEREIN THE WITHDRAWAL OF RS.1,00,000/- WAS MENTIONED. HE SUBMITTED THAT WIT HDRAWAL MADE ON THIS DATE WAS DEPOSITED IN BANK ON 18.06.2001, 05.07.2001, 16.07. 2001 AND FURTHER HE SUBMITTED THAT ON 19.07.2001 AND 08.10.2001 AN AMOUNT OF RS.1 ,00,000/- AND RS.60,000/- WAS WITHDRAWN OUT OF WHICH RS.1,50,000/- WAS DEPOSI TED ON 08.10.2001. SIMILARLY, HE INVITED OUR ATTENTION TO WITHDRAWAL O F RS.50,000/- ON 08.11.2001 OUT OF WHICH AMOUNT OF RS.8,000/- WAS DEPOSITED ON 27.0 2.2001 AND 01.03.2001. IN VIEW OF THESE FACTS, THE LD. AUTHORISED REPRESENTAT IVE SUBMITTED THAT CASH DEPOSIT IN BANK WERE NOT UNEXPLAINED BUT WERE EXPLAINED FRO M THE BANK WITHDRAWAL ITSELF. THEREFORE, ACTION OF THE LD. CIT(A) WAS NOT JUSTIFI ED. HE FURTHER SUBMITTED THAT THE ASSESSEE WAS AN LIC AGENT WHO USED TO SOLICIT BUSIN ESS OF INSURANCE AND TO GIVE THEM INCENTIVE HE USED TO DEPOSIT FIRST PREMIUM ON THEIR BEHALF AND THIS AMOUNT HE USED TO WITHDRAW FROM BANK. HE USED TO RECOVER THE AMOUNTS SO PAID AT THE TIME OF HANDING OVER THE POLICY TO HIS CUSTOMERS AND THE N DEPOSIT THE SAME IN THE BANK. LD. AUTHORISED REPRESENTATIVE FURTHER SUBMITTED THA T THE LD. CIT(A) CONFIRMED THE ITA NO.04 /JAB/2012 A.Y. 2002-03 3 ADDITION ONLY FOR THE REASON THAT THE ASSESSEE COUL D NOT DISCLOSE THE IDENTITY, NAME AND ADDRESS OF AGENTS TO WHOM AMOUNTS WERE GIVEN. 4. THE LD. DEPARTMENTAL REPRESENTATIVE, ON THE OTHE R HAND, STRONGLY RELIED UPON THE ORDERS OF ASSESSING OFFICER AND CIT(A) AND ARGU ED THAT IN THE ABSENCE OF NON- FURNISHING OF NAMES AND ADDRESSES OF THE AGENTS, CI T(A)S ACTION IN CONFIRMING THE ADDITION IS JUSTIFIED. 5. WE HAVE HEARD THE RIVAL PARTIES AND GONE THROUGH THE MATERIAL PLACED ON RECORD. WE FIND THAT FACTS REMAIN THAT WITHDRAWALS WERE MADE FROM THE BANK ACCOUNT AS PER THE DETAILS MENTIONED IN THE APPELLA TE ORDER AT PAGE NO.5 EXCEPT AN AMOUNT OF RS.1,00,000/- HAS BEEN INADVERTENTLY WRIT TEN AS RS.10,000/-. WE FIND THAT AMOUNT OF CASH DEPOSITS ARE ALWAYS AFTER CASH WITHDRAWAL FROM THE BANK AND UPTO THIS THERE IS NO DISPUTE REGARDING THE FACT OF WITHDRAWALS. THE LD. CIT(A) UPHELD THE ADDITION ONLY IN VIEW OF THE FACT THAT T HE ASSESSEE WAS NOT ABLE TO DISCLOSE THE IDENTITY, NAME AND ADDRESS OF AGENTS T O WHOM AMOUNTS WERE INITIALLY GIVEN AFTER WITHDRAWAL FROM BANK WHICH TO OUR MIND IS NOT A CORRECT POSITION OF FACTS AS THERE IS COMPLETE MATCH OF WITHDRAWALS AND DEPOSITS AND THE ASSESSING OFFICER WAS NOT ABLE TO POINT OUT THAT WITHDRAWALS MADE BY THE ASSESSEE WERE USED FOR ANY PURPOSES OTHER THAN GIVING TO CUSTOMERS. IN VIEW OF THE ABOVE, WE ARE IN ITA NO.04 /JAB/2012 A.Y. 2002-03 4 AGREEMENT WITH THE CONTENTION OF THE LD. AUTHORISED REPRESENTATIVE THAT THIS CANNOT BE TAXED. THEREFORE, WE DELETE THE ADDITION CONFIR MED BY THE LD. CIT(A). 6. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS A LLOWED. (ORDER PRONOUNCED IN THE OPEN COURT ON 27.03.2014) SD/- SD/- (BHAVNESH SAINI) (T.S. KAPOOR) JUDICIAL MEMBER ACCOUNTANT MEMBER DATE: 27 TH MARCH, 2014 PBN/* COPY OF THE ORDER FORWARDED TO :- 1) APPELLANT 2) RESPONDENT 3) CIT (APPEALS) CONCERNED 4) CIT CONCERNED 5) D.R., ITAT, JABALPUR BENCH, JABALPUR 6) GUARD FILE. BY ORDER, SR. PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL, CAMP AT JABALPUR