Yogesh Kumar Kotiya, Bhilwara V. ITO, Ward-4, Bhilwara

ITA 463/JODH/2018

AI Insights

The case involves an appeal by Yogesh Kumar Kotiya against the order of the CIT(A), Ajmer, which confirmed the addition of Rs. 5,76,000 to his income for the assessment year 2010-11. The addition was initially made by the ITO, Ward-4, Bhilwara, following the deposit of Rs. 10,68,000 in the assessee's bank account, which was deemed unexplained. The assessee, engaged in retail trading of fabric, argued that the deposits were from legitimate business receipts and personal loans. The CIT(A) partially accepted the assessee's explanation, allowing some of the cash deposits as business sales but sustaining the addition of Rs. 5,76,000. The Tribunal, after reviewing the submissions and evidence, concluded that the assessee had sufficiently explained the source of the disputed amount, leading to the allowance of the appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 129204 (ITAT-JODHPUR)
• Duration Of Justice: 4 year(s) 11 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 11-09-2023
• Assessment Year: 2010-2011
• Appeal Filed On: 04-10-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJEEV MOHAN
• Keywords: Business income; Salary income
• Section: 148; 44AD; 143(3)

Judgement Text

ITA No.-463/JODH/2018 Yogesh Kumar Kotiya Page 1 of 5 IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH: ‘SMC’: JODHPUR (VIRTUAL HEARING AT DELHI) BEFORE SHRI SAKTIJIT DEY, VICE PRESIDENT AND SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER ITA No:- 463/JODH/2018 ( Assessment Year: 2010-11) Yogesh Kumar Kotiya, 3-C-4, Patel Nagar, Bhilwara. Vs. I.T.O., Ward-4, Bhilwara. PAN No: ARWPK8779M APPELLANT RESPONDENT Assessee by : Shri Rajendra Jain, Advocate Revenue by : Shri Rajeev Mohan, JCIT-DR Date of Hearing : 12.09.2023 Date of Pronouncement : 20.09.2023 ORDER PER GIRISH AGRAWAL, ACCOUNTANT MEMBER: This appeal filed by the assessee is against the order of Ld. CIT(Appeals), Ajmer, vide appeal no. 507/2017-2018 dated10.07.2018 against the assessment order passed U/s 143(3) r.w.s. 147 of the Income- tax Act, 1961 (hereinafter referred to as “the Act”) dated 17.01.2018 passed by ITO, Ward-4, Bhilwara, for assessment year 2010-11. ITA No.-463/JODH/2018 Yogesh Kumar Kotiya Page 2 of 5 2. Ground taken by the assessee is in respect of addition of Rs. 5,76,000/- on account of deposit of cash in Bank Account. 3. Brief facts of the case are that assessee did not file his return of income. Owing to deposit of cash of Rs. 10,68,000/- in a saving bank account, case of the assessee was taken up by issuing a notice U/s 148 of Act on 23.03.2017 which was duly served to the assessee. Assessee filed his return in response to notice U/s 148 of the Act on 11.09.2017, reporting total income of Rs. 1,50,600/-, including income from salary and income from business U/s 44AD of the Act. Assessee is engaged in retail trading business of fabric. Before the Ld. AO, assessee submitted his explanation in respect of deposit of cash in his bank account which are claimed to be out of business receipts. Assessee also claimed that he had opening cash balance in his personal balance sheet and had taken unsecured loans from his parents. Disregarding the submission made by the assessee, Ld. AO made the addition of Rs. 9,00,000/- towards unexplained cash deposit and completed the assessment. 4. Aggrieved, assessee went into the appeal before the Ld. CIT(A) 5. Ld. CIT(A), after considering the submissions made by the assessee which included cash flow statement, accepted an amount of Rs. 3,24,364/- as cash sales and deleted the addition to this extent. He confirmed the addition of the remaining amount of Rs. 5,76,000/-. Aggrieved, assessee is in appeal before the Tribunal. ITA No.-463/JODH/2018 Yogesh Kumar Kotiya Page 3 of 5 6. Before us, Ld. Counsel for the assessee made written submission and explained the source of deposit of cash of Rs. 5,76,000/-. The same is tabulated as under: Amount Source Rs. 414500/- Cash balance available in personal balance sheet as on 1.4.2009, copy enclosed Rs. 124000/- Cash balance available in business balance sheet as on 1.4.2009, copy enclosed Rs.19000/- Cash deposited out of unsecured loans taken from father sh. Kanhaiya Lal Rs.18500/- Cash deposited out of unsecured loans taken from mother r Smt. Pushpa Devi Rs.576000/- Total 7. He further elucidated on the source stated in the table above which is reproduced as under: “Rs.414500/- was deposited out of cash balance available as on 01.04.2009 in individual capacity. In support, personal balance sheet as on 31.03.2009 was submitted at the time of assessment vide reply Dt 08-12-2017. Rs.124000/- was deposited out of cash balance available as on 01.04.2009 in balance sheet of business. In support, balance sheet of business as on 31.03.2009 was submitted at the time of assessment vide reply Dt 08-12-2017. Unsecured Loan of Rs.19000/- was taken from Father Sh Kanhaiya Lal for business purpose and deposited into bank account. Confirmation of unsecured loan from father Sh. Kanhaiya Lal was also submitted to the Assessing Officer along with reply Dt 08-12-2017. Amount of Rs.19000/- is so small, which may be supposed to be available with any person. Unsecured Loan of Rs.18500/- was taken from Mother Smt Pushpa Devi for business purpose and deposited into bank account. Confirmation of unsecured loan from Mother Smt. Pushpa Devi was also submitted to the Assessing officer along with reply Dt 08-12-2017. Amount of Rs. 18500/- is so small, which may be supposed to be available with any house wife.” ITA No.-463/JODH/2018 Yogesh Kumar Kotiya Page 4 of 5 8. Per contra, Ld. Sr. DR relied on the order of the Ld. CIT(A). 9. We have heard the rival contentions and perused the material available on record. We have also gone through the written submissions placed by the Ld. Counsel before us, details of which are extracted above. We note that Ld. CIT(A) has given partial relief by accepting the sales receipts which were in cash. Assessee is in engaged in the business of retail trading business of fabric and has reported his income U/s 44AD of the Act. Further, from the perusal of the records and documents placed before us, we find that assessee has explained the source of cash available with him including unsecured loan received from his parents duly supported by documentary evidences. Considering all of this, we delete the addition of Rs. 5,76,000/- which is sustained by the Ld. CIT(A). Accordingly, ground taken by assessee is allowed. 10. In the result, appeal of the assessee is allowed. Order pronounced in the Open Court on 20.09.2023 Sd/- Sd/- (SAKTIJIT DEY) (GIRISH AGRAWAL) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 20 /09/2023. Pooja/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ITA No.-463/JODH/2018 Yogesh Kumar Kotiya Page 5 of 5 ASSISTANT REGISTRAR ITAT NEW DELHI Date of dictation 15.09.23 Date on which the typed draft is placed before the dictating Member Date on which the typed draft is placed before the Other Member Date on which the approved draft comes to the Sr. PS/PS Date on which the fair order is placed before the Dictating Member for pronouncement Date on which the fair order comes back to the Sr. PS/PS Date on which the final order is uploaded on the website of ITAT Date on which the file goes to the Bench Clerk Date on which the file goes to the Head Clerk The date on which the file goes to the Assistant Registrar for signature on the order Date of dispatch of the Order