RANBIR SINGH KUNDU, PANIPAT V. ITO, WARD- 3, PANIPAT

ITA 4821/DEL/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5437 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-04-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 28-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B R MISHRA
• Assessee Lawyers: ASHISH GOEL ADV S; RANO JAIN MS DEVINA
• Keywords: Salary income; Opportunity of being heard; Additional evidence
• Section: 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC , NEW DELHI BEFORE SH. N. K. SAINI, ACCOUNTANT MEMBER ITA NO. 4821 /DEL/2017 : ASSTT. YEAR : 2011 - 1 2 SH. RANBIR SINGH KUNDU, V.P.O. ISRANA, NEAR VIDYA NIKE TAN, SR. SEC. SCHOOL, DISTT: PANIPAT VS INCOME TAX OFFICER, WARD - 3 , PANIPAT (APPELLANT) (RESPONDENT) PAN NO. A BCPK4475E ASSESSEE BY : MS. RANO JAIN, MS. DEVINA & SH. ASHISH GOEL, ADVS. REVENUE BY : SH. B. R. MISHRA , SR. DR D ATE OF HEARING : 06.02 .201 8 DATE OF PRONOUNCEMENT : 26 . 0 4 .201 8 ORDER THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 19.05 .2017 OF LD. CIT(A) , KARNAL . 2. THE ONLY EFFECTIVE GROUND RAISED IN THIS APPEAL RELATES TO THE CON FIRMATION OF ADDITION OF RS.3,60,000/ - MADE BY THE AO ON ACCOUNT OF BANK DEPOSITS. 3. FACTS OF THE CASE IN BRIEF ARE THAT THE AO INITIATED THE PROCEEDINGS U/S 147 OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT), ON THE BASIS OF INFORMATIO N UNDER AIR INFORMATION THAT THE ASSESSEE MADE CASH DEPOSITS IN HIS SAVINGS BANK ACCOUNT AMOUNTING TO RS.10,05,000/ - MAINTAINED WITH ORIENTAL BANK OF COMMERCE (OBC) , ISRANA. IN RESPONSE, THE ASSESSEE E - FILED THE RETURN OF INCOME ON 07.05.2014 DECLARING AN INCOME OF RS.8,28,360/ - . DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AO ASKED THE ASSESSEE TO EXPLAIN THE SOURCE OF CASH DEPOSITED IN ORIENTAL BANK OF COMMERCE , ISRANA ON THE FOLLOWING DATES: ITA NO. 4821 /DEL /201 7 RANBIR SI NGH KUNDU 2 DATE AMOUNT 31.7.2010 5,000/ - 17.11.2010 1,0 0,000/ - 8.12.2010 5,00,000/ - 8.12.2010 4,00,000/ - 4. IN RESPONSE, THE ASSESSEE SUBMITTED THAT HE WAS DRAWING SALARY MORE THAN RS. 8 LAKHS PER ANNUM FROM NATIONAL INSURANCE COMPANY AND BUSINESS ACTIVITIES WERE BEING CARRIED OUT BY HIM . IT WAS SUBMI TTED THAT THE CASH DEPOSITED WAS OUT OF AGRICULTURAL INCOME AND PARTLY OUT OF PAST SAVING FROM SALARY ACCOUNT. THE ASSESSEE FURNISHED THE COPY OF BANK ACCOUNT MAINTAINED WITH PUNJAB NATIONAL BANK AND CLAIMED THAT THE SOME WITHDRAWALS WERE MADE FROM HIS SAL ARY BANK ACCOUNT WHICH W ERE DEPOSITED IN SAVING ACCOUNT MAINTAINED WITH OBC. THE DETAILS OF THE WITHDRAWALS WERE FURNISHED AS UNDER: 5.5.2010 20,000/ - 3.6.2010 30,000/ - 12.7.2010 50,000/ - 10.9.2010 1,00,000/ - 4.11.2010 2,00,000/ - 5. T HE AO AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE OBSERVED THAT THE J - FORM FURNISHED BY THE ASSESSEE REVEALED THAT THE ASSESSEE SOLD AGRICULTURAL PRODUCE I.E. WHEAT AND PADDY FOR A CONSIDERATION OF RS.1,44,970/ - . HE ALLOWED THE SAID AMOUNT ALONGWITH THE WITHDRAWAL OF RS.3,00,000/ - AND REMAINING AMOUNT OUT OF THE DEPOSITS OF RS. 10,05,000/ - I.E. RS.5,60,024/ - (10,05,000 - 3,00,000 - 1 ,44,976) WAS ADDED TO THE INCOME OF THE ASSESSEE. 6 . BEING AGGRIEVED THE ASSESSEE CARRIED THE MATTER TO THE LD. CIT(A) AND REQUESTED FOR ADMISSION OF THE ADDITIONAL DOCUMENTS STATING THAT THOSE WERE REQUIRED TO BE FILED FOR PROPERLY APPRECIATING THE FACTS. THE LD. CIT(A) ADMITTED THE ADDITIONAL EVIDENCE S AND ASKED THE REMAND REPORT FROM THE AO WHO SUBMITTED THAT ITA NO. 4821 /DEL /201 7 RANBIR SI NGH KUNDU 3 CASH WITHDRAWA LS FROM PUNJAB NATIONAL BANK AS WELL AS THE AGRICULTURAL INCOME OF THE ASSESSEE HAD ALREADY BEEN CONSIDERED BEFORE MAKING THE ADDITIONS BY THE AO AND THERE WAS NO FURTHER ADDITIONAL EVIDENCE TO EXPLAIN THE CASH DEPOSITS PERTAINING TO THE ADDITION OF RS.5,6 0,024/ - . IN HIS REJOINDER, THE ASSESSEE SUBMITTED THAT DAY TO DAY CASH STATEMENT EXPLAINING THE CASH AVAILABILITY ON ACCOUNT OF INCOME OF THE ASSESSEE AND HIS WIFE AS WELL AS WITHDRAWALS FROM THE BANK ACCOUNTS AND THE AGRICULTURAL INCOME HAD BEEN PREPARED IN DETAIL , ON THE BASIS OF WHICH, THE CASH AVAILABILITY AND DEPOSITS IN THE BANK ACCOUNT COULD HAVE BEEN FULLY EXPLAINED. THE LD. CIT(A) AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE RESTRICTED THE ADDITION TO RS.3,60,000/ - BY OBSERVING AS UNDER: AFTE R GOING THROUGH THE FACTS AND SUBMISSIONS, AS WELL AS THE REMAND REPORT, IT IS OBSERVED THAT THE AO HAS ALREADY PROVIDED BENEFIT TO THE APPELLANT ON THE BASIS OF THE VARIOUS WITHDRAWALS FROM THE BANK ACCOUNT AS WELL AS THE AGRICULTURAL INCOME BASED UPON TH E J - FORM PROVIDED BY THE APPELLANT. THE AR HAS HOWEVER STRONGLY ARGUED THAT THE WITHDRAWALS FROM THE BAN K ACCOUNT WERE ACTUALLY RS. 4 L ACS WHILE THE CREDIT GIVEN BY THE AO WAS ONLY RS. 3 LACS. FURTHER, IT WAS SUBMITTED THAT THE FACT THAT THE ASSESSEE'S WI FE WAS ALSO HAVING SALARY INCOME AND THE PROOF OF AGRICULTURAL INCOME SUPPORTED BY J - FORM WAS FOR RS. 3,39,000/ - WHILE CREDIT HAS ONLY BEEN GIVEN FOR AGRICULT URAL INCOME OF RS. 1,45,000 / - . IN THIS REGARD, IT IS OBSERVED THAT THE ASSESSEE HAD PROVIDED J - FOR M D URING THE REMAND PROCEEDINGS FOR AMOUNT AROUND RS. 3,00,000 / - ON WHICH THE AO HAS NOT PROVIDED ANY COMMENTS AND ALSO NOT DISPUTED IT . KEEPING IN VIEW THE VARIOUS SUBMISSIONS OF THE AR OF THE APPELLANT, IT APPEARS THAT EVEN THOUGH PRECISE EXPLANATIONS F OR THE CASH DEPOSITS ARE NOT FULLY EXPLAINED REGARDING THE BALANCE OF RS. 5,60,024/ - , TH ERE IS REASONABLE JUSTIFICATION F OR GIVING CREDIT OF RS. 2,00,000 / - ON ACCOUN T OF AGRICULTURAL INCOME AS WELL AS OTHER CASH AVAILABLE ON ACCOUNT OF BANK WITHDRAWALS AND INCOME OF WIFE OF THE ASSESSEE. ACCORDINGLY, THE ADDITION ON ACCOUNT OF UNEXPLAINED CASH DEPOSITS/UNEXPLAINED INCOME IS RESTRICTED TO RS.3,60,000/ - INSTEAD OF RS.5,60,024/ - . AS A RESULT, THESE GROUNDS OF THE APPELLANT ARE PARTLY ALLOWED. ITA NO. 4821 /DEL /201 7 RANBIR SI NGH KUNDU 4 7. NOW THE ASSE SSEE IS IN APPEAL. THE LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS MADE BEFORE THE AUTHORITIES BELOW AND FURTHER SUBMITTED THAT A CASH FLOW STATEMENT WAS FURNISHED BEFORE THE AO AS WELL AS THE LD. CIT(A) WHICH HAS NOT BEEN CONSIDERED IN RIGHT P ERSPECTIVE. OUR ATTENTION WAS DRAWN TOWARDS PAGE NO S . 22 TO 24 OF THE ASSESSEE S PAPER BOOK. IT WAS ALSO SUBMITTED THAT THE ASSESSEE WAS HAVING OPENING CASH BALANCE OF RS.9,19,481.90 WHICH WAS NOT CONSIDERED WHILE MAKING THE IMPUGNED ADDITION. 8 . IN HIS R IVAL SUBMISSIONS, THE LD. SR. DR SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 9. I HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIES AND CAREFULLY GONE THROUGH THE MATERIAL AVAILABLE ON THE RECORD. IN THE PRESENT CASE, IT IS CLAIMED THAT THE ASSESSEE FURNISHED THE CASH FLOW STATEMENT (COPY OF WHICH IS PLACED AT PAGE NOS. 22 TO 2 4 OF THE ASSESSEE S PAPER BOOK) BEFORE THE AUTHORITIES BELOW. HOWEVER, IT IS NOT CLEAR AS TO WHETHER THE SAID STATEMENT WAS AVAILABLE TO OR CONSIDERED BY THE AO/LD. CIT(A). I, T HEREFORE, DEEM IT APPROPRIATE TO SET ASIDE THIS ISSUE BACK TO THE FILE OF THE AO TO BE ADJUDICATED AFRESH IN ACCORDANCE WITH LAW AFTER CONSIDERING THE CASH FLOW STATEMENT FURNISHED AND BY PROVIDING DUE AND REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSES SEE. 10 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . (ORD E R PRONOUNCED IN THE OPEN COU RT ON 26 /0 4 /2018 ) SD/ - (N. K. SAINI) ACCOUNTANT MEMBER DAT ED: 26 /0 4 /2018 *SUBODH*