Shri Varinder Aggarwal, New Delhi V. ADIT, New Delhi

ITA 4911/DEL/2012

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 69177 (ITAT-DELHI)
• Duration Of Justice: 11 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-08-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Next Hearing Date: 08-08-2013
• Assessment Year: 2008-2009
• Appeal Filed On: 17-09-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUNIL GAUTAM SENIOR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH H : NEW DELHI) BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER AND SHRI B.C. MEENA, ACCOUNTANT MEMBER ITA NO.4911/DEL./2012 (ASSESSMENT YEAR : 2008-09) SHRI VARINDER AGGARWAL, VS. ADIT, CIRCLE 1 (1), C/O SHRI KAPEL GOEL, ADVOCATE INTERNATIONAL TAXATION, A 1/25, SECTOR 15, NEW DELHI. ROHINI, DELHI 110 085. (PAN : AAEPA8961E) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI KAPIL GOEL, ADVOCATE REVENUE BY : SHRI SUNIL GAUTAM, SENIOR DR ORDER PER B.C. MEENA, ACCOUNTANT MEMBER : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT (APPEALS)- XXIX, NEW DELHI DATED 15.06.2012 FOR ASSESSMENT YEA R 2008-09. 2. THE ASSESSEE IS AN INDIVIDUAL. DURING THE YEAR, THERE WERE CASH DEPOSITS OF RS.13,80,000/- IN THE SB ACCOUNT NO.397302060050026 OF THE ASSESSEE HELD WITH UNION BANK OF INDIA, G.T. ROAD, MILLER GANJ, LUDHIA NA. THE ASSESSEE SUBMITTED THAT THESE DEPOSITS WERE FROM THE CASH WITHDRAWAL FROM S AVING BANK ACCOUNT NO.631901075029 OF THE ASSESSEE WITH THE ICICI BANK , ZANDU TOWER, G.T. ROAD, LUDHIANA ON VARIOUS DATES. THE ASSESSEE ALSO SUBMIT TED THAT THESE AMOUNTS WERE WITHDRAWN FOR PURCHASE OF THE LAND AT VILLAGE HAMBR AN FROM SHRI SACHIN GOYAL, S/O ITA NO.4911/DEL/2012 2 SHRI GORAKH LAL, R/O 29/1, THE MALL, LUDHIANA. THE COLONY WAS NOT APPROVED BY THE PUDA, THEREFORE, THE ASSESSEE CANCELLED PURCHASE OF THE LAND. THE PART OF AMOUNT WAS DEPOSITED BACK IN THE SAVING BANK ACCOUNT OF AS SESSEE WITH UNION BANK OF INDIA, LUDHIANA IN THE MONTH OF JANUARY AND MARCH, 2008. C IT (A) DID NOT ACCEPT THE EXPLANATION SUBMITTED BY ASSESSEE AND CONFIRMED THE ADDITION MADE BY ASSESSING OFFICER. 3. NOW, THE ASSESSEE HAS COME UP IN APPEAL BEFORE T HE TRIBUNAL BY TAKING THE FOLLOWING GROUNDS OF APPEAL :- 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE AND IN LAW, LEARNED CIT A ERRED IN UPHOLDING THE ADDITIO N MADE BY LD. A.O. AMOUNTING TO RS.13,80,000 AS UNEXPLAINED DEPOSITS W ITHOUT APPRECIATING WHOLE ASSESSMENT IS VOID AB INITIO BEI NG NON JURISDICTIONAL. 2. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE AND IN LAW, LEARNED CIT A ERRED IN UPHOLDING THE ADDITIO N MADE BY LD. A.O. AMOUNTING TO RS.13,80,000 AS UNEXPLAINED DEPOSITS B Y SIDETRACKING AND BRUSHING ASIDE WRITTEN SUBMISSIONS FILED BEFORE HIM TO SUIT HIS PREMEDITATED DECISION. 3. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE AND IN LAW, LEARNED CIT A ERRED IN UPHOLDING THE ADDITIO N MADE BY LD. A.O. AMOUNTING TO RS.13,80,000 AS UNEXPLAINED DEPOSITS O N SELF ASSUMED PROBABILITIES AND CONVENIENCE. 4. WE HAVE HEARD BOTH THE SIDES ON THE ISSUE. THERE WAS A CASH DEPOSIT OF RS.13,80,000/- IN THE SB ACCOUNT NO.397302060050026 WITH UNION BANK OF INDIA, G.T. ROAD, MILLER GANJ, LUDHIANA ON THE FOLLOWING D ATES :- 18.01.12008 RS.4,90,000/- 19.01.2008 RS.4,90,000/- 17.03.2008 RS.4,00,000/- RS.13,80,000/- THERE WERE ALSO FOLLOWING CASH WITHDRAWALS FROM THE ASSESSEES SAVING BANK ACCOUNT NO.631901075029 WITH ICICI BANK, ZANDU TOWER, G.T. ROAD, LUDHIANA :- ITA NO.4911/DEL/2012 3 28.05.2007 RS. 2,50,000/- 21.06.2007 RS. 4,00,000/- 19.09.2007 RS.10,50,000/- RS.17,00,000/- IN THE FIRST HALF OF THE FINANCIAL YEAR, THERE WERE CASH WITHDRAWALS OF RS.17 LACS ON THREE DATES FROM THE ASSESSEES SAVING BANK ACCOUNT . THE REVENUE HAS FAILED TO ESTABLISH THAT THESE WITHDRAWALS OF RS.17 LACS WERE NOT AVAILABLE WITH ASSESSEE OR THE AMOUNTS OF WITHDRAWALS WERE UTILIZED FOR ANY OTHER PURPOSE BY THE ASSESSEE. THE ASSESSEE GAVE AN EXPLANATION THAT HE WAS TO PURCHAS E A LAND FROM SHRI SACHIN GOYAL R/O 29/1, THE MALL, LUDHIANA. THUS ASSESSEE PROVIDE D FULL ADDRESS OF THE SELLER. THE ASSESSING OFFICER HAS NOT DONE ANY ENQUIRY FROM THE PERSON TO NEGATE EXPLANATION OF THE ASSESSEE FOR REASONS OF CASH WITHDRAWAL AND CAN CELLATION OF PURCHASE OF LAND. THE ASSESSING OFFICER SIMPLY MADE THE ADDITION. IN ABSE NCE OF ANY ADVERSE MATERIAL BROUGHT ON RECORD WITH REGARD TO THE USE OF THE WIT HDRAWAL OF MONEY SOMEWHERE ELSE FOR ANY OTHER PURPOSE, THE REVENUE WAS NOT JUSTIFIE D IN NOT ACCEPTING THE EXPLANATION PROVIDED BY THE ASSESSEE WITH REGARD TO THE DEPOSIT S MADE IN THE LAST QUARTER OF FINANCIAL YEAR 2007-08 IN THE ASSESSEES SAVING BAN K ACCOUNT IN UNION BANK OF INDIA. CONSIDERING THE TOTALITY OF THE FACTS AND CIRCUMSTA NCES, WE FIND NO MERITS IN THE ADDITION MADE FOR CASH DEPOSIT IN ONE BANK ACCOUNT WHEN SUFFICIENT WITHDRAWALS WERE AVAILABLE FROM ASSESSEES OWN SAVING BANK ACCOUNT W ITH OTHER BANK. IN VIEW OF THESE FACTS, WE DIRECT TO DELETE THE SAME. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN OPEN COURT ON THIS 22 ND DAY OF AUGUST, 2013. SD/- SD/- (R.P. TOLANI) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED THE 22 ND DAY OF AUGUST, 2013/TS ITA NO.4911/DEL/2012 4 COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A)-XXIX, NEW DELHI. 5.CIT(ITAT), NEW DELHI. AR/ITAT