Prabhat Ranjan Mallick, Bhubaneswar V. DCIT, Circle-3(1), Bhubaneswar

ITA 50/CTK/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 4352 (ITAT-CUTTACK)
• Duration Of Justice: 1 year(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-02-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 06-02-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: D K PRADHAN
• Assessee Lawyers: B D OJHA

Judgement Text

1 ITA NO. 50/CTK/2017 ASSESSMENT YEAR : 2012 - 2013 IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO. 50 /CTK/201 7 ASSESSMENT YEAR : 201 2 - 2013 SRI PRABHAT RANJAN MALLICK, PLOT NO.N2/17, IRC VILLAGE, BHUBANESWAR. VS. DCIT, CIRCLE 3(1), BHUBANESWAR. PAN/GIR NO. ADBPM 5150 D (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI B.D.OJHA, AR REVENUE BY : SHRI D.K.PRADHAN, DR DATE OF HEARING : 1 2 / 0 2 / 201 8 DATE OF PRONOUNCEMENT : 1 4 / 0 2 / 201 8 O R D E R PER PAVAN KUMAR GADALE, JM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A) - 2, BHUBANESWAR DATED 2012 - 13 FOR THE ASSESSMENT YEAR 2012 - 13. 2. THE ONLY ISSUE INVOLVED IN THIS APPEAL IS THAT THE CIT(A) ERRED IN CONFIRMING THE A DDITION OF RS.9,22,700/ - AS UNEXPLAINED CASH DEPOSITS IN BANK ACCOUNT. 3. BRIEFLY STATED THE RELEVANT FACTS ARE THAT T HE ASSESSEE FILED THE RETURN OF INCOME DECLARING TOTAL INCOME OF RS.22,77,370/ - . THE ASSESSING OFFICER MADE ADDITION OF RS.28,17,700/ - IN RESPECT OF BANK DEPOSITS WHERE 2 ITA NO. 50/CTK/2017 ASSESSMENT YEAR : 2012 - 2013 THE ASSESSEE COULD NOT SUBMIT THE SOURCE OF INCOME AND ASSESSED THE TOTAL INCOME OF THE ASSESSEE AT RS.50,95,070/ - . 4. ON APPEAL, THE CIT(A) CONSIDERED THE GROUNDS AND SUBMISSION OF THE ASSESSEE AND FOUND THAT THE ASSESSEE HAS CHALLENGED THE ADDITION OF RS.28,17,700/ - IN RESPECT OF CASH DEPOSITS IN BANK. THE ASSESSEE FILED CASH FLOW STATEMENT AND EXPLANATION AND THE CIT(A ) HAS CONSIDERED THESE FACTS OF WITHDRAWALS FROM THE BANK AND SOURCE OF DEPOSITS AND ALSO GROSS TOTAL INCOME EARNED FROM THE PREVIOUS YEAR S 2008 - 09 2012 - 13 AND OBSERVED THAT THE ASSESSEE HAS BEEN OFFERING ITS INCOME FOR THE LAST FIVE YEARS FROM RS.10 LAKHS TO RS.22 LAKHS BUT COULD NOT SUBSTANTIATE CASH BALANCE OF EARLIER YEARS. FURTHER, THE LD A.R. MADE A PLEA THAT THE ASSESSEE IS HAVING OPENING CASH BALANCE OF RS.3,50, 6 00/ - BUT THESE FACTS ARE NOT ACCEPTED IN APPELLATE PROCEEDINGS. THE CIT(A) FOUND THAT THOUGH THE ASSESSEE HAS RECEIV ED INCOME AS DIRECTORS REMUNERATION AND RENTAL INCOME BUT THE SAME CANNOT BE CONSIDERED FOR THE PURPOSE OF SOURCE OF INCOME TO DEPOSIT IN THE BANK . AC CORDINGLY, THE CIT(A) FOUND THAT THE DEPOSITS TO THE EXTENT OF RS.18,95,000 / - IS EXPLAINED AND THE BALANCE CASH DEPOSIT S OF RS.9,22,700/ - COULD NOT BE SUBSTANTIATED AND RESTRICTED THE ADDITION TO THE EXTENT OF RS.9,22,700/ - AND PARTLY ALLOWED THE APPEAL OF THE ASSESSEE. 5. AGGRIEVED BY THE ORDER OF THE CIT(A), THE ASSESSEE HAS FILED APPEAL BEFORE THE TRIBUNAL. 3 ITA NO. 50/CTK/2017 ASSESSMENT YEAR : 2012 - 2013 6. BEFORE US, LD A.R. OF THE ASSESSEE SUBMITTED THAT THE CIT(A) WITHOUT PROPERLY APPRECIATING THE SOURCE AND FACTS OF THE ASSESSEES CASE THAT THE ASSESSEE WAS HAVING OPENING CASH BALANCE OF RS.3,50, 6 00/ - HAS SUSTAINED TH E ADDITION OF RS.9,22,700/ - AND PRAYED FOR DELETION OF THE ADDITION. 7. CONTRA, LD D.R. SUBMITTED THAT THE ASSESSEE COULD NOT SUBSTANTIATE THE SE FACT S BEFORE THE ASSESSING OFFICER THAT THE ASSESSE WAS HAVING OPENING CASH BALANCE OF RS.3,50, 6 00/ - AND OTHER SOURCE. HENCE, THE CIT(A) WAS JUSTIFIED IN PARTLY ALLOWING THE APPEAL OF THE ASSESSEE. 8. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE ORDERS OF LOWER AUTHORITIES AND MATERIALS AVAILABLE ON RECORD. THE SOLE DISPUTE IN THIS APPEAL IS THAT THE CIT(A) ERRED IN SUSTAINING THE ADDITION OF RS.9,22,700/ - . ON PERUSAL OF THE ASSESSMENT ORDER AND THE ORDER OF THE CIT(A), WE FOUND THAT THERE ARE WITHDRAWALS IN THE BANK ACCOUNT, WHICH HAS BEEN CONSIDERED IN THE ORDER AND THE CIT(A) HAS GRANTED RELIEF TO THE EX TENT OF RS.19,95,000/ - . LD A.R. SUBMITTED THAT THE ASSESSEE WAS HAVING FURTHER OPENING BALANCE OF RS.3,50, 6 00/ - , WHICH HAS NOT BEEN CONSIDERED BY THE AUTHORITIES BELOW. WE FOUND THAT THE ASSESSEE HAS BEEN OFFERING THE INCOME FROM EARLIER YEARS AND ALSO FILED PAPER BOOK WITH CASH FLOW STATEMENT AND BANK STATEMENTS AND D E M O N S T R A T E D THE SOURCE S BUT COULD NOT EXPLAIN PROPERLY THE OPENING BALANCE. CONSIDERING THE APPARENT FACTS ON RECORD, WE DIRECT THE ASSESSING OFFICER TO DELETE THE ADDIT ION TO THE 4 ITA NO. 50/CTK/2017 ASSESSMENT YEAR : 2012 - 2013 EXTENT OF RS.5,72,100/ - AND WE CONFIRM THE ADDITION TO THE EXTENT OF RS.3,50,600/ - AND, ACCORDINGLY, MODIFY THE ORDER OF THE CIT(A). 9. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED ON 1 4 / 0 2 /201 8 . S D / - S D / - ( N.S SAINI) ( PAVAN KUMAR GADALE) A CCOUNTANT MEMBER JUDICIALMEMBER CUTTACK; DATED 1 4 / 0 2 /201 8 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PRIVATE SECRETARY ITAT, CUTTACK 1. THE APPELLANT : SRI PRABHAT RANJAN MALLICK, PLOT NO.N2/17, IRC VILLAGE, BHUBANESWAR. 2. THE RESPONDENT. DCIT, CIRCLE 3(1), BHUBANESWAR 3. THE CIT(A) - 2, BHUBAENSWAR 4. PR.CIT - 2, BHUBANESWAR 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//