SHRI BIKRAM SINGH , TARN TARAN V. INCOME TAX OFFICER,WARD-1, TARN TARAN

ITA 54/ASR/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 0257 (ITAT-AMRITSAR)
• Duration Of Justice: 1 year(s) 10 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-12-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 02-02-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: P N ARORA
• Section: 44AD

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR BEFORE SH. N. K. CHOUDHRY, JUDICIAL MEMBER AND SH. O. P. MEENA ACCOUNTANT MEMBER I.T.A. NO. 54/ASR/2018 A SSESSMENT YEAR: 2014-15 SH. BIKRAM SINGH PROP. M/S BIKRAM HARDWARE STORE NOORDI ADDA, TARN TARAN [PAN: AWBPS 7201E] VS. INCOME TAX OFFICER, WARD-1, TARN TARAN (APPELLANT) (RESPONDENT) APPELLANT BY : SH. P. N. ARORA (AD V.) RESPONDENT BY: SH. CHARAN DASS (D.R.) DATE OF HEARING: 20.12.2019 DATE OF PRONOUNCEMENT: 20.12.2019 ORDER PER O. P. MEENA, AM: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-1, AMRITSAR DA TED 30.10.2017 FOR THE ASSESSMENT YEAR 2014-15. 2. THE GROUND NO. 1 TO 5 OF THE APPEAL RELATES TO N OT ALLOWING RELIEF ON ACCOUNT OF CASH WITHDRAWAL MADE FROM SAVING AS WELL AS OVER DRAFT A/C OF THE ASSESSEE AND THE ADDITION CONFIRMED BY THE CIT(APPEAL) IS AGAINS T THE LAW. 3. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT TH E ASSESSEE HAS FILED SHOWING RETURN OF INCOME AT RS.2,35,500/- WHICH WAS ASSESSE D AT RS.14,27,000/- BY MAKING AN ADDITION OF RS.11,91,500/- AS PER AIR INFORMATIO N. THE AO NOTICED THAT THE ITA NO. 54/ASR/2018 (AY 2014-15) BIKRAM SINGH V. ITO 2 ASSESSEE HAS MADE CASH DEPOSITS IN HIS SAVING BANK ACCOUNT WITH PUNJAB & SINDH BANK, TARN TARAN TO THE TUNE OF RS.2,43,50,000/- DU RING THE ASSESSMENT YEAR UNDER CONSIDERATION. THE ASSESSEE HAS EXPLAINED THAT THE TURNOVER DURING THE YEAR AT RS.51,56,250/- AND THE CASH DEPOSITS IN THE SAVING BANK ACCOUNT REPRESENTS TURNOVER OF THE YEAR AND CASH ENTRIES ROTATED FROM CURRENT ACCOUNT AFTER CONSIDERING THE VERSION OF THE ASSESSEE. THE AO HAS GIVEN CREDI T OF CASH ENTRY OF RS.35 LAKH AND AGRICULTURAL RECEIPTS OF RS.8 LAKH BUT STILL TH E CASH DEPOSITS IN HIS SAVING BANK ACCOUNT, REMAINED. HENCE BALANCE REMAINED AT RS.200 ,50,000/- AS AGAINST TURNOVER OF RS.51,56,250/- ON WHICH NET INCOME OF RS.4,12,50 0/- HAS BEEN SHOWN ACCORDINGLY. THE AO HELD THAT THE ASSESSEE HAS STIL L THE SALES TO THE TUNE OF RS.148,93,750/- SINCE THE ASSESSEES COST FALLS UND ER PRESUMPTION PROVISIONS PROVIDED U/S 44AD, ACCORDINGLY THE NET PROFIT @ OF 8% ON THE ABOVE TURNOVER WAS ESTIMATED WHICH WORKED OUT TO RS.11,91,500/-. ACCOR DINGLY, THE SAME WAS ADDED TO THE TOTAL INCOME. 4. BEING AGGRIEVED THE ASSESSEE CARRIED THE MATTER BEFORE CIT(A). HOWEVER, THE CIT(A) OBSERVED THAT THE AO HAS NOT CONSIDERED THE CASH WITHDRAWALS FROM THE SAVING BANK ACCOUNT MADE BY THE APPELLANT FROM HIS SF ACCOUNT NO. 881000075896 IN PUNJAB & SINDH BANK, TARN TARAN WHICH IS ALSO AV AILABLE WITH THE APPELLANT FOR REDEPOSIT IN HIS BANK ACCOUNT. AS THE AO HAS, NOT E STABLISHED NOWHERE IN THE ORDER WITH THE CASH WITHDRAWALS HAS BEEN UTILIZED ELSEWHE RE. THEREFORE, THE AO WAS DIRECTED TO GIVE CREDIT OF THE CASH WITHDRAWALS MAD E BY THE APPELLANT FROM THE FIGURE OF UNEXPLAINED DEPOSIT/CONCEALED SALES OF RS .1,48,93,750/- DETERMINED U/S 44AD OF THE ACT @ OF 8%. 5. BEING AGGRIEVED THE ASSESSEE FILED THIS APPEAL B EFORE US. THE LD. COUNSEL SUBMITTED THAT THE CIT(A) HAS NOT ALLOWED CREDIT FR OM THE ESTIMATED PROFIT @ 8% U/S 44AD OF THE INCOME RETURNED BY THE ASSESSEE AT RS.2,35,500/-. ITA NO. 54/ASR/2018 (AY 2014-15) BIKRAM SINGH V. ITO 3 6. PER CONTRA THE LD. SR. DR SUPPORTED THE ORDER OF CIT(A). 7. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE LD. CIT(A) HAS ALREADY DIR ECTED THE AO TO REDUCE THE AMOUNT OF CASH WITHDRAWALS MADE BY THE APPELLANT FR OM HIS SF ACCOUNT NO. 881000075896 WITH PUNJAB & SINDH BANK FROM SALES OF RS.148,93,750/. WE THEREFORE DIRECT THE AO TO ALLOW FURTHER DEDUCTION OF RETURNED INCOME OF RS.2,35,500/- FROM THE PROFIT WHICH WILL BE WORKED OUT @ 8% FROM THE REDUCED SALES AS PER DIRECTION OF CIT(A). ACCORDINGLY, THE GROUNDS OF APPEAL TAKEN BY THE ASSESSEE ARE PARTLY ALLOWED. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON DECEMBER 20, 2019 SD/- SD/- (N. K. CHOUDHRY) (O. P. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATE: 20.12.2019 /GP/SR. PS. COPY OF THE ORDER FORWARDED TO: (1) THE APPELLANT: (2) THE RESPONDENT: (3) THE CIT(APPEALS), (4) THE CIT CONCERNED (5) THE SR. DR, I.T.A.T. TRUE COPY BY ORDER