Shrinivas Chandrakant Borate, Satara V. Income-tax Officer, Ward - 3, Satara

ITA 583/PUN/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7089 (ITAT-PUNE)
• Duration Of Justice: 9 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 12-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ARISES OUT OF PASSED

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT . / ITA NO. 583/PUN/2019 / ASSESSMENT YEAR : 2013-14 SHRINIVAS CHANDRAKANT BORATE, PLOT NO.50, ANAND NAGAR, PHALTAN, DIST. SATARA 415 523 PAN : ANGPB0249M VS. ITO, WARD-3, SATARA (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PASSE D BY THE CIT(A)-13, PUNE ON 15-01-2019 IN RELATION TO THE ASSESSMENT YEAR 2013-14. 2. FIRST ISSUE RAISED IN THIS APPEAL IS AGAINST THE CONFIRMATION OF ADDITION OF RS.6,85,000/-. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESSE E, AT THE MATERIAL TIME, WAS PARTNER IN A FIRM AND FILED HIS RETUR N DECLARING TOTAL INCOME OF RS.1,80,386/- APART FROM AGRICULTU RAL APPELLANT BY SH. SHRINIVAS CHANDRAKANT BORATE (ASSESSEE) RESPONDENT BY SMT. ELSY MATHEW DATE OF HEARING 04-02-2020 DATE OF PRONOUNCEMENT 05-02-2020 ITA NO. 583/PUN/2019 SHRINIVAS C. BORATE 2 INCOME OF RS.4,02,200/-. DURING THE COURSE OF ASSESS MENT PROCEEDINGS, THE ASSESSING OFFICER (AO) OBSERVED THAT THER E WERE CASH DEPOSITS IN THE ASSESSEES BANK ACCOUNT MAINTAIN ED WITH AXIS BANK TO THE TUNE OF RS.6,85,000/-. ON BEING CALLE D UPON TO FURNISH THE SOURCE OF SUCH DEPOSITS, THE ASSESS EE SUBMITTED THAT SUCH DEPOSITS WERE MADE FROM AGRICULTURAL INCOME AS WELL AS CERTAIN WITHDRAWALS FROM THE PARTNERSHIP FIRM. THE AO FOUND CERTAIN INFIRMITIES IN 7/12 EXTRACTS VIS-- VIS THE EXPLANATION OF THE ASSESSEE. REJECTING THE ASSESSEES EXPLANATION, HE ADDED THE ENTIRE AMOUNT OF RS.6.85 LAKH. THE LD. CIT(A) AFFIRMED THE ADDITION. 4. I HAVE HEARD SH. SHRINIVAS CHANDRAKANT BORATE, THE ASSESSEE IN PERSON AND THE LD. DR AND ALSO PERUSED THE RELEVANT MATERIAL ON RECORD. IN SO FAR AS THE SOURCE OF RS.6.85 LAKH, BEING, DEPOSITS IN THE ASSESSEES BANK ACCOUNT ARE CONCER NED, IT IS SEEN THAT THE ASSESSEE TENDERED AN EXPLANATION BEFORE THE AO IN THIS REGARD, WHICH HAS BEEN SUMMED UP AT PAGE 52 O F THE PAPER BOOK. APART FROM MINOR ITEMS, THERE ARE THREE MAIN ITEMS OF RS.3.00 LAKH DEPOSITED ON 27-06-2012; RS.2.00 LAKH ON 29-06-2012; AND RS.85,000/- ON 09-07-2012. THE F IRST SUM ITA NO. 583/PUN/2019 SHRINIVAS C. BORATE 3 OF RS.3.00 LAKH WAS, IN FACT, WITHDRAWN BY THE ASSESSEE FROM HIS PARTNERSHIP CONCERN, NAMELY, M/S. KAMROCK TILES AND PAVERS ON THE SAME DAY ON 27-06-2012 ON WHICH IT WAS DEPOSITED IN THE BANK ACCOUNT. A COPY OF THE ASSESSEES ACCOUNT IN THE BOOKS OF PARTNERSHIP FIRM HAS BEEN PLACED AT PAGE 75 OF THE PAPER BOOK, WHICH EVIDENCES THE WITHDRAWA L OF CASH OF EQUAL AMOUNT FROM SUCH ACCOUNT. THE OTHER ITEM IS DEPOSIT OF RS.2.00 LAKH ON 29-06-2012. IN THIS REGARD, THE ASSESSEE SUBMITTED DETAILS OF THE RECEIPTS FROM THE BANK ACCOUNT OF HIS FATHER SHRI CHANDRAKANT BORATE IN WHICH THE AGRICULTURAL RECEIPTS WERE DEPOSITED. EVIDENCE OF THE AGRICULTURAL LAND HOLDING BY THE ASSESSEES FAMILY FOR MORE THAN THREE GENERATIONS IS AVAILABLE AT PAGES 21 TO 51 OF THE PAPER BOOK, WHICH JUSTIFIES THE EARNING OF THE AGRICULTURAL INCOME AS CLAIMED. AS REGARDS THE OTHER MAJOR ITEM OF RS.85,000/- DEPOSITED ON 09-07-2012, IT IS SEEN THAT SU MS OF RS.22,100/- AND RS.64,000/- WERE WITHDRAWN ON 06-07-2 012 AND 09-07-2012 RESPECTIVELY FROM THE BANK ACCOUNT OF SH RI CHANDRAKANT BORATE, WHICH WENT INTO THE ASSESSEES BANK ACCOUNT. ALL OTHER SMALL DEPOSITS IN THE BANK ACCOUNT, NAM ELY, RS.22,000/- ON 28-04-2012, RS.25,000/- ON 05-09-201 2, ITA NO. 583/PUN/2019 SHRINIVAS C. BORATE 4 RS.25.000/- ON 05-11-2012, RS.15,000/- ON 08-12-201 2 AND RS.13,000/- ON 07-02-2013 WERE MADE BY WITHDRAWALS FRO M THE BANK ACCOUNT OF SHRI CHANDRAKANT BORATE. IN THE LIGHT OF SUCH EVIDENCE, IT IS CLEAR THAT THE ASSESSEE PROPERLY EXPLAIN ED THE SOURCE OF DEPOSITS IN THE BANK ACCOUNT. I, THEREFORE , DELETE THE ADDITION. 5. THE NEXT GROUND IS AGAINST THE CONFIRMATION OF ADDITION OF RS.4,90,000/- U/S.69A OF THE ACT. 6. FACTS APROPOS THIS GROUND ARE THAT THE ASSESSEE WAS FO UND TO HAVE PURCHASED A DUSTER CAR ON DOWN PAYMENT OF RS.4,90,000/-. THE ASSESSEE TENDERED AN EXPLANATION AB OUT THE SOURCE OF DEPOSIT WITH WHICH THE AO WAS NOT SATISFIED. HE MADE THE ADDITION, WHICH CAME TO BE COUNTENANCED IN THE FIRST APPEAL. 7. HAVING HEARD BOTH THE SIDES AND PERUSED THE RELEVANT MATERIAL ON RECORD, IT IS OBSERVED THAT PAGE 67 OF THE PAP ER BOOK IS A CONFIRMATION OF PURCHASE OF SUGARCANE BY SHRI PRAMOD ABDAGIRE FOR RS.4,23,000/-. DETAILS OF SALE BILLS OF AGRICULTURAL PRODUCE TO SEVERAL PARTIES HAVE BEEN PLACED A T PAGES 68 TO 74 OF THE PAPER BOOK. SUCH AMOUNT WAS REC EIVED ITA NO. 583/PUN/2019 SHRINIVAS C. BORATE 5 BY THE ASSESSEES FATHER, NAMELY, SHRI CHANDRAKANT BORA TE AND IN TURN GIVEN TO THE ASSESSEE FOR GIVING DOWN PAYMENT OF THE DUSTER CAR. IN MY CONSIDERED OPINION, THE ASSESSEE SUCCESSFULLY EXPLAINED THE SOURCE OF THE AMOUNT OF DOWN PAYMENT. I, THEREFORE, ORDER TO DELETE THE ADDITION. 8. IN THE RESULT, THE APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 05 TH FEBRUARY, 2020. SD/- (R.S.SYAL) / VICE PRESIDENT PUNE; DATED : 05 TH FEBRUARY, 2020 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT (APPEALS)-13, PUNE 4. THE PR. CIT-3, PUNE 5. , , SMC / DR SMC, ITAT, PUNE; 6. / GUARD FILE. // TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE ITA NO. 583/PUN/2019 SHRINIVAS C. BORATE 6 DATE 1. DRAFT DICTATED ON 04-02-2020 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 04-02-2020 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER -- JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. -- JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8. FILE SENT TO THE BENCH CLERK SR.PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK 10. DATE ON WHICH FILE GOES TO THE A.R. 11. DATE OF DISPATCH OF ORDER. *