Meghraj Katela, Bhubaneswar V. ITO, Ward-3(3), Bhubaneswar

ITA 67/CTK/2017

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 3785 (ITAT-CUTTACK)
• Duration Of Justice: 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-05-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 27-02-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Unexplained investment

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK SMC BENCH, CUTTACK BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER ITA NO.67/CTK/2017 ASSESSMENT YEAR : 2012 - 2013 MEGHRAJ KATELA, FLAT NO.A/06, 2 ND FLOOR, BABYLON GARDEN APARTMENT, 781, JAYADURGA NAGAR, BHUBANESWAR. VS. ITO, WARD 3(3), BHUBANESWAR. PAN/GIR NO. ACHPJ 8092 Q (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI BIS W A RANJAN PA T TNAIK, AR REVENUE BY : SHRI D.K.PRADHAN, DR DATE OF HEARING : 24 /05/ 2017 DATE OF PRONOUNCEMENT : 26 /0 5/ 2017 O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - 2, BHUBANESWAR , DATED 21.11.2016 , FOR THE ASSESSMENT YEAR 2012 - 13 . 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL IS THAT THE LD CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS.5,00,000.00 MADE BY TH E ASSESSING OFFICER U/S.69 OF THE ACT. 3. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF LOWER AUTHORITIES AND MATERIALS AVAILABLE ON RECORD. THE UNDISPUTED FACTS OF THE 2 ITA NO.67/CTK/2017 ASSESSMENT YEAR : 2012 - 2013 CASE ARE THAT THE ASSESSING O FFICER OBSERVED THAT THE ASSESSEE HAS DEPOSITED RS.5,00,000/ - ON 31.5.2011 IN HIS SAVING BANK ACCOUNT WITH ICICI BANK. THE ASSESSING OFFICER FURTHER OBSERVED THAT THE ASSESSEE HAS TRIED TO EXPLAIN THE CASH DEPOSIT ON THE BASIS OF COOKED UP CASH BOOK/CASH ACCOUNT WITHOUT ANY DOCUMENTARY EVIDENCE. THEREFORE, HE ADDED RS.5,00,000/ - AS UNEXPLAINED INVESTMENT U/S.69 OF THE ACT. 4. ON APPEAL BEFORE THE CIT( A), THE ASSESSEE FILED CASH BOOK FOR THE PERIOD 1.4.2011 TO 31.3.2012 RELEVANT TO ASSESSMENT YEAR 2012 - 13. THE ASSESSEE EXPLAINED THAT THE CASH DEPOSIT OF RS.5,00,000/ - WAS FROM THE OPENING BALANCE AS ON 1.4.2011 OF RS.5,87,561.57 . THE ASSESSEE ALSO F ILED CASH BOOK FOR THE EARLIER FINANCIAL YEAR FOR THE PERIOD 1.4.2010 TO 31.3.2011. HE OBSERVED THAT THE CLOSING BALANCE AS ON 31.3.2011 WAS RS.43,202.80 WHEREAS THE OPENING BALANCE AS ON 1.4.2011 HAS BEEN TAKEN BY THE ASSESSEE AT RS.5,87,561/ - . THE CIT( A) OBSERVED THAT THE CLOSING BALAN C E AS ON 31.3.2011 HAS TO BE OPENING BALANCE AS ON 1.4.2011 WHICH HAS NOT SHOWN IN THE CASH BOOK OF THE ASSESSEE. THEREFORE, HE HELD THAT CASH DEPOSIT OF RS.5,00,000/ - ON 31.5.2011 IN ICICI BANK WAS UNEXPLAINED AND CONFIR MED THE ADDITION MADE BY THE ASSESSING OFFICER. 5. BEFORE ME, LD A.R. REITERATED THE SUBMISSIONS MADE BEFORE THE CIT(A). 6. ON THE OTHER HAND, LD D.R. SUPPORTED THE ORDER OF THE LOWER AUTHORITIES. 3 ITA NO.67/CTK/2017 ASSESSMENT YEAR : 2012 - 2013 7. I FIND THAT THE OBSERVATION OF THE CIT(A) IN HIS ORDER T HAT THE CLOSING CASH BALANCE AS PER CASH BOOK FOR THE FINANCIAL YEAR 2010 - 2011 WAS RS.43,202.80 WHEREAS THE ASSESSEE HAS S H OWN OPENING CASH BALANCE AS ON 1.4.2011 IN HIS CASH BOOK AT RS.5,87,561/ - . THE DIFFERENCE COULD NOT BE EXPLAINED BEFORE THE CIT(A). THEREFORE, HE CONFIRMED THE ADDITION OF RS.5,00,000/ - ON ACCOUNT OF DEPOSIT MADE IN ICICI BANK BY THE ASSESSEE ON 31`.5.2011 AS UNEXPLAINED. BEFORE ME NO POSITIVE MATERIAL COULD BE BROUGHT ON RECORD TO CONTROVERT THE ABOVE FINDINGS OF THE CIT(A). HENCE, I CONFIRM THE ORDER OF THE CIT(A) AND DISMISS THE GROUND OF APPEAL OF THE ASSE SSEE. 8. IN THE RESULT, THE APPEAL F ILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 26 /05/2017 IN THE PRESENCE OF PARTIES. SD/ - ( N.S SAINI) A CCOUNTANT MEMBER CUTTACK; DATED 26 /05/2017 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PRIVATE SECRETARY ITAT, CUTTACK 1. THE APPELLANT : MEGHRAJ KATELA, FLAT NO.A/06, 2 ND FLOOR, BABYLON GARDEN APARTMENT, 781, JAYADURGA NAGAR, BHUBANESWAR. 2. THE RESPONDENT. ITO, WARD 3(3), BHUBANESWAR. 3. THE CIT(A) - 2, BHUBANESWAR 4. PR.CIT - 2, BHUBANESWAR 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY// 4 ITA NO.67/CTK/2017 ASSESSMENT YEAR : 2012 - 2013 DATE INITIAL 1. DRAFT DICTATED ON 24 /05 /17 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 24 /05 /17 (DICTATION PAD HAS BEEN ENCLOSED ALONG WITH ORIGINAL FILE) SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS /PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. FILE SENT TO THE BENCH CLERK SR.PS 8. DATE ON WHICH FILE GOES TO THE H.C. 9. DATE ON WHICH FILE GOES TO THE SPS 10. DATE OF DISPATCH OF ORDER.