Bijabai Dilipchand Chordia, Pune V. Income-Tax officer, Ward 7(2), Pune

ITA 770/PUN/2022

AI Insights

The case revolves around an appeal by Bijabai Dilipchand Chordia against the order of the CIT(A) which confirmed the addition of Rs.11,20,000 to her income for the assessment year 2017-18. This amount represented cash deposits made into three bank accounts during the demonetization period. The AO had questioned the source of these deposits, leading to the scrutiny of the assessee's financial transactions. The assessee contended that these deposits were from cash withdrawals made from her son's salary account over a period from 2011 to 2015, intended for her maintenance and medical expenses. The Tribunal found the assessee's explanation credible and consistent with the financial records, leading to the decision to allow the appeal and delete the addition.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137681 (ITAT-PUNE)
• Duration Of Justice: 4 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 01-03-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 18-10-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT आयकर अपील सं. /ITA No. 770/PUN/2022 नधा रण वष / Assessment Year : 2017-18 Bijabai Dilipchand Chordia, A6-103, Park Island Society, Shastri Nagar, Yerwada, Pune 411 006, Maharashtra PAN : ARIPC3030H Vs. ITO, Ward-7(2), Pune Appellant Respondent आदेश / ORDER PER R.S. SYAL, VP : This appeal by the assessee arises out of the order dated 29-08-2022 passed by CIT(A) in National Faceless Appeal Centre (NFAC), Delhi u/s.250 of the Act in relation to the assessment year 2017-18. 2. The only issue agitated in this appeal is against the confirmation of addition of Rs.11,20,000/-, being, cash deposited into three bank accounts. 3. Briefly stated, the facts of the case are that the assessee filed her return declaring total income of Rs.19,330/- towards Assessee by None Revenue by Shri Akhilesh Srivastava Date of hearing 02-03-2023 Date of pronouncement 02-03-2023 ITA No. 770/PUN/2022 Bijabai Dilipchand Chordia 2 interest income. The case was selected for scrutiny on account of cash deposited during demonetization period amounting to Rs.11,20,000/-. During the course of assessment proceedings, the assessee was called upon to explain the source of such cash deposits, to which, it was submitted that the amounts deposited were earlier withdrawn from her son’s salary account. It was further stated that cash of Rs.18,23,700/- was given to her by his son for maintenance and medical expenses over the period 01-03-2011 to 31-03-2015, which was withdrawn by her through ATM on various occasions. The son was working with Emerson Exports Engineering Centre having monthly salary of Rs.40,000/- to Rs.70,000/- from March, 2011 to March, 2015. The AO observed that apart from such bank deposits by the assessee, her son also deposited a sum of Rs.4.50 lakh in his bank account during demonetization period. He, therefore, refused to accept the genuineness of the assessee’s claim that the amount deposited in the bank account was out of accumulated cash withdrawals. The ld. CIT(A) accorded his imprimatur to the view point of the AO. Aggrieved thereby, the assessee has come up in appeal before the Tribunal. ITA No. 770/PUN/2022 Bijabai Dilipchand Chordia 3 4. I have heard the ld. DR and gone through the relevant material on record. There is no appearance from the side of assessee despite notices. I, therefore, proceed to dispose of the appeal ex parte qua the assessee on merits. 5. It is seen that the only source of the income of the assessee is interest income from deposits made with the bank. Such amount totals up to Rs.19,330/- for the year under consideration. In order to maintain and for medical needs of the assessee, her son gave certain amounts totalling to Rs.18,23,700/- between the period 08-03-2011 to 31-03-2015. Such amount of Rs18,23,700/- was actually withdrawn from the bank account of her son only. This contention of the assessee has not been refuted by the AO. It was during demonetization period that the assessee deposited a sum of Rs.11,20,000/- in three bank accounts. Even if deposit of Rs.4,50,000/- made by her son is also taken into consideration, the total cash utilisation comes to Rs.15,70,000/- as against the amount withdrawn at Rs.18,23,700/-. In view of these facts, it is clear that the amount deposited in the bank account by the assessee was out of cash withdrawals from bank account in earlier period. I, therefore, ITA No. 770/PUN/2022 Bijabai Dilipchand Chordia 4 accept the genuineness of the source of deposit and order to delete the addition. 6. In the result, the appeal is allowed. Order pronounced in the Open Court on 02 nd March, 2023. Sd/- (R.S.SYAL) उपा य / VICE PRESIDENT प ु णे Pune; दनांक Dated : 02 nd March, 2023 Satish आदेश की ितिलिप अ ेिषत/Copy of the Order is forwarded to: 1. अपीलाथ / The Appellant; 2. 3. थ / The Respondent The Pr.CIT concerned 4. 5. DR, ITAT, ‘SMC’ Bench, Pune गाड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune ITA No. 770/PUN/2022 Bijabai Dilipchand Chordia 5 Date 1. Draft dictated on 02-03-2023 Sr.PS 2. Draft placed before author 02-03-2023 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. *