Sri Gosbal Madhu Sudhana, Hosapete V. The Income Tax Officer, Ward - 1, Hosapete

ITA 811/BANG/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 5202 (ITAT-BANGALORE)
• Duration Of Justice: 6 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-11-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 27-08-2019
• Assessment Year: 2016-2017
• Appeal Filed On: 16-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC, A BENCH : BANGALORE BEFORE SHRI B.R BASKARAN , ACCOUNTANT MEMBER ITA NO.811/BANG/2019 ASSESSMENT YEAR : 2016-17 SRI GOSBAL MADHU SUDHANA, MADHU S NILAYA, 9 TH WARD, BASAVESHWARA BHAVANE, HOSAPETE-583 201. PAN AII PG 5684 Q. VS. THE INCOME-TAX OFFICER, WARD-1, HOSAPETE. APPELLANT RESPONDENT APPELLANT BY : SHRI B.S BALACHANDRAN, ADVOCATE RESPONDENT BY : SHRI GANESH R GHALE, ADVOCATE STANDING COUNSEL TO D EPT. DATE OF HEARING : 05.11.2019 DATE OF PRONOUNCEMENT : 05.11.2019 O R D E R PER B.R BASKARAN, ACCOUNTANT MEMBER THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER DATED 28/1/2019 PASSED BY LD CIT(A), GULBARGA AND IT RELATES TO THE ASST. YEAR 2016-17. 2. THE ASSESSEE IS AGGRIEVED BY THE DECISION OF LD CIT(A) IN CONFIRMING THE ADDITION RELATING TO UNEXPLAINED CAS H DEPOSITS MADE IN THE BANK ACCOUNT OF THE ASSESSEE. 3. THE LD COUNSEL FOR THE ASSESSEE SUBMITTED THAT T HE AO HAS MADE THE ADDITION OF CASH DEPOSITS MADE INTO VARIOU S BANK ACCOUNTS VIZ., CANARA BANK, AXIS BANK, SIDHARATH S AHAKARI ITA NO.811 /BANG/2019 PAGE 2 OF 4 SANGHA NIYAMITHA CO-OPERATIVE BANK LTD. LD AR SUB MITTED THAT THE ASSESSEE IS MAINTAINING BOOKS OF ACCOUNTS AND A LL THESE BANK ACCOUNTS HAVE BEEN DULY DISCLOSED IN THE BOOKS OF ACCOUNT. ACCORDINGLY HE SUBMITTED THAT THE DEPOSITS HAVE BEE N MADE INTO THESE BANK ACCOUNTS OUT OF THE BALANCES AVAILABLE I N THE BOOKS. HE FURTHER SUBMITTED THAT THE AO HAS ACCEPTED THE BOOK S OF ACCOUNT AND DID NOT REJECT THE SAME. UNDER THE CIRCUMSTANC ES THE LD AR SUBMITTED THAT THE AO WAS NOT JUSTIFIED IN MAKING T HIS ADDITION WITHOUT CONSIDERING THE BOOKS OF ACCOUNT OF THE ASS ESSEE. HE FURTHER SUBMITTED THAT THE LD CIT(A) HAS ALSO NOT A PPRECIATED THESE FACTS AND ACCORDINGLY HE HAS CONFIRMED THE ADDITION MADE BY THE AO. 4. ON THE CONTRARY THE LD DR SUBMITTED THAT THE ASS ESSEE HAS NOT EXPLAINED THE SOURCES OF DEPOSITS AND HENCE THE TAX AUTHORITIES HAVE MADE THE ADDITION. 5. I HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED T HE RECORD. THE BALANCE SHEET OF THE ASSESSEE IS PLACED AT PAGE 70 OF THE PAPER BOOK AND A PERUSAL OF THE SAME WOULD SHOW THAT BANK ACCOUNTS MAINTAINED WITH ABOVE SAID 4 BANKS ARE DULY DISCLOS ED IN THE BALANCE SHEET, MEANING THEREBY, ALL THESE BANKS AC COUNTS ARE AVAILABLE IN THE BOOKS OF ACCOUNT. IN THAT CASE TH E SOURCES OF DEPOSITS MADE INTO BANK ACCOUNT SHALL BE AVAILABLE IN THE BOOKS OF ACCOUNT ITSELF. IT IS THE CONTENTIONS OF THE ASSES SEE THAT AO HAS NOT REJECTED THE BOOKS OF ACCOUNT, IN WHICH CASE, THE S OURCES OF DEPOSITS MADE INTO THE BANK ACCOUNTS WOULD STAND EX PLAINED BY THE ENTRIES MADE IN THE BOOKS OF ACCOUNT. ACCORDINGLY I FIND MERIT IN ITA NO.811 /BANG/2019 PAGE 3 OF 4 THE CONTENTIONS OF THE ASSESSEE. HOWEVER, I AM OF THE VIEW THAT THE BOOKS ACCOUNTS OF THE ASSESSEE AND THE BANK ACCOUNT S ACCOUNTED THEREIN NEEDS TO BE EXAMINED AT THE END OF AO . AC CORDINGLY I RESTORE THIS ISSUE TO THE FILE OF THE AO WITH A DI RECTION TO EXAMINE THE BOOKS OF ACCOUNTS AND AFTER SATISFYING HIMSELF THAT DEPOSITS MADE INTO BANK ACCOUNT ARE DULY RECORDED THE BOOKS OF ACCOUNT, I DIRECT THE AO TO DELETE IMPUGNED ADDITIONS. 6. IN THE RESULT, APPEAL FILED BY THE ASSESSEE I S TREATED AS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 5 TH NOVEMBER, 2019. SD/- (B.R BASKARAN) ACCOUNTANT MEMBER BANGALORE, DATED, THE 5 TH NOVEMBER, 2019. /VMS/ COPY TO: 1. APPELLANT (S) / CROSS OBJECTOR(S) 2. RESPONDENT(S) 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, BANGALORE ITA NO.811 /BANG/2019 PAGE 4 OF 4 1. DATE OF DICTATION 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER . 3. DATE ON WHICH THE APPROVED DRAFT COMES TO SR.P.S .. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER .. 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE S R. P.S. .. 6. DATE OF UPLOADING THE ORDER ON WEBSITE.. 7. IF NOT UPLOADED, FURNISH THE REASON FOR DOING SO .. 8. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .. 9. DICTATION NOTE ENCLOSED DATE ON WHICH ORDER GOES FOR XEROX & ENDORSEMENT 10. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 11. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER . 12. THE DATE ON WHICH THE FILE GOES TO DISPATCH SEC TION FOR DISPATCH OF THE TRIBUNAL ORDER . 13. DATE OF DESPATCH OF ORDER. .. 14. DICTATION NOTE ENCLOSED