Rahiman Gulab Bagwan, Kolhapur V. Income Tax Office, Ward -2 (1), Kolhapur

ITA 940/PUN/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 6782 (ITAT-PUNE)
• Duration Of Justice: 7 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 25-06-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI R.S. SYAL , VICE PRESIDENT . / ITA NO. 940 /PUN/2019 / ASSESSMEN T YEA R : 20 0 9 - 1 0 RAHIMAN GULAB BAGWAN GALA NO.17, E WARD, SHAHU MARKET YARD, KOLHAPUR PAN : A DRPB8240K .... / APPELLANT / V/S. THE INCOME TAX OFFICER , WARD 2 ( 1 ), KOLHAPUR / RESPONDENT A SSESSEE BY : NONE REVENUE BY : SMT. VRANDA U. MATKARI, D CIT / DATE OF HEARING : 0 6 . 0 2 .20 20 / DATE OF PRONOUNCEMENT : 07 .0 2 .2020 / ORDER PER R.S. SYAL, VP : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE LD. CIT(APPEALS) - 2 , KOLHAPUR ON 02 .0 4 .2019 IN RELATION TO THE ASSESSMENT YEAR 20 0 9 - 1 0 . 2. THE ONLY ISSUE RAISED IN THE APPEAL IS AGAINST CONFIRMATION OF ADDITION OF RS. 4 , 50 , 937 / - MADE BY THE ASSESSING 2 ITA NO. 940 /PUN/20 1 9 A.Y. 20 0 9 - 1 0 OFFICER (AO) U/S 68 OF THE INCOME - TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT). 3. BRIEFLY STATED , THE FACTS OF THE CASE ARE THAT THE ASSESSEE MADE CERTAIN CASH DEPOSITS IN HIS BANK ACCOUNT TO THE TUNE OF RS.4,79,720/ - . ON BEING CALLED UPON TO EXPLAIN THE SOURCE OF DEPOSITS, THE ASSESSEE SUBMITTED THAT THESE WE RE MADE OUT OF CASH SALES. IT WAS ALSO PUT FORTH THAT BECAUSE OF THE ASSESSEE BEING INVOLVED IN THE BUSINESS AS A COMMISSION AGENT OF AGRICULTURAL PRODUCE, SOME OF THE FARMERS DIRECTLY DEPOSITED THE CASH IN HIS BANK ACCOUNT , WHICH WAS LATER ON ADJUSTED. NOT SATISFIED , THE AO MADE DISALLOWANCE OF RS.4,50,937/ - U/S 68 OF THE ACT, WHICH CAME TO BE CONFIRMED IN THE FIRST APPEAL. 4. I HAVE HEARD LD. DR AND PERUSED THE RELEVANT MATERIAL ON RECORD. THERE IS NO APPEARANCE FROM THE SIDE OF ASSESSEE, DESPITE NOTICES. AS SUCH, I AM PROCEEDING TO DECIDE THE APPEAL EX - PARTE QUA THE ASSESSEE. 5. IT IS OBSERVED THAT THE ASSESSEE MADE CASH DEPOSITS ON DIFFERENT DATES AMOUNTING TO RS.4,79,720/ - , OUT OF WHICH THE AO MADE ADDITION OF RS.4,50,937/ - . THE GENUINENESS OF THE SOURCE OF CASH DEPOSITS IN THE BANK NEEDS TO BE SEEN IN THE BACKGROUND OF THE FACT THAT THE ASSESSEE DECLARED TOTAL INCOME OF RS.1,95,240/ - AND FURTHER THAT HE WAS ENGAGED IN THE BUSINESS AS C OMMISSION AGENT OF AGRICULTURAL PRODUCE DEALING WITH THE FARMERS. CONSIDERING THE POSITION IN A HOLISTIC MANNER, I AM OF THE OPINION THAT THE EXTENT OF CASH DEPOSITED IN THE BANK 3 ITA NO. 940 /PUN/20 1 9 A.Y. 20 0 9 - 1 0 ACCOUNT TO THE TUNE OF RS.4,79,720/ - CANNOT BE DOUBTED AS EMANATING FROM UN D ISCLOSED SOURCES. I, THEREFORE, ACCEPT THE CONTENTION PUT FORTH ON BEHALF OF THE ASSESSEE BEFORE THE AUTHORITIES BELOW AND ORDER TO DELETE THE ADDITION. 6 . IN THE RESULT, THE APPEAL IS ALLOWED. ORDER PRO NOUNCED ON 7 TH DAY OF FEBRU ARY , 20 20 . SD/ - R.S. SYAL /VICE - PRESIDENT / PUNE; / DATED : 7 TH FEBR UARY , 20 20 . GCVSR / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT 3. THE CIT (APPEALS) - 2 , KOLHAPUR . 4. THE PR. CIT - 2 , KOLHAPUR . 5. , , - , / DR, ITAT, SMC BENCH, PUNE. 6. / GUARD FILE. / BY ORDER, //TRUE COPY// / SR. PRIVATE SECRETARY , / ITAT, PUNE 4 ITA NO. 940 /PUN/20 1 9 A.Y. 20 0 9 - 1 0 * * DATE 1 DRAFT DICTATED ON 0 6 . 0 2 .20 20 SR. PS/PS 2 DRAFT PLACED BEFORE AUTHOR 0 6 . 0 2 .20 20 SR. PS/PS 3 DRAFT PROPOSED AND PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/JM 5 APPROVED DRAFT COMES TO THE SR. PS/PS SR. PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR. PS/PS 7 DATE OF UPLOADING OF ORDER SR. PS/PS 8 FILE SENT TO BENCH CLERK SR. PS/PS 9 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 10 DATE ON WHICH FILE GOES TO THE A.R 11 DATE OF DISPATCH OF ORDER