Shri Balakrishnana Anand , Bangalore V. Income Tax Officer Ward-13(4), Bangalore

ITA 990/BANG/2018

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 4671 (ITAT-BANGALORE)
• Duration Of Justice: 2 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-06-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 02-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PADMA MEENAKSHI
• Assessee Lawyers: P R SURESH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH A BEFORE S HRI A.K. GARODIA, ACCOUNTANT MEMBER I.T . A. NO. 990 /BANG/20 18 (ASSESSMENT YEAR : 20 11 - 12 ) SHRI BALAKRISHNAN ANAND, NO.19, 4 TH CROSS, MUNEESWARA TEMPLE GARDEN, HMT LAYOUT, R T NAGAR, BAN GALORE - 560 032 . . APPELLANT. VS. COMMISSIONER OF INCOME TAX - 3, BANGALORE. .. RESPONDENT. APPELLANT BY : SHRI P.R. SURESH, C. A. R E SPONDENT BY : SMT. PADMA MEENAKSHI, JCIT (D.R.) DATE OF H EARING : 10.05.2018. DATE OF P RONOUNCEMENT : 08 .06 .201 8 . O R D E R PER SHRI A.K. GARODIA, A .M . : THIS APPEAL IS FILED BY THE ASSESSEE DIRECTED AGAINST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 3, BANGALORE DT.22.02.2018 FOR THE ASSESSMENT YEAR 2011 - 12. 2. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER : 2 IT A NO. 990 /BANG/20 18 3 IT A NO. 990 /BANG/20 18 3. IT WAS SUBMITTED BY THE LEARNED AUTHORISED REPRESENTATIVE OF THE ASSESSEE THAT THE GROUND NOS. 1 & 2 ARE GENERAL IN NATURE AND THEREFORE , NO SEPARATE ADJUDICATION IS CALLED FOR. 4. REGARDING GROUND NOS.3 & 4, THE LEARNED AUTHORISED REPRESENTATIVE SUBMITTED THAT ON PAGE NO.11 OF TH E PAPER BOOK, A COPY OF BANK STATEMENT FOR THE RELEVANT PERIOD IS PLACED AND FROM THE SAME , IT CAN BE SEEN THAT THE AMOUNT OF RS.25.84 LAKHS WAS WITHDRAWN ON 10.12.2011 BY WAY OF CASH WITHDRAWAL AND NOT BY WAY OF CLEARING AND THE AO GOT CONFUSED BY UNDERS TANDING THE NOMENCLATURE IN THE COLUMN DESCRIPTION AGAINST THE SAME AMOUNT WHICH WAS DEPOSITED IN THE CITY BANK ACCOUNT FOR WHICH HE STATED THAT THERE WAS CREDIT ENTRY IN THE BANK STATEMENT BY CLEARING. HE DRAWN MY ATTENTION TO PAGE NO.13 OF THE PAPER BOO K AND POINTED OUT THAT THE BANK STATEMENT IS AVAILABLE FOR THE RELEVANT PERIOD AND SUBMITTED THAT ON 13.1.2011, THERE WAS A CASH DEPOSIT OF RS.10.01 LAKHS. IT IS SEEN THAT THE WITHDRAWAL OF RS.25.05 LAKHS FROM THE CITY BANK ACCOUNT NO.3246101001269 IS BY WAY OF CASH WITHDRAWAL ON THE SAME DATE, THERE IS A DEPOSIT OF RS.10.01 LAKHS IN THE BANK ACCOUNT NO.3246101001447 AND THEREFORE , THE SOURCE OF THE CASH 4 IT A NO. 990 /BANG/20 18 DEPOSIT OF RS.10.01 LAKHS STANDS EXPLAINED OUT OF CASH WITHDRAWAL FROM THE BANK. 5. THE LE ARNED DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDERS OF AUTHORITIES BELOW. 6. I HAVE CONSIDERED THE RIVAL SUBMISSIONS. I FIND THAT THIS ISSUE WAS DECIDED AT PARA 4.2 OF CIT (APPEALS) ORDER WHICH IS REPRODUCED BELOW FOR THE SAKE OF READY REFERENCE : 5 IT A NO. 990 /BANG/20 18 7. FROM THE ABOVE PARA 4.2 OF LEARNED CIT (APPEALS), IT IS SEEN THAT THE LEARNED CIT (APPEALS) HAS PROCEEDED ON THIS BASIS THAT THE EN TRY REGARDING WITHDRAWAL OF RS. 25.85 LAKHS ON 10.1.2011 IS BY WAY OF CLEARING OF CHEQUE BUT WHEN I EXAMIN ED THE BANK STATEMENT AVAILABLE IN THE PAPER BOOK, I FIND THAT THE CLEARING OF CHEQUE IS MENTIONED BY THE BANK AGAINST THE ENTRY O F DEPOSIT OF SAME AMOUNT OF RS. 25.85 LAKHS AND AGAIN ST WITHDRAWAL OF RS.25.85 LAKHS THE NARRATION GIVEN IS BY SELF . IT COME S OUT THAT THERE IS CASH WITHDRAWAL OF RS.25.85 LAKHS ON 10.01.2011 AND THE DEPOSI T OF CASH IN THE BANK ACCOUNT OF RS.10.01 LAKHS IS ON 13.01.2011 AND THEREFORE , IN MY CONSIDERED OPINION, THE SOURCE OF DEPOSIT STANDS EXPLAINED. HENCE THIS ADDITION IS DELE TED. ACCORDINGLY, GROUND NOS.3 & 4 ARE ALLOWED. 7. REGARDING GROUND NOS.5, 6 & 7, IT WAS SUBMITTED BY LEARNED AUTHORISED REPRESENTATIVE OF THE ASSESSEE THAT COPY OF THE BANK STATEMENT FOR THE RELEVANT ASSESSMENT YEAR IS AVAILABLE A T PAGE NO.17 O F PAPER BOOK AND AS THE BANK ACCOUNT , THERE IS A CASH DEPOSIT OF RS.2 LAKHS IN THE BANK ON 17.2.2011. HE ALSO SUBMITTED BEFORE THE LEARNED CIT (APPEALS) THAT THIS CASH DEPOSIT IN BANK IS OUT OF RS.6 LAKHS CASH RECEIVED BY THE ASSESSEE FROM MS. SWATI. IN THIS REGARD, MY ATTENTION IS DRAWN TO PAGE NO.2 OF THE ASSESSMENT ORDER ALSO WHERE THE ASSESSING OFFICER NOTED THAT MS. SWATI WAS EXAMINED BY THE ASSESSING OFFICER AND IT WAS STATED BY HER THAT SHE HAD REFUNDED BACK TO THE ASSESSEE THE AMOUNT OF RS.6.50 LAKHS IN CASH IN TWO INSTALLMENTS OF RS.50,000 AND RS.6 LAKHS. IT 6 IT A NO. 990 /BANG/20 18 WAS SUBMITTED THAT SINCE IT IS ACCEPTED BY THE ASSESSING OFFICER THAT RS.6 LAKHS IN CASH IS RECEIVED FROM MS. SWATI THEN SOURCE OF CASH DEPOSIT STANDS EXPLAINED AND NO ADDITION IS CALLED FO R. THE LEARNED DEPARTMENTAL REPRESENTATIVE HAS SUBMITTED THAT IT WAS NOTED AT PAGE NO.3 OF THE ASSESSMENT ORDER THAT THERE IS A CASH DEPOSIT IN BANK ACCOUNT ON 17.2.2011 AND IT WAS STATED BY THE ASSESSEE THAT THIS AMOUNT WAS RECEIVED FROM HER FATHER IN L AW AND ADDITION WAS MADE BY THE ASSESSING OFFICER ON THIS BASIS THAT THIS AMOUNT WAS RECEIVED FROM THE FATHER - IN - LAW AND THE ASSESSEE HAS NOT PRODUCED ANY EVIDENCE AND THEREFORE , THE ADDITION WAS MADE BY THE ASSESSING OFFICER. BEFORE THE LEARNED CIT (APPE ALS), THE ASSESSEE STATED THAT THIS CASH DEPOSIT IS OUT OF CASH RECEIVED OF RS.6.50 LAKHS FROM MS. SWATI. THE RECEIPT OF CASH OFRS.6.50 LAKHS IS ACCEPTED BY THE ASSESSING OFFICER IN ASSESSMENT ORDER ON PAGE NO.2. THIS IS NOT THE CASE OF ASSESSING OFFICE R OR THE LEARNED CIT (APPEALS) THAT THIS CASH RECEIVED FROM MS. SWATI IS USED BY THE ASSESSEE FOR SOME OTHER INVESTMENT OR FOR SOME OTHER CASH DEPOSIT IN BANK ACCOUNT. IN THE ABSENCE OF ANY SUCH ALLEGATION, THE SOURCE OF RS.2 LAKHS STANDS EXPLAINED AND HE NCE , I DELETE THIS ADDITION. THIS DECISION IS FURTHER SUPPORTED BY THESE FACTS THAT AS PER THE ENTRY IN THE BANK STATEMENT ON PAGE NO.17 OF THE PAPER BOOK, THERE IS A DEPOSIT OF CHEQUE OF RS.2 LAKHS ON 15.2.2011 AND THERE IS REVERSAL OF SUCH ENTRY ON THE SAME DATE ON THIS BASIS THAT CHEQUE RETURNED BECAUSE OF INSUFFICIENT FUNDS AND ASSESSEE'S SUBMISSION IS THIS THAT CHEQUE OF RS.2 LAKHS WAS RECEIVED FROM MS. SWATI AND IT WAS DEPOSITED AND THE SAME WAS 7 IT A NO. 990 /BANG/20 18 DISHONORED AND CASH WAS RECEIVED AGAINST SUCH DISHON OR OF CHE QUE . ACCORDINGLY GROUND NOS.5, 6 & 7 ARE ALSO ALLOWED. 8. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THE 8TH DAY OF JUNE, 201 8 . SD/ - ( A.K. GARODIA ) ACCOUNTANT MEMBER BANGALORE, DT. 08 .06.2018. *REDDY GP COPY TO : 1 APPELLANT 4 CIT(A) 2 RESPONDENT 5 DR. ITAT, BANGALORE 3 CIT 6 GUARD FILE SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL BANGALORE.