RAMJI PRASAD JAISWAL,VARANASI V. INCOME TAX OFFICER, WARD - 3(1), VARANASI

ITA 24/VNS/2024

AI Insights

The case involves Ramji Prasad Jaiswal, who appealed against the order of the CIT(A), NFAC, Delhi, which confirmed the addition of Rs. 15.15 lakhs to his income for the Assessment Year 2017-18. This addition was initially made by the AO, who considered the cash deposits made by the assessee during the period of demonetisation as unexplained money under section 69A of the Income Tax Act. The assessee argued that the deposits were from the sale of land and personal savings, which the AO did not fully accept. However, the Tribunal found the explanations credible and directed the deletion of the addition.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 26027 (ITAT-VARANASI)
• Duration Of Justice: 7 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 13-09-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 21-02-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAVITA MEENA
• Assessee Lawyers: SUBHASH CHA ND; R.K.SRIVASTA
• Keywords: Set aside

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, CIRCUIT BENCH (SMC), VARANASI BEFORE: SHRI B.R. BASKARAN, ACCOUNTANT MEMBER ITA No.24/VNS/2024 (Assessment Year :2017-18) Ramji Prasad Jaiswal Plot No.12, J-13/93 Cotton Mill, Sanjay Gandhi Nagar, Chaukaghat Varanasi-221 002 Uttar Pradesh Vs. The Additional/ Joint / Deputy / Assistant Commissioner of Income Tax/ Income Tax Officer National Faceless Assessment Centre, Delhi PAN/GIR No.AERPJ4730K (Appellant) .. (Respondent) Assessee by Shri. Subhash Chand, Adv.& Shri R.K.Srivasta, Adv. Revenue by Smt. Kavita Meena, Sr.DR Date of Hearing 13/09/2024 Date of Pronouncement 09/10/2024 आदेश / O R D E R PER B.R. BASKARAN (A.M): The assessee has filed this appeal challenging the order dated 26/12/2023 passed by ld. CIT(A), NFAC, Delhi and it relates to the A.Y.2017-18. 2. The assessee is aggrieved by the decision of the ld. CIT(A) in confirming the addition of Rs. 15.15 lakhs relating to cash deposits made into the bank account of the assessee. The facts relating to the case are that the assessee filed his ITA No.24/VNS/2024 Ramji Prasad Jaiswal 2 return of income for the year under consideration declaring a total income of Rs.7,88,430/-. During the course of assessment proceedings, the AO noticed that the assessee has deposited cash aggregating to Rs.15,15,000/- during the period of demonetisation in various bank accounts maintained by him. With regard to the sources of deposits, the assessee explained as under:- (a) that he had sold a land on 28/07/2016 for a sum of Rs.9,75,000/- and it was used to make above said deposits. (b) that he is 77 years old and his wife is 75 years old and they have accumulated savings over the years in order to make urgent medical expenses. The accumulated savings was Rs.2.50 lakhs for self and Rs.3.50 lakhs for his wife. Both these savings amount were used to make above said deposits. The AO did not accept the above said explanations of the assessee and accordingly, assessed the amount of Rs.15.15 lakhs as ‘unexplained money’ u/s.69A of the Act. The ld.CIT(A) also confirmed the same. 3. I heard the parties and perused the record. I noticed that assessee is 77 years old and his wife is 75 years old. Further, the assessee has filed return of income declaring a total income of Rs.7,88,430/- which is consisting of rental income and interest from bank deposits. In view of these facts, I am of the view that the availability of savings with the assessee accumulated over the years cannot be doubted with. Next, the assessee stated that he had sold an agricultural land for ITA No.24/VNS/2024 Ramji Prasad Jaiswal 3 Rs.9,75,000/- and the said fact has not been disputed by the AO. The only reason given by the AO is that the assessee has received Rs.2.5 lakhs out of the above said sale proceeds by way of cheque. Hence, the availability of cash to the tune of Rs.7.25 lakhs (Rs.9.75 lakhs (-) Rs.2.50 lakhs) is not being disputed. However, since the assessee has been declaring an income of around Rs.7,00,000/- and further the assessee is aged one, I am of the view that the availability of further savings of Rs.2.50 lakhs need not be doubted with. Accordingly, I am of the view that the explanation given by the assessee with regard to source for making deposit of Rs.15.15 lakhs in the facts and circumstances of the case may be accepted. Accordingly, I set aside the order of the ld. CIT(A) and direct the AO to delete the addition of Rs.15.15 lakhs made u/s.69A of the Act. 4. In the result, appeal filed by the assessee is allowed. Order pronounced on 09/10/2024 by way of proper mentioning in the notice board. Sd/- (B.R. BASKARAN) ACCOUNTANT MEMBER Varanasi; Dated 09/10/2024 KARUNA, sr.ps ITA No.24/VNS/2024 Ramji Prasad Jaiswal 4 Copy of the Order forwarded to : BY ORDER, (Asstt. Registrar) ITAT, Varanasi 1. The Appellant 2. The Respondent. 3. The CIT(A), Varanasi. 4. CIT 5. DR, ITAT, Varanasi 6. Guard file. //True Copy// "