SHRIPAD GOVIND RISALDAR,NAGPUR V. ITO WARD 5(2), NAGPUR

ITA 309/NAG/2024

AI Insights

The case revolves around an appeal by Shripad Govind Risaldar against the order of the Commissioner of Income Tax (Appeals), which upheld the addition of Rs. 2 lakh to the assessee's income. This amount was allegedly deposited from the accumulated savings of the aged appellant into his Canara Bank account during the demonetization period. The Assessing Officer initially accepted the source of cash deposits in four out of six accounts but questioned the deposits in Canara Bank and another bank, leading to the additions to the income. The Tribunal, after considering the circumstances and the profile of the assessee, decided in favor of the assessee, highlighting the need for a more thorough examination of the evidence provided.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474346 (ITAT-NAGPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHAY Y. MARATHE
• Keywords: Set aside

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI K.M. ROY, ACCOUNTANT, MEMBER ITA no.309/Nag./2024 (Assessment Year : 2017–18) Shripad Govind Risaldar Walker Road, Mahal, Nagpur 440 032 PAN – ABYPR2422A ……………. Appellant v/s Income Tax Officer Ward–5(2), Nagpur ……………. Respondent Assessee by : None Revenue by : Shri Abhay Y. Marathe Date of Hearing – 10/02/2025 Date of Order – 04/03/2025 O R D E R PER V. DURGA RAO, J.M. The aforesaid appeal by the assessee is against the impugned order dated 13/03/2024, passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, [“learned CIT(A)”], for the assessment year 2017–18. 2. Following grounds have been raised by the assessee:– “The learned Addi/ JCIT (A) erred in uphelding the addition of Rs. 2 Lacs made by the AO on account of Cash Deposited in Canara Bank by the appellant. The AO as well as AddI JCIT (A) failed to appreciate the fact that amount of Rs.2Lacs is deposited from the accumulated savings of the old aged appellant, the AO added the amount to the income of the appellant which is upheld by AddI/JCIT (A) without asking for capital account & statement of affairs from the appellant, which should be deleted.” 2 Shripad Govind Risaldar ITA no.309/Nag./2024 3. The assessee, for the year under consideration, filed his return of income on 19/09/2017, declaring income at ` 1,91,940, comprising of income from salary from Partnership Firm, rental income and income from other sources. The case of the assessee was selected for scrutiny under CASS for verification of cash deposits during the demonetization period. The Assessing Officer raised query regarding source of cash deposit in six different accounts held with Canara Bank, Bank of Baroda and Nagpur Nagrik Sahakari Bank (NNSB Ltd.). The assessee submitted his reply from time to time. The Assessing Officer has accepted the partial response and has accepted source of cash deposit in 4 accounts out of 6. The Assessing Officer has made addition of ` 2 lakh deposited in Canara Bank and ` 5.05 lakh deposited in Nagpur Nagrik Sahakari Bank. Consequent upon the assessment order so passed by the Assessing Officer, the assessee being aggrieved preferred appeal before first appellate authority. 4. The learned CIT(A), however, upheld the addition of ` 2 lakh despite the assessee’s submission stating that ` 2 lakh deposited in Canara Bank was out of accumulated family savings. Still aggrieved, the assessee is in further appeal before the Tribunal agitating the addition of ` 2 lakh deposit. 5. None appeared on behalf of the assessee. 6. Before us, the learned Departmental Representative, Shri Abhay Y. Marathe, forcefully submitted that the Assessing Officer noticed that the cash amount of ` 2 lakh deposited in the saving bank account of the assessee with Canara Bank, remained unexplained. The learned Departmental Representa– 3 Shripad Govind Risaldar ITA no.309/Nag./2024 tive also pointed out that the assessee offered explanation that the source of cash was agriculture income which was accumulated during the preceding years and was rightly rejected by the Assessing Officer for the reason that the explanation was not acceptable. The learned Departmental Representative further submitted that when it is a fact that the huge cash has been deposited in the bank account of the assessee, then, the onus lies on the assessee to bring on record the cogent evidence as to the source of cash deposit. 7. We have heard the rival arguments, perused the material available on record and gone through the orders of the authorities below. Admittedly there was cash deposit of ` 2 lakh to the saving bank account of the assessee maintained by him in Canara Bank. The Assessing Officer has held that the assessee failed to adduce cogent evidence to prove the source of cash deposit. We find that the Assessing Officer has not disputed the fact that the assessee holds agriculture land and the assessee received agriculture income earned therefrom during the preceding years. It is pertinent to note that the assessee is old aged agriculturist earned money during past years which were accumulated in cash appears to be a possible proposition. Moreover, we note that the learned CIT(A) has already deleted the addition of ` 5.05 lakh cash deposited by the assessee in Nagpur Nagrik Sahakari Bank. Keeping in view the assessee being an agriculturist and is an old aged person and the addition being a small amount, therefore, we direct the Assessing Officer to delete the addition of ` 2 lakh on account of cash deposit maintained by the assessee in Canara Bank. Accordingly, we set aside the impugned order passed by the learned CIT(A) by allowing all the grounds raised by the assessee. 4 Shripad Govind Risaldar ITA no.309/Nag./2024 8. In the result, assessee’s appeal stands allowed. Order pronounced in the open Court on 04/03/2025 Sd/- K.M. ROY ACCOUNTANT MEMBER Sd/- V. DURGA RAO JUDICIAL MEMBER NAGPUR, DATED: 04/03/2025 Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, Nagpur; and (5) Guard file. True Copy By Order Pradeep J. Chowdhury Sr. Private Secretary Sr. Private Secretary ITAT, Nagpur "