Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, PATNA BENCH
Before: SHRI RAJPAL YADAV & SHRI GIRISH AGRAWAL
O R D E R
PER GIRISH AGRAWAL, ACCOUNTANT MEMBER:
This appeal filed by the assessee is against the order of Ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi vide Order No. ITBA/NFAC/S/250/2022-23/1042974946(1) dated 09.05.2022 against the order of ITO, Ward-3(4), Saharsa u/s. 143(3) of the Income-tax Act, 1961 (hereinafter referred to as the “Act”), dated 19.12.2019 for AY 2017- 18.
None appeared on behalf of the assessee and no adjournment application is found on record. After hearing the Ld. Sr. DR and with his able assistance, we dispose of this appeal ex parte qua assessee, on merits.
Ground of appeal raised by the assessee reproduced as under:
Sudhir Kumar Singh, HUF, AY: 2017-18. “1. That the Learned Assessing Officer erred in making addition of Rs.9,00,000/- u/s. 68 read with section 115BBE alleging unaccounted money, on the facts and in the circumstances of the case that Cash deposited in Bank Account out of Cash in hand, cannot be treated “Cash Credit” within the meaning of section 68 r.w. 115BBE of the Act. On the facts and in the circumstances of the case.”
Brief facts of the case are that assessee being Karta of HUF e- filed the return of income on 05/08/2017 vide Acknowledgement No. 150933280050817 at Total income of Rs 2,90,260/- and Net Agricultural income of Rs. 205000/-. Return filed by the Assessee was selected for "Limited scrutiny" for examination of Cash deposit during demonetization period. In response to Notices under section 143(2)/142(1) of the Act, assessee appeared in the course of proceedings and furnished evidences, explanations regarding availability of cash deposited into the bank account during the demonetization period. Assessee also filed submissions which included Bank Statement, Computation of income, Balance sheet for the Assessment year 2015-16, 2016-17 and 2017-18 .
4.1. Assessee submitted that assessment for Assessment Year 2015-16 was completed under section 143(3) of the Act, to enquire "Whether the cash deposit has been made from disclosed sources". The then Ld. AO had duly examined the matter, thereafter passed Assessment order under section 143(3) dated 22/11/2017 for the assessment year 2015- 16, accepting Returned income. Assessee deposited during the demonetization period, out of cash available with him out of withdrawals of preceding years. Cash was deposited of Rs.1,00,000/- on 11.11.2016 and Rs.8,00,000/- on 12.11.2016, totalling Rs.9,00,000/- in the Bank Account No. 1109819181 at SBI Main Branch Saharsa (SBlN0000172).
4.2. For the fact that cash in hand was available with the assessee since 2015, following details were furnished:
(i) as on 31.03.2015 - Rs 9,38,615.00 [Assessed u/s. 143(3)]
(ii) as on 31.03.216 - Rs.9,63,615.00
Sudhir Kumar Singh, HUF, AY: 2017-18. 4.3. Ld. AO completed the assessment by making an addition of Rs.9,00,000/- in respect of deposit of cash in the Bank A/c. Aggrieved, assessee went in appeal before the Ld. CIT(A), who dismissed it. Now, the assessee is in appeal before the Tribunal.
We have heard the rival submissions and carefully gone through the facts and circumstances of the case. It is a fact on record that assessee was subjected to scrutiny assessment for AY 2015-16 u/s. 143(3) of the Act, more importantly to enquire “whether the cash deposit has been made from disclosed sources”. The assessment order was passed on 22.11.2017 by accepting the returned income of the assessee. The closing balance of cash in hand reported by the assessee in the Balance Sheet which was subjected to the assessment was of Rs.9,38,615/- as on 31.03.2015. Further, assessee had placed on record balance sheet as on 31.03.2016 according to which cash in hand available on the closing date of the year is reported as Rs.9,63,615/-. Assessee has deposited Rs. 9,00,000/- during the period of demonetization which is Rs.1,00,000/- on 11.11.2016 and Rs. 8,00,000/- on 12.11.2016 in the bank Account No. 1109819181 at SBI, Main Branch, Saharsa.
5.1. We find that the cash in hand balance as on 31.03.2015 which has been subjected to scrutiny assessment and that as on 31.03.2016 reported in the Balance Sheet sufficiently explains the availability of cash with the assessee out of which Rs. 9,00,000/- has been deposited owing to peculiar condition which arose on account of announcement of demonetization scheme by the Central Government. Further, assessee has reported balance of cash in hand as on 31.03.2017 of Rs.2,73,618/-. Considering these facts on record, we find that assessee has sufficiently explained the availability of cash which was deposited in the bank on Sudhir Kumar Singh, HUF, AY: 2017-18. account of announcement of demonetization. Accordingly, ground taken by the assessee is allowed.
In the result, appeal of the assessee is allowed.
Order pronounced in the open Court on 17th May, 2023.