SHRI JAI SINGH RAJPUROHIT,PALI vs. DC, CEN, CIR-2,, JODHPUR
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Income Tax Appellate Tribunal, JODHPUR BENCH: ‘DB’: JODHPUR
Before: SHRI SAKTIJIT DEY & SHRI GIRISH AGRAWAL
PER GIRISH AGRAWAL, ACCOUNTANT MEMBER:
This appeal filed by the assessee is against the order of Ld. CIT(Appeals), Udaipur-2, vide appeal no. 2/10298/2019-20 dated 27/12/2022 against the assessment order passed U/s 144 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) dated 16.12.2019 passed by ACIT, Central Circle-2, Jodhpur, for Assessment Year 2017- 18.
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ITA No.- 77/JODH/2023 Shri Jai Singh Rajpurohit 2. Assessee has taken five grounds of appeal, all of which relate to the solitary issue
of addition of Rs. 10,00,000/- made in respect of cash deposit in bank account by
treating it as unexplained money U/s 69A of the Act, which was deposited during
demonetization period.
Brief facts of the case are that assessee derives income from salary, rental and
other sources. He also earns income from agriculture. Assessee filed his return of
income on 29.03.2018, reporting total income of Rs. 3,70,000/-. In the course of
assessment, Ld. AO noted that assessee has deposited cash amounting to Rs.
57,45,000/- including Rs. 10,00,000/-, deposited during the demonetization period. The
details of deposit of cash is tabulated as under:
Name of Bank Account No. Type of account Total cash Cash deposited deposited during during the the year demonetization period Axis Bank 916030020919561 Agricultural Cash 12,95,000/- 6,00,000/- Credit Allahabad Bank 21412623104 Saving bank a/c 37,00,000/- 2,00,000/-
State Bank of 61160526150 Housing Loan 2,00,000/- 2,00,000/- India State Bank of 61157290402 Saving bank a/c 5,50,000/- NIL India TOTAL 57,45,000/- 10,00,000/-
Since no was submission made by the assessee in this respect, Ld. AO proceeded
to complete the assessment by making the addition of Rs. 57,45,000/-.
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ITA No.- 77/JODH/2023 Shri Jai Singh Rajpurohit 5. Aggrieved, assessee went into appeal before the Ld. CIT(A), who deleted the
addition of Rs. 47,45,000/- and sustained the balance of Rs. 10,00,000/- for which the
assessee is in appeal before the Tribunal.
Before us, Ld. Counsel submitted that out of Rs. 10,00,000/-, Rs. 6,00,000/- are
recorded in the books of Hotel Pawan International run by Smt. Pawan Kanwar,
proprietor who is the wife of the assessee. The bank account in which deposit has
taken place is a Joint Account wherein assessee and his wife are account holders. Ld.
Counsel submitted in respect of deposit of Rs. 2,00,000/- in State Bank of India, that
assessee was having sufficient cash in hand recorded in cash book. Assessee had further
received cash from mother and close relatives / family members and withdrawals from
the bank. Cumulatively out of all these, deposits of Rs. 2,00,000/- was made in the
bank account. In respect of other amount of Rs. 2,00,000/- deposited in the Housing
Loan with SBI, it is claimed that said deposit is made out of withdrawal of cash from the
bank. The details of source of cash deposits of Rs. 10,00,000/- in bank account during
the demonetization period as explained by the assessee is tabulated as under:
Particulars Bank A/C No. Amount Remarks
Axis Bank 916030020919561 6,00,000/- As discussed herein below that it is joint bank account of assessee and his wife Smt. Pawan Kanwar. The transactions of such bank account are recorded in the books of Hotel Pawan International run by Smt. Pawan Kanwar l as a proprietor. SBI 1160526150 2,00,000/- Out of bank withdrawal and cash available. Allahabad 21412623104 2,00,000/- Bank
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ITA No.- 77/JODH/2023 Shri Jai Singh Rajpurohit
Ld. Counsel further asserted that assessee was having opening cash in hand as
on 01.04.2016 amounting to Rs. 19,28,492/- which was duly accepted as closing cash in
hand as on 31.03.2016 while passing assessment order U/s 143(3) for A.Y. 2016-17. Ld.
Counsel also referred to copies of bank statements with Axis Bank and State Bank of
India to demonstrate the withdrawal of cash which was available for the deposit. He
further submitted that similar issue had cropped up in the case of wife of the assessee,
who has also been assessed U/s 143(3) by the Ld. AO and no such addition has been
made on this account. Ld. Counsel also referred to an application made U/s 154 of the
Act filed before the Ld. AO to rectify the mistake in respect of addition made towards
deposit of cash of Rs. 10,00,000/- by substantiating the claim with copy of ledger , cash
book and bank statement. The said rectification application is pending for disposal.
Per contra, Ld. Sr. DR submitted that assessee has not furnished the
corroborative evidences in the course of assessment. He further submitted that the
submissions made of ledger, cash book and the accounts are not subjected to audit and
therefore cannot be relied upon. He thus supported the orders of the authorities below.
We have heard the rival contentions and perused the materials on record.
Admittedly, it is a fact that account with Axis Bank is a join account wherein assessee
and his wife Smt. Pawan Kanwar are the account holders. It is an agricultural cash
credit account, entries of which are recorded in the books of account of Hotel Pawan
International of which, wife of the assessee is a proprietor. Further, in respect of
deposit of Rs. 2,00,000/- in SBI and another 2,00,000/- in the Housing Loan Account,
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ITA No.- 77/JODH/2023 Shri Jai Singh Rajpurohit assessee has evidently demonstrated by placing the ledger, cash book and the bank
statements to substantiate the claim made before us. These documents were supplied
by the assessee to the Ld. AO along with application made U/s 154 of the Act for
rectifying the addition of Rs. 10,00,000/-. Considering the facts as stated above and the
submissions of the Ld. Counsel, corroborated by aforesaid the documents forming part
of the Paper Book on record, we find it proper to delete the addition made by the Ld. AO
of Rs. 10,00,000/-. Accordingly, grounds taken up by the assessee are allowed.
In the result, appeal of the assessee is allowed.
Order pronounced in the Open Court on 20.09.2023
Sd/- Sd/- (SAKTIJIT DEY) (GIRISH AGRAWAL) VICE PRESIDENT ACCOUNTANT MEMBER
Dated: 20/09/2023. Pooja/-
