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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.
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/-.
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
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,
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