VEENA DEVI JAGATRAMKA,SAMBALPUR vs. ITO WARD-1(1), SAMBALPUR

Shri Rahul Agarwal, ld AR appeared for the assessed and Shri Shri Rahul Agarwal, ld AR appeared for the assessed and Shri Shri Rahul Agarwal, ld AR appeared for the assessed and Shri S.C.Mohanty, ld Sr DR appeared for the revenue. S.C.Mohanty, ld Sr DR appeared for the revenue.

It was submitted by ld AR that during the relevant assessment year It was submitted by ld AR that during the relevant assessment year It was submitted by ld AR that during the relevant assessment year being during the period of demonetization being during the period of demonetization, on 18.11.2016, the assessee on 18.11.2016, the assessee had deposited Rs.15 lakhs in her bank account with Punjab & National had deposited Rs.15 lakhs in her bank account with Punjab & National had deposited Rs.15 lakhs in her bank account with Punjab & National

P a g e 1 | 4 Bank, VSS Marg, Sambalpur out of cash available in her hand of Rs.15,06,881.39. It was the submission that the Assessing Officer in the course of assessment made an addition of Rs.15 lakhs being the cash deposit in the bank account on the ground that the assessee had filed her return of income in the wrong form. On appeal, ld CIT(A) reduced the addition from Rs.15 lakhs to Rs. 5 lakhs. In short, the ld CIT(A) had granted the assessee the benefit of Rs.10 lakhs as explained cash. However, the ld CIT(A) on the ground that the assessee has not provided any convincing explanation before the AO, had confirmed the addition of Rs.5 lakhs. The revenue is not in appeal in respect of the relief granted by the ld CIT(A). It was the submission that the assessee has been maintaining cash in hand and the balance sheet of the assessee for the year ending 31.3.14, showed cash in hand at Rs.11.69 lakhs, as on 31.3.2015 at Rs.13.20 lakhs and as on 31.3.2016 at Rs.15.06 lakhs. It was the submission that it was out of this cash of Rs.15 lakhs that was deposited by the assessee in her bank account. It was the submission that the ld CIT(A) having deleted the amount of Rs.10 lakhs ought to have deleted the entire addition of Rs.15 lakhs as it is noticed that on the basis of all the evidences representing cash in hand in the balance sheet, the ld CIT(A) had deleted the addition to the extent of Rs.10 lakhs. It was the prayer that the addition as confirmed by the ld CIT(A) be deleted.

In reply, ld SR DR submitted that the assessee has not submitted the balance sheet alongwith return of income filed. It was the submission that the assessee has filed her return of income in the wrong form and consequently, has not shown cash in her return of income. It was the submission that the appeal of the assessee is liable to be dismissed and the addition as confirmed by the ld CIT(A) upheld.

We have considered the rival submissions. We have also perused the order of the ld CIT(A). A perusal of the order of the ld CIT(A) clearly shows that the balance sheet of the assessee as on 31.3.2014, 31.3.2015 & 31.3.2017 were available before the Assessing Officer when he was framing the assessment. Thus, there was clear evidence with the Assessing Officer that the assessee was holding cash of Rs.15 lakhs as on 31.3.2016. A perusal of the bank account in which the cash has been deposited also shows that between 10.8.2011 to 6.01.2017, all the transactions are recorded in a single page of the bank pass book which clearly shows that the transactions in the bank by the assessee are negligible. Substantial entries are in the form of credit of interest by the bank. On 18.11.2016, the assessee has deposited Rs.15 lakhs in her bank account and as on 31.3.2016 shows the availability of Rs.15 lakhs cash in hand. This being so, we are of the view that the ld CIT(A) has erred in restricting the allowance to Rs.10 lakhs. We are of the view that the assessee did have cash availability of Rs.15 lakhs for depositing in her bank

In the result, appeal of the assessee stands allowed.