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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: HONBLE KUL BHARAT & HONBLE MANISH BORAD
Bhopal dated 26.02.2015 which is arising out of the order u/s 143(3)/254 of the Income Tax Act 1961(In short the ‘Act’) dated 12.03.2014 framed by ITO-3(2), Bhopal.
Assessee has raised following grounds of appeal;
1. That the order passed by the AO and the learned CIT(A) is erroneous both in law and on facts hence deserves to be quashed.
2. That the learned assessing officer erred and was not justified in making the addition and the learned CIT(A) in confirming the addition of Rs.39,34,600/- as unexplained deposit u/s 68 of the Act.
The above grounds are independent to each other.
That the appellant craves leave to add, amend, alter substitute modify any of the above grounds on or before final hearing.
Briefly stated facts as culled out from the records are that the assessee is an individual running business under sole proprietoryship concern M/s. Indore Tours & Travels. Income of Rs.1,21,490/- declared in the return of income filed on 13.09.2006. Case was picked up for scrutiny assessment. Assessment U/s 143(3) of the Act was framed on 30.12.2008 assessing income of Rs.45,94,889/-. In appeal against the addition Ld. CIT(A) partly allowed. Additions sustained travelled before the Tribunal. Vide order dated 29.11.12 the issue relating to unexplained cash deposit in the bank account of the assessee was set aside to the file of Ld. A.O. In compliance thereto assessment proceedings u/s 143(3) r.w.s. 254 of the Act were completed after considering the submission filed by the assessee. Apart from other 2 Gulam Haider Rs.46,11,000/- was confirmed. Again the assessee preferred appeal before Ld. CIT(A) and partly succeeded who after considering the submission of the assessee confirmed the addition of unexplained cash of Rs.39,34,600/-, against which the assessee is now in appeal before the Tribunal.
At the outset Sr. Counsel for the assessee referring to the cash deposit details placed at page 64 to 80 of the paper book submitted that both the lower authorities have not considered the fact that the assessee was having sufficient cash to explain the deposit as there were consistent withdrawal from bank before the dates of cash deposit. He pleaded for one more round of adjudication/verification and requested that the issue raised in this appeal to be set aside and submissions of the assessee and paper book including cash book placed on record should be considered and to the extent the assessee is able to explain, the relief may be granted. 5. Per contra Ld. Departmental Representative vehemently argued supporting the orders of lower authorities but did not raise any objection if the issue is set aside to the lower authorities. 6. We have heard rival contentions and perused the records placed before us. The sole issue raised by the assessee relates to the addition for 3 Gulam Haider Rs.39,34,600/- confirmed by Ld. CIT(A).
Perusal of the records shows that as per AIR information the appellant was found to have made deposit in account held with HDFC Bank of Rs.1,20,00,100/- which included the cash deposit of Rs.36,51,000/-.
There were certain petty cash deposit also which made a figure of total cash deposit of Rs.39,34,600/- . In view of both the lower authorities this amount of Rs.39,34,600/- is unexplained at the end of the assessee.
Now before us Ld. Counsel for the assessee took us through bank statement and cash book placed at Page 36 to 41 and page 64 to 80. It has been pleaded that the assessee apart from receiving the sale consideration from sale of agriculture land have also withdrawn cash on various dates and most of the alleged cash deposits could be explained through the cash in hand on the date of respective deposits. We are conscious of the fact that this is the second round and normally the issue should not be set aside back to the lower authorities unless otherwise it is very important to examine the facts of the case and give justice to both the parties.
In the instant appeal on going through the cash book and other documents placed in the paper book, we find considerable weightage in the arguments placed by the Ld. Counsel for the assessee and in the 4 Gulam Haider interest of justice we accept the request and set aside the issue of unexplained cash deposit of Rs.39,34,600/- to the file of Ld. CIT(A) who shall call for a remand report from the Ld. A.O on the above referred issue of unexplained cash deposit of Rs.34,39,600/-, after directing the Ld. A.O to take complete details from the assessee about the source of withdrawals of cash deposits claimed to be available with the assessee to explain the alleged cash deposits on respective dates. Needless to mention that due opportunity of being heard as per law should be provided to the assessee, who shall not take any adjournment unless otherwise required under unavoidable circumstances.
In the result appeal of the assessee is allowed for statistical purposes.
The order pronounced in the open Court on 09.04.2019.