SHRI MOHMEDMUBIN MOHMEDZAHID KADRI,,AHMEDABAD vs. THE INCOME TAX OFFICER, WARD-5(3)(1),, AHMEDABAD

The solitary ground of appeal of the assessee is against the decision ld. CIT(A)-Ahmedabad-5 in sustaining the addition of Rs. 8,21,778/- made u/s. 68 of the act by the assessing officer.

The fact in brief is that the statement of the assessee was recorded u/s. 131(1A) of the act on 18th March, 2015 pertaining to cash deposit in HSBC Bank during the F.Y. 2007-08. The assessee had not filed return of income for assessment year 2008-09, therefore, notice u/s. 148 of the act was issued on 31st March, 2015. In response, the assessee has filed return of income declaring total income of Rs. 93082/- in response to notice u/s. 148 of the act and also declared agricultural income of Rs. 898000/-. During assessment on verification of the details filed along with bank account, the assessing officer noticed that assessee has made deposit aggregating of Rs. 6103900/- in various bank accounts during the year under consideration. The assessing officer has stated that on examination of the details, the source of Rs. 8,21,778/- remained unexplained by the assessee. The assessee stated that he has received an amount of Rs. 8,25,000/- out of the advance given to her. The assessing officer has not accepted the explanation of the assessee stating that the assessee has not submitted any supporting evidences in respect to amount of Rs. 8,25,000/- received from his mother. The assessee has filed copy of will, copy of cash receipt from his mother. However, the same were not accepted by the assessing officer stating that identity and creditworthiness of the payee was not proved. Consequently, the assessing officer has made addition of Rs. 8,21,778/- as unexplained cash deposit made in the bank account of the assessee as discussed above in this order.

Aggrieved assessee has filed appeal before the ld. CIT(A) . The ld. CIT(A) has dismissed the appeal of the assessee reiterating the reason for addition stated by the assessing officer.

During the course of appellate proceedings before us, the ld. counsel has furnished paper book containing detail and information furnished before the assessing officer and ld. CIT(A) at the time of assessment proceedings and appellate proceedings. The ld. counsel has contended that ld. CIT(A) has incorrectly sustained the addition without considering the submission and material furnished by the assessee. On the other hand, ld. departmental representative has supported the order of lower authorities.

We have heard both the sides and perused the material on record. The assessment u/s. 143(3) r.w.s. 147 of the act was finalized on 29-12-2015 and addition of Rs. 821778/- was made on account of unexplained deposit made in the bank account of the assessee. With the assistance of the ld. representative, we have gone through the material on record. During assessment the assessee has furnished a daily cash book and daily cash flow statement showing that all cash inward and outward received in cash book. It was claimed that he had received cash of Rs. 8,25,000/- out of the advance given to his mother for acquiring immovable property. He has also submitted a certified copy of will of his mother stating that his mother Iqbalbegam Mohemedzahid Kadri had given him Rs. 2200000/-(825000/- in the financial year 2007-08 and balance Rs. 1375000/- in the financial year 2008-09 which he had given to her for purchase of immovable property. The total of Rs. 22,00,000/- which he had given to her mother was reflected in the balance sheet as on 31-03-2007 as advance given for immovable property. The outstanding balance of Rs. 13,75,000/- was also shown as receivables in his balance sheet as on 31-3-2008. We have also gone through the details/information furnished by the assessee during the course

In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 30-04-2019