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Income Tax Appellate Tribunal, CUTTACK ‘SMC’ BENCH, CUTTACK
Before: SHRI CHANDRA MOHAN GARG
This is an appeal filed by the assessee against the order of
the CIT(A)-2, Bhubaneswar dated 15.4.2019 for the assessment
year 2015-16.
The sole ground taken in this appeal is that the CIT(A) was
not justified in confirming the addition of Rs.4,84,016/- on
account of deposit in the bank account of the assessee.
Briefly stated the facts of the case are that the Assessing
Officer, during the course of assessment proceedings, found that
the assessee has deposited an amount of Rs.23,74,266/- in two
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bank accounts, whereas the gross receipts shown by the assessee
during the year were Rs.18,90,250/-. Therefore, the Assessing
officer made addition of Rs.4,84,016/- treating the excess deposit
in two bank accounts of the assessee with Orissa Gramya bank
Account No.XXXX604 u/s 69A of the Act.
On appeal, the CIT(A) confirmed the addition.
Before me, ld A.R. of the assessee submitted copies of
recurring bank statements of his wife Mrs Dali Sahu vide A./c
No.XXXX400 and his son Master Rajesh A/c No.XXXX 399, wherein
on 21.1.2015, amount of Rs.1,02,461/- each totaling to
Rs.2,04,766/- has been shown as maturity amount credited in
assessee’s bank account No.604 and the same has been explained
by the assessee by way of this account.
Ld Departmental Representative could not controvert these
factual position that the amount of maturity of recurring deposit
kept in the name of the wife and son of the assessee has been
credited to the assessee’s bank account.
Another grievance as noted by the Assessing Officer was
that the assessee has deposited cash of Rs.2,00,000/- on
6.8.2014 and Rs.50,000/- on 21.1.2015 to his bank account with
Uco Bank, Talmul Sasan Angul A/c No.XXXX213. The explanation
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of the assessee is that he withdrew Rs.2,20,000/- on 5.8.2014
from Uco Bank account No.604 and out of that amount
Rs.2,00,000/- was deposited on next date i.e. on 6.8.2014 to the
Uco Bank Account. From the copies of bank statement of the
assessee, I am satisfied about the explanation of the assessee
regarding the deposit of Rs.2 lakhs to his bank account.
So far as deposit of Rs.50,000/- on 21.1.2015 is concerned,
I am unable to see any entry in its bank account, which could
justify this amount of Rs.50,000/- deposited on 21.1.2015. It was
the contention of the assessee before the authorities below that
the amount of Rs.2,50,000/- was refund of loan but I am unable
to see any evidence regarding the said debtor who returned the
loan amount to the assessee and the same was deposited in cash
to the bank account of the assessee.
In view of foregoing discussion, I reached to a logical
conclusion that the assessee explained amount of Rs.4,04,766/-
by way of cogent and tangible documentary evidence in the form
of bank statement which clearly reveals that amount of maturity
was deposited to the bank account of the assessee, which was
received by his wife and son and the assessee withdrew
Rs.2,20,000/- immediately one day after the deposit amount of
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Rs.2,00,000/- was deposited to the bank account of the assessee
i.e. on 6.8.2014. I am unable to agree with the contention of the
assessee regarding cash deposit of Rs.50,000/- on 21.1.2015.
Resultantly, the assessee gets relief of Rs.4,04,766/-. The AO is
directed to delete Rs.4,04,766/- as duly explained by the assessee
the source of deposit and balance amount of Rs.79,250/- is
confirmed.
In the result, appeal filed by the assessee is partly allowed.
Order pronounced on 4 /12/2019.
Sd/- (Chandra Mohan Garg) JUDICIAL MEMBER Cuttack; Dated 4 /12/2019 B.K.Parida, SPS Copy of the Order forwarded to : 1. The Appellant : Santosh Kumar Sahu, Talmul, Via: Banarpal, Angul.
The Respondent.: ITO, Angul Ward, Kulad, Angul 3. The CIT(A)-2, Bhubaneswar 4. Pr.CIT- 2, Bhubaneswar 5. DR, ITAT, Cuttack 6. Guard file. //True Copy//
By order
Sr.Pvt.secretary ITAT, Cuttack
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