SRINIVASARAO PENTAKOTA,ANAKAPALLE vs. INCOME TAX OFFICER, ANAKAPALLE

In the above cited appeal, the main grievance of the appellant is that the cash deposits made in the savings bank account of Mr.Pentakota Narasinga Rao were added as his unexplained income. The Ld.AR of the appellant has stated that the Ld.AO and the Ld.CIT(A) have wrongly taken the cash deposits in Indian Bank account No.50193232631, which stands in the name of Mr.Pentakota Narasinga Rao and the assessee’s name is Pentakota Srinivasarao. It appears there is some mistake in the records of Income Tax Department and the savings bank account deposits of some other person were added in the scrutiny assessment of appellant. It was further stated that the name of the appellant and the person whose name was taken in the assessment order are slightly similar and that is why a mistake might have occurred while making the addition in his case. So, the Ld.AR of the appellant states that the ownership of the bank account and the source of deposits belonged to a third party and not to the appellant. During the course of scrutiny, the Indian Bank Branch, Anakapalle has confirmed that the bank account, which was taken by the Department belongs to Mr.Pentakota Narsinga Rao, who is also assessed before the same Assessing Officer of Anakapalle. In view of the same, the Ld.AR has requested that the addition of Rs.6,24,000/- as unexplained cash deposit u/s 69A may be deleted. During the hearing before ITAT, the Ld.AR of the appellant filed a paper book showing all these details and in fact he enclosed a copy of bank statement of Mr.Pentakota Narasinga Rao, who is the proprietor of S.G.S.Function Hall, bearing this SB account number to demonstrate that the account does not belong to him, but it belongs to Mr.Pentakota Narasinga Rao. In this paper book, a copy of the bank statement was enclosed at pages 31 to 34.

The Ld.DR relied on the orders of lower authorities.

After hearing both sides, the Bench decides to give relief to the assessee and delete the addition made, because the addition, which was made in appellant’s case are actually the cash deposits belonging to a third party. It appears that there is a mistake in the records of Income Tax Department and due to the name similarity, the Ld.AO has added the cash deposits in the savings bank account of Mr.Pentakota Narasinga Rao in the hands of Mr.Pentakota Srinivasa Rao. The copy of the bank account filed by the Ld.AR of the appellant in his paper book clearly shows that the concerned savings bank account belongs to Mr.Pentakota Narasinga Rao and not the appellant. In view of the same, the addition of Rs.6,24,000/- is deleted.

In the result, appeal of the assessee is allowed.