CIT vs. VARUN SETH

IN THE HIGH COURT OF DELHI AT NEW DELHI . 03.12.2010 . Present: Ms. Prem Lata Bansal, Advocate for the Appellant. Mr. O.P.Sapra and Mr. Sandeep Sapra, Advocate for the Respondent. . + ITA No1891/2010 . . The assessee herein is an individual who had filed his return for the Assessment Year 2005-2006 at an income of Rs.1,02.140/-. The Assessing Officer during assessment proceedings, noticed that the assessee had deposited a sum of Rs.35,03,500/- in cash in his bank account. To this, the assessee had given the explanation that these deposits pertained to the partnership firm M/s Jagat Talkies Distributors in which he was a partner. It was explained that since bank account of M/s Jagat Talkies Distributors was attached by the Department . . and for this reason, the assessee had offered his two bank accounts for day-to- day business of the firm. It was also the case of the assessee that these deposits in his bank account pertained to day-to-day business of transaction of the said firm and did not belong to him. In support of this submission, the assessee had given the books of account of the firm and other documents as well. The Assessing Officer was not moved by this explanation and made the addition of Rs.35,03,500/-. The CIT(A) however, was convinced with the submission of the assessee and deleted the said addition. Before the CIT(A), the assessee had also filed income tax return of M/s Jagat Talkies Distributers wherein all . :2: those receipts were shown. It became clear therefrom that in these deposits not only belonged to M/s Jagat Talkies Distributors but the said firm had reflected the same in the books of accounts as well as Income Tax Returns. Before arriving at this conclusion CIT(A) also gave an opportunity to Assessing Officer to submit the remand report. The Income Tax Appellate Tribunal has confirmed this order of CIT(A). It is clear from the above that the entire matter is in factual domain. The assessee has been able to satisfactorily explain that the deposits in his books of accounts pertained to M/s Jagat Talkies Distributors. A finding of fact in this behalf is arrived at on the basis of cogent material produced by the assessee which was gone into by the CIT(A) as well as ITAT. No question of law arises. Dismissed. . A.K. SIKRI, J. . SURESH KAIT, J. DECEMBER 03, 2010 hk . . #38