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Facts
The assessee, an ex-partner of a firm named Ankit Oils, was assessed with a cash deposit of Rs. 14,34,500 in a bank account belonging to the firm during the demonetization period. The assessee claimed the account was not his and his PAN was misused, but failed to provide documentary evidence.
Held
The Tribunal found that the assessee did not cooperate with the lower authorities and failed to submit necessary documentary evidence. Therefore, the case was restored to the Assessing Officer for a fresh assessment.
Key Issues
Whether the cash deposit in the firm's bank account, where the assessee was an ex-partner, can be added to the assessee's income without sufficient documentary evidence from the assessee to prove non-ownership and misuse of PAN.
Sections Cited
144
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Income Tax Appellate Tribunal, MUMBAI BENCH “SMC” MUMBAI
Before: SHRI SANDEEP GOSAIN & SHRI OM PRAKASH KANT
This appeal by the assessee is directed against order dated 04.10.2023 passed by the Ld. Commissioner of Income-tax (Appeals)- National Faceless Appeal Centre, Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2017-18, raising following grounds:
Assessee was an ex 1. Assessee was an ex-partner in a partnership firm named Ankit partner in a partnership firm named Ankit Oils till 15th December, 2015. Ankit Oils till 15th December, 2015. Ankit Oils used to operate a bank Oils used to operate a bank account in State Bank of India (then called as State Bank of account in State Bank of India (then called as State Bank of account in State Bank of India (then called as State Bank of Bikaner and Jaipur before merger and acquisition) bearing account Bikaner and Jaipur before merger and acquisition) bearing account Bikaner and Jaipur before merger and acquisition) bearing account no. 61227282879 during the period 2016 no. 61227282879 during the period 2016-17.
The basic details of Authorised person in the bank rec 2. The basic details of Authorised person in the bank rec 2. The basic details of Authorised person in the bank records were of the Assessee i.e Ankit Dinkarrai Botadra when he was a of the Assessee i.e Ankit Dinkarrai Botadra when he was a of the Assessee i.e Ankit Dinkarrai Botadra when he was a partner.
During the period 2016 3. During the period 2016-17, during demonetization period cash 17, during demonetization period cash was deposited in the above bank account bearing account number was deposited in the above bank account bearing account number was deposited in the above bank account bearing account number 61227282879 by the firm Ankit Oils, however the PAN 61227282879 by the firm Ankit Oils, however the PAN 61227282879 by the firm Ankit Oils, however the PAN was mentioned of former partner Ankit Botadra who was neither the mentioned of former partner Ankit Botadra who was neither the mentioned of former partner Ankit Botadra who was neither the partner nor had any dealings with the firm nor had any relation partner nor had any dealings with the firm nor had any relation partner nor had any dealings with the firm nor had any relation with the cash being deposited. with the cash being deposited. 4. Further, as the account belonged to Ankit Oils, it was disclosed 4. Further, as the account belonged to Ankit Oils, it was disclosed 4. Further, as the account belonged to Ankit Oils, it was disclosed in the financial statement in the financial statement and returns of Ankit Oils for the and returns of Ankit Oils for the financial year in consideration. financial year in consideration. 5. Assessing Officer has wrongly assessed cash deposit of Rs. 5. Assessing Officer has wrongly assessed cash deposit of Rs. 5. Assessing Officer has wrongly assessed cash deposit of Rs. 14,34,500/- to the total income of the assesse. to the total income of the assesse. 6. As a matter of fact, when the first notice was received, assesse 6. As a matter of fact, when the first notice was received, assesse 6. As a matter of fact, when the first notice was received, assesse was not awa was not aware that the bank account mentioned in the notice re that the bank account mentioned in the notice belonged to the partnership firm where he was earlier a partner. belonged to the partnership firm where he was earlier a partner. belonged to the partnership firm where he was earlier a partner. 7. Further, the account status was inoperative making it difficult 7. Further, the account status was inoperative making it difficult 7. Further, the account status was inoperative making it difficult for the assesse to document the proof that the account number in for the assesse to document the proof that the account number in for the assesse to document the proof that the account number in the question does not belong to him. on does not belong to him. After a lot of follow After a lot of follow-ups with the bank, the assesse could finally ups with the bank, the assesse could finally gather the bank statement from the bank where the name of gather the bank statement from the bank where the name of gather the bank statement from the bank where the name of account holder for the account number is clearly shown as Ankit account holder for the account number is clearly shown as Ankit account holder for the account number is clearly shown as Ankit Oils and not Ankit Dinkarrai Botadra. Oils and not Ankit Dinkarrai Botadra. 8. Hence, the cash deposited during the demonetization period of Hence, the cash deposited during the demonetization period of Hence, the cash deposited during the demonetization period of Rs. 14,34,500 should not be assessed against the assesse Ankit Rs. 14,34,500 should not be assessed against the assesse Ankit Rs. 14,34,500 should not be assessed against the assesse Ankit Botadra. 9. The bank statement of State bank of India (formerly known as 9. The bank statement of State bank of India (formerly known as 9. The bank statement of State bank of India (formerly known as State Bank of Bikaner and Jaipur efore mergers and acquis State Bank of Bikaner and Jaipur efore mergers and acquis State Bank of Bikaner and Jaipur efore mergers and acquisition) is attached herewith attached herewith for perusal. 2. Briefly stated the facts of the case are that Briefly stated the facts of the case are that the the assessee had filed his return of income on 05.08.2017 for the A.Y. 2017-18 filed his return of income on 05.08.2017 for the A.Y. 2017 filed his return of income on 05.08.2017 for the A.Y. 2017 declaring total income of Rs. 2,98,820/ declaring total income of Rs. 2,98,820/-. The case was selected for The case was selected for limited scrutiny under CASS and assessment was completed u/s. limited scrutiny under CASS and assessment was completed u/s. limited scrutiny under CASS and assessment was completed u/s. 144 of the Income-tax tax Act, 1961( in short the Act) after making an after making an addition of Rs. 14,34,500/ addition of Rs. 14,34,500/- on the premise of cash deposited on the premise of cash deposited in the bank account during the demoneti during the demonetization period.
3. Aggrieved by this Aggrieved by this addition, the assessee challenged it before , the assessee challenged it before the CIT(A) who affirmed the addition of Rs. 14,34,500/ affirmed the addition of Rs. 14,34,500/- for want of affirmed the addition of Rs. 14,34,500/ documentary evidences on the plea of the assessee taken that the documentary evidences on the plea of the assessee taken that the documentary evidences on the plea of the assessee taken that the relevant bank account no. 61227282879 maint relevant bank account no. 61227282879 maintained with State ained with State Bank of Bikaner & Jaipur does not belong to him. The relevant Bank of Bikaner & Jaipur does not belong to him Bank of Bikaner & Jaipur does not belong to him extract of the CIT(A)’s order is as under: extract of the CIT(A)’s order is as under:-
“5. I have carefully considered the grounds of appeal
, “5. I have carefully considered the grounds of appeal
5. I have carefully considered the grounds of appeal, assessment order and material available on record. All the assessment order and material available on record. All the assessment order and material available on record. All the grounds of the appe grounds of the appeal are interconnected. In this case the proceedings u/s 144 of the Act were In this case the proceedings u/s 144 of the Act were In this case the proceedings u/s 144 of the Act were finalized making addition of Rs. 14,34,500/ finalized making addition of Rs. 14,34,500/- on account of on account of cash deposited by the appellant during the demonetization cash deposited by the appellant during the demonetization cash deposited by the appellant during the demonetization period i.e. on 09.11.2016 and 30.12.2016 in the bank A/c period i.e. on 09.11.2016 and 30.12.2016 in the bank A/c period i.e. on 09.11.2016 and 30.12.2016 in the bank A/c No. 61227282879 maintained in State Bank of Bikaner & 227282879 maintained in State Bank of Bikaner & 227282879 maintained in State Bank of Bikaner & Jaipur. The appellant in ground no.1 of the appeal has stated that The appellant in ground no.1 of the appeal has stated that The appellant in ground no.1 of the appeal has stated that bank account no. 61227282879 in State Bank of Bikaner bank account no. 61227282879 in State Bank of Bikaner bank account no. 61227282879 in State Bank of Bikaner and Jaipur does not belong to him. During the appellate and Jaipur does not belong to him. During the appellate and Jaipur does not belong to him. During the appellate various notices were issued to various notices were issued to the appellant. The appellant the appellant. The appellant has not replied to the any of the notices mentioned in para 5. has not replied to the any of the notices mentioned in para 5. has not replied to the any of the notices mentioned in para
5. To substantiate the claim that the bank account mentioned in To substantiate the claim that the bank account mentioned in To substantiate the claim that the bank account mentioned in the assessment order does not belong to the appellant no the assessment order does not belong to the appellant no the assessment order does not belong to the appellant no documentary documentary documentary proof proof proof has has has been been been submitted. submitted. submitted. Further, Further, Further, no documentary proof has also been submitted by the appellant documentary proof has also been submitted by the appellant documentary proof has also been submitted by the appellant to substantiate his claim of not opening or operating bank to substantiate his claim of not opening or operating bank to substantiate his claim of not opening or operating bank account no. 61227282879. account no. 61227282879.
The appellant in ground no. 3 of the appeal has submitted The appellant in ground no. 3 of the appeal has submitted The appellant in ground no. 3 of the appeal has submitted that online response regarding the cash deposited that online response regarding the cash deposited that online response regarding the cash deposited in 2016 was submitted stating that the account does not belong to was submitted stating that the account does not belong to was submitted stating that the account does not belong to the assessee. But again, no documentary proof has been the assessee. But again, no documentary proof has been the assessee. But again, no documentary proof has been submitted by the appellant till date to establish his claim. submitted by the appellant till date to establish his claim. submitted by the appellant till date to establish his claim. Hence, in absence of the documentary evidences it is not Hence, in absence of the documentary evidences it is not Hence, in absence of the documentary evidences it is not possible to give possible to give any relief to the appellant. Accordingly, all any relief to the appellant. Accordingly, all the grounds of the appeal are dismissed.” the grounds of the appeal are dismissed.”
We have carefully perused the orders passed by the lower We have carefully perused the orders passed by the lower We have carefully perused the orders passed by the lower authorities, material on record and the arguments made by authorities, material on record and the arguments made by authorities, material on record and the arguments made by appellant and revenue. appellant and revenue. The issue raised in the gro The issue raised in the grounds of appeal filed before us is that the amount of Rs. 14,34,500/ filed before us is that the amount of Rs. 14,34,500/- - being the cash deposits during the F.Y.2016 during the F.Y.2016-17 in the bank account of State Bank in the bank account of State Bank of India (then called as State Bank of Bikaner and Jaipur before of India (then called as State Bank of Bikaner and Jaipur before of India (then called as State Bank of Bikaner and Jaipur before merger and acquisition) bearing account n merger and acquisition) bearing account no. 61227282879 does not o. 61227282879 does not belonged to him and hence, no addition ought to have been made. belonged to him and hence, no addition ought to have been made. belonged to him and hence, no addition ought to have been made. In the year under consideration, during the demonetization period, In the year under consideration, during the demonetization period, In the year under consideration, during the demonetization period, cash deposits aggregating to Rs. 14,34,500/ s aggregating to Rs. 14,34,500/- were made on were made on 09.11.2016 and 30.12.2016 in the aforesaid 09.11.2016 and 30.12.2016 in the aforesaid bank account. bank account. The facts as explained by the ld. AR of the assessee are that the said facts as explained by the ld. AR of the assessee are that facts as explained by the ld. AR of the assessee are that bank account does not belong to him but it belongs to the bank account does not belong to him but it belongs to the bank account does not belong to him but it belongs to the partnership firm – M/s. Ankit Oils M/s. Ankit Oils, wherein he was an ex wherein he was an ex-partner till 15th December 2015. In support of this, our December 2015. In support of this, our attention was also attention was also drawn to the Admission cum Retirement Deed. He further explained drawn to the Admission cum Retirement Deed. He further explained drawn to the Admission cum Retirement Deed. He further explained that the basic details (PAN) of Authorised person in bank records that the basic details (PAN) of Authorised person in bank records that the basic details (PAN) of Authorised person in bank records were of the assessee i.e. Ankit Dinkarrai Botadra were of the assessee i.e. Ankit Dinkarrai Botadra, when he was a partner and at the time of opening the b partner and at the time of opening the bank account of the firm. ank account of the firm.
The ld. AR therefore argued that since the assessee was neither the The ld. AR therefore argued that since the assessee was neither the The ld. AR therefore argued that since the assessee was neither the partner nor had any dealing with the said firm nor had any relation partner nor had any dealing with the said firm nor had any relation partner nor had any dealing with the said firm nor had any relation with the cash deposited during the year under consideration, no with the cash deposited during the year under consideration, no with the cash deposited during the year under consideration, no addition ought to have been mad addition ought to have been made in his hands. The appellant e in his hands. The appellant submits that when the first notice was received, he was not aware submits that when the first notice was received, he was not aware submits that when the first notice was received, he was not aware that the bank account number mentioned in the notice belonged to that the bank account number mentioned in the notice belonged to that the bank account number mentioned in the notice belonged to the partnership firm and was in a disbelief that his PAN was the partnership firm and was in a disbelief that his PAN was the partnership firm and was in a disbelief that his PAN was utilised as a matter of cyber frau utilised as a matter of cyber fraud precisely and hence had d precisely and hence had submitted that the said account does not belonged to him. Further, submitted that the said account does not belonged to him. Further, submitted that the said account does not belonged to him. Further, it is stated that the account status was inoperative at the time of it is stated that the account status was inoperative at the time of it is stated that the account status was inoperative at the time of assessment proceedings making it difficult for him to document the assessment proceedings making it difficult for him to document the assessment proceedings making it difficult for him to document the proof that the account numbe proof that the account number in the notice does not belonged to r in the notice does not belonged to him. It was only after several follow him. It was only after several follow-ups with the bank, he could ups with the bank, he could finally gather the bank statement where the name of account holder finally gather the bank statement where the name of account holder finally gather the bank statement where the name of account holder for the account number is clearly shown as Ankit Oils and not that for the account number is clearly shown as Ankit Oils and not that for the account number is clearly shown as Ankit Oils and not that of the assessee.
4.1 We find that the assessee has remained non We find that the assessee has remained non-responsive before responsive before the lower authorities and has not submitted any relevant the lower authorities and has not submitted any relevant the lower authorities and has not submitted any relevant documentary documentary documentary evidences evidences evidences to to to substantiate substantiate substantiate his his his contentions. contentions. contentions. Accordingly, in light of justice, we find it fit to restore the matter Accordingly, in light of justice, we find it fit to restore the matter Accordingly, in light of justice, we find it fit to restore the matter back to the file of the he file of the Assessing Officer and direct the assessee to Assessing Officer and direct the assessee to file the necessary evidences before him. Accordingly, the grounds of file the necessary evidences before him. Accordingly, the grounds of file the necessary evidences before him. Accordingly, the grounds of appeal of the assessee are allowed for statistical purposes. appeal of the assessee are allowed for statistical purposes. appeal of the assessee are allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for In the result, the appeal of the assessee is allowed for In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open Court on nounced in the open Court on 30/06/2025. /06/2025.