CHANDRASHEKHAR MADHUSUDAN RANE,MUMBAI vs. ITO, WARD-26(1)(6), MUMBAI, MUMBAI

The aforesaid appeal has been filed by the assessee against order dated 21.03.2022 passed by National Faceless Appeal Centre (NFAC), Delhi for the quantum of assessment passed u/s, 143(3) for the assessment year 2017-18.

The Ld. Commissioner of income Tax (Appeals), NFAC, Delhi has erred in confirming action of Ld. AO of adding Rs. 17,11,000/- to income of appellant.

The brief facts of the case are that, assessee is in individual and is an employee with Sahara Credit Corporation Society Ltd. The assessee has filed return of income on 30.03.2018 declaring income of Rs.5,11,720/-. The case was selected for scrutiny under CASS on the ground that large value cash deposits during de- monetization period was made. In response to the notice Assessee had submitted the bank statements for the month of Nov-2016 for the companies of Sahara India & SUMSL in support of the cash deposit by his office. He clarified that he has deposited the cash as Chandrashekhar & Madhusudan Rane official of Sahara being one of the bank signatories, his pan was captured. The Assessing Officer try to serve the notice for further show cause through online, however, the same was not delivered or received by the Assessee. Accordingly he treaded the cash deposit in the bank account of Rs. 17, 11,000/- as unexplained assets and added the same u/s. 69A. The Ld. CIT (A) too as conformed the said addition.

Before me, the Ld. Counsel submitted that, the bank statements belong to Sahara India and not the Assessee and the cash was deposited in the bank account of Sahara India and not the Assessee. He was only co-signatory. He also filed the copy of certificate issued by Sahara India & also by the Bank of India in which of amount deposited. The Ld. DR on the other hand, relied upon the order of Assessing Officer & CIT (A).

After considering the relevant finding given in the impugned orders as well as material referred to before us, I find that the entire basis for making the addition is that, Assessee has deposited same cash correcting of Rs. 17,11,000/- in Bank of India. On a bare perusal said of the bank account the copy of which has been in Chandrashekhar & Madhusudan Rane placed in the paper book before me at page 3, it is clearly evident that account belongs to Sahara India and not the Assessee. Entire bank statement from the period 01.11.2016 to 31.12.2016 has been provided wherein, certain cash of deposit which has been wrongly inferred to be deposited in the account of the Assessee. Once, the bank in which cash was deposited belongs to some other entity the same could not have been taxed with hands of the individual Assessee.

In the result, Appeal of the Assessee is the allowed.