DEELIP VISHWANATH DAVLE,,LATUR vs. INCOME-TAX OFFICER, WARD - 2,, LATUR

आदेश / ORDER

PER R.S.SYAL, VP : This appeal by the assessee arises out of the order passed by the CIT(A)-2, Aurangabad on 06-04-2017 in relation to the assessment year 2010-11.

2 ITA No.1727/PUN/2017 Shri Deelip V. Dalve

more than Rs.10.00 lakh in his savings bank account. Notice

u/s. 148 was issued. In the assessment proceedings, the

assessee was called upon to furnish source of cash deposits of

Rs.10.47 lakh made on different dates starting from 21-04-

2009 to 09-03-2010. The assessee tendered some explanation,

with which the Assessing Officer (AO) was not satisfied.

Considering the agricultural income of the assessee as per

certain estimations at Rs.1,56,431/-, the AO made addition of

the remaining amount of Rs.8,90,569/-. (Rs.10.40 lakh, being,

cash deposited in savings account as reduced by agricultural

income as estimated by him at Rs.1,56,431/-). The ld. CIT(A)

accepted the assessee’s explanation about the agricultural

income at Rs.1,67,000/- and Rs.1,40,750/- aggregating to

Rs.3,07,750/- on the basis of photocopies of two bills given by

M/s. Ramesh Narayan Dahe. Addition of Rs.7,39,250/- was

sustained, against which the assessee has come up in appeal

before the Tribunal.

relevant material on record. It is noticed that the sole basis for

the addition is cash deposits made by the assessee in his

3 ITA No.1727/PUN/2017 Shri Deelip V. Dalve

savings bank account on different dates. Copy of bank

account is available on page 33 onwards of the paper book,

from which it can be seen that there are several cash deposits

coupled with cash withdrawals. The AO has considered only

cash deposits to the exclusion of cash withdrawals. The

assessee has drawn a statement showing peak balance in

support of cash deposits and cash withdrawals from/to the

savings account, which shows the peak balance at

Rs.2,39,700/-. It is axiomatic that if certain cash deposits are

made and thereafter certain withdrawals are also made which

are re-deposited in the bank account, the AO cannot make

addition on account of unexplained explanation in respect of

only deposits by ignoring the withdrawal side also which was

re-deposited, unless it is shown that the cash withdrawals were

used elsewhere. Adverting to the facts, it is seen that the peak

balance is Rs.2,39,700/-. When I view the peak balance of

Rs.2,39,700/- in the light of agricultural income accepted by

the ld. CIT(A) at Rs.3,07,750/-, it becomes evident that the

cash deposits in the bank account were made out of the

agricultural income, which is much more than peak credit. I,

therefore, order to delete the addition.

4 ITA No.1727/PUN/2017 Shri Deelip V. Dalve

Order pronounced in the Open Court on 21st February, 2019 Sd/- (R.S.SYAL) उपा�य� उपा�य�/ VICE PRESIDENT उपा�य� उपा�य�

पुणे Pune; �दनांक Dated : 21st February, 2019 सतीश

आदेश क� क� क� �ितिलिप क� �ितिलिप �ितिलिप अ�ेिषत �ितिलिप अ�ेिषत अ�ेिषत / Copy of the Order is forwarded to : अ�ेिषत आदेश आदेश आदेश अपीलाथ� / The Appellant; 1. ��यथ� / The Respondent; 2. आयकर आयु�(अपील) / 3. The CIT (Appeals)-2, Aurangabad 4. The Pr. CIT-2, Aurangabad िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, पुणे “SMC” / 5. DR ‘SMC’, ITAT, Pune; गाड� फाईल / Guard file. 6. // True copy // आदेशानुसार आदेशानुसार आदेशानुसार/ BY ORDER, आदेशानुसार

// True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune

ITA No.1727/PUN/2017 Shri Deelip V. Dalve

Date 1. Draft dictated on 20-02-2019 Sr.PS 2. Draft placed before author 21-02-2019 Sr.PS 3. Draft proposed & placed JM before the second member 4. Draft discussed/approved JM by Second Member. 5. Approved Draft comes to Sr.PS the Sr.PS/PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *