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Income Tax Appellate Tribunal, PUNE BENCH “SMC”, PUNE
Before: SHRI R.S. SYAL
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.
The assessee has filed additional revised grounds.
Ground No.2 is against sustenance of addition of Rs.7,39,250/- on account of cash deposits in bank.
Briefly stated, the facts of the case are that the AO got AIR information about the assessee having deposited cash of
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.
I have heard both the sides and gone through the
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
In the result, the appeal is allowed.
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. *