Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, CUTTACK BENCH, CUTTACK
Before: S/SHRI N.S SAINI & PAVAN KUMAR GADALE
1 ITA No . 339/CT K/ 2017 Asse ssment Year : 20 11- 201 2
IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK
BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER
ITA No. 339/CTK/2017 Assessment Year : 2011-2012
Subrat Kumar Satpathy, Vs. ACIT, Circle -2(2), At:Plot No.183/6, Gajapati Bhubaneswar Nagar, near Press Chhak, Bhubaneswar. PAN/GIR No.ALMPS 6463 Q (Appellant) .. ( Respondent)
Assessee by : Shri P.K.Mishra, AR Revenue by : Shri A. Tigga, DR
Date of Hearing : 26/04/ 2018 Date of Pronouncement : 26 /04/ 2018
O R D E R Per N.S.Saini, AM This is an appeal filed by the assessee against the order of the
CIT(A)- 2, Bhubaneswar dated 7.6.2017 for the assessment year 2011-
2012.
The sole issue involved in this appeal is that the CIT(A) erred in
confirming the addition of Rs.21,43,367/- made by the Assessing Officer
as income from undisclosed sources.
The brief facts of the case are that the assessee is an individual and
derives income from salary and interest. He is the Managing Director of
Om Shree Logistic Pvt Ltd., and partner in partnership firms, namely, M/s.
Om Logistic Exports, M/s. A.B. Commercial and M/s. Noble Housing
2 ITA No . 339/CT K/ 2017 Asse ssment Year : 20 11- 201 2
Infrastructure and filed the return of income on 1.10.2011 declaring total
income of Rs.28,54,624/-. During the course of assessment proceedings,
the Assessing Officer found that the assessee maintains three bank
accounts’ viz; (1) Karnatak Bank A/c No.1082500100002501, 2) HDFC
Bank A/c No.10801930000295 and 3) Axis Bank A/c
No.024010100359085 and deposits (cash as well as cheque/draft) in
three bank accounts of the assessee are Rs.1,64,06,107/-. The Assessing
Officer required the assessee to reconcile the deposits made in three bank
accounts with source of income. The assessee could able to explain the
source of deposits of Rs.1,42,62,740/- and could not explain the source of
deposit of Rs.21,43,367/-. Therefore, the Assessing Officer made an
addition of Rs.21,43,367/-.
Before the CIT(A), the assessee submitted that the total deposits in
three bank accounts are of Rs.2,01,14,979/-. The explanations of the
assessee regarding the source of deposits before the CIT (A) are that
the Assessing Officer has ignored the following deposits in the banks while
making additions:
“i) Loan received from Karnataka Bank of - Rs. 33,60,000/- ii) Loan received from D.K.Mohapatra - Rs. 2,00,000/- iii) Loan received from Suravi Ventures - Rs. 5,00,000/- iv) Maturity claim of Birla M.F. - Rs. 4,13,327.50 v) HDFC M.F. maturity claim - Rs. 2,91,766.01 vi) Reliance M.F.Maturity claim - Rs. 62,906.34 vii) Sundram BNPP Maturity claim - Rs. 15,859.85 viii) UTI Mutual Fund claim - Rs. 50,154/- ix) Int. received from Axis Bank - Rs. 13,613/- x) Kotak MF Maturity claim - Rs. 19,046/- xi) Birla Sun Life Maturity claim - Rs. 46,665.59
3 ITA No . 339/CT K/ 2017 Asse ssment Year : 20 11- 201 2
xii) Max New work Life - Rs. 5,018.37
The CIT(A) observed that the assessee could not reconcile the
deposits in bank of Rs.2,01,14,979/- with computation of assessee’s
income with supporting evidence. Therefore, the CIT(A) confirmed the
action of the Assessing Officer.
We have heard the rival submissions, perused the orders of lower
authorities and materials available on record. In the instant case, the
Assessing Officer found that out of deposits of Rs.1,64,06,107/- in the
three bank accounts, the assessee could explain the source of deposit of
Rs.1,42,62,740/- only. Thus, he observed that the assessee could not
explain the source of Rs.21,43,367/-. He, therefore, added the same to
the income of the assessee.
On appeal, the CIT(A) confirmed the action of the Assessing Officer.
Before us, the assessee explained that the following source of
deposits were not taken into consideration by the lower authorities:
Source Amount
“i) Loan received from Karnataka Bank of - Rs.33,60,000/- ii) Loan received from D.K.Mohapatra - Rs. 2,00,000/- iii) Loan received from Suravi Ventures - Rs. 5,00,000/- iv) Maturity claim of Birla M.F. - Rs.4,13,327.50 v) HDFC M.F. maturity claim - Rs.2,91,766.01 vi) Reliance M.F.Maturity claim - Rs. 62,906.34 vii) Sundram BNPP Maturity claim - Rs. 15,859.85 viii) UTI Mutual Fund claim - Rs. 50,154/- ix) Int. received from Axis Bank - Rs. 13,613/- x) Kotak MF Maturity claim - Rs. 19,046/-
4 ITA No . 339/CT K/ 2017 Asse ssment Year : 20 11- 201 2
xi) Birla Sun Life Maturity claim - Rs. 46,665.59 xii) Max New work Life - Rs. 5,018.37 Rs.49,78,356.66
The assessee also submitted that the fund flow statement duly
disclosing the source of funds available with the assessee out of which
deposit in three bank accounts was made was submitted before the lower
authorities.
We find that no specific defect in the fund flow statement submitted
by the assessee could be pointed by the lower authorities. Further, the
sources which have been claimed before us by the assessee needs
verification for being accepted. In the circumstances, in our considered
view, it shall be in the interest of justice to restore the issue back to the
file of the Assessing Officer for adjudication afresh after proper
verification. Needless to mention that the Assessing Officer shall allow
proper opportunity of hearing to the assessee before adjudicating the
issue afresh. Therefore, the orders of lower authorities are set aside with
the above directions.
In the result, appeal filed by the assessee is allowed for statistical
purposes.
Order pronounced on 26/04/2018. Sd/- sd/- (Pavan Kumar Gadale) (N.S Saini) JUDICIALMEMBER ACCOUNTANT MEMBER Cuttack; Dated 26 /04/2018 B.K.Parida, SPS
5 ITA No . 339/CT K/ 2017 Asse ssment Year : 20 11- 201 2
Copy of the Order forwarded to : 1. The Appellant : Subrat Kumar Satpathy, At:Plot No.183/6, Gajapati Nagar, near Press Chhak, Bhubaneswar 2. ACIT, Circle -2(2), The Respondent. Bhubaneswar 3. The CIT(A)-2, Bhubaneswar 4. Pr.CIT-2, Bhubaneswar BY ORDER, 5. DR, ITAT, Cuttack 6. Guard file. //True Copy// SR.PRIVATE SECRETARY ITAT, Cuttack