What did the Tribunal hold?

The Tribunal held that the addition for unexplained bank deposits should be restricted to the assessee's one-third share, as the bank account was jointly held. The remaining addition was upheld to this limited extent.

The assessee's appeal concerned additions for unexplained cash credits and bank deposits. The assessee did not press for a part of the addition related to savings bank accounts.

What were the issues?

Whether the entire amount of cash deposits in a joint bank account can be added in the hands of one assessee, and the extent to which such additions are justifiable.

Mr. Vijay Vitthal Raut, Solapur vs ITO | ITAT Pune 2022

Income Tax Appellate Tribunal, “B” BENCH, PUNE

Before: SHRI S.S.GODARA, JM & SHRI G.D. PADMAHSHALI, AM

For Appellant: Shri Pratikh Sandhbhor

For Respondent: Shri M.G. Jasnani

Hearing: 04.10.2022Pronounced: 10.10.2022

सुनवाई की तारीख / Date of Hearing : 04.10.2022 घोषणा की तारीख / Date of Pronouncement : 10.10.2022 आदेश / ORDER PER S. S. GODARA, JM :

This assessee’s appeal for AY 2009-10 arises against the CIT(A)-8, Pune’s order dated 20/09/2019 passed in case No. PN/CIT(A)-3/ITO wd 2(3)/13/2018-19/341 involving proceedings u/s 143(3) of the Income Tax Act, 1961; in short "the Act”.

Heard both the parties. Case file perused.

Mr. Vijay Vitthal Raut,

It appears at the outset that the assessee is aggrieved against the CIT(A)’s lower appellate discussion confirming unexplained cash credits addition 39,00,000/- as against Rs.50,45,000/-(comprising of Rs.43,45,000/- and Rs.7,00,000/-) added in the assessment herein framed on 21.12.2011. Learned counsel stated very fairly that the assessee does not press for the forgoing sum Rs.7,00,000/- involving savings bank accounts No. 8714 maintained with the Osmanabad Janta Co-operative Bank. Rejected accordingly.

3. Next comes the second unexplained bank deposit addition of Rs.43,45,000 which has been restricted to Rs.32,00,000/- in the lower appellate order. The CIT(A)’s detailed discussion in para 6.7 onwards clarifies that the assessee had attributed source of the impugned cash deposits to S/Shri Yashwant V. Raut, Jyoti Rama Raut, Hauserao G. Raut, Prbhat D. Raut, Somanath D. Raut, Vitthal S. Raut, and Satyabhama V.Raut Rs.6,00,000/-, Rs.5,00,000/-, Rs.6,35,000/-, Rs.8,00,000/-, Rs.4,50,000/-, Rs.7,00,000/-, and Rs.6,50,000/-; respectively, which stood accepted to the tune of Rs.11,35,000/- involving second and third party hereinabove. We note in this factual backdrop that the learned authorities failed to consider the most clinching aspect that saving bank account in issue i.e.12595 was in the joint names of S/Shri V.V. Raut (assessee), S.B. Raut and M.L.Bangru whereas the entire cash deposit have been added in this taxpayer’s hands only. Faced with the situation, we conclude the impugned remaining addition of Rs.32 lakhs ought to upheld only to the tune of Rs.1/3 share in assessee’s name than in entirety. We partly accept the assessee’s instant substantive

Mr. Vijay Vitthal Raut, ground to this limited extent and leave to open for the Assessing Officer to frame his consequential computation.

No other ground has been pressed before us.

4. This assessee’s appeal is partly allowed in above terms. Order pronounced in the Open Court on this 10th day of October, 2022.

Sd/- Sd/- (G.D. PADMAHSHALI) (S.S. GODARA) लेखा सदस्य/ ACCOUNTANT MEMBER न्याधयक सदस्य/JUDICIAL MEMBER पुणे / Pune; ददनांक / Dated : 10th October, 2022. Ashwini आदेश की प्रधतधलधप अग्रेधषत / Copy of the Order forwarded to : अपीलाथी / The Appellant. 1. प्रत्यथी / The Respondent. 2.

The CIT(A)-8 Pune.

The Pr.CIT-6, Pune. धवभागीय प्रधतधनधध, आयकर अपीलीय अधधकरण, “बी” बेंच, 5. पुणे / DR, ITAT, “B” Bench, Pune. गार्ा फ़ाइल / Guard File. आदेशानुसार / BY ORDER, 6. // True Copy // Senior Private Secretary आयकर अपीलीय अधधकरण, पुणे / ITAT, Pune.

Mr. Vijay Vitthal Raut,

S.No. Details Date Initials 1 Draft dictated on 04.10.2022 2 Draft placed before author 07.10.2022 Draft proposed & placed before the Second 3 Member 4 Draft discussed/approved by Second Member 5 Approved Draft comes to the Sr. PS/PS 6 Kept for pronouncement on 7 Date of uploading of Order 8 File sent to Bench Clerk 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order

MR. VIJAY VITTHAL RAUT,SOLAPUR vs. ITO WD 2(3), SOLAPUR

What did the Tribunal hold?

What were the facts?

What were the issues?

Which sections of the Income-tax Act were involved?

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