RAJENDRA SATGOUDA PATIL,,SANGLI vs. INCOME-TAX OFFICER, WARD - 2(3),, SANGLI

आदेश / ORDER PER R.S.SYAL, VP : This appeal by the assessee arises out of the order passed by CIT(A)-1, Kolhapur on 06.06.2018 in relation to the assessment year 2005-06. 2. The only issue raised in this appeal is against confirmation of addition of Rs.12,97,600 made by the AO u/s 69 of the Income-tax Act, 1961 (hereinafter referred to as „the Act‟). 3. Succinctly, the facts of the case are that the assessee has been serving as professor with PVPIT at material time. He filed his return declaring total income at Rs.1,58,510. Some information was received by the AO about the assessee depositing cash of Rs.12,97,600 in his savings bank account maintained jointly with his wife in ICICI Bank. A notice u/s 148 of the Act was issued. During the course of the reassessment proceedings, the assessee was called upon to explain the source of such deposits, to which it was stated that he was not carrying on any business and the only source of his income was salary. He further clarified that the deposit was in a joint bank account with his wife, Mrs. Navina R. Patil, who was separately assessed to tax. Copies of her returns of income along with PAN were also filed before the AO. The assessee further submitted that his wife received land at Kolhapur road, Sangli by way of a gift from her father, late Shri Virendra Khilare. This land was converted into plots and sold. Profit from such sale transactions was duly offered for taxation for the A.Ys. 2002-03, 2003-04 and 2004-05. Out of the sale proceeds of plots deposited in her own Sangli Bank Civil hospital Branch account No.10589, she gave a sum of Rs. 19.69 lakhs to her father from time to time. Details of such amounts totalling Rs. 19.69 lakhs were also furnished. She received back a sum of Rs.13 lakhs from her father, out of which Rs.12,97,600 was deposited in the joint bank account. The assessee further submitted that the amount belonging to his wife deposited in the joint bank account, was immediately transferred to her separate bank account on 10.12.2004. In support of this contention, the assessee furnished copies of his wife‟s bank account No. 10589 with ICICI Bank (erstwhile the Sangli Bank Ltd.) and also the joint bank account in which the cash was deposited. The AO did not accept the genuineness of the transaction on the ground that the assessee could not furnish necessary details and corresponding evidence of sale proceeds of amount duly deposited in the bank from which the wife gave Rs. 19.69 lakhs to his father. He further did not accept the genuineness on the ground that the assessee could not file any evidence to substantiate the fact that the said amount of Rs.13.00 lakhs was part of the amount given earlier to her father. He, therefore, made an addition of Rs.12,97,600, which came to be affirmed in the first appeal.