RAGHUNANDAN TYAGI,GHAZIABAD vs. ITO, WARD-3(5), HAPUR

ORDER This is an appeal filed by the assessee against the order of CIT(A), Muzaffarnagar dated 16.03.2017.

2. The assessee has taken following grounds of appeal: “1. That on the facts and circumstances of the case, the Ld. CIT(Appeal), Ghaziabad has erred in dismissing the appeal of the appellant. Thus the order passed by the CIT (Appeal) against appeal No. 191/2016-17/GZB on dated 29/01/2018 is bad in law and based on wrong facts.

2. That the A.O. (ITO ward -3(5) Hapur) was not justified in disallowing the cash deposit of Rs.6,37,000/- in saving bank a/c. Thus the assessment order passed u/s 144(1)/147of the Income Tax Act, 1961 by the Ld. A.O. on dated 28/3/2016 is bad in law and based on wrong facts/

3. That the appellant was ill for last many years and lives in the village ASORA Distt. Hapur. In most of the days of the year, he usually remained ill & hospitalized for medical treatment. Therefore, he could not properly attend the case proceedings before the Commissioner of Income Tax (Appeal) as well as Assessing Officer (ITO). Copy of the 2 Raghunandan Tyagi Medical Certificates of the Doctor in this regard are enclosed hereby.

4. That the appellant had deposited cash Rs.21,37,000/- in his Indian Bank saving account No. 728187719 during the AY 2008-09 on Various dates but the AO had allowed cash deposit of Rs.15,00,000/- only and added to income Rs.6,37,000/- in passing the assessment order u/s 144(1)/147of the Income Tax Act, 1961. Although, the cash deposited of Rs.6,37,000/- (21,37,000 -15,00,000 as allowed & accepted by AO) was self-evidenced & explained. As this was deposited out of the cash withdrawn from the same bank a/c on earlier dates and the past savings of the appellant out of his agriculture incomes. The cash flow statement of cash deposits and withdrawn in or from the Indian Bank saving a/c No. 728187719 is as:

Date of cash Cash Cash Sources of funds to deposit cash in the deposit & Deposits withdrawn bank & purpose of withdrawal withdrawal Rs. Rs. Out of the past years’ savings of 16.04.2007 - 1,000 agricultural income of the appellant. - Out of the sale consideration of agricultural 17.04.2007 9,00,000 Land sold in earlier year AY 2007-08 and the AO has allowed and accepted the same in his Assessment order by allowing Rs.15,00,000.

3 Raghunandan Tyagi 28.06.2007 - 1,000 To meet out the house hold expenses. 30,000 16.07.2007 - To meet out the house hold expenses 2,000 21.07.2007 - To meet out the house hold expenses 21,000 30.07.2007 - To meet out the house hold expenses 10,000 04.08.2007 - 15,000 To meet out the house hold expenses 2,00,000 Cash withdrawn to keep for the future 12.09.2007 - emergencies of illness of the appellant. 5,00,000 1. Rs.3,00,000 out of the remaining cash 24.01.2008 in hand which was out of the withdrawal on dated 26.04.2007 [350000 -24000 - 8000 - 14000 as was deposited earlier] 2. Rs.2,00,000 out of the cash withdrawn on dated 12.09.2007 21,37,000 6,38,500 Total

5. That the summary of Sources of funds to deposit Rs.6,37,000 in the bank a/c by the appellant is as: A. Sources of Funds 6,38 ,50 0-C ash wit hdra wal from t he ban k a/ c-As per above table i n 4. 91,00 0 -Pa st years’ saving s of the appel lan t o ut of agri cul tural in co mes 7, 29, 500 - Sou rces o f Funds- [A] B. Utilizat ion o f Funds 6,37 ,00 0 -C ash depo si ted in ban k a/ c - As pe r a bove table in 4. 92,50 0 -Util ized in ho use h old expense s 7, 29, 500 - Ut iliz ation of Funds -[B] 6. That as per the above details of sources & utilization of funds, it is evidently proved and explained that the appellant had sufficient cash availability with him and, out of which, he had deposited cash of Rs.6,37,000 in his Indian Bank saving a/c. Therefore, the Ld. CI1 (Appeal) has erred to dismiss the appeal of the appellant as well as the AO has also erred to add Rs.6,37,000 in the income of the appellant. 7. That the appellant craves leave to add, alter, amend or delete the grounds herein above taken on or before the hearing. The appellant, therefore, most respectfully prays that his appeal may kindly be allowed and delete the addition of Rs.6,37,000/-.

4 Raghunandan Tyagi 3. None appeared on behalf of the assessee when the case was called for hearing. The Bench was of the view that the appeal of the assessee can be disposed off in the absence of the assessee. Therefore, the appeal was heard ex-parte qua the assessee and disposed off considering submission of the ld. DR. It is observed from the order of the CIT(A) that the appeal of the assessee was dismissed as the assessee failed to put in appearance on the date of hearing fixed by the CIT(A) on 27.10.2017, 08.12.2017, 05.01.2018 and 05.01.2018.