DATTATRAY SARJERAO DHAMAL,,SATARA vs. INCOME-TAX OFFICER, WARD - 4,, SATARA

The assessee has raised the following ground of appeal:- 1. The learned Assessing Officer & CIT(A) IV erred in the facts and in law in confirming an addition of Rs.10,00,000/- u/s 69A of the ITA, 1961 without considering cash book of the appellant.

The only issue raised in the present appeal is against addition of ₹ 10 lakhs under section 69A of the Act.

Briefly, in the facts of the case, the Assessing Officer passed an order under section 143(3) of the Act, wherein as against declared income of ₹ 3,69,280/-, assessed income was 43,35,762/-. The aforesaid additions were made in the hands of assessee because of non-cooperation of assessee before the Assessing Officer. One addition made under section 69A of the Act was totaling ₹ 34,67,256/- on account of cash deposits in the bank account.

The CIT(A) has deleted the addition of ₹ 24,77,440/- vide order passed under section 154 of the Act, after passing the order under section 250 of the Act and balance addition of ₹ 10 lakhs has been upheld in the hands of assessee. The alleged addition has been made on account of alleged cash deposited in the bank account with Pune Peoples Bank, Khandala Branch. Both the authorities below have made the aforesaid addition as the assessee has failed to explain the source of cash deposit of ₹ 10 lakhs.

The learned Authorized Representative for the assessee before the Tribunal pointed out that the perusal of bank account placed at page 20 onwards of Paper Book would show that as on 01.11.2013, cheque of ₹ 10 lakhs was deposited in the bank account of assessee, which admittedly is not cash deposit. Before the CIT(A), the assessee has also explained that the said amount was repaid on 25.01.2014 through bank transfer out of another account of assessee with Satara DCC Bank, copy of which is placed at pages 23 and 24 of Paper Book.

The perusal of two bank statements clearly reflects that the amount was received vide cheque and was also repaid vide cheque. The CIT(A) in para

In the result, the appeal of assessee is allowed for statistical purposes.