SHRI RAJEEV LOCHAN MUCHHAL,INDORE vs. THE ITO 1(3), INDORE

Shri Rajeev Lochan Muchhal, ITA No.904/Ind/2016 Assessment Year 2008-09 Page 1 of 5

आयकर अपील�य अ�धकरण, इंदौर �यायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE �ी सी.एम.गग�,�या�यक सद�यतथा�ी ओ.पी.मीना,लेखा सद�यके सम� BEFORE SHRI C.M. GARG, JUDICIAL MEMBER AND SHRI O.P.MEENA, ACCOUNTANT MEMBER

आ.अ.सं./ I.T.A. No.904/Ind/2016 �नधा�रणवष� /Assessment Year: 2008-09

Shri Rajeev Lochan Income Tax Officer, 1(3), Muchhal, v. Indore 301 Alankar Chambers, Ratlam Kothi, Indore अपीलाथ� /Appellant ��यथ� /Respondent �था.ले.सं./PAN: ACRPM66531

Shri Manjit Sachdeva & अपीलाथ�क�ओरसे/Appellant by Avinash Gaur, Advocates Shri R.P. Mourya, Sr. DR ��यथ�क�ओरसे/Respondent by

10.08.2017 सुनवाईक�तार�ख/Date of hearing 11.08.2017 उ�घोषणाक�तार�ख/Date of pronouncement

ORDER PER O.P. MEENA, AM. 1. This appeal filed by the Assessee is directed against the order of ld. Commissioner of Income-tax (Appeals)-1 Indore[in short referred to as the CIT (A)] dated 22.06.2016 pertaining to Assessment Year 2008-09.

Shri Rajeev Lochan Muchhal, ITA No.904/Ind/2016 Assessment Year 2008-09 Page 2 of 5

which relates to confirming addition of Rs.4,50,000/- made by the

A.O on account of deposit in bank account considering it as

undisclosed income. 3. Briefly stated the facts of the case are that the assessee has

deposited cash of Rs.4,00,000/- on 10.4.2007 and Rs.4,50,000/-

on 11.04.2007 in his bank account. The source of the same was

claimed to be out of opening cash balance shown as cash in hand.

However, the AO has considered Rs.4,00,000/- from the said source

and did not accept Rs.4,50,000/- and added the same as

undisclosed income. The assessee went into the appeal before the

CIT(A) who did not accept the claim on the ground that cash

balance shown as Rs. 26,84,049/- shown as opening balance as on

01.4.2007 is not supported by audited books of accounts,

accordingly the addition made by the AO was confirmed. 4. Being aggrieved, the assessee filed this appeal before the

Tribunal. The Ld. Counsel drew our attention to paper book page

No.11 which is a copy of Income Tax return and wherein opening

cash balance is shown at Rs.2684050/-. The assessee has also

filed copy of income tax acknowledgement return and balance sheet

Shri Rajeev Lochan Muchhal, ITA No.904/Ind/2016 Assessment Year 2008-09 Page 3 of 5

appearing at page 22 to 24 of paper book. The assessee has also

filed statement of cash flow appearing at paper book page-25.

Accordingly it was contended that the cash deposit of Rs.4,00,000/-

on 10.4.2007 and cash deposited of Rs.4,50,000/- on 11.4.2007

were deposited out of cash available in the cash book as per the

cash flow chart, therefore it was contended that the lower

authorities are not justified in not accepting the claim of the

assessee. The Ld. Counsel also placed reliance in the case of ITO

Ward-2, Ratlam V/s Smt. Jaishree Chaprode ITA No.686/Ind/2005

ITAT, Indore Bench, Shri Gurumukhdas Salua V/s Asstt.

Commissioner of Income Tax (2013) 21 ITJ 168 (ITAT Indore

Bench), Shri Deependra Thore, Mandsaur V/s Income tax Officer,

Mandsaur (2005) 3 ITJ 111 (ITAT Indore Bench) and others as per

his detailed submission in support of his contention. On the other

hand, the Ld.DR pointed out that the authenticity of opening cash

balance was doubted by the AO as books of accounts were not

audited. Therefore it cannot be said in the absence of audited

accounts and balance sheet and cash balance details as on

31.03.2007 as closing cash balance. However in rejoinder to this,

the Ld. Counsel stated that the return of income tax for the 2007-

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08 was filed on 20th March, 2008 which is placed in the paper book at page-20 in which the income tax return, balance sheet, and showed opening cash balance as Rs.4,84,049/- (PB-25). 5. We have considered the facts and circumstances of the case and find that the assessee was having opening cash balance of Rs.26,84,049/- and out of this cash in hand as per cash flow chart, the assessee has deposited cash in his bank account on 10.4.2007 and 11.4.2007 at Rs.4,00,000/- and Rs.4,50,000/- respectively. Therefore, the source of cash deposited has been proved on the basis supporting documents filed by the assessee, hence we do not find any justification in the order of the lower authority to sustain such addition. Accordingly, the addition made by the AO are deleted.

In the result, the appeal of the assessee is allowed. The order pronounced in the open Court on 11.08.2017.

Sd-/ Sd/- (C.M. GARG) (O.P. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER �दनांक /Dated : 11th August, 2017 Dev/

Shri Rajeev Lochan Muchhal, ITA No.904/Ind/2016 Assessment Year 2008-09 Page 5 of 5

Copy to: Assessee/AO/Pr. CIT/ CIT (A)/ITAT (DR)/Guard file. By order

Assistant Registrar, Indore