KAMAL SINGH KHATANA,KOTPUTLI vs. JCIT, ALWAR

PER SHRI KUL BHARAT, JM.

This appeal by the assessee is directed against the order of ld.

Commissioner of Income Tax (A), Alwar, dated 06/01/2015 pertaining to the

assessment year 2011-12. The assessee has raised following solitary ground, which

reads as under:

scrutiny assessment and the assessment under section 143(3) of the Income Tax

Act, 1961 (hereinafter referred to as the Act) was framed vide order dated

2 ITA No. 239/JP/2015 Shri kamal Singh Khatana.

24/2/2014. While framing the assessment, the assessing officer observed that there

were cash deposits of Rs. 33,89,100/- in the savings bank account held by the

assesseee in the ICICI Bank and State Bank of India on various dates. The assessing

officer finding that the explanation of the assesee is not acceptable made addition

on account of unexplained cash credits under section 69A of the Act. Hence, he

computed the income of Rs. 37,87,680/- against the declared income of

Rs.5,73,780/-. Aggrieved by this, the assesee preferred an appeal before ld. CTT

(A), who also rejected the appeal of the assessee and confirmed the addition of Rs.

32,13,900/-.

32,13,900/-.

3.1 The ld. Counsel for the assessee submitted that the addition is made on the

basis of cash deposit in the bank account of the assessee. He submitted that the

authorities below have failed to appreciate the fact that the assessee furnished

sufficient evidence to prove that the money belonging to firm namely M/s National

Stone Crusher and the amount was utilized for payment of Electricity bill pertaining

to the said firm. He submitted that merely because the assessee could not furnish

the confirmation from the said firm should not be the basis to fasten liability of tax

on the assessee. He drew our attention to paper book page nos. 21 to 32, where

the copies of Electricity bills are enclosed. He also drew our attention to bank

statement to support the contentions that the money was belonging to the firm and

same was utilized for business purposes of the firm. This explanation of the

3 ITA No. 239/JP/2015 Shri kamal Singh Khatana.

assessee was not accepted by the AO. Even the AO did not make any inquiry in this

respect.

3.2 On the contrary, ld. Departmental Representative opposed the submissions.

However, on a specific query whether any inquiry was made with the firm, ld. D/R

conceded the fact that except notice under section 131(6), no other step was taken.

3.3 We have heard the rival contentions, perused the material available on

record. During the course of hearing, it was noticed that assessing officer has not

conducted any enquiry in respect of payment of Electricity bills pertaining to firm

namely M/s National Stone Crusher. Explanation of the assessee in respect of the

bank deposits is that these were the sale proceeds of the firm which were deposited

in the bank account of the assessee and was utilized for the payment of Electricity

bills for the said firm. It is also contended that the assessee was merely acting as

an agent of the firm. Both the respective representatives of the parties agreed

under this facts the AO may be directed to make inquiry and verification in respect

of the claim of the assessee. After considering the totality of the facts, we deem it

proper to set aside the impugned order and restore the assessment to the file to the

assessing officer for making de-novo assessment. Needless to say, that the

assessing officer would grant sufficient opportunity to the assessee for furnishing the

evidence. The assessee is directed to cooperate in the assessment proceedings.

The AO is further directed to make inquiry from the partners of the firm namely M/s

National Stone Crusher with regard to deposits of the cash into the bank account of

the assessee and payment of Electricity bills. The ground raised in the appeal is

4 ITA No. 239/JP/2015 Shri kamal Singh Khatana.

allowed for statistical purposes. The ground raised in this appeal is allowed for

statistical purposes.

Order pronounced in the open court on 03.03.2017.

Sd/- Sd/- ¼ HkkxpUn ½ ( dqy Hkkjr) ( BHAGCHAND ) ( KUL BHARAT ) ys[kk lnL;@Accountant Member U;kf;d lnL;@Judicial Member Jaipur Dated:- 03/03/2017. P/ आदेश की प्रतिलिपि अग्रेषित@ब्वचल वf जीम वतकमत वितूंतकमक जवरू

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