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Income Tax Appellate Tribunal, DELHI BENCH “SMC”, NEW DELHI
Before: SHRI H.S. SIDHU
This appeal by the Assessee is directed against the Order of the Ld. Commissioner of Income Tax (Appeals)-XXVIII, New Delhi dated 15.9.2014 pertaining to assessment year 2009-10.
The grounds of appeal read as under:-
1. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in not deleting the addition of Rs.16,05,000/-- fully as made by Ld.
AO and has further erred in sustaining the addition to the extent of Rs.14,00,000/-- on account of cash deposited in union bank and that too without considering the submissions and various evidences filed by the assessee and more so when source of the same have been duly explained by the assessee along with documentary evidences.
2. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in holding
that the source of Rs.14,00,000/- is clearly not explained.
3. That in any case and any view of the matter, action of Ld.
CIT(A) in sustaining the addition of Rs. 14,00,000/- made by Ld. AO which is contrary to law and facts, void ab initio, beyond jurisdiction, and without giving adequate opportunity of hearing, by recording incorrect facts and findings and the same is not sustainable on various legal and factual grounds.
4. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in not reversing the action of Ld. AO in charging interest u/s 234B,
234C and 234D of the Income Tax Act, 1961.
That the appellant craves the leave to add, modify, amend or delete any of the grounds of appeal at the time of hearing
and all the above grounds are without prejudice to each other.
The brief facts of the case are that the Return of Income in this case was filed on 29-3-2010 declaring income of Rs. 23,63,980/-. The case was selected for scrutiny under CASS. Accordingly, notice u/s. 143(2) of the I.T. Act was issued alongwith the notice u/s.142(1) of the I.T. Act on 8.7.2011. In compliance thereto, the AR of the assessee attended the proceedings from time to time and filed necessary details /information/documents etc. as required.
Books of accounts produced and examined on test check basis. The assessee is a Doctor and shown income from profession as Doctor, income from pension and salary, income from house property and income from other sources during the financial year 2008-09 relevant to assessment year 2009-10. The assessee has shown gross receipts from profession Rs. 4,80,000/- and net profit of Rs. 1,91,520/-. According to the AIR information, the assessee has deposited cash of Rs. 16,05,000/- in her saving bank account. The Assessee was asked to provide the explanation regarding source of cash deposit. Accordingly, Assessee submitted her reply. After perusing the reply, the AO observed that since the assessee has given two different replies for deposit of cash therefore cannot be accepted, hence, Rs. 16,05,000/- is added to the returned income of the assessee and completed the assessment at Rs. 39,68,980/- vide his order dated 31.12.2011 passed u/s. 143(3) of the I.T. Act, 1961.
Aggrieved with the assessment order, assessee appealed before the Ld. CIT(A) who vide his impugned order dated 15.9.2014 has partly given relief of Rs. 2,05,000/- and confirmed the addition of Rs. 14,00,000/-.
5. At the time of hearing, Ld. Counsel of the assessee has submitted that the only effective issue in the present appeal is regarding the addition of Rs.14,00,000/- being the amount of cash deposited in the bank by holding its unexplained income of the assessee. Assessee deposited the said amount in her bank account, which was received by her against the sale of property from the buyer M/s Haryana Woven Sack P. Ltd. She has returned this amount through banking channel on cancellation of the deal. In support of this arguments, Ld. Counsel has filed the Paper Book containing pages 1 to 98 in which he has attached copy of Notice/Questionnaire u/s. 142(1) dated 8.7.2011; copy of questionnaire dated 13.9.2011; copy of notice u/s.143(2) dated 13.9.2011; copy of assessee’s reply dated 14.11.2011, filed on ACIT; copy of ITS details dated 21.9.2011; copy of reasons for taking the case in scrutiny; copy of ITS detailed dated 26.7.2011; copy of agreement to sell dated 18.3.2009; copy of bank statements of Union Bank of India; Copy of ITR of assessee for AY 2009-10 alongwith computation of income of the same; copy of Form 16 for AY 2009- 10; copy of assessee’s rpely to ACIT; copy of income and expenditure account for the year ending 31.3.2009; copy of show cause letter dated 30.11.2011; copy of confirmation certificate dated 14.12.2011 from M/s Haryana Woven Stock Copy of cash withdrawal details during FY 2008-09 copy of details of cash account for FY 2008-09; Copy of letter to ACIT informing that Mr. David, Assessee’s accountant has filed details without showing or consulting the assessee; copy of affidavit alongwith covering letter dated 30.12.2011 confirming the payment made to the assessee by Sh. Madan Samal; copy of audited balance sheet and profit and loss account of M/s Haryana Woven Sack Pvt. Ltd. as on 31.3.21009; copy of ITR of M/s Haryana Woven Sack Pvt. Ltd or AY 2009-10; copy of PAN card of M/s Haryana Woven Sack Pvt. Ltd; copy of the sale agreement dated 18.3.2009 signed by Dr. Madan Mohan (Husband of Smt. Shakuntala Bhatnagar); copy of written submissions submitted before Ld. CIT(A) on 24.12.2012; copy of assessee’s letter filed before Ld. CIT(A) submitting cash book of assessee for financial year of 2007-08; copy of assessee letter dated 10.9.2013 submitted before Ld. CIT(A) alongwith copy of cancellation agreement beween assessee and M/s Haryana Woven Sack Pvt. Ltd; photocopy of cheque of Rs. 13,00,000/- showing payment made by assessee M/s Haryana Woven Sack Pvt. Ltd; photocopy of pass book of assessee showing payment of Rs. 13,00,000/-; copy of assessee’s rejoinder submitted before Ld. CIT(A) on 2.3.2014 in response to the first remand report; copy of assessee’s letter dated 19.5.2014 submitted to AO during remand proceedings along with copy of confirmation dated 31.8.2013; copy of bank statement of M/s Haryana Woven Sack Pvt. With Axis Bank and its confirmation together with; copy of assessee’s rejoinder submitted before Ld. CIT(A) on 12.9.2014 in response to the second remand report. Hence, he requested that the addition in dispute may be deleted.
On the other hand, Ld. DR relied upon the orders of the lower authorities and opposed the request of the Ld. Counsel of the assessee.
I have heard both the parties and perused the orders passed by the Revenue Authorities alongwith the relevant records available with me especially the impugned order as well as the Paper Book filed by the assessee. I find that the only effective issue in the present appeal is regarding the addition of Rs.14,00,000/- being the amount of cash deposited in the bank by holding its unexplained income of the assessee. I further find that the Assessee deposited the said amount in her bank account, which was received by her against the sale of property from the buyer M/s Haryana Woven Sack P. Ltd. vide Agreement to Sell dated 18.3.2009, copy thereof is placed at Page No. 12 of the PB and which she has returned back through banking channel vide cheque no. 008720 of Union Bank of India dated 31.8.2013 photocopy thereof is placed at Page No. 95 of the PB, on cancellation of the deal, a photocopy of Certificate dated 31.8.2013 in this behalf is at page no. 94 of the PB. In view of the facts and circumstances of the case, I delete the addition of Rs. 14 lacs confirmed by the Ld. CIT(A) and allow the ground raised by the Assessee.
In the result, the appeal filed by the assessee stands allowed.
Order pronounced in the Open Court on 24/03/2017.