Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, DELHI BENCH “SMC”, NEW DELHI
Before: SHRI S.V. MEHROTRA
O R D E R PER S.V. MEHROTRA, A.M :
This is an appeal filed by the assessee against the order dated 20.01.2016 passed by the Commissioner of Income Tax (Appeals), Dehradun, u/s 143(3) of the Income Tax Act, 1961 (in short “the Act”) relating to assessment year 2010-11.
Brief facts of the case are that the assessee had filed his return of income declaring total income of Rs.2,08,350/-. The case was selected under compulsory scrutiny through CASS on the basis of AIR information, which showed that the assessee had during the financial year 2009-10, relevant to assessment year 2010-11, had deposited cash exceeding Rs.10 lakhs in his Savings Bank Account. The Assessing Officer examined the source of cash deposits by assessee in its Savings Bank Account with Axis and treated a sum of Rs.12,91,100/- as unexplained cash deposits for the reasons given at page 4 and 5 of his order. He observed in para 9 as under :-
“9. On examination of statement of saving bank with State bank of India, it was found that major withdrawals were by various persons and not by the assessee himself. This indicates the assessee had made payments to them. Therefore, the sources of cash deposited in Axis bank from the withdrawals made from his State bank Account is not acceptable.”
Ld. CIT(A) dismissed the assessee’s appeal, inter-alia, observing that source of the deposits in the Axis Bank Account were sought to be proved by a cash flow statement prepared on the premise that amounts withdrawn by bearer cheques were in fact self withdrawals. However, no evidence of the same had been furnished. Therefore, cash flow statement lacks accuracy and evidentiary value.
Ld. counsel for the assessee submitted that copy of bank statement of account maintained with State Bank of India, Main Branch, Roorkee, was filed before the Assessing Officer and it was pointed out that the deposits in Axis Bank were out of the money withdrawn from bank account. He pointed out that there were two major deposits, which were out of sale proceeds of house, which was inherited by the assessee and sale of a two storey shop. Ld. DR relied on the order of lower revenue authorities.
I have considered the submissions of both the parties and perused the record of the case. The Assessing Officer in para 5 of his order has observed as under :-
“5. The contention raised by the ld. Counsel on behalf of the assessee has been carefully considered. The ld. Counsel in his reply stated that the source of cash deposits in the bank account of the assessee have been explained. When the copy of bank account No. 00000011007288603 maintained with State Bank of India, Main Branch. Roorkee by the assessee tallied with the AIR information, it was found that the amounts of cash deposits did not tally with AIR information. As such the enquiry in respect of cash deposits as per AIR remained incomplete. The evidence of sources of cash deposits in this bank are irrelevant in respect of AIR information. From the AIR information it was found that the address of AIR filer is 343, Civil Lines. Roorkee. When enquiry got conducted it was found that on this address branch of Axis Bank exists and not of State Bank of India. Since the assessee did not furnish any information in respect of his account in Axis bank where cash exceeding Rs.10 lacs were deposited in the financial year 2009- 10, the sources of cash deposits in this account remained uninvestigated. In view of this, it is clear that the cash deposit in the bank account of the assessee in Axis bank, for which AIR information was received has not been explained by the assessee. As such cash deposits in this account has not been investigated. The contention raised by the Id. Counsel on behalf of the assessee is not tenable and, therefore, not acceptable.”
Thus, the main dispute was in regard to cash deposits in the Axis Bank Account. Ld. counsel pointed out that the cash withdrawals was made through his friends from State Bank of India, which was deposited in Axis Bank and, therefore, the assessee may be provided one more opportunity to explain its case by producing persons who had withdrawn the cash for his purpose and not towards any payment being made to them. Since the claim of assessee is that the amounts were withdrawn through his friends for his purpose and not towards any payment, therefore, before drawing any adverse inference against the assessee, it is necessary that detailed enquiry in this regard is made by Assessing Officer from the persons, who actually withdrew the money. I, therefore, set-aside the orders of the lower revenue authorities and restore the matter back to the file of Assessing Officer for passing the assessment order de-novo.
In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on this 07th day of February, 2017.