BHAVESHBHARTHI GHANSHYAMBHARTHI GOSWAMI,SURAT vs. ITO WARD 3(1)(2), SURAT

None appeared on behalf of the assessee at the time of hearing. However, considering that complete written submissions were already on record and the issue involved is covered by settled legal principles, the appeal is disposed of ex- parte qua the assessee after hearing the Ld. DR and perusing the material available on record. Asst. Year : 2010-11 - 2–

The brief facts of the case are that the assessee had not originally filed his return of income for the assessment year under consideration. Pursuant to the information received by the Assessing Officer that the assessee had deposited cash aggregating to Rs. 11,40,010/- in his savings bank account maintained with State Bank of India, Station Road, Surat, during the financial year 2009-10, notice u/s 148 of the Act was issued on 31.03.2017. In response, the assessee filed his return of income on 27.04.2017 declaring total income of Rs. 72,660/-, mainly from tuition activity. Subsequently, the Assessing Officer completed the assessment u/s 143(3) r.w.s. 147 of the Act on 28.06.2017, determining the total income of the assessee at Rs.12,12,670/-, making addition Rs. 11,40,010/- on account of unexplained cash credit u/s 68 of the Act.

Aggrieved, the assessee filed appeal before the Ld. CIT(A) who upheld the action of the Assessing Officer.

Aggrieved by the order of the Ld. CIT(A), the assessee is now in appeal before the Tribunal.

We have carefully considered the orders of the lower authorities, the written submissions of the assessee, and the material placed on record. Undisputedly, the assessee was a student during the year under consideration. It is also an undisputed fact that the assessee did not maintain any books of account, and the addition u/s 68 of the Act has been made solely based on entries in the bank statements. The assessee has furnished a plausible explanation that the deposits in question were temporary in nature, made by his parents and close relatives for the specific purpose of demonstrating financial capacity for obtaining a student visa. The assessee has furnished details of the deposits and subsequent withdrawals, which are summarized as under:- Asst. Year : 2010-11 - 3–

On perusal of the submissions and details, it is evident that the assessee has adequately explained the source of the deposits. The Revenue has not produced any material to controvert the genuineness of these transactions or to establish that the deposits constituted income of the assessee.

In view of the above, we hold that the addition of Rs. 11,40,010/- made by the AO and confirmed by the Ld. CIT(A) is not sustainable on facts and in law. Accordingly, the addition of Rs. 11,40,010/- is hereby deleted.

In the result, the appeal of the assessee is allowed.