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Income Tax Appellate Tribunal, “SMC” BENCH, KOLKATA
Before: DR. MANISH BORAD, HON’BLE & SHRI ANIKESH BANERJEE, HON’BLE
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
This appeal at the instance of the assessee is directed against the order of the National Faceless Appeal Centre, Delhi, [hereinafter the “ld. CIT(A)”] dt. 23/10/2023, passed u/s 250 of the Income Tax Act, 1961 (“the Act”) arising out of the order of the Assessing Officer u/s 143(3)/147 of the Act dt. 26/12/2018 for the Assessment Year 2011-12. 2. Though the assessee has raised various grounds of appeal but the sole grievance is against the finding of the ld. CIT(A) confirming the addition of Rs.6,74,243/- made by the Assessing Officer on account of closing balance of undisclosed bank account.
We have heard rival contentions and perused the material placed before us and carefully gone through paper book dt. Assessment Year: 2011-12 Sumanta Singha 2 23/01/2024 containing 43 pages. Facts in brief are that the assessee is an individual engaged in the business of trading of tobacco. After issuance of notice u/s 148 of the Act on 21/09/2017, the assessee in response filed the return on 21/10/2017 showing total taxable income at Rs. 4,19,133/-. The issue in dispute relates to a bank account held by the assessee of Axis Bank, Mathabhanga, Coochbehar, Branch. Undisputedly, this bank account was not disclosed in the ITR. There were various entries of deposits and withdrawals. So far as the peak credit in the said bank account is concerned, the same amounted to Rs.14,93,821/-, which the ld. Assessing Officer has added and the assessee has not disputed the same. In the very same Axis Bank account, there was closing balance at Rs. 6,77,197/-. The ld. Assessing Officer on observing that in the income tax return, the bank balance is shown at Rs.2,954/-, added the difference of Rs.6,74,243/- to the assessee’s income.
We have gone through the finding of the ld. Assessing Officer as well as the ld. CIT(A) confirming the addition but fail to find any merit. We on observing that, undisclosed bank account held with Axis Bank, the peak credit has been worked out at Rs.15,75,100/- which is arrived after taking into consideration all the inflows and outflows and the peak balance was found on 24/03/2011, for which the addition has already been made at Rs.14,93,821/-. The closing balance in the Axis Bank account at Rs.6,77,197/- is emanating out of the peak credit balance only. The addition for peak credit has already been taken into consideration with regard to the alleged closing bank Assessment Year: 2011-12 Sumanta Singha 3 balance and no separate addition is called for the said amount. We thus, under the given facts and circumstances, fail to find any merit in the finding of the ld. CIT(A) and the same is set aside and the addition of Rs.6,74,243/- made towards closing balance of undisclosed bank account is hereby deleted and the effective grounds raised by the assessee is allowed.
In the result, appeal of the assessee is allowed. Order pronounced in the Court on 31st January, 2024 at Kolkata (ANIKESH BANERJEE) ACCOUNTANT MEMBER Kolkata, Dated 31/01/2024 *SC SrPs
आदेश क" "ितिलिप अ"ेिषत/Copy of the Order forwarded to : 1. अपीलाथ" / The Appellant
""यथ" / The Respondent 3. संबंिधत आयकर आयु" / Concerned Pr. CIT 4. आयकर आयु" अपील ( ) / The CIT(A)- 5. िवभागीय "ितिनिध ,आयकर अपीलीय अिधकरण, कोलकाता/DR,ITAT, Kolkata, 6. गाड" फाई/ Guard file.
आदेशानुसार/ BY ORDER,