SMT. INDUMATI PRADHAN,MAYURBHANJ vs. ITO, ANUGUL WARD, ANGUL

This is an appeal filed by the assessee against the order of CIT(A)-2,

Bhubaneswar, dated 28.10.2015, for the assessment year 2008-09.

was not justified in making addition of Rs.4,56,551/- being balance in S.B.

Account with State Bank of India, Saving Account No.8355 and 3326 and

Mini Bank, Rairkhol Saving Account No. 3410 as on 31.3.2009.

separate business, one from trading in sal leaves and other from retail

outlet of HPCL. During the year under appeal, the assessee filed the return

of income for the business of sal leaves with ITO, Ward-1, Baripada and

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return of income from Maheswari Filling Station, Athamallik with the ITO,

Dhenkanal. The assessee showed income from trading of sal leaves at

Rs.1,76,570/- and paid tax of Rs.6,205/- on the said income. The assessee

showed income from Maheswari Filling Station at Rs.26,342/-. Notice

u/s.148 of the Act was issued by the ITO, Dhenkanal Ward-1, on the ground

that income has escaped assessment and the assessee filed the return of

income in response to this notice, disclosing income from both the sources

for Rs.2,02,909 (Rs.1,76,570/- + Rs.26,342/-). In the assessment made

under section 147 of the Act dated 27.11.2011, the Assessing Officer made

addition of Rs.4,56,551/- being saving account balance with banks not

disclosed by the assessee, details of which are as under:

Sr.No. Name of the Bank Nature of A/c No. Closing balance account as on 31.3.2009 1. SBI, Athamalik Saving A/c. 8355 1,960 2. SBI, Rairakhol -do- 3326 4,52,119 3. Mibi Bank, Rairakhol -do- 3410 2,472 Total: 4,56,551

Baripada, the assessee has disclosed saving accounts balance of

Rs.4,56,551/-, which return was accepted by the department. In support

of the claim, he filed copy of acknowledgement of return together with

statement of income and other particulars of the bank account. It was

therefore, his submission that the addition made by the Assessing Officer

for Rs.4,56,551/- on account of bank accounts not disclosed by the

assessee in the return of income was not justified and the CIT(A) was not

correct in sustaining the addition.

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available on record, I find that the Assessing Officer has made addition on

account undisclosed saving bank accounts with three banks for

Rs.4,56,551/- for the reason that same were not shown in the Audited

Accounts of the assessee.

Officer since the balances in saving bank accounts were not disclosed in the

audited balance sheet of the assessee. I find that the assessee has

explained that due to mistaken belief the return of income for the business

of sal leaves was to be filed in Baripada, whereas, for the business of the

assessee from Maheswari Filling Station was filed with ITO, Dhenkanal.

The assessee filed two separate returns for the business, of which, the

assessee was the proprietor. It is also the submission of ld A.R. of the

assessee that in the return of income filed for trading of sal leaves, the

assessee had disclosed three bank accounts whose balances aggregated

to Rs.4,56,551/- . In support of the same, the assessee had filed copy of

acknowledgement of return of income, statement of income together with

capital account and other particulars.

assessee by bringing any positive material on record.

considered view that the assessee under mistaken belief got the accounts

of petrol pump audited and the balance sheet was prepared for that

business, which was filed with the return of income with ITO, Angul. The

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assessee filed separate return with statement of income and bank balances

with regard to business of trading of sal leaves with ITO, Baripada. The

addition made by the Assessing Officer on the ground that three bank

accounts whose aggregate balance of Rs.4,56,551/- was not disclosed in

the audited balance sheet of the assessee is not correct. The submission

of the AR of the assessee that the return of income for business of sal leave

filed with ITO, Baripada was accepted by the department wherein, the three

bank account balances of Rs.4,56,551/- was shown remained

uncontroverted by the ld D.R. during the course of hearing and therefore

the CIT(A) was not justified in confirming the addition made by the

Assessing Officer. I, therefore, set aside the order of the CIT(A) and delete

the addition of Rs.4,56,551/- and allow the ground of appeal of the

assessee.

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Date Initial 1. Draft dictated on 23/05/17 Sr.PS 2. Draft placed before author 23/05/17 (dictation Sr.PS pad has been enclosed along with original file) 3. Draft proposed & placed AM before the second member 4. Draft discussed/approved AM by Second Member. 5. Approved Draft comes to Sr.PS the Sr.PS/PS /PS 6. Kept for pronouncement on Sr.PS 7. File sent to the Bench Clerk Sr.PS 8. Date on which file goes to the H.C. 9. Date on which file goes to the SPS 10. Date of dispatch of Order.