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Income Tax Appellate Tribunal, CUTTACK
Before: SHRI N.S SAINI
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.
The sole issue involved in this appeal is that the Assessing Officer
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.
Ld A.R. of the assessee submitted that the assessee carries on two
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
Ld A.R. submitted that in the return of income filed before the ITO,
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.
Ld D.R. relied on the orders of lower authorities.
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After hearing the rival submissions and perusing the materials
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.
On appeal, the CIT(A) confirmed the addition made by the Assessing
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.
Ld D.R. could not controvert the above submission of ld A.R. of the
assessee by bringing any positive material on record.
In the above facts and circumstances of the case, I am of the
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.
In the result, the appeal filed by the assessee is allowed. Order pronounced in the open court on 26/05/2017 in the presence of parties. Sd/- (N.S Saini) ACCOUNTANT MEMBER Cuttack; Dated 26/05/2017 B.K.Parida, SPS Copy of the Order forwarded to : 1. The Appellant : Smt. Indumati Pradhan, Prop. Maheswari Filing Station, Athamalik, Angul 2. The Respondent. ITO, Ward No.1, Angul. 3. The CIT(A)-2, Bhubaneswar. 4. Pr.CIT-2, Bhubaneswar. 5. DR, ITAT, Cuttack BY ORDER, 6. Guard file. //True Copy// SR.PRIVATE SECRETARY ITAT, Cuttack
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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.