SHRI SANJIV C. SHAH,AHMEDABAD vs. THE DY.CIT, CIRCLE-5(1), AHMEDABAD

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ITA 166/AHD/2015Status: DisposedITAT Ahmedabad31 October 2017AY 2010-114 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that cash received from Shri Mohit Shah (Rs. 9,25,000) was explained and its source was established. However, cash deposits from other relatives (Rs. 3,00,000) remained unexplained.

What were the facts?

The assessee, a salaried employee, had cash deposits in his bank account which the Assessing Officer (AO) treated as unaccounted income. The assessee explained these deposits with cash withdrawals and opening balance, but the AO was not satisfied.

What were the issues?

Whether cash deposits made by the assessee were adequately explained and whether the AO was justified in making additions for unexplained cash credits.

Which sections of the Income-tax Act were involved?

Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD

Before: SHRI PRADIP KUMAR KEDIA, AM & SHRI MAHAVIR PRASAD, JM

For Respondent: Shri Mudit Nagpal, Sr. DR
Hearing: 31/10/2017

आदेश / O R D E R PER MAHAVIR PRASAD, JUDICIAL MEMBER This appeal has been filed by the assessee against the order of Ld. CIT(A)-XXI/28/2013-14 dated 22.10.2014. Assessee has taken following grounds that Ld. CIT(A) erred in making addition of Rs. 3,57,000/- by considering it as unaccounted cash deposits. Appellant has a salaried person working with BMW India Pvt. Ltd. Appellant has filed his return of income showing income from above showing salaried income from the above M/s. Nextgen Synticateled Company. During the course of assessment proceedings it was noticed that the assessee has not shown interest income on account of saving interest from two banks. The

ITA.No. 166/Ahd/2015 Assessment year 2010-11 - 2 – appellant during the year has withdrawn cash totaling to Rs. 17,83,000/-. These cash withdrawals along with opening cash balance of Rs. 3,75,000/- were explained as source of cash deposit of Rs. 18,40,500/-. However , the A.O. has not considered this explanation. The Assessing Officer has not given any reason why the cash withdrawal from bank account cannot be source of cash deposit. The appellant is salaried employee working as GM (finance) with BMW India showing return of income of Rs. 42,41,269/-. The appellant was asked to substantiate opening cash balance of Rs. 3,75,000/- in response to which he stated that in the preceding year’s income was Rs. 30,84,184/- and Rs. 27,29,397/- and the opening cash balance of Rs. 3,75,000/- is reasonable. The appellant’s explanation without furnishing previous year’s bank statement, etc. cannot be accepted and Ld. A.O. made addition on account of unaccounted cash deposit of Rs. 30,65,500/- against the said order.

2.

Assessee preferred first statutory appeal before the Ld. CIT(A) who is partly allow the appeal of the assessee. We have gone through relevant order the assessee had submitted the copies of bank statement with sanction asked on the perusal it was assessee has deposited cash amount Rs.30,65,500/- being ask for explanation the assessee given explanation that cash deposit cash family member. The main were made by who is non-resident Indian and a citizen of he is not asset in India and has cash reimbursement of expenses appellant arrival India which was by the appellant in his bank. The A.O has examined Shri Mohit Shah and recorded his statement in which Shri Shah has reconfirmed that he has given Rs.9,25,000/- to his uncle as reimbursement of the expenses incurred during his stay in India through credit card of his uncle. The A.O. himself

ITA.No. 166/Ahd/2015 Assessment year 2010-11 - 3 – has stated that Shri Mohit Shah has reconfirmed that he has given cash of Rs. 9, 25,000/-. The Assessing Officer has further stated that Shri Mohit Shah is owner of two companies in USA and his annual income is $1,45,000/- per annum as Shri Mohit Shah has confirmed the cash given, his identity, capacity and genuineness of cash has been established the A.O. was not justified in not accepting the source of cash received from Shri Mohit Shah to the extent of Rs. 9,25,000/-. As regard to source of cash deposit of Rs. 2,50,000/- from Bela Shah his wife and Rs. 50,000/- from Chhaya Shah, his Sister-in- law, the appellant has failed to produce these persons before A.O. for examination or submitted documentary evidences in support of their identity, genuineness and capacity during to give the above cash deposit, therefore, cash deposits attributable to relatives amounting to Rs.3,00,000/- remains unexplained and therefore rightly treated as unaccounted income of the Assessee. However, we consider it befitting to give benefit of doubt for remaining amount of Rs.57,000/- in favour of the Assessee. Therefore, addition of Rs.57,000/- is directed to be deleted and balance amount stands confirmed.

3.

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

Order pronounced in the Court on 31/10/ 2017 at Ahmedabad.

Sd/- Sd/- (PRADIP KUMAR KEDIA) (MAHAVIR PRASAD) ACCOUNTANT MEMBER JUDICIAL MEMBER Mukul Dated, 31/10/2017

ITA.No. 166/Ahd/2015 Assessment year 2010-11 - 4 –

आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त ( अपील ) / The CIT(A)-XXI, Ahmedabad. 5. �वभागीय ��त�न�ध , आयकर अपील�य अ�धकरण , अहमदाबाद /DR,ITAT, Ahmedabad. 6. गाड� फाईल /Guard file. आदेशानुसार/ BY ORDER, सहायक पंजीकार (Asstt.Registrar) आयकर अपील�य अ�धकरण ITAT, Ahmedabad

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