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Income Tax Appellate Tribunal, “A” BENCH: KOLKATA
Before: Shri Mahavir Singh, JM & Shri M. Balaganesh, AM]
Per Shri Mahavir Singh, JM:
This appeal by assessee is arising out of order of CIT(A)-XXX, Kolkata vide Appeal No. 246/CIT(A)-XXX/Wd-43(3)/2011-12 dated 08.03.2013. Assessment was framed by ITO, Ward- 43(3), Kolkata u/s. 143(3) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for Assessment Year 2009-10 vide his order dated 20.12.2011.
The only issue in this appeal of assessee is against the order of CIT(A) in restricting the addition at Rs.17 lacs as against the addition made by AO at Rs.34.29 lacs being unexplained cash deposits in Savings Bank Account maintained with Standard Chartered Bank.
At the outset, the Ld. Counsel for the assessee before us stated that the CIT(A) has given a finding of fact while retaining this addition of Rs.17 lacs in para 3 of his order and the relevant portion reads as under: “It is seen from the perusal of the Assessment records that the Appellant has also submitted vide his letter dated 16.11.2011 the source of cash deposits to the extent of Rs.14,72,241/-, Rs.2,56,759/- as opening balance of cash as on 01.04.2008 and the remaining amount of Rs.17,00,000/- as out of cash withdrawn from bank. It is therefore seen that since the relevant transactions had independently been confirmed by M/s. Vachi Commodities and Derivatives Pvt. Ltd. in respect of the commodities transactions undertaken by the Appellant during the relevant Financial year and on the same brokerage income has also been shown the source of deposits to this extent are considered as explained i.e. of Rs.14,72,241/-. Similarly the opening cash balance of Rs.2,56,759/- also cannot be considered for addition in the current year even if the same is considered as unexplained. However with regard to the amount of Rs.17,00,000/- claimed to have been deposited out of cash withdrawn from the bank account the same cannot be considered as explained since there was no justification for such cash withdrawals and there is no linkage between the same and subsequent redeposits.”
Nirmal Gupta AY 2009-10 4. In view of the above, ld. Counsel for the assessee stated that once there is cash withdrawals and deposits the same should be treated as explained. Ld. Counsel for the assessee before us filed a statement analyzing the withdrawals and deposits made in Standard Chartered Bank Account. When a query was put to Ld. Counsel for the assessee, he stated that these details were not filed before the lower authorities. On this, Ld. Sr. DR fairly conceded that the matter can be remitted back to the file of the AO for fresh adjudication qua this addition of deposits retained by CIT(A) at Rs. 17 lacs. In terms of the above, we set aside this issue to the file of the AO limiting to the addition of Rs.17 lacs only. The assessee will file the details regarding source of deposits and AO will consider the same and accordingly, decide the issue. Orders of the lower authorities on this issue are set aside and matter is remitted back to the file of AO. This appeal of assessee is allowed for statistical purposes.