RAM SANWAR GUPTA,HOWRAH vs. DCIT, CIRCLE-47, KOLKATA, KOLKATA

This appeal by assessee is arising out of order of CIT(A)-XXX, Kolkata vide Appeal No. 165/CIT(A)-XXX/Cir-47/2010-11 dated 25.07.2014. Assessment was framed by ACIT, Circle- 47, Kolkata u/s. 143(3) of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) for Assessment Year 2008-09 vide his order dated 30.11.2010.

The only issue in this appeal of assessee is against the order of CIT(A) confirming the action of AO in making addition of cash deposit of Rs.1.90 lacs in the bank.

I have heard rival submissions and gone through the facts and circumstances of the case. I find that during the course of survey the revenue found that the assessee has deposited a sum of Rs.1.90 lacs in the bank on 09.04.2007 but it was not reflected in the books of account of the assessee. The AO made addition and CIT(A) confirmed the same. Before me, Ld. Counsel for the assessee explained that in the Balance Sheet as on 31.03.2007 there is a cash in hand available with the assessee amounting to Rs.2,10,517/- and out of this cash in hand the assessee deposited this sum i.e. Rs.1.90 lacs on 09.04.2007. The Ld. Counsel for the assessee in its paper book consists of pages 1 to 52 has enclosed this Balance Sheet at page 6, which clearly reflects that this cash in hand is available. Once this is the position, the assessee is able to explain the cash available with him, which was deposited in assessee’s bank account in the immediate next

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