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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
This appeal by the assessee is directed against the order dated 30.01.2023 of Commissioner of Income Tax(Appeal), National Faceless Appeal Centre, Delhi for Assessment Year 2012-13. The assessee has raised following grounds of appeal:
“1.That the order passed by learned CIT(A) is arbitrary, bad in law and on facts. 2. That the learned CIT(A) has erred in confirming the addition of Rs. 2,96,700/- under section 69A by not considering that the cash deposit was already recorded in cash book which is quite unjust, illegal and against the facts of the case. 3.That the learned CIT(A) has erred in confirming the addition of Rs. 2,96,700/- under section 69A even though INR 2,51,760 was Sadhna Ajmera Page 2 of 4 deposited out of opening cash balance which is quite unjust, illegal and against the facts of the case. 4. Appellant craves to Leave, add, amend, alter or modify of any ground before final date of hearing.”
The solitary issue arises in this appeal of the assessee is regarding the addition made by the AO of Rs.2,96,760/- out of total cash deposit of Rs.15 lacs in the bank account of the assessee being unexplained cash deposit u/s 69A of the Act.
The assessee is an individual and as per the AIR information deposited a sum of Rs.15 lacs in the cash in his Saving Bank Account during the financial year relevant to assessment year under consideration. The AO accordingly issued notice u/s 148 of the Act on 28.03.2019 and in response to the said notice assessee filed his return of income on 24th April 2019 declaring total income of Rs.5,99,400/-. The assessing officer has made addition of Rs.2,96,760/- as unexplained cash deposit in the bank account while framing assessment u/s 143(3) r.w.s. 147 on 27.12.2019. The assessee challenged the addition made by the AO before the Ld. CIT(A) and submitted that the assessee has earned the income from rent trading of commodities and interest income and also claimed that the assessee was having an opening cash balance of Rs2,66,955/- on 01.04.2012 which was not accepted by the AO. The Ld. CIT(A) was not impressed with the explanation of the assessee and confirmed addition made by the AO.
Before us the Ld. AR of the assessee has submitted that the assesse was having an opening cash balance of Rs.2,66,955/- on 01.04.2012. The AR has referred to the balance sheet as on 31.03.2012 at page no.7 of the paper book and submitted that cash in hand is reported at Rs.2,66000/- . The assessee deposited a sum of Rs.2,51,760/- out of opening cash balance and Rs.45000/- as taken from three persons comprising of Rs.15000/- each. She has referred to the ledger account of the loan creditors from whom Rs.45000/- was taken by the assessee. Thus, the Page 2 of 4
Sadhna Ajmera Page 3 of 4 source of cash deposit was duly recorded in the books of account. It was further contended that the source of cash deposit was duly recorded in the books of account and the addition made by the AO is not justified.
On the other hand, Ld. DR has submitted that AO has considered all the facts as well as evidence filed by the assessee regarding source of deposit of Rs.15 lacs cash in the bank account and finally made an addition of Rs.2,96,760/- only. Thus, it is clear that the AO has accepted the source of the balance cash deposited in the bank account except to Rs.2,96,760/- for which the assessee failed to explain the source to the satisfaction of the AO. He has relied upon the orders of the authorities below.
6. We have heard rival submissions as well as relevant material on record. It appears that the assessee has not filed any return of income u/s 139(1) of the Act for the year under consideration and only in response to notice u/s 148 the assessee filed the return of income declaring total income of Rs.5,99,400/- comprising of income from house property, income from business and profession and agricultural income of Rs.68,990/-. The AO while making disallowance of addition of Rs.2,96,760/- on account of unexplained cash deposit in the bank account has rejected the claim of assessee of opening cash balance of Rs.2,66,000/-. The Ld. CIT(A) has confirmed the order of the AO on the ground that the assessee has not furnished any valid explanation regarding opening cash balance. The assessee has filed acknowledgment of return of income for A.Y. 2011-12 along with balance sheet at page no.6 to 8 of the paper book. In the balance sheet as on 31.03.2011 the assessee has shown the closing cash balance in the hand of Rs.2,66,955/-. Therefore, in view of the fact that the cash in hand balance has been duly reflected in the books of account of the assessee for A.Y.2011-12 then the said claim of the assessee cannot be denied. Accordingly we delete the addition of Rs.2,51,760/- as claimed by the assessee being the deposit made from the opening cash balance. Since the assessee has not furnished any documentary evidence in respect of the balance amount of Page 3 of 4
Sadhna Ajmera Page 4 of 4 Rs.45000/- as claimed to have been taken loan from three persons i.e. Rs.15,000/- each except the ledger account filed by the assessee therefore, the addition to the extent of Rs.45000/- is sustained for want of any supporting evidence. Hence the appeal of the assessee is partly allowed.
In the result, appeal of assessee is partly allowed.
Order pronounced in the open court on 22.06.2023.