SH. JOGINDER PAL,KHARAR vs. ITO, W-6(4), MOHALI

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ITA 1268/CHANDI/2017Status: DisposedITAT Chandigarh27 March 2018AY 2010-112 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the benefit of withdrawals made by the assessee should be considered while determining the peak cash credit, given the minimal time lag between withdrawals and deposits. The matter was restored to the Assessing Officer for re-computation.

What were the facts?

The assessee, a retired armed force person, had cash deposits totaling Rs. 16,55,200/- in his bank accounts. The Assessing Officer made an addition for these alleged unexplained deposits, which was confirmed by the CIT(A).

What were the issues?

Whether the CIT(A) erred in confirming the addition of unexplained cash deposits without considering the assessee's bank withdrawals. The issue also involves whether the CIT(A) contravened Section 250(6) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 250(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DIVISION BENCH’B’, CHANDIGARH

Before: SMT. DIVA SINGH & SHRI B.R.R. KUMAR

Hearing: 22/03/2018Pronounced: 27/03/2018

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH’B’, CHANDIGARH

BEFORE SMT. DIVA SINGH, JUDICIAL MEMBER AND SHRI B.R.R. KUMAR, ACCOUNTANT MEMBER

ITA No.1268/Chd/2017 Assessment Year: 2010-11

Shri. Joginder Pal Vs. The ITO H.No. 57, Mander Nagar Ward-6(4), Mohali Ward No. 1, Sector-15 Kharar, Mohali

PAN No. ANDPP8401G

(Appellant) (Respondent)

Assessee By : Sh. Parikshit Aggarwal Revenue By : Sh. Manjit Singh

Date of hearing : 22/03/2018 Date of Pronouncement : 27/03/2018

ORDER PER B.R.R. KUMAR A.M.

The present appeal has been filed by the Assessee against the order of

the Ld. CIT(A)-2, Chandigarh dt. 22/06/2017.

2.

The Assessee has raised the following grounds of appeal:

1.

That on the facts, circumstances of the case and in law, the Worthy CIT(A) through his order dt. 22/06/2017 has erred in passing that order in contravention of the provisions of section 250(6) of the Income Tax Act, 1961. 2. That on law, facts and circumstances of the case, the Worthy CIT(A) was not justified in confirming the addition of Rs. 16,55,200/- on account of alleged unexplained source of cash deposit in the bank account even when said deposit was not from unexplained sources.

3.

Brief facts of the case are that the assessee is a retired armed force person and assessment was completed with an addition of Rs. 16,55,200/- being

the cash deposits found in the various bank accounts namely SBI and ICICI Bank belonging to the assessee.

4.

The Ld. CIT(A) has confirmed the addition o n the grounds that assessee has not brought any material on record to contravert the findings of the Assessing Officer.

5.

Before us the Ld. AR has submitted that these transactions in the bank account of the assessee pertains to the retirement benefits. He argued that while determining the cash deposits, the opening cash balance has not been taken into consideration. Further it was submitted before us that the assessee has been maintaining two bank accounts as mentioned above and there have been withdrawals on 02/02/2010 of Rs. 5,40,000/-, and deposit of Rs. 4,90,000/- on 13/10/2010. Similarly the assessee had withdrawals on 13/02/2010 of Rs. 3,20,000/- and deposits on 27/02/2010 of Rs. 5,00,000/-. The assessee has also shown the cash withdrawals on 01/02/2010 of Rs. 44,000/- and 1,20,000/-. It was submitted that there has been inter exchange of deposits and withdrawals among the two bank accounts and both accounts have to be taken into consideration while determining the cash deposits.

6.

Ld. DR has relied on the order of the Ld. CIT(A).

7.

From the above withdrawals and deposits it can be safely assumed that the benefit of withdrawals have to be given for the cash deposits made by the assessee as the time leg between the transactions is minimal. Hence we deem it fit to restore the matter to the file of the with the directions to give the benefit of withdrawals while determining the peak cash credit.

8.

In the result appeal of the assessee is allowed for statistical purposes.

Order pronounced in the open court.

Sd/- Sd/- (DIVA SINGH) (B.R.R.KUMAR) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated : 27/03/2018 AG Copy to: The Appellant, The Respondent, The CIT, The CIT(A), The DR

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