Girijamma Krishnappa Praveen Vs ITO (ITAT Bangalore)
ITAT Bangalore held that once the confirmation letter was filed by the assessee from Donor, the burden cast upon assessee is discharged and it would shift to revenue authorities. The Revenue authorities cannot make addition towards unexplained deposits without making any further enquiry.
Facts-
With regard to the cash deposit of Rs.8,87,000 in National Co-operative Bank, the assessee submitted that the cash deposits on 22.01.2015 of Rs.4,99,000 and on 10.03.2015 of Rs.1,50,000 were received from his mother Mrs. Girijamma and that this money was utilized for his mother’s foreign trip but the assessee had not submitted any proof.
In view of the above facts, the entire cash deposit ofRs.1,56,00,060 was treated by AO as unexplained cash credit u/s. 68 of the Act. The bank interest of Rs.2,15,353 received by the assessee but not offered to tax was also added to his total income. The assessee went in appeal before the CIT (Appeals).
The CIT (Appeals) was of the view that the cash book submitted by the assessee during the appellate proceedings is not a reliable explanation for the source of the cash deposts. As regards the confirmation from the assessee’s mother for the sums of Rs.4,99,000 and Rs.1,50,000 apart from stating that she has filed her return, the amount of returned income is not mentioned and hence the creditworthiness of this party is not established. No supporting documents were furnished by the assessee during the appellate proceedings. Hence the explanation given for the cash deposits in Natonal Co-operative Bank is also without merit. The CIT (Appeals) dismissed the appeal of the assessee. Aggrieved by the order of CIT (Appeals), the assessee is in appeal before us.
Conclusion-
In our opinion, when the assessee explained the source of deposit in the bank account with supporting evidences, the CIT (Appeals) ought to have admitted these documents for the purpose of adjudication. In the interest of justice, we admit these documents for adjudication. We have carefully gone through these documents. As per which the assessee received Rs.63 lakhs from the above three parties and this amount has been deposited into Bank account of the assessee with Punjab National Bank. Being so, to that extent it cannot be considered as unexplained deposit by the lower authorities. The assessee has discharged its burden in explaining the source of the deposit into assessee’s Bank account. Hence, to this extent of Rs.63 lakhs, the credit to be given by the AO.
In our opinion, once the confirmation letter was filed by the assessee from Donor, the burden cast upon assessee is discharged and it would shift to revenue authorities. The Revenue authorities cannot make addition without making any further enquiry. Therefore in these circumstances, the lower authorities are not justified in making addition toward unexplained deposits into bank account.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
The assessee has filed an appeal against the order of Commissioner of Income Tax (Appeals)-6, Bangalore DT.08.08.2019 for the Assessment Year 201516.
2. The assessee has raised the following grounds of appeal :
