Sh. Mandeep Singh Vs ITO (ITAT Amritsar)
ITAT Amritsar held that addition on protective basis in the hands of assessee not justified as bank account is fraudulently opened in his name without the assessee’s knowledge. Accordingly, appeal of assessee allowed and addition directed to be deleted.
Facts- The assessee is engaged in the business of retail trading of foreign liquor under license granted by the State Excise authorities. Proceedings u/s. 147 were initiated on the basis information gathered by the AO that the assessee has made cash deposit amounting to Rs. 15 crore ( fifteen crores ) in the current account maintained with Oriental Bank of Commerce under the trade name of Mandeep Singh and Sons, during the period 13.03.2012 to 26.03.2012.
Statement of the assessee was recorded u/s 131 of the Act, by the DDIT, Investigation, Bathinda where the assessee has denied the opening of any bank account with OBC. Assessee stated that bank account has been fraudulently opened by Mr Amit Doda ( Prop M/s Gagan Wines) in the name of the assessee, ( without the assessee’s knowledge ).
It was also seen from assessment order that the addition of Rs. 11 crore and Rs. 4 crore totalling Rs.15 crore has already been made in the case of actual beneficiary M/s Gagan Wines and Financers and M/s New Gagan Wines (Proprietor Amit Doda) who are both L – 1 Excise license holders by treating the same as unexplained money u/s 69A of the Act. However, it is seen from the assessment order para 4 that in the instant case, the said amount has been also added back in the hands of the assessee on protective basis and assessment completed by accepting the returned income at Rs.1,65,519/- [(+) an addition of Rs.15 crore on protective basis u/s 69A of the Act].
