Devender Vs ITO (ITAT Delhi)
This article discusses an ITAT appeal filed by the assessee against the order of the Commissioner of Income-tax (Appeals). The appeal challenges the addition of cash deposits in a joint bank account by a second account holder, treating it as unexplained money from undisclosed sources.
Analysis: The appeal revolves around a joint bank account held by the assessee and another individual. The primary account holder received cash deposits totaling Rs. 1,07,81,000 during the assessment year 2013-14. The tax authorities sought an explanation for the source of these deposits, and the assessee provided evidence showing that the deposits were proceeds from the sale of rural agricultural land by relatives of the assessee.
However, the Assessing Officer took an adverse view, questioning the connection between the cash deposits and the land sale, leading to the addition of Rs. 64,22,000 as income from undisclosed sources. The Commissioner of Income-tax (Appeals) upheld this addition, prompting the assessee to appeal before the Income Tax Appellate Tribunal (ITAT).
During the ITAT proceedings, the counsel for the assessee presented a strong case, highlighting that the deposits were made by the primary account holder, not the assessee. They provided documentary evidence supporting the claim that the cash deposits were related to the rural agricultural land sale and had nothing to do with the assessee’s income.
Conclusion: Considering the facts and evidence presented, the ITAT allowed the appeal in favor of the assessee. The tribunal found no grounds for making the addition in the hands of the assessee for the cash deposits in the joint bank account. They emphasized that any examination or inquiry should have been directed towards the primary account holder and other relatives involved in the land sale, not the assessee. Thus, the ITAT decision removes the addition of Rs. 64,22,000 and grants relief to the assessee in this case.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal filed by the assessee is against the order of learned Commissioner of Income-tax(Appeals), Rohtak vide Appeal No.321/2017-18 dated 06.02.2020 against the order under Sections 143(3)/147 of the Income-tax Act, 1961 (hereinafter referred to as the “Act”), dated 11.12.2017 passed by ITO, Ward-1, Rewari for the assessment year 2013-14.
2. There is a delay of 264 days in filing the present appeal. The impugned order by learned Commissioner of Income-tax(Appeals) is dated 06.02.2020 which is claimed to have been received on 18.02.2020. The said period for filing the present appeal falls during the pandemic of COVID-19 for which Hon’ble Supreme Court in the case of suo moto writ petition (C) No.3 of 2020 dated 10.01.2022 has excluded the period from 15.03.2020 to 28.02.2022 for the purpose of taking into account limitation. Vide this order, a further period of 90 days has been granted for providing the limitation from 01.03.2022. Accordingly considering the said decision and fact of the case, the delay is condoned and the appeal is admitted for adjudication.
3. The sole issue raised by the assessee in the present appeal is in respect of addition of Rs.64,22,000 for deposit of cash in the joint bank account by treating it as unexplained money of the assessee from undisclosed sources.
4. Brief facts of the case are that assessee is a farmer and he is not earning any income except income from saving bank account and agricultural income. The saving bank account maintained by the assessee is a joint account wherein Shri Heera Singh S/o Shri Ram Narain is the primary holder and assessee is the other joint holder. The details of this joint saving bank account are as under:
Name of the bank : OBC Bank Ltd.
Account No. : 14152191020701
Mode of operation : Joint
4.1. In the said joint saving bank account, permanent account number (PAN) of the assessee is updated. During the year under consideration amount of Rs.1,07,81,000 was deposited in cash in the said joint saving bank account, details of which are tabulated as under:
