Case Law Details
Sanjeet Kanwar Vs ITO (ITAT Amritsar)
Firstly, on the basis that the case was taken for limited scrutiny regarding cash deposits in the bank account was more than the turnover. Secondly, by way of additional legal ground, the assessment order is assailed on the ground that when the AO accepted the sale proceeds then he cannot be permitted to make addition u/s 69 of the Act. Thirdly, it is argued that the AO failed to appreciate the fact that there were cash deposits as well as withdrawals from the bank account of the assessee. The objection of the assessee regarding the AO having exceeded his jurisdiction in view of the Instruction No.20/15 dated 29.12.2015 issued by CBDT is misplaced as the assessee was required to explain the source of cash deposits in the bank account. It is seen from the records that the AO has restricted the scrutiny to verify the cash deposits in the bank account. Hence, the objection of the assessee that the AO exceeded the jurisdiction is ill-founded hence, rejected. Another plea of the assessee is that the account does not belong to the assessee. Further, bank A/c No.50053185861 maintained with Kangra Central Co-op Bank Ltd., Mubarkpur, it was recorded by the AO that during the year under consideration, the assessee made cash deposits in the said account to the tune of Rs.8,57,000/-. It is further observed by the AO that till the finalization of the assessment, the assessee could not substantiate with documentary evidence about the basis of her gross total turnover of Rs.8,31,625/- disclosed in the Income Tax Return filed on 03.12.20 15. Therefore, cash deposited in the bank account No. 50053185861 was treated as unexplained. It is seen from the bank statement furnished by the assessee for the period 01.04.2014 to 31.03.2015, there are deposits and withdrawals from the bank account of the assessee. The total deposits are Rs.8,24,000/- and withdrawals of Rs.9,35,084/-. The AO has not given any finding regarding withdrawals of such amount.
Looking to the totality of the facts and circumstances of the present case, I am of the considered view that the authorities below ought to have given a clear finding regarding withdrawals made by the assessee during the year under consideration. Therefore, in view of the facts of the present case, there are debit entries in the bank statement of the assessee. The addition of entire deposits as unexplained was not justified. Hence, the assessee deserves to get benefit of tele-scoping if the benefit of tele-scoping is allowed then the entire addition would not survive. The AO is therefore, directed to delete the addition.
FULL TEXT OF THE ORDER OF ITAT AMRITSAR
This appeal filed by the assessee for the assessment year 2015-16 is
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