Balaji Laxmanrao Sagar Killarikar Vs ITO (ITAT Pune)
Tribunal Grants Relief for Savings &; Relatives’ Loans – Addition Sharply Reduced- No Fresh Remand After 15 Years – Relief Granted on Merits
Assessee, an advocate by profession, had declared income of Rs.3,29,650/-. AO reopened assessment u/s 147 based on information of investment in immovable property & noted cash deposits of Rs.16.30 lakh in bank. Assessee’s explanation was not accepted & after granting relief for professional receipts of Rs.10.61 lakh, AO sustained addition of Rs.12.50 lakh.
CIT(A) gave partial relief of Rs.6.61 lakh, holding that professional receipts already disclosed should be considered as source of deposit. Balance Rs.5.88 lakh was sustained.
Before Tribunal, Assessee explained that deposits were sourced from accumulated savings & temporary borrowings/loans from relatives. Affidavits of lenders were filed along with appeal. Assessee also contended that reimbursements from clients of Rs.83,280/- were wrongly treated as gross receipts.
Tribunal noted that the matter pertained to FY 2007-08, & CIT(A) took nine years to pass the order. Considering the long pendency, it was not justified to remand to AO. Tribunal accepted explanation partly, granting further relief of Rs.5 lakh towards accumulated savings & unsecured loans from relatives.
Key Findings
- AO made addition of Rs.12.50 lakh u/s 68 on unexplained deposits.
- CIT(A) gave relief of Rs.6.61 lakh considering professional receipts.
- Tribunal granted additional relief of Rs.5 lakh for savings & relatives’ loans.
- Final sustained addition reduced to Rs.88,754/-.
- Tribunal avoided remand due to extraordinary delay of 15 years.
FULL TEXT OF THE ORDER OF ITAT PUNE
