Income Tax Appellate Tribunal - Indore
Shri Ashok Kumar Agrawal, Barwaha vs The Ito-5(2), Indore on 17 January, 2017
Shri Ashok Kumar Agarwal v. ITO5 (2) Indore / I.T.A. No. 890/Ind/2016/A.Y.:08-09 Page 1 of 2 आयकर अपील य अ धकरण ,इ दौर यायपीठ ,इ दौर IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE ी डी.ट .गरा सया , या यक सद य तथा ी ओ.पी.मीना ,लेखा सद य के सम% BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER AND SHRI O.P. MEENA, ACCOUNTANT MEMBER आ.अ.सं /.I.T.A. No. 890/Ind/2016 नधा(रण वष(/ Assessment Year:2008-09 Shri Ashok Kumar Agarwal, vs. ITO 5(2) Indore Ashok Trading Company, Maheshwar Road Barwaha अपीलाथ /Appellant यथ /Respondent था.ले.सं./PAN: AEVPA 9766 Q अपीलाथ क ओर से/Appellant by Shri S.S. Deshpande, CA यथ क ओर से/Respondent by Shri Mohd. Javed, Sr. DR सुनवाई क तारीख/Date of hearing 16.01.2017 उ ोषणा क तारीख/Date of pronouncement 16.01.2017 आदेश /O R D E R PER O.P. MEENA, ACCOUTANT MEMEBR.
1. This appeal is filed by the assessee against the order of ld. Commissioner of Income tax (Appeals)-22 New Delhi holding concurrent over the CIT(A) -2, Indore charge [hereinafter referred to as the CIT (A)] dated 24.09.2014. This appeal pertains to Assessment Year 2008-09 as against appeal decided in respect of assessment order dated 21.03.2013 passed u/s. 143(3)/147 of Income Tax Act, 1961(herein after referred to as "the Act) by the ITO Ward 3(1) Indore [hereinafter referred to as the AO].
2. Ground no. 1 to 3 pertains to maintaining of addition of Rs. 5,63,981/- on account of cash deposit in bank in spite of the facts that all entries in cash deposit in bank were proved before ld. CIT (A).
3. Succinctly, facts as culled out from the orders of lower authorities are that the cash deposit were noticed based on AIR information. The total deposits in bank were at Rs. 36,03,379/- which inter-alia included cash deposits of Rs. 16,34,750/- and Rs. 19,68,629/- other than cash deposits. During the course of appellate proceedings, the assessee filed additional evidence, which were admitted by the Ld. CIT (A). The Ld. CIT (A) has accepted source of other deposits of Rs. 19,68,629/- as per the breakup given by the assessee as own fund of Rs. 7,93,097/- Rs. 1,37,750/- of LIC loan, Rs. 59,625/- being O D a/c, Rs. 9,76,640/- being loan from Ashok Brothers and Rs. 17/- SB interest explained the Shri Ashok Kumar Agarwal v. ITO5 (2) Indore / I.T.A. No. 890/Ind/2016/A.Y.:08-09 Page 2 of 2 deposits other than cash. However, with regard to cash deposit of Rs. 16,34,750/- the Ld. CIT (A) confirmed the addition of Rs. 5,63,981/- after allowing benefit of rotation of fund to the extent of Rs. 10,00,000/-
4. Being, aggrieved the assessee filed an appeal before the Tribunal. The Ld. A.R. submitted that additional evidence as filed and admitted were containing details of all the cash deposit as are appearing in cashbook maintained by the assessee. Therefore, the cash deposit as well as other deposits are part of turnover of business and it is reflected in books of accounts. Therefore, the Ld. CIT (A) was ought to have accepted the same, hence, ld. CIT (A) was not justified in allowing credit of Rs. 10 lakhs only and retaining addition of Rs. 5,63,981/-.
5. The Ld. D.R. relied on the orders of lower authorities.
6. We have heard the rival submissions of both the parties and have perused the material available on record. We find that the assessee has filed additional evidence during the course of appellate proceedings, which were allowed to be admitted by the ld. CIT (A). We find that all entries of cash deposit are duly rotated through cashbook and it is duly reflected. However, it appears that the Ld. CIT (A) has not seems to have consider and examined the details as claimed in cashbook. Therefore, the Ld. CIT (A) is not justified in allowing credit of Rs. 10 Lakh on account of rotation of cash out of total cash deposit of Rs. 16,34,750/- . Therefore, this limited issue is requires reexamination by the AO. In view of these circumstances, we set-aside the issue to the file of the AO to examine the additional evidence produced and whether entries are duly appearing in cashbook and books of accounts. Accordingly, this issue is set-aside to the file of the AO for denovo examination. Needless to mention to the AO will allow proper opportunity of being heard to the assessee. These grounds of appeal of the assessee are allowed for statistical purpose.
7. In the result, the appeal of the assessee is allowed for statistical purpose.
8. The order pronounced in the open court on 17.01.2017.
Sd/- Sd/-
(डी.टी.गरािसया) (ओ.पी.मीना)
याियक सद य लेखा सद य
(D.T.GARASIA) (O.P.MEENA)
JUDICIAL MEMBER ACCOUNTANT MEMBER
दनांक /Dated : 17th January, 2017/opm