Trilochan Pati v. ITO, Ward-1, Paradeep
[Citation -2016-LL-1007-132]

Citation 2016-LL-1007-132
Appellant Name Trilochan Pati
Respondent Name ITO, Ward-1, Paradeep
Court ITAT-Cuttak
Relevant Act Income-tax
Date of Order 07/10/2016
Assessment Year 2010-11
Judgment View Judgment
Keyword Tags unexplained cash credit • unexplained credit • cash deposit • sale of land • savings bank • port trust • sale deed
Bot Summary: The Assessing Officer found that the assessee had made cash deposit of Rs.38,00,000/- in the savings bank account maintained in Kalinga Gramya Bank, Balarampur, Jagatsinghpur, The assessee was required to explain the source of deposit. The Assessing Officer after examining the availability of cash savings with the assessee, accepted total cash savings available including sale proceeds from the land for deposits of Rs.31,02,454/- and added balance amount of Rs.6,97,546/- as unexplained deposits to the income of the assessee. Ld CIT(A) considered the saving bank account maintained by the assessee with Indian Overseas Bank and held that part of sale proceeds amounting to Rs.13,58,000/- were deposited in this account out of which the assessee withdrew Rs.7,50,000/- on 26.12.2009 and Rs.5,00,000/- on 21.1.2010 and deposited in the account with Kalinga Gramya Bank. At the time of hearing, ld A.R. of the assessee submitted that the assessee had explained the source of deposit of Rs.38,00,000/- with Kalinga Gramya Bank from 9.11.2009 to 21.1.2010 being sale proceeds of land worth Rs.17,16,000/- as per sale deed dated 3.11.2009. The AO after considering savings from salary income of the assessee of Rs.11,79,154/- and sale proceeds of land of Rs.19,23,300/- found that the assessee had cash available of Rs.31,02,454/- for making deposit in Kalinga Gramya Bank. The ld CIT(A) has not considered the savings from the salary of the assessee of Rs.11,79,154/- and salary receipt of the wife of the assessee of Rs.17,66,200/- and confirmed the addition on account of unexplained cash credit of Rs.21,92,000/-. In absence of any specific reasons given by the revenue, in my considered view the salary of the wife of the assessee Smt. Manjubala Mishra during the period 2000-01 to 2009-2010 of Rs.17,66,200/- was sufficient to cover up the balance amount of Rs.10,12,846/- and I set aside the order of ld CIT(A) delete the addition of Rs.21,92,000/- by allowing ground of appeal taken by the assessee.


IN INCOME TAX APPELLATE TRIBUNAL CUTTACK SMC BENCH, CUTTACK BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER IT No.10/CT K/2015 Assess ment Year :2010-2011 Sri Trilochan Pati, At: Vs. ITO, Ward-1, Paradeep. Gangadharpur, Jhyimani, Dist: Jagatsinghpur PAN/GI R No. AHDPP 6745 K (Appellant) .. ( Respondent) Assessee by : Shri S.K.Jena Revenue by : Shri Arun Mohanty, DR Date of Hearing : 07 /10/ 2016 Date of Pronouncement : 07 /10/ 2016 ORDER This is appeal filed by assessee against order of CIT(A), Berhampur, dated 17.10.2014, for assessment year 2010-2011 2. sole issue involved in this appeal is that Revenue erred in adding Rs.21,92,000/- to income of assessee on ground of deposit in bank account. 3. I have heard rival submissions and perused materials available on record. In instant case, assessee filed return of income showing total income of Rs.3,32,478/-. Assessing Officer found that assessee had made cash deposit of Rs.38,00,000/- in savings bank account maintained in Kalinga Gramya Bank, Balarampur, Jagatsinghpur, assessee was required to explain source of deposit. assessee submitted to AO that he sold agricultural land for total 2 I T No . 1 0 / C T K / 2 0 1 5 s s es s m e n t Y e r : 2 0 1 0 - 2 0 1 1 consideration of Rs.17,16,000/-, which was deposited in said bank account. It was further submitted that he was having savings out of his salary income since 1994-1995, which was kept in cash and also deposited during relevant previous year. Assessing Officer after examining availability of cash savings with assessee, accepted total cash savings available including sale proceeds from land for deposits of Rs.31,02,454/- and added balance amount of Rs.6,97,546/- as unexplained deposits to income of assessee. 4. Being aggrieved, assessee filed appeal before ld CIT(A). 5. Ld CIT(A) considered saving bank account maintained by assessee with Indian Overseas Bank and held that part of sale proceeds amounting to Rs.13,58,000/- were deposited in this account out of which assessee withdrew Rs.7,50,000/- on 26.12.2009 and Rs.5,00,000/- on 21.1.2010 and deposited in account with Kalinga Gramya Bank. He observed that withdrawal of Rs.7,50,000/- on 26.12.2009 explains part of deposits of Rs.15,00,000/- made on 28.8.2009 and withdrawal of Rs.5,00,000/- on 21.1.2010 explains deposit of Rs.3,00,000/- in Kalinga Gramya Bank on 21.1.2010. In other words, Rs.2,00,000/- out of Rs.5,00,000/- withdrawn on 21.1.2010 from Indian Overseas Bank was not available for explaining total deposit of Rs.38,00,000/- in Kalinga Gramya Bank. He further observed that he accepts contention of assessee by taking liberal view that Rs.3,58,000/- being sale proceeds of land was also available with assessee to make cash deposit in Kalinga Gramya Bank. In this way, total cash deposit which could be explained by assessee works out to Rs.14,08,,000/- (Rs.7,50,000/- + Rs.3,00,000/- + Rs.3,58,000/-). He further observed that he accepts contention of assessee that Rs.2,00,000/- on account of sale of land worth Rs.1,80,000/- in immediately preceding year was also available with assessee for making deposit in Kalinga Gramya Bank. Thus, according to ld CIT(A), assessee could explain total deposits in Kalinga Gramya Bank for Rs.16,08,000/- out of total deposit of Rs.38,00,000/-. Therefore, he held that Rs.21,92,000/- could not be explained by assessee which should be added as 3 I T No . 1 0 / C T K / 2 0 1 5 s s es s m e n t Y e r : 2 0 1 0 - 2 0 1 1 unexplained credit in hands of assessee and, thereby, enhanced addition by Rs.14,94,454/-. 6. Being aggrieved by said order of ld CIT(A), assessee is in further appeal before Tribunal. 7. At time of hearing, ld A.R. of assessee submitted that assessee had explained source of deposit of Rs.38,00,000/- with Kalinga Gramya Bank from 9.11.2009 to 21.1.2010 being sale proceeds of land worth Rs.17,16,000/- as per sale deed dated 3.11.2009. sale of land in immediately preceding year was Rs.3,80,000/- and salary received by wife of assessee Smt. Manjubala Mishra from 2000-01 to 2009-2010 from Paradeep Port Trust U.P.School,Madhubana, Paradeep , for which, certificate dated 10.7.2012 was filed before AO and discussed in assessment order. He submitted that ld CIT(A) has totally not considered this amount of Rs.17,66,000/- available with assessee for making deposit in Kalinga Gramya Bank. AO after considering savings from salary income of assessee of Rs.11,79,154/- and sale proceeds of land of Rs.19,23,300/- found that assessee had cash available of Rs.31,02,454/- for making deposit in Kalinga Gramya Bank. AO had not considered salary receipt of wife of assessee of Rs.17,66,200/- while making addition of Rs.6,97,546/-. ld CIT(A) has not considered savings from salary of assessee of Rs.11,79,154/- and salary receipt of wife of assessee of Rs.17,66,200/- and confirmed addition on account of unexplained cash credit of Rs.21,92,000/-. He explained that no reason has been given by ld CIT(A) for same inspite of copies of return of income of assessee and salary certificate of wife of assessee filed before AO and ld CIT(A). Hence, it was prayer of ld A.R. that addition of Rs.21,92,000/- made by ld CIT(A) be deleted. 8. On other hand, ld D.R. vehemently supported order of ld CIT(A). 9. I find that ld CIT(A) while arriving at figure of unexplained cash deposit of Rs.21,92,000/- in form of deposit with Kalinga Gramya Bank has not considered 4 I T No . 1 0 / C T K / 2 0 1 5 s s es s m e n t Y e r : 2 0 1 0 - 2 0 1 1 savings out of salary of Rs.11,79,154/- calculated by AO without any discussion and assigning any reason in his order. Therefore, addition made to that extent cannot be sustained in law. I, therefore, delete addition of Rs.11,79,154/-. Further, claim of assessee before me and also before both lower authorities was that savings from salary income of his wife Smt. Manjubala Mishra were also utilized in making deposit in bank account under consideration. It is observed that assessee filed salary certificate of his wife for receipt of salary from 2000-2001 to 2009- 2010 aggregating to Rs.17,66,200/-, which was also filed before AO as well as before ld CIT(A). However, neither of lower authorities has assigned any reason as to why out of said salary income of wife of assessee, deposit in bank account could not have been made. In absence of any specific reasons given by revenue, in my considered view salary of wife of assessee Smt. Manjubala Mishra during period 2000-01 to 2009-2010 of Rs.17,66,200/- was sufficient to cover up balance amount of Rs.10,12,846/- and, therefore, I set aside order of ld CIT(A) delete addition of Rs.21,92,000/- by allowing ground of appeal taken by assessee. 10. In result, appeal filed by assessee is allowed. Order pronounced in open court on 07 /10/2016 in presence of parties. Sd/- (N.S Saini) ACCOUNTANT MEMBER Cuttack; Dated 07 /10 /2016 B.K.Parida, SPS 5 I T No . 1 0 / C T K / 2 0 1 5 s s es s m e n t Y e r : 2 0 1 0 - 2 0 1 1 Copy of Order forwarded to : 1. Appellant : Sri Trilochan Pati, At: Gangadharpur, Jhyimani, Dist: Jagatsinghpur 2. Respondent. ITO, Ward-1, Paradeep. 3. CIT(A), Berhampur 4. CIT , Bhubaneswar. 5. DR, ITAT, Cuttack 6. Guard file. //True Copy// BY ORDER, ASST.REGISTRAR, ITAT, Cuttack Trilochan Pati v. ITO, Ward-1, Paradeep
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