TaxTMI 
TaxTMI 
2023 (1) TMI 957
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.... filed a condonation application dated 04-10-2022 mentioning therein that the appeal of the assessee was to be filed before 28th Aug. 2020 but it was filed on 24-11-2021for the reason that the order dated 05-02-2020 passed by the ld. CIT(A), Pune was sent through post to his address at Jaipur which could not be served upon him being not available at Jaipur and the same was delivered by the postal office on 29-06-2020. To this effect, the assessee has also filed an affidavit. Further the ld. AR of the assessee took the resort of Hon'ble Supreme Court dated 10-01-2022 (M.A. No. 21 and 665/2021 regarding cognization of extension limitation from 15-03-2020 till 28-02-2022) and thus prayed that the assessee is prevented by sufficient reasons in filing the appeal within due date and further prayed to condone the delay. 2.2 On the other hand, the ld. DR objected to such delay but left the matter on the Bench to consider it as deem fit and proper in the case. 2.3 The Bench has heard both the parties and perused the materials available on record. The Bench has taken into consideration the order of Hon'ble Apex Court as to the condonation of delay due to outbreak of Covid-19 pandemic vide ....
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....se of hearing, the ld.AR of the assessee has not pressed the Ground No. 1. Hence, the same is dismissed being not pressed 4.1 The Bench noted that the only issue raised in this appeal is regarding sustaining the addition of Rs.15,41,749/- by the ld. CIT(A). 4.2 Brief facts of the case are that the return of income for the A.Y. 2009-10 declaring a net taxable income of Rs.8,68,64/- was filed on 01-07-2009. The assessee has filed revised return on 24-09-2010 declaring net taxable income at Rs.7,78,370/-. Both these returns had been selected for scrutiny in view of CASS and the AIR information revealed that there are cash deposits of Rs.15,32,350/-in the Axis Bank Ltd. A Notice u/s 143(2) of the Act was issued on 20-08-2010 (original return) and on 26-08-2011 (revised return) which was duly served upon the assessee. Subsequently, a notice u/s 142(1)/142(2) of the Act was issued on 28- 10-2011 requesting the assessee to furnish the requisite information. The AO noted that the assessee had filed his written reply dated 23-12-2011 and stated that he had enclosed the cash book and Bank Statements of Axix Bank and ICICI Bank without showing the outgoings i.e. expenditure. The AO further ....
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....011 Difference 1 2 3 4 5 1. Cash as on 01-04-2008 8,54,803 8,54,803 Nil 2. Cash withdrawals From ICICI Bank 4,48,667 8,000 4,40,667 From IDBI Bank 6,66,820 0 6,66,820 From Axix Bank 57,043 46,523 10,520 From Friends & Relatives 2,18,100 1,05,100 1,13,000 3. Total 22,45,100 10,14,426 12,30,674 Thus, during the assessment proceedings, the appellant claimed to have only an amount of Rs 54,523/- from banks whereas during the appellate proceedings, the appellant has claimed to have withdrawn an amount of Rs 11,72,530/- (4,48,667/- from ICICI bank, 6.8,820/- from IDBI bank and 57,043/- from Axis Bank) from bank account, however, copies of bank accounts have not been submitted to substantiate this submission. Further, the appellant has showed the withdrawal for house hold expenses only of Rs 70,000/- in the year even though he had salary income of Rs. 9,65,956/- as considered in the assessment. A person who is earning around Rs 10 lakh a year cannot have such low household withdrawals. Under normal circumstance, 50% of salary goes towards tax and savings and household expenses reach at least upto 5....
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....d his original ITR on 01/07/2009 declaring an income of Rs. 8,68,646. The same was revised on 24/09/2010 declaring an income of Rs. 7,78,370.Both the returns were put to scrutiny and notices u/s 143(2) were issued. On issue of further notices u/s 142(1) the appellant had submitted replies to various queries raised by the ld. AO viz. ITO, Ward 4(1), GHQ, Pune. The case was selected on the reason of depositing cash amount of Rs. 20,12,583 in the bank accounts of the appellant during the relevant previous year. Since the appellant being an army person was posted at Calcutta during the period from date of selection of the case into scrutiny to August, 2011 hence no replies could be submitted. In August, 2011 the appellant was transferred to Jaipur where he appointed one CA for handling his case but due to distance problems complete details about sources of cash deposit could not be explained to the ld. AO personally and hence the Ld. AO considered the whole amount so deposited into bank account as unexplained income and order dated 30.12.2011 was passed by him u/s 143(3). The matter was carried in appeal before the ld. CIT (A) - 3, Pune, which was later on transferred to CIT (A) - 1, P....
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....d circumstances of the case, the ld. CIT (A) has erred seriously in sustaining addition of Rs. 15,41,749 out of total addition of Rs. 20,41,749 made by ld. AO on account of alleged unexplained income in the nature of cash deposits in the bank accounts of the appellant. As stated hereinabove the appellant had deposited following sums in cash in his bank accounts during the relevant previous year :- 1. ICICI Bank Rs. 4,54,399 (Taken by AO at Rs. 5,09,399) 2. Axis Bank Rs. 15,32,350 3. IDBI Bank Rs. 1,650 (Not considered by AO) The ld. AO has considered the whole amount of cash deposit as per his information, as unexplained income of the appellant. Such addition was made in view of non submitting of replies to his satisfaction which occurred due to the above said reasons. In the appeal the ld. CIT (A) has allowed a part relief of Rs. 5,00,000 in such addition. For allowing such relief the ld. CIT (A) analyzed the cash flow statement submitted by the appellant. in this statement he noticed that the appellant had taken an opening cash balance of Rs. 8,54,803 for which the counsel of the appellant had explained that in view of the position of cash withdrawals and deposits made ....
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....sons are very low as normally they do not have any relations at the place of their posting. 8. No substantial expenditure is made on entertainment also as all such facilities are normally provided in the residential colony of the army personnel. Therefore the estimation on account of household drawings so made by ld. CIT (A) is very exorbitant and must be reduced substantially. Therefore the opening balance adopted by the appellant for preparing the cash flow statement deserves to be accepted. The appellant has also submitted summary of the cash book prepared by him which is enclosed at the end of cash book (APB 27). The summary contains that the appellant claims to had received Rs. 2,18,100 from friends and relatives. The ld. CIT (A) has also stated that in absence of any confirmation, identity etc. of the friends and relatives from whom a sum of Rs. 2,18,100 has been claimed by the appellant in the cash flow statement, no cognizance of the same can be given. In this regard this is to submit that the assessee had received these petty sums from different persons against repayment of advances given earlier by him and such entries were incorporated in the cash flow statement as....
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.... purposes and hence the same is to be taken as household expenses. After all such receipts and payments there was a residual cash of Rs. 1,53,624 and no negative balance is found in the cash book on any date and hence in this way all the cash deposits in the bank account during the year under consideration stand proved and the addition sustained by the ld. CIT (A) may kindly be deleted and oblige.'' 4.5 On the other hand, the ld. DR relied upon the order of the ld. CIT(A) 4.6 The Bench has heard both the parties and perused the materials available on record. From the records, it is noticed that the assessee is an Army personnel and during the tenure of his service, he had been posted at various places such as Udaipur, Arunachal Pradesh, Panagarh (West Bengal), Gurdaspur (Punjab), Gangtok (Sikkim), Laddakh (J&K ) etc. and he was never posted at Pune. As per ld. AR, since the Paying Office (DDO) of the assessee is situated wherefrom salary of the Army Personnel used to disburse and the PAN of the assessee was lying at Pune Office. The assessee had filed his original return declaring income at Rs.8,68,646/- which was subsequently revised on 24-09-2020 declaring an income of Rs.7,7....