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2023 (3) TMI 98

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..... spect of cash deposits is sustained to the extent of Rs. 2,50,000/- and in respect of share transactions, the addition made by the Revenue is hereby confirmed. The grounds of appeal are partly allowed. - ITA No.711/DEL/2020 - - - Dated:- 28-2-2023 - Shri Kul Bharat, Judicial Member For the Assessee : Shri Dinesh Dahiya, Advocate For the Department : Shri Om Parkash, Sr. DR ORDER PER KUL BHARAT, JM: This appeal, by the assessee, is directed against the order of the learned Commissioner of Income-tax (Appeals)-20, Delhi, dated 29.11.2019, pertaining to the assessment year 2011-12. The assessee has raised following grounds of appeal: On the facts and in the circumstances of the case and in law the Id. CIT (Ap .....

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..... fter examining the documents provided by the assesse. The rectification is still pending for the same. 7. Failed to appreciate the settled position of law that the cash withdrawal is one of the source of the cash deposit. 8. Failed to consider the settled law that cash deposits in saving account does not constitute the income which has escaped assessment. However, the appellant has explained the Rs. 9,10,200/- as per Date-wise cash flow chart of the appellant and same is enclosed which shows a peak negative balance of Rs. 1,41,685/-. At best, this amount remains unexplained, which is below Rs. 1,60,000/- being the threshold of taxable limits for A.Y. 2011-12. All the above actions being erroneous, unlawful and untenable must .....

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..... as been reiterated recently by this Court in Oracle India Pvt. Ltd. v. ACIT 2017 SCC OnLine Del 9360, Unitech Limited v. DCIT 2017 SCC OnLine Del 9408, BDR Builders and Developers Pvt. Ltd. v. ACIT 2017 SCC OnLine Del 9425 and in judgment dated 30th August, 2017 in W.P.(C) 5807/2014 (Swarovski India Pvt. Ltd. v. Deputy Commissioner of Income Tax). In this case the reopening was set aside and all further proceedings were also declared as null void. The first communication between the assesse and the AO of the ward no. 61(1) has been stalled on 07.03.2018 onwards as per assessment order for the AY 2011-12 after passing around the seven year which is cleared barred by limitation. The Assesse has raised the oral objection regards limitat .....

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..... inion therefore AO has reopen the assessment for the AY 2011-12 which the ward no.27(3) has dropped the proceedings and satisfied by the reply filed by the assesse. Bhavani Gems Pvt. Ltd. vs Assistant Commissioner of Income Tax in WP No. 804 of 2022 of dated 27.04.2022 passed by High Court of Judicature at Bombay M/s Sri Jagannath Promoters Builders vs Deputy Commission of Income Tax in WP(Civil) No. 14603 of 2014 of dated 26.10.2021 passed by Orissa High Court The AO assumption based on the third party information and the imagination which are contrary to the law. That the AO has assumption that the assesse has escaped his income and did not file his ITR for the said year however the AO has failed to lead a single evidence .....

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..... 2) 04 ITAT CK 0020 (Delhi SMC Bench) in ITA No. 17/DeI/2020 dated 06.04.2022 NTPC vs CIT (1998) 383 (SC) The Hon ble Supreme NTPC vs CIT (1998) 229 ITR 383(SC) The Hon ble Supreme Court while dealing with ground raised before the ITAT for the first time relating to legal issue has held that Tribunal should not be prevented from considering questions of law arising in assessment proceedings although not raised earlier. Mere Cash Deposit in the Bank Account would not disclose escapement of Income It is settled law that the mere cash deposit in the bank account would not disclose escapement of income. Relied on:- Bir Bahadur Singh Sijwali vs ITO in ITA No. 3814/Del/2011 of 20.01.2015 Gurpal Singh vs ITO in .....

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..... to verify the available records and oral written submission and given the findings on the issue which has already been dropped by the AO after verifying the records. Therefore the rectification is still pending. The AO has failed to appreciate that cash deposit in 29 different transactions, 21 cash withdrawals which has been annexed on page no.43 of the present appeal whereas 9,10,200/- as per Date-wise cash flow chart of the appellant and same is enclosed which shows a peak negative balance of Rs. 1,41,685/-. At best, this amount remains unexplained, which is below Rs. 1,60,000/- being the threshold of taxable limits for A.Y. 2011-12. 5. On the other hand learned DR opposed the submissions and relied upon the order of the learne .....

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