2019 (11) TMI 1787 - AT - Income Tax

Unexplained Deposits in bank account - as submitted by assessee that the explanation filed by the assessee before the ld. CIT(A) has not been properly appreciated as his father had given the amount to the assessee out of his past savings, sale of ornaments and sale of agricultural produce - CIT(A) observed that father of the assessee has given the amount to the assessee out of sale proceeds of agricultural land - DR contended that the assessee has agreed to surrender this amount and to pay tax - HELD THAT - As found from record that before the ld. CIT(A) the assessee has filed the detailed submissions which has been duly incorporated by the ld. CIT(A) in his order which clearly states that the amount was given to the assessee by his father out of the sale proceeds of ornaments, past savings and agricultural produce. In this submission, there is no mention that the father has given the cash out of sale proceeds of agricultural land which appears to be wrongly taken by the ld. CIT(A). Thus there was a wrong appreciation of facts which goes to the root of the matter to the assessee. Thus restore the matter back to the file of the ld. CIT(A) for deciding the issue afresh after considering the correct reply filed by the assessee - Appeal of the assessee is allowed for Statistical purposes

Summary

Issues:
- Appeal against order of ld. CIT(A) for Assessment Year 2010-11.
- Addition of Rs. 10.00 lacs made by AO.
- Explanation of source of deposited amount.
- Disagreement on source of funds between assessee and ld. CIT(A).
- Direction to reconsider the issue by ITAT.

Analysis:
The appeal before the Appellate Tribunal ITAT Jaipur involved the addition of Rs. 10.00 lacs by the Assessing Officer (AO) which the assessee had deposited in the bank account after receiving it from his father. The assessee contended that the amount was received from his father out of past savings, sale of ornaments, and agricultural produce, whereas the ld. CIT(A) wrongly attributed it to the sale proceeds of agricultural land. The ld. CIT(A) observed that the amount was received beyond the end of the financial year under consideration. The ld. DR argued that the assessee had agreed to surrender the amount and pay tax. Upon review, the ITAT found that the explanation provided by the assessee was not properly appreciated by the ld. CIT(A) as it did not mention cash received from the sale of agricultural land, which was crucial. Consequently, the ITAT directed the matter to be reconsidered by the ld. CIT(A) after taking into account the correct submission made by the assessee, emphasizing the importance of a fair assessment of facts for justice to prevail. The appeal of the assessee was allowed for Statistical purposes by the ITAT.

This judgment highlights the significance of accurate assessment and consideration of the source of funds in tax matters. It underscores the need for authorities to diligently review submissions and ensure that all relevant information is appropriately analyzed before making additions or decisions. The ITAT's decision to remand the matter back to the ld. CIT(A) showcases the commitment to upholding fairness and ensuring that the correct facts are duly considered in tax assessments.