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TMI Blog2014 (12) TMI 556X X X X Extracts X X X X X X X X Extracts X X X X ..... hen the deposits in the bank account was supported by satisfactory evidences and it was explained by the assessee, no adverse inference could have been drawn and the deposit could not be termed as income from undisclosed source of the assessee – thus, the order of the CIT(A) is upheld – Decided against revenue. Deletion of penalty u/s 271(1)(c) – Income concealed and inaccurate particulars furnished or not – Held that:- ClT(A) was rightly of the view that the assessee has disclosed full facts pertaining to his income made in the return - the assessee neither concealed his income nor furnished inaccurate particulars of his income - there was no finding by the AO that the source of the cash deposit made by the assessee in his bank account was not bona-fide - merely because the deposit appeared in his account and the addition so made to his total income does not necessarily lead to the conclusion that the assessee is guilty of furnishing inaccurate particulars of his income - The furnishing of inaccurate particulars relate to furnishing of factually incorrect details and the information about the income - The assesse has proved that he was the resident representative at Delhi of Sr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6,920/- as against the returned income of ₹ 1,23,236/-. 5. Aggrieved by the order passed by the AssessingOfficer dated 21.12.2009,the appellant preferred an appeal before the Ld ClT{A). The Ld ClT{A) deleted the addition made by the AssessingOfficer amounting to ₹ 11,03,680/- against cash deposit in the bank account. Aggrieved by the said order of the Ld ClT{A) the revenue is before us. 6. According to the Ld DR, AIR information was generated that the appellant had deposited a sum of ₹ 11,03,680/-in cash, in hisbank account maintained with ING Vyasya Bank, Delhi and when asked to explain the source of the said cash deposit in his bank account during the financial year 2006-07, the assesseereplied that he was the resident representative at Delhi for two outstation companies, namely SriVasari Industries Ltd (Head Office at Kolkata). and ETTextiles Ltd, (Head Office at Hyderabad) and does it's liaison and coordination work for ferro alloys and textiles; and in order to discharge duties funds are transferred by the companies as and when required for the expenditure on its behalf. However, Id DRpoints out that though the AssessingOfficer gave several opportun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e u/s 133(6) of the IT Act, 1961 to the branch operations service head, ING Vyasya Bank, Connaught Place where the appellant was maintaining the abovementioned account. Vide letter dated 18.11.2009, information was sent as under to the Assessing Officer. On perusal of this bank account, I find that the cash which was deposited on various dates into the account of the appellant is supported by the confirmation given by the authorized signatory of the above two mentioned companies wherein it was stated that the amount was eposi e y tFle companies into the account of the appellant for meeting the expenditure at Delhi as per the instructions given to him from time to time. The Assessing Officer did not appreciate the evidence filed by the appellant pertaining to the cash deposits in the bank account. The cash deposits in the bank account tallied with the AIR Information more or less and therefore no adverse inference should be drawn that this amount constituted an undisclosed income of the appel/ant when it is supported by a satisfactory evidentiary explanation. Inspite of making an enquiry from the bank authorities, the Assessing Officer did not give a clear finding nor brought an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aken note of the fact that the AssessingOfficer had issued a notice u/s 133(6)of the Act to the branch operations service head of the ING Vyasya Bank, Connaught Place, where the assessee was maintaining the abovementioned account vide letter dated 18.11.2009and the bank has confirmed in writing vide letter dated 18.11.2009 to the Id AssessingOfficer that no such deposit was made in the account of the assesseeon 31.03.2007 as reported by AIR.When the said reply was received from the bank that there was no such credit of ₹ 11,03,680/- on 31.03.2007 in the account No. 503010008101 of Shri K. Satyanarayana, (assessee), the Id Assessing Officer erred in making an addition of said sum of ₹ 11,03.680/- as against cash deposit in the bank account on 31.03.2007 on the basis of AIR, which has been categorically denied by the source of the AIR itself i.e. ING Vyasaya Bank. The Ld ClT(A) has found that the cash deposit was made on various dates into the account of the assesseeand the said deposits were supported by the confirmation given by the various signatories of both the companies, wherein, it was categorically stated that the amount was deposited by the companies into the acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m the assessee preferred an appeal before the Ld CIT(A) who allowed the appeal preferred by the assessee.The reason given by the Ld CIT(A) is as follows:- 7. In the present case, I find that the appellant has disclosed full faefs pertaining to his income in the return. He had neither concealed his income, nor furnished inaccurate particulars of his income. There was no finding by the Assessing Officer that the source of the cash deposits made by the appellant in his bank account were not bonafide. The deposits made by the two companies mentioned are above for their day to day running of the errand jobs like booking of the tickets, liasoning work with the raw materials etc does not need a maintenance of a full fledged office of the companies. Therefore, they engaged a Resident Representative on terms and conditions to executive such type of works. In other words, the mere fact that the deposit appeared in the bank account of the appellant and the addition of the same to his total income does not necessarily lead to the conclusion that the appellant is guilty of furnishing of inaccurate particulars of his income. The furnishing of inaccurate particulars relate to furnishing of fa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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