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TMI Blog2021 (5) TMI 249X X X X Extracts X X X X X X X X Extracts X X X X ..... hat justice should not only be done but also seen to be done. The inordinate reliance placed upon the depositing slip which to the naked eyes of the AO or the tax authorities appears to be of the assessee without caring to subject it to forensic examination is an act of gross carelessness and an irresponsible lapse of procedure and an unfortunate example of whimsical and arbitrary exercise of power. In these peculiar facts and circumstances, the order which is a prime example of gross carelessness and abuse of power reeking of multiple failures and exhibiting continued lapse of fair dispensation of justice raising many a question on the whimsical biases of the tax authorities I hope is an aberration and not a norm. It brings out the department's helplessness in not addressing the facts and possible connivance and definite abuse of power by the beneficiary account holder who the tax authorities deem it necessary to shelter. The fact that the assessee has consistently alleged connivance of the bank authorities coupled with the fact that the currency details and lack of PAN details of the depositor evident on record remain unrebutted on record by the tax authorities cannot be allo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee's Saving Bank account No. 0660000100036648 maintained with Punjab National Bank, Fatehpur an addition of ₹ 27 lacs was made by the AO. 4. The assessee challenged this addition before the CIT(A) stating that the amount had not been deposited by him. The deposits were stated to be deposits unauthorized by the assessee. Considering possibly the narrations in the bank account, it was submitted that probably some Bank personnel misused the assessee's bank account by depositing the cash amount by way of a single voucher. It was pointed out that while accepting the deposit, the Bank officials did not record the details of the specific currency denominations being deposited and also failed to record the details of the address, PAN etc. of the depositor. It was pointed out that the cash deposits were accepted without following these protocols. A perusal of the impugned order shows that it was stated that; The cash deposit slip dt. 31.12.2010. Pg. 2 obtained ' from PNB Bank during assessment proceedings submitted before AO clearly mentions' that there is a single cash deposit slip of ₹ 27,00,000/- without any details of currency without any address of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Book page 9 requesting the said authority to also make an enquiry regarding unauthorized deposit and withdrawal of amount from his bank account. 4.4. The lack of PAN detail of the person depositing the money was also highlighted. 4.5. The assessee as per record also requested the tax authorities to make enquiry about the real owner/beneficiary of the said transactions. 5. It is seen that the First Appellate Authority instead relying upon the remand report of the AO extracted in para 3.2 of the impugned order at pages 5 6 confirmed the addition in the hands of the assessee. The specific Remand report extracted in the order reads as under: 2. In this connection, brief facts are that the case of the assesses was taken into scrutiny by issue of notice u/s. 148 of the I.T. Act, 1961 to examine the source of cash deposit of ₹ 35,90,000/- made during the F.Y. 2010-11 in his bank account maintained with Punjab National Bank, Village Fatehpur, Distt. Kaithal. In response to notice u/s. 148, the assessee filed return of income declaring income of ₹ 1,52,000/-. 3. During the course of assessment proceedings, it was required to explain the source of cash depos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is under question mark? Keeping in view of the above, it can be concluded that the addition was made by the A.O. on merits taking into consideration the bank account statement where it clearly reflected that the cash of ₹ 27,00,000/- has been deposited during the F.Y. 2010-11 relevant to the Asstt. Year 2011-12 into the bank account of the assessee. (emphasis supplied) 6. The assessee, in response to the AO's remand report, as per pages 6 7 of the impugned order is found to have submitted that the Manager of the specific bank summoned by the AO claimed that having joined the specific branch on 04.02.2019, he had no knowledge. Thus, demonstrating that an erroneous factor has been relied upon to hang the albatross round the neck of the assessee. 6.1. The assessee is found to have also stated that the specific bank account No. 0904000210151272 belonged to Shri Pawan Kumar Gupta, Bank Manager of Punjab National Bank, Pundri and the mischief was done by the said Manager. 6.2. The relevant extract of the submission is extracted in the order are reproduced hereunder for ready reference: ...The applet had categorically mentioned in his submission that n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... specific bank account No. 0904000210151272 stated to belong to erstwhile Manager Shri Pawan Kumar Gupta remain unrebutted. These facts, if correct, squarely support the assessee's claim. The ld. Sr. DR was specifically questioned on these. However, in the absence of any relevant discussion by the tax authorities thereon, he could say nothing now. 9. Accordingly, after hearing the ld. Sr. DR and considering the material available on record noting extreme dis-satisfaction and disappointment in the manner in which the tax authorities have functioned, I record my dissatisfaction on the extreme lack of responsibility exhibited in acting fairly and impartially vis- -vis a common man completely in disregard to the constitutional mandate to bring only just and due taxes to the coffers of the State. For the reasons to be set out hereinafter, I deem it fit and appropriate to set aside the impugned order. It is my pained duty to record the abuse of the trust reposed in the fairness of the tax officials as evident from the record. The officers are expected to exercise the vast powers vested by the State impartially and fairly. In the absence of reliable and irrefutable evidence failing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and an unfortunate example of whimsical and arbitrary exercise of power. In these peculiar facts and circumstances, the order which is a prime example of gross carelessness and abuse of power reeking of multiple failures and exhibiting continued lapse of fair dispensation of justice raising many a question on the whimsical biases of the tax authorities I hope is an aberration and not a norm. It brings out the department's helplessness in not addressing the facts and possible connivance and definite abuse of power by the beneficiary account holder who the tax authorities deem it necessary to shelter. The fact that the assessee has consistently alleged connivance of the bank authorities coupled with the fact that the currency details and lack of PAN details of the depositor evident on record remain unrebutted on record by the tax authorities cannot be allowed to remain ignored. In the facts as they stand unless these assertions are rebutted by cogent evidence, the assessee appears to have a claim which cannot be easily discarded. 11. Since there is no finding on the correctness of these assertions, the matter is remanded back with the direction to pass a speaking order in ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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