DCIT, Jaipur v. SHRI MAHESH DANGAYACH,, Jaipur

ITA 2/JPR/2011 | 2005-2006
Pronouncement Date: 02-09-2011 | Result: Dismissed

Appeal Details

RSA Number 223114 RSA 2011
Bench Jaipur
Appeal Number ITA 2/JPR/2011
Duration Of Justice 7 month(s) 30 day(s)
Appellant DCIT, Jaipur
Respondent SHRI MAHESH DANGAYACH,, Jaipur
Appeal Type Income Tax Appeal
Pronouncement Date 02-09-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 02-09-2011
Assessment Year 2005-2006
Appeal Filed On 03-01-2011
Judgment Text
1 ITA 2-11 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH A JAIPUR. ( BEFORE SHRI R.K. GUPTA AND SHRI N.L. KALRA ) ITA NO. 2/JP/2011 ASSTT. YEAR : 2005-06. THE ACIT CENTRAL CIRCLE-2 VS. SHRI MAHESH KUMAR DANGAYACH JAIPUR. NATWARA HOUSE AJMER ROAD JAIPUR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI D.K. MEENA RESPONDENT BY : NONE (NOTICE RETURNED UNSERVED) DATE OF HEARING : 18.8.2011 DATE OF PRONOUNCEMENT : 02.09.2011. ORDER DATED : 02/09/2011. PER R.K. GUPTA J.M. THIS IS AN APPEAL BY DEPARTMENT AGAINST THE ORDER OF LD. CIT (A) RELATING TO ASSESSMENT YEAR 2005-06. 2. THE DEPARTMENT IS OBJECTING IN DELETING THE ADDI TION OF RS. 6 74 000/- MADE ON ACCOUNT OF UNEXPLAINED CASH DEPOSIT IN THE BANK. 3. THE LD. D/R HAS PLACED RELIANCE ON THE ORDER OF A.O. 4. ON THE OTHER HAND NONE APPEARED ON BEHALF OF THE ASSESSEE. THE APPEAL IS BEING DISPOSED OFF AFTER HEARING THE LD. D/R AND CONSIDER ING THE ORDERS OF THE AO AND LD. CIT (A). 2 5. A SEARCH AND SEIZURE OPERATION WAS CARRIED OUT I N THE ASSESSEE GROUP IN JANUARY 2004 AND THEREAFTER ASSESSEE MOVED TO SETTLEMENT CO MMISSION AND IN THE PROCESS OF CONSULTATION WITH DIFFERENT COUNSEL MEANWHILE COMP LETE DATA WERE ERASED FROM THE COMPUTER AND BASIC DOCUMENTS WERE ALSO MISPLACED. ACCORDINGLY ASSESSEE COULD NOT PREPARE THE BOOKS OF ACCOUNTS FOR THE YEAR UNDER CO NSIDERATION. THE AO EXAMINED FULL DETAILS OF THE ASSESSEE AND HAS PREPARED THE TABLE OF CASH DEPOSITS AND CASH WITHDRAWALS FROM 26.5.2004 TO 12.8.2004. THE AO NOTED THAT DUR ING THIS PERIOD TOTAL DEPOSIT WAS RS. 12 74 000 AND WITHDRAWAL WAS ONLY RS. 6 00 000/-. T HE EXCESS CASH AMOUNT OF RS. 6 74 000/- WAS DEPOSITED BY THE ASSESSEE IN THE BAN K. THE PRINT OUT OF THE CASH FOR THE RELEVANT PERIOD WAS SUBMITTED AND IT WAS SUBMITTED THAT THERE WAS OPENING CASH BALANCE OF RS. 11 41 000/-. THE AO DID NOT ACCEPT THE OPENI NG CASH BALANCE AND MADE AN ADDITION OF RS. 6 74 000/- BEING UNEXPLAINED CASH DEPOSIT IN THE BANK ACCOUNT. DETAILED SUBMISSIONS WERE FILED BEFORE LD. CIT (A) AND THE C ONTENTIONS RAISED BEFORE AO WERE REITERATED. 6. AFTER CONSIDERING THE DETAILS THE LD. CIT (A) F OUND THAT THIS IS NOT A CASE OF ADDITION ON ACCOUNT OF UNEXPLAINED CASH DEPOSIT AS THERE IS AN OPENING BALANCE OF MORE THAN RS. 11 LACS. ACCORDINGLY THE LD. CIT (A) DELET ED THE ADDITION. FINDINGS OF LD. CIT (A) HAVE BEEN RECORDED IN PARA 3.3 AT PAGE 3 OF HIS ORDER ARE AS UNDER :- 3.3. I HAVE CONSIDERED THE SUBMISSION OF THE A.R AND HAVE PERUSED THE ASSESSMENT ORDER. ON PERUSAL OF THE CO PY OF BANK ACCOUNT FILED BEFORE THE A.O. AND NOW FILED BEFORE ME ALSO THE CLAIM OF THE APPELLANT OF HAVING CASH WITHDRAWALS O F RS. 6 LAKHS AND RS. 5 52 372/- ON 17.4.04 AND 28.4.04 IS FOUND TO BE CORRECT. ON FURTHER PERUSAL OF THE BANK ACCOUNT IT IS SEEN THAT THERE ARE NO CASH DEPOSITS FROM 1.4.04 TO 25.5.04. THE DEPOSITS AND 3 WITHDRAWALS FOR THE LATER PERIOD HAS ALREADY BEEN C ONSIDERED BY THE A.O. THUS IT IS CLEAR THAT AFTER CONSIDERING THES E TWO WITHDRAWALS TOTALING RS. 11 52 372/- CASH WITHDRAWALS ARE MORE THAN THE CASH DEPOSITS. ACCORDINGLY THE ADDITION SO MADE BY THE A.O. CONSIDERING CASH DEPOSITS BEING MORE THAN CASH WITH DRAWALS (TO THE EXTENT OF RS. 6 74 000/-) DOES NOT SURVIVE AND IS T HEREFORE DELETED. THESE FINDINGS REMAINED UNCONTROVERTED THEREFORE WE SEE NO REASON TO INTERFERE WITH THE FINDINGS OF LD. CIT (A). 7. IN THE RESULT APPEAL OF THE DEPARTMENT IS DISMI SSED. 8. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 02. 09.2011. SD/- SD/- ( N.L. KALRA ) ( R.K. GUPTA ) ACCOUNTANT MEMBER JUDICIAL MEMBER JAIPUR D/ COPY FORWARDED TO :- THE ACIT CENTRAL CIRCLE-2 JAIPUR. SHRI MAHESH KUMAR DANGAYACH JAIPUR. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 2/JP/2011) BY ORDER AR ITAT JAIPUR.