Sh. Shashi Kant Sharma, New Delhi v. ITO, New Delhi

This appeal by the assessee for the assessment year 2009-10 is directed against the order of learned CIT(A)-XXVIII, New Delhi dated 29th August, 2014.

2. The effective ground of appeal of the assessee reads as under:-

4 (i) On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the addition of Rs.2,75,000/- made by AO on account of cash deposits in bank.

(ii) That the addition has been confirmed by arbitrarily rejecting the explanation and evidences brought on record by the assessee.

3. Learned counsel for the assessee submitted that the assessee has filed statement of affairs before the Assessing Officer and the ITA-6750/Del/2014 2 learned CIT(A) which covers the deposits of the assessee with Neha Wudhlam Pvt.Ltd., Sarvodhya Veeners and Shree Ram Trading Co. He submitted that the assessee is an old income tax assessee with the department with opening capital and opening stock also. He referred to the copy of the relevant documents including the bank account of the assessee and also the statement of affairs and statement of accounts for the period ending 31.03.2009 filed in the compilation before the Tribunal.

4. Learned DR submitted that the assessee could not prove the source of cash deposit made by the assessee with the aforesaid three parties. She relied on the order of the Assessing Officer and the learned CIT(A).

5. I have considered the rival submissions and have perused the order of the AO and the learned CIT(A). I find that in the statement of affairs of the assessee for the relevant period, the deposits with the three debtor parties were clearly covered under the head loans and advances. The assessee being old income tax assessee with opening stock as well as opening capital, I find no basis to sustain the addition made by the Department on account of deposits of the assessee with the above mentioned three parties. Accordingly, the addition is deleted and the ground of appeal No.4 of the assessee is allowed.

6. In the result, the appeal of the assessee is allowed. Decision pronounced in the open Court on 8th September, 2015. Sd/- (G.C. GUPTA) VICE PRESIDENT ITA-6750/Del/2014 3 Copy forwarded to: -

1. Appellant : Smt. Sunita Sharma, 4/6, Desh Bandhu Gupta Road, Pahar Ganj, Delhi 110 055.

2. Respondent : Income Tax Officer, Ward-39(4), New Delhi.

3. CIT

4. CIT(A)

5. DR, ITAT Assistant Registrar