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ITO,Ward-44(1),New Delhi Vs. Ranbir Singh,S/o-Sh. Rishal Singh, House No.324,Vill. & P.O.-Pehladpur Nanger, Delhi
October, 10th 2014
                    DELHI BENCH: `F' NEW DELHI


                          I.T.A .No.-1454/Del/2013
                      (ASSESSMENT YEAR- 2008-09)

       ITO,                       vs Ranbir Singh,
       Ward-44(1),                   S/o-Sh. Rishal Singh, House No.324,
       New Delhi                     Vill. & P.O.-Pehladpur Nanger, Delhi
       (APPELLANT)                   (RESPONDENT)

                   Appellant by  Sh. Manoj Kumar Chopra, Sr. DR
                   Respondent by Sh. Amit Kumar, CA


      This is an appeal filed by the Revenue against the order dated 11.12.2012
of the CIT(A)-XXX, New Delhi pertaining to 2008-09 assessment year on the
following grounds:-
      1. "On the facts and in the circumstances of the case, the Ld. CIT(A) has
         erred in restricting the addition to Rs.3,27,626/- by taking the peak of
         credit as against addition of Rs.18,95,500/- made by the AO without
         analyzing the entire flow statement of the assessee.
      2. The appellant craves leave to add, alter, amend any ground(s) of appeal
         raised above at the time of the hearing."

2.    The relevant facts of the case are that the assessee declared an income of
Rs.3,00,450/- as salary from Airport Authority of India.            The return filed on
27.09.2008 was selected for scrutiny through CASS since as per the AIR
information the assessee was found to have deposited cash of Rs.30,70,500/- in a
Saving Bank A/c with Oriental Bank of Commerce, Pehladpur Banger Branch,
Delhi in the year under consideration. The assessee was required to explain the
same. The explanation by way in an affidavit that the amount was withdrawn to
                                              2                       I.T.A .No.-1454/Del/2013

lend money to his relatives and repayment of loans by them was deposited back in
the bank was not accepted. In view of the same the total amount of Rs.18,95,500/-
was treated as unexplained deposit and added to the income of the assessee. In
appeal before the First Appellate Authority it was contended that total cash
deposited cannot be treated as income from undisclosed sources. It was contended
that at best cash peak of Rs.2,86,500/- could be added in terms of the judgement of
the various High Courts:-

      (i)     CIT vs Vijay Agriculture Industries [2007] 294 ITR 0610;
      (ii)    CIT vs P.M.P Soundara Pandian and Bros [1983] 140 ITR 0385;
      (iii)   CIT vs Nurudin and Brothers [1990] 185 ITR 0481

3.    Considering the same the CIT(A) came to the following conclusions:-

      7.      "I have perused the assessment order, grounds of appeals, written
      submission and discussed the matter with the AR of the assessee very carefully.
      I am of the view that it could be unjustified if the full amount of Rs.18,95,500/-
      being total unexplained cash deposit as determined by the Assessing Officer is
      treated as the income of appellant. There is total withdrawal of Rs.47,11,000/-
      of cash from bank a/c during the F.Y.2007-08 and total cash deposit of
      Rs.30,70,500/-. The Assessing Officer has not considered the various amounts
      of withdrawals of dated 06.07.2007, 07.08.2007, 10.08.2007, 21.08.2007,
      25.09.2007 and 01.10.2007. Further the total unexplained cash deposit can
      not be treated as the income fo the assessee and only the amount of peak credit
      can be added as unexplained cash credit as also decided in various judgements
      submitted by the assessee. I attach the cash deposit/withdrawal analysis of
      bank a/c for ready reference. From this analysis, O.B. of Rs.41,126/- and cash
      peak credit of Rs.2,86,500/- are required to be added to the income of
      appellant. The appellant received compensation against land acquisition by
      Delhi Govt. in F.Y. 2004-05. In order to run his family, he invites this money
      on money lending/ such type of business where extra income in the form of
      interest is received. To give justice to revenue, I add Rs.30,000/- as extra
      income on estimate basis."

4.    The Ld. Sr. DR places reliance upon the assessment order. Ld. AR of the
assessee relying upon the impugned order made a specific reference to page 2 of
the Paper Book which contains the calculation sheet of cash peak on the basis of
which it was requested that peak credit at best could have been added. Referring to
assessment order it was submitted that the statement showing cash deposited and
cash withdrawn has been reproduced by the AO in the order itself as such on the
                                         3                   I.T.A .No.-1454/Del/2013

specific amounts    withdrawn and deposited all facts are available on record.
Heavy reliance was placed upon the impugned order on the basis of which it was
submitted that the department's appeal be dismissed.
5.    We have heard the rival submissions and perused the material available on
record. On a consideration thereof, we find that nothing has been placed before us
to show that the calculation of the peak credit on the facts is incorrect and for that
matter that why in the peculiar facts and circumstances the case peak amount
should not have been considered. We also find that apart from the peak amount of
Rs.2,86,500/- the CIT(A) has also sustained the addition of O.B. of Rs.41,126/-
and Rs.30,000/- as extra income from running the money lending business out of
the compensation, received in Financial year 2004-05 assessment year. Being
satisfied by the reasoning and finding, the same is upheld in the absence of any
cogent arguments on facts and law to the contrary, the departmental appeal is
6.    In the result the appeal of the department is dismissed.
      The order is pronounced in the open court on 19th of September 2014.

      Sd/-                                                          Sd/-
(J.S.REDDY)                                                     (DIVA SINGH)
ACCOUNTANT MEMBER                                          JUDICIAL MEMBER

*Amit Kumar*

Copy forwarded to:
1.   Appellant
2.   Respondent
3.   CIT
4.   CIT(Appeals)
5.   DR: ITAT
                                                        ASSISTANT REGISTRAR
                                                              ITAT NEW DELHI
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