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ITO Ward -35 New Delhi. Vs. Shri Vipin Aggarwal (4), 6/104, Gali No. 4,60ft. Road Viswas Nagar, Delhi 110032.
January, 30th 2014
                 DELHI BENCH: `H' NEW DELHI


                           I.T.A. No. 3147/Del/2010
                          Assessment Years: 2006-07

ITO                                    Vs.            Shri Vipin Aggarwal
Ward -35 (4),                                         6/104, Gali No. 4,,
New Delhi.                                            60ft. Road
                                                      Viswas Nagar, Delhi
                                                      PAN: ADIPA4540N

(APPELLANT)                                           (RESPONDENT)

                    Revenue by: Ms. Nidhi Srivastava, Sr.DR.
                    Assessee by: None



      This appeal by the revenue directed against the order of ld. CIT

(Appeals), dated 29.01.2009 and pertains to AY 2006-07.

2.    The issue raised is that ld. CIT (A) erred in holding that the amount of

cash deposited by the assessee, represents turnover of the assessee on

account of purchase / sale of cloth.
                                     2              I.T.A. No. 3147/Del/2010

3.    In this case information was received as per AIR Information that

assessee has deposited cash of Rs.51,48,600/- in IDBI Bank. In this regard

AO noted that assessee has shown income from business and profession

amounting to Rs.75,450/- on sale of Rs.8,65,480/-. He has also shown salary

income of Rs.62,129/-. Enquiry was made by the AO regarding cash deposit.

In this regard assessee made the following reply to the AO:

            "Regarding cash deposit in the bank account with the
            IDBI bank, it may be noticed from the bank statement
            that there is deposit in cash and simultaneously cash
            withdrawals. It is the same cash which is being
            circulated time and again.
            This activity of depositing cash and simultaneously
            withdrawal is attributed to the mental depression and
            unstable mind of the assessee, who found the mode of
            depositing cash and its withdrawals as self sooting and
            giving a feeling that he is actively associates with the
            bank and business.
            A perusal of the bank statement will show that the peak
            credit at a given time after taking credit for the opening
            balance as on 01.04.2005 was never more than
            The said sum of Rs.1,50,000/- also represents monetary
            help received from relatives as an act of kind gesture to a
            terminal patience.
                                      3               I.T.A. No. 3147/Del/2010

            However without prejudice and not admitting the same
            as income for the year, the assessee in order to buy peace
            of mind with the deptt offer the said sum of Rs.1,50,000/-
            for taxation and as such surrender the same. In view of
            this it is further requested that the return filed originally
            may be treated as revised accordingly."
4.    AO was not satisfied with the above. He noted that cash deposit was

made in this account from 15 towns all over India from different dates hence

he did not believe the assessee's submission. AO concluded as under:

            "After consideration of surrender of Rs.1,50,000/- by the
            assessee and retail sale amount as declared in ITR of the
            assessee a sum of Rs.41,33,120/- [Rs.51,48,600/- ­
            (Rs.1,50,000/- + Rs.8,65,480/-)] is added to the income
            of the assessee as unexplained cash u/s 69A of the I.T.
            Act in addition to surrender amount of Rs.1,50,000/-
            which is considered and added to the income to the
            assessee separately."
5.    Against the above order assessee appealed to the ld. CIT (A). There

the assessee submitted that the said deposits were sale proceeds of goods (all

cloths sent outside) and the parties to whom goods were sold deposited the

amount in cash at their stations in IDBI Bank and same was again withdrawn

by the assessee for fresh purchases. It was submitted that this submission

was made to the AO. It was also submitted that similar deposits were there

in the subsequent assessment year and the AO has accepted the assessee's
                                        4            I.T.A. No. 3147/Del/2010

version that those are turnover and assessed the profit at 5%. Ld. CIT (A)

accepted the above contention. He directed the AO to delete the addition and

directed to assess at Rs.2,14,156/- being 5% on turnover of Rs.42,83,120/- in

the returned income of Rs.1,06,800/-.

6.    Against the above order revenue is in appeal before us.

7.    We have heard the ld. DR None appeared on behalf of the assessee

despite sufficient notices. In our considered opinion the matter can be

disposed off by hearing the ld. DR and perusing the records.

8.    Ld. DR submitted that assessee had submitted before the AO that

assessee was under mental constraint and he used to deposit cash and make

withdrawal from the bank. However, before the ld. CIT (A) assessee has

made totally different submission that the deposits were his turnover from

the business. In this background the ld. DR submitted that the matter may be

remitted to the file of the AO so that he can examine this version of the


9.    We have carefully considered the submission. We find that assessee

has made totally different submissions before the AO and ld. CIT (A). Ld.

CIT (A) has accepted the assessee's version without giving the AO an

opportunity to go through this new submission. We find that interest of

justice will be served if the matter is remitted to the file of the AO. The AO
                                     5             I.T.A. No. 3147/Del/2010

is directed to consider the issue afresh in light of the submissions made

before the ld. CIT (A). Needless to add assessee should be grated adequate

opportunity of being heard.

10.     In the result, this appeal filed by the revenue stands allowed for

statistical purposes.

        Order pronounced in the open Court on 22/01/2014

              Sd/-                                      Sd/-

   ( A.T. VARKEY )                             (SHAMIM YAHYA)
JUDICIAL MEMBER                            ACCOUNTANT MEMBER
Dated: 22/01/2014

Copy forwarded to:
1. Assessee
2. Respondent
3. CIT
4. CIT(Appeals)

                                                  ASSISTANT REGISTRAR
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