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ITO, Ward 37(2), New Delhi Vs. Mrs. Kanwal Aggarwal, P-8, Green Park Extn., New Delhi-110 016
May, 15th 2015
               (DELHI BENCH `D ', NEW DELHI)

                    I.T.A. No.6210 /Del/2013
                   Assessment year : 2010-11
ITO, Ward 37(2),           Vs.        Mrs. Kanwal Aggarwal,
New Delhi                             P-8, Green Park Extn.,
                                      New Delhi-110 016
                                      GIR / PAN:AAAPA4819R

          (Appellant)                          (Respondent)

                   Appellant by :      Shri t. Vasanthan, Sr. DR
                   Respondent by :     Shri Adesh Kumar Jain, CA

      Date of hearing       :          11.05.2015
      Date of pronouncement :          13.05.2015



      This is an appeal filed by Revenue against the order of Ld. CIT(A)
dated 20.09.2013. The Revenue has taken 4 grounds of appeal. However,
the crux of grievance of the revenue is the action of Ld. CIT(A) by which he
had deleted the addition of Rs.18 lacs which was made by A.O. on account
of deposits by assessee in her bank account.
2.    The brief facts of the case are that the assessee is a partner in the firm
namely S P Aggarwal Dental and Ortho. and is engaged in the profession of
providing dental services. During the year under consideration, the assessee
declared her remuneration from the firm as her income besides interest and
rental income. During assessment proceedings, the A.O. observed that on
                                     2               ITA No.6210/Del/2013

various dates, the assessee had deposited cash in her bank account
amounting to Rs.18.08 lacs. The assessee was show caused to explain the
source of deposits of cash.   She explained that as on 31.03.2009 she had
cash balance of Rs.17,46,113/- in hand and had also earned rental income of
Rs.1,08,000/- during the year. However A.O. did not accept the contention
of assessee as the assessee failed to produce books of accounts maintained
by assessee. She submitted that she was not in a position to submit books of
accounts as her accounting records were maintained by C.A. and due to
some dispute, he was not handing over the required books of accounts.
Therefore, the A.O. made the addition of Rs.18 lacs as her explanation was
3.    Aggrieved, the assessee filed appeal before Ld. CIT(A) and reiterated
her contention that in the earlier year, she was practicing as individual and
her books of accounts were audited u/s 44AD and the balance sheet
contained Rs.17,46,113/- as closing balance of cash in hand as on
31.03.2009. Assessee further submitted that Rs.1.08 lacs was deposited in
her bank account out of rental income. Ld. CIT(A) deleted the addition by
holding as under:
        "5.1 I have carefully considered the assessment order and
        submissions thereof. The facts of the case as per assessment order
        are that the assessee had deposited cash amounting to
        RS.18,08,000/- in the bank. The A.R. of the assessee was unable to
        explain the source of cash deposited in the bank account. It was
        simply claimed that the cash was deposited out of opening cash in
        hand available with the assessee, but the assessee failed to produce
        relevant records i.e. supporting ledger/register or form 3C. The
        Assessing Officer treated the amount as unexplained deposit and
        added it under section 68 of the Act. the preceding previous year,
        has not been questioned by the department. As per the audit report
        there is closing cash in hand of Rs.17 ,46,113/-. There is nothing on
                                      3               ITA No.6210/Del/2013

        record to show that this cash has been utilized in any other activity.
        Further the appellant has also shown Rs.1,08,000/- as rental
        income in her return. Keeping in view these two sources, the
        vailability of cash of RS.18,00,000/- in her hands cannot be
        doubted. In case the Assessing Officer is not convinced about the
        availability of closing cash in hand, as on 31.03.2009, appropriate
        action may be taken in the relevant year. The addition is deleted.

4.    Aggrieved, the Revenue is in appeal before us. At the outset, Ld.
D.R. submitted that Ld. CIT(A) has accepted the contention of assessee
without verifying the books of accounts of assessee and simply on the basis
of audited accounts accepted the plea of assessee regarding cash in hand.
5.    Ld. A.R. on the other hand submitted that assessee was practicing in
her individual name for the year ended 31.03.2009 and her books of
accounts were also audited and copy of audit report along with copy of
balance sheet was filed with the A.O. as well as Ld. CIT(A). He submitted
that in the balance sheet as on 31.03.2009, there was closing balance of cash
in hand at Rs.17,46,113/-. In support of his contentions he filed copy of
balance sheet along with P & L account and audit report and on the basis of
these documents he submitted that there was cash balance in hand and
argued that source of deposits in the bank account was totally explained
6.    We have heard rival parties and have gone through the material placed
on record. We find that the assessee in the earlier year was practicing as
dental surgeon in her individual capacity. A copy of balance sheet filed by
Ld. A.R. clearly shows cash in hand of Rs.17,46,113/-. During earlier year
the assessee had also shown a profit of Rs.13,94,113/- which is apparent
form income and expenditure account as on 31.03.2009. The A.O. without
referring to earlier year income tax return, made addition, which Ld. CIT(A)
has rightly deleted as the deposits of cash in the year under consideration is
                                           4            ITA No.6210/Del/2013

duly explained by opening balance of cash in hand as on 01.04.2009.
Further, the assessee had declared rental income of Rs.1,08,000/-. The
income declared by assessee in earlier year amounting to Rs.13,94,113/- is
enough to justify cash in hand as on 31.03.2009. Therefore, we do not find
any infirmity in the order of Ld. CIT(A). Therefore, appeal filed by revenue
is dismissed.
7.       In view of above, appeal filed by revenue is dismissed.
8.       Order pronounced in the open court on 13th May, 2015.
         Sd./-                                                         Sd./-
 ( G. C. GUPTA)                                 (T.S. KAPOOR)
Date: 13.05.2015
Copy forwarded to:-
   1. The appellant
   2. The respondent
   3. The CIT
   4. The CIT (A)-, New Delhi.
   5. The DR, ITAT, Loknayak Bhawan, Khan Market, New Delhi.
True copy.
                                                     By Order
                                                  (ITAT, New Delhi).
S.No.                      Details                Date      Initials   Designation
  1       Draft dictated on                         11/5                Sr. PS/PS
  2       Draft placed before author                11/5                Sr. PS/PS
          Draft proposed & placed before the
     3                                                                   JM/AM
          Second Member
          Draft discussed/approved by Second
     4                                                                   AM/AM
     5    Approved Draft comes to the Sr. PS/PS   13/5/15               Sr. PS/PS
     6    Kept for pronouncement                     13/5               Sr. PS/PS
     7    File sent to Bench Clerk                   13/5               Sr. PS/PS
          Date on which the file goes to Head
 9        Date on which file goes to A.R.
 10       Date of Dispatch of order
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