Assessee held duty bound to explain sources for deposits as bank in his name.

Facts in Brief:

1. Assessee is a director of M/s. Chatterjee Cold Storage (P) Ltd.

2. In assessment proceedings u/s. 143(3) (of Income Tax Act, 1961), AO found from the enquiry that bank account was not disclosed by the assessee in his balance sheet.

3. AO held said cash deposits as unexplained cash credit u/s. 68 (of Income Tax Act, 1961).

4. On appeal CIT(A) confirmed it.

On appeal ITAT held,

5. We find that at the outset, we find that the bank statement as forwarded by the Indian Bank is in the name of Shri Prasanjit Chatterjee, the assessee herein, which is enclosed from pages 1-2 of the assessee's paper book.

6. Further, the said bank account [bearing no. 828857329] was opened in favour of Chatterjee Cold Storage (P) Ltd., Bankura.

7. This creates a basic discrepancy on the facts as to whether the bank account was opened is in the name of the assessee or in the name of M/s. Chatterjee Cold Storage (P) Ltd.

8. This requires verification by the ld.AO. In these facts and circumstances, we deem it fit and appropriate, in the interest of justice and fair play, to set aside this issue to the file of the ld.AO to verify the discrepancy regarding the fact that in whose name the bank account was opened and to decide the issue afresh.

9. The assessee is directed to co- operate with the set aside proceedings before the ld.AO by placing real facts in this regard. If it is proved that the bank account is in the name of the assessee, the assessee is duty bound to explain the sources for the deposits made in the said bank account of the assessee.  

Case Reference- Income Tax Appellate Tribunal - Kolkata Prasanjit Chtterjee, Kolkata vs Assessee