. . , , disposed of earlier exparte when by way of Misc. Petition the appeal was recalled for hearing afresh.

2. The learned Counsel of the assessee initiating his arguments submitted the brief facts on the basis of which the matter was considered exparte by the Tribunal and was also recalled for hearing afresh insofar as the material fact that has been brought on record by the Assessing Officer for making addition on the basis of deposits in the bank have not been correlated to the expenditure incurred insofar as the Assessing Officer has isolated the amount for taxation which amounts have already been suffered tax or has been not taxable at all insofar as the learned CIT(A) has merely sustained the addition as made by the Assessing Officer which requires a I.T.A.No. 92/CTK/2012 2 look afresh insofar as the receipts from the assessees sons were to be verified as are now being furnished.

2.1. He continued that the assessee is a retired Government Servant, was in judicial service, after his retirement is in legal profession as an Advocate for some Government Organizations like OSDMA and OMC, Bhubaneswar. That the appellants two sons are also well up in their services in USA. For the assessment year 2006-07 under consideration, the assessee filed his return of income on a total income at Rs.1,33,832. The case was selected for scrutiny u/s. 143(2) of the I.T. Act. During the course of assessment proceeding u/s.143(3) the Assessing Officer found out that in the two bank accounts of the assessee i.e., in SBI and Andhra Bank, Rs.16,99,452 was credited, out of which cash deposit amounting to Rs.7,85,875 and cheque clearing and transfer amounting to Rs.9,13,577. As regards the cash deposit of Rs.7,85,875.00, the assessee explained that those cash deposits are from his two sons contribution towards the family, contribution of parents in law who are also staying with the assessee jointly and some amount has also been inter-transacted between the banks, also the past saving of the assessee. But the Assessing Officer disbelieved the same and erroneously made addition of Rs.71,875 and Rs.29,000 in the hands of the assessee, so also disbelieved the contribution of sons towards the family as both of the sons are in service in USA. Further the Assessing Officer disallowed travelling allowances claimed by the assessee for conducting cases of OMC at different places of Odisha mostly located at Keonjhar, Champua, Rourkela and Koraput, which are far away from the Head Quarters of the assessee. As such for conducting cases there in those remote areas, the expenses towards travelling and conveyance is more in comparable to the nearby local area. I.T.A.No. 92/CTK/2012 3 The Assessing Officer without considering the explanations has completed the assessment by making various additions.

2.1. Aggrieved, the assessee appealed before the first appellate authority before whom on different dates, three written submissions were filed along with the supporting documents but the learned CIT(A) disposed the appeal in the similar fashion like the assessing officer without considering the explanation and documents and hence, the assessee is in the present appeal before the Tribunal.

2.2. The learned Counsel of the assessee submitted that the addition of two sons contribution amounting to Rs.3,20,000 and Rs.1,20,000 by ignoring their financial positions, is without any basis. He submitted that at the time of the assessment and first appeal stage the salary certificates of the two sons were produced/filed which clearly establish the creditworthiness of the sons. Further, he submitted that the additions of alleged unexplained credit is also equally erroneous for the reason that the assessee is not doing any business and prior to his profession he was in judicial service about more than 30 Years. All the family members of the assessee are self supported not dependent on the income of the assessee, rather they are contributing substantial amount to the assessee for maintenance of the joint family which has been routed through the bank accounts of the assessee. Further those credits of the amounts in the bank pass books, which cannot be regarded as books of accounts of the assessee that is maintained by him under his instructions. For this proposition he placed reliance on the decision in the case CIT Vs. Bhaichand H Gandhi (1983) 141 ITR 67(Bom.) . The learned Counsel of the assessee further contended that the disallowances of TA expenses and excess depreciation are without any basis and consideration of explanation offered. I.T.A.No. 92/CTK/2012 4 He further contended that the addition of cash deposit amounting to Rs. 29,000 and Rs.10,000 are completely on erroneous finding by the Assessing Officer as well as the learned CIT(A).

2.3. In view of the above and particularly the impugned additions having been made by the Assessing Officer and sustained by the learned CIT(A) without considering the explanation of the assessee as well as the evidence produced in support thereof, the learned Counsel of the assessee prayed for restoration of the matter to the file of the Assessing Officer for consideration afresh in the light of the evidences produced by the assessee in support of his explanation.

3. The learned DR objected to the prayer of the learned Counsel of the assessee for restoration of the issues to the file of the Assessing Officer for consideration afresh in view of the fact that the assessee was required to furnish explanations which remained incomplete insofar as the Assessing Officer has brought on record the items being the deposits in the bank were not explained either having suffered tax or were not to be taxed in the first place. He submitted that the Assessing Officer therefore, has categorically given a finding that these amount only to be considered in the hands of the assessee which require to be taxed in the impugned Assessment Year. He prayed that the order of the learned CIT(A) be confirmed.

4. We have heard the rival submissions and perused the impugned orders of the authorities below and the material available on record. The submissions of the learned Counsel for the assessee as above do require consideration afresh by the Assessing Officer for the simple reason that non-taxable receipts cannot be taxed and furthermore disallowances of expenses from non-taxable receipts cannot be taxed as it would lead to double taxation. Furthermore deductions statutory I.T.A.No. 92/CTK/2012 5 allowable cannot be taxed on the finding by the Assessing Officer of them held as assets under Section 69. In view of the above, we find the contention of the learned Counsel of the assessee appropriate that the issues require reconsideration by the Assessing Officer afresh in the light of evidence produced by the assessee and pass necessary consequential order in accordance with law, after giving proper opportunity of being heard to the assessee.

5. In the result, the appeal of the assessee is allowed for statistical purposes. Sd/- Sd/- (... ), (K.S.S.Prasad Rao), Judicial Member (. . ), , (K.K.Gupta), Accountant Member. ()Date: 04.01.2013 - Copy of the order forwarded to:

1. / The Appellant : Manas Ranjan Mohanty, Plot No.1217, Bomikhal,P.O.Rasulgarh Bhubaneswar 10. 2 / The Respondent: Income-tax Officer, Ward 1(1), Bhubaneswar.

3. /The CIT,

4. ( )/The CIT(A),

5. /DR, Cuttack Bench

6. Guard file. /True Copy, / By order, ( ), (H.K.Padhee), Senior.Private Secretary. I.T.A.No. 92/CTK/2012 6 APPENDIX XVII SEAL TO BE AFFIXED ON THE ORDER SHEET BY THE SR. P.S./P.S. AFTER DICTATION IS GIVEN

1. Date of dictation 03.01.2013.

2. Date on which the typed draft is placed before the Dictating Member 03.01.2013Other Member .

3. Date on which the approved draft comes to the Sr. P.S./P.S.

4. Date on which the fair order is placed before the Dictating Member for pronouncement....

5. Date on which the fair order comes back to the Sr. P.S./P.S .

6. Date on which the file goes to the Bench Clerk 04.01.2013

7. Date on which the file goes to the Head Clerk ..

8. The date on which the file goes to the Assistant Registrar for signature on the order ................

9. Date of Despatch of the Order ..