2010 (7) TMI 787

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....D/2009 for the assessment year 2000-01: "1.  Whether on the facts and in the circumstances of the case, the Hon'ble ITAT is justified in deleting the addition of Rs. 7,72,837/- made on account of unexplained credit in the bank account of the assessee.  2.  Whether on the facts and in the circumstances of the case, the Hon'ble ITAT is justified in deleting the addition of Rs. 6,50,000/- made on account of unexplained investment in making advance to Sh. Surjit Singh." 2. On the basis of an intimation that the assessee was having unexplained deposits in her bank account, amounting to Rs. 7,72,837/-, and further, she failed to explain the source of advances in the sum of Rs. 12,50,000/-, given to Surjit Singh, Sharanjit Kaur a....

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....round that the assessee had not explained the source of that sum that was shown to have been advanced to Surjit Singh and two others. As noticed earlier, the CIT (A) deleted the addition of the entire sum of Rs.7,72,837/- which had been found to be an unexplained credit in the bank account of the assessee, and deleted further addition of Rs. 6,50,000/-, out of the sum of Rs. 12,50,000/- which had been observed to be an investment by the assessee from unexplained sources. The finding of the Assessing Officer was consequently reversed to that extent. 6. The Tribunal put its seal of affirmation on the order of the CIT (A). While dealing with the challenge to the addition in the sum of Rs. 7,72,837/-, the Tribunal, in para 2 of its judgment, r....

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.... on account of maturity of certain policies from Peerls Green Forest Ltd., New Delhi. The amounts are shown to be received by cheque as per the copy of bank account itself. Therefore, this contention of the appellant being verifiable from the record is to be accepted. It is further seen that the premium whatsoever paid in respect of these policies was paid during the period earlier to the period relevant to assessment year under consideration. Though it is shown that these policies were originally purchased by Shri Shad Nicklas, a paternal uncle to the appellant, and that the premium whatsoever were paid by him, without going into this aspect of the case even if the sources of the same are taken to be explained, the adverse inference could ....

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....t No. 121 vide cheque No. 31306 dated 6.4.1999 and 10.5.1999 respectively. Even otherwise, it is not the case that the learned first appellate authority blindly accepted the contention of the assessee rather wherever he was not satisfied, he has not accepted the explanation extended by the assessee, therefore, we have not found any infirmity in the impugned order, on this issue also, consequently this ground is dismissed." 8. Learned counsel for the Revenue submitted that the Tribunal was in error in upholding the deletion of Rs. 7,72,000/-made by the CIT(A) on account of unexplained deposit to the income of the assessee. It was argued that the finding recorded by the CIT (A) and affirmed by the Tribunal that a sum of Rs. 6,00,000/- was th....