TaxTMI 
TaxTMI 
2012 (8) TMI 34
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....f undisclosed cash credit within the meaning of Section 68 of the I.T. Act, 1961 amounting to Rs.11,82,212/-. Further, the Ld. CIT(A) ought to have given opportunity to Assessing Officer for verification of premium contribution by policy holders in view of new stand taken by the assessee after agreeing for the addition." 3. Brief facts are that it is noted by the A.O. in assessment order in para 4 that assessee has deposited cash of Rs.1182212/- in her bank account No.4244 with Sihor Nagrik Sahkari Bank Ltd. It was submitted by Ld. A.R. of the assessee before the A.O. that assessee is working as Investment and Insurance Agent and amount was deposited in the bank account for making investment for insurance policy of the investors. He a....
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....ents to LIC by the assessee from bank account is not on behalf of the customers of the assessee but on assessee's own behalf. No such material has been brought on record by the A.O. In fact, the A.O. has written letter on 26.08.2010 to the Manager, LIC of India, Bhavnagar Branch to provide details regarding payments of various amounts from the bank account to LIC. A copy of this letter is available at page No.23 of the paper book. We also find that the assessee filed an affidavit on 19.10.2010 with the A.O. in which it was stated that the cash deposited in the bank account is assessee's own income and it was declared as her income and it was also stated that she is ready to pay income tax on this income. In view of this admission of the ass....
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....e no cash withdrawals and no personal expenditure of the appellant was met out of the bank account, AO's observation that the appellant's explanation is a concocted story does not stand to reason. The commission received from LIC on the policies of the 12 persons is reflected in the returns of income of her joint family members. I hold that the cash deposits in the appellant's bank account stand explained. Impugned addition of Rs.11,82,212/- is deleted. This ground of appeal is allowed." 6. We have also noted that the A.O. has not brought on record any material to show that the withdrawal of this bank account by the assessee is on account of investment by the assessee herself with LIC. If the investment ultimately is in the name of inves....
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.... bank account then no addition can be made on the basis of such statement particularly when no material was brought on record by the A.O. to show that the withdrawals from the bank account by way of payment to LIC was invested as assessee's own investment and not on behalf of clients of the assessee. Confirmation of policy holders was duly furnished before the A.O. The affidavit was filed on 19.10.2010 and the assessee delivered a baby boy on 20th October, 2010 and that too was a premature delivery as per para 9 of statement of facts filed before Ld. CIT(A), which was not controverted by Ld. D.R. of the Revenue. Considering all these facts, we are satisfied that in the facts of present case, addition made by the A.O. is not justified and th....
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....assessee was under pressure of premature delivery of a baby. Affidavit was filed on 19.10.2010 and assessee delivered a premature baby on 20.10.2010 and in the same period, assessee's father-in-law was diagnosed with Parkinson disease and under these mental and physical condition, the assessee was having an apprehension that if the investors are called for recording statement by the A.O., it will adversely affect the goodwill of the assessee family and its business. Facts being different, this judgment is also not applicable in the present case. 10. The third decision cited by Ld. D.R. of the Revenue is the judgment of Hon'ble Kerala High Court rendered in the case of Mahesh Chandra Shah Vs. CIT (supra). In that case, the facts are that ....