TaxTMI 
TaxTMI 
2012 (12) TMI 447
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....account as undisclosed source of income. (b) The Learned CIT (Appeals) erred in appreciating the fact that one time settlement process is a lengthy process and that in the month of March, 2006, the appellant was substantially relieved and only the formal process of documentation was completed in the month of June, 2006. (c) The Learned CF[(Appeals) erred in confirming the fear of attachment as after thought without considering the facts, circumstances and evidences available on record. 2. Your appellant prays that addition of Rs.. 15,00,000/- as Income from undisclosed sources u/s. 68 be deleted. 3 The assessee is a director in M/s Apte Amalgamations Ltd and partner in M/s V S Apte & Sons. During the course of assessment ....
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....expenses during the period from August, 05 to February, 2006 and balance of Rs. 15 lakhs re-deposited in my - SB account in the month of March, 2006. The reason for holding the cash on hand was as follows: I am on the Board of Directors of many companies of Apte Group namely, Apte Amalgamations Ltd., Laxrni Vishnu Textile Mills etc., Both these companies were sick industrial undertaking (BIFR) and that's the reason they could not pay loans & working capital borrowed from Banks and Financial institutions like Bank of Maharashtra, SBI, IDBI, and MSEB. These financial institutions had filed suits before the Debt Recovery Tribunal. In the recovery process, there was a possibility of my personal accounts getting attached. Hence the cash was w....
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....f Rs. 1 crore from M/s Trans Asia Global Trade were return of advance by M/s Apte Amalgamations Ltd., to the assessee and thus, it is a capital transaction. 4.3 The ld AR has also referred the cash flow statement, which is placed at page 23 of the paper book and explained all transactions of receipts and payments. The learned A.R has then referred the letter dated 15th May 2003 of BIFR, Government of India, Department of Economic Affairs and submitted that the matter was pending under the Board for consideration. He has also referred the various letters and correspondence between the financial institutions and banks with the M/s Apte Amalgamations Ltd, and submitted that finally a compromise was arrived at between the banks and si....
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....d the rival submissions as well as relevant material on record. The assessing officer has not disputed the fact that the assessee withdrawn an amount of Rs.. 16.10 lakhs from the saving bank account in the month of August 2005. The assessing officer has also not given any finding that the said amount as withdrawn from the bank by the assessee was utilised for any other purposes, then re-deposited in the bank account in the month of March 2006. From the bank statement as well as from the correspondence between the banks and financial institutions and M/s Apte Amalgamations Ltd., it is clear that the recovery process was pending against M/s Apte Amalgamation Ltd in which the assessee was Managing Director and also a guarantor. Therefore, ther....
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....ounts were withdrawn from AWI to the extent of Rs. 10,000 on 3rd April, 1996; Rs. 10,000 on 24th April, 1996; Rs. 6,000 on 6th May, 1996; Rs. 5,000 on 21st May, 1996; Rs. 17,000 by withdrawal from SBI, Mayapuri on 17th May, 1996 and hence the addition made by the AO and confirmed by learned CIT(A) is not correct. 25. Regarding deposit of Rs. 1,27,000 on 28th June, 1997, Rs. 22,000 on 18th Sept., 1997, Rs. 26,000 on 3rd Oct., 1997 and Rs. 52,000 on 7th Nov., 1997, it was submitted that for these deposits also, the withdrawals were made by the assessee from AWI and although there is some time gap between these withdrawals and subsequent deposits with the bank, the explanation of the assessee cannot be rejected without pointing out any othe....