TaxTMI 
TaxTMI 
2014 (4) TMI 669
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....venience. Both the appeals are barred by limitation by two days. After hearing the parties on this preliminary issue, we condone the delay and admit the appeals for hearing. 2. The addition made by the assessing officer u/s 68 of the Act in both the cases in respect of the deposits made in the bank accounts, having been confirmed by Ld CIT(A), the assessees have filed these appeals before us. 3. The facts relating to the above said addition are stated in brief. The return of income filed by these two assessees were taken up for scrutiny by the AO by issuing notice u/s 143(2) of the Act. Thereafter, he served notice u/s 142(1) of the Act calling for certain details. In response thereto, both the assessees furnished certain details, but fai....
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....y have received back the loans and advances so given by them from the concerned debtors, which have been utilized by them to make deposits into the bank accounts. The Ld CIT(A) noticed that the age of these assessees was in the range of 19 years and 21 years as on 1.4.2002. He further noticed that they have shown huge opening cash balance of around Rs.30.00 lakhs as on 1.4.2002, which was considered as improbable by him. The Ld CIT(A) further noticed that the assessees have expressed their inabilities to furnish the names and other details of persons to whom the loans were given. In case of Hemal Bhanji Dedhia, he had shown flat advance in the earlier years, but no document was produced to show either the booking or cancellation of the flat....
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....h opportunity to furnish all the details before the AO. The Ld A.R furnished a copy of notice issued by the AO u/s 142(1) of the Act and submitted that the AO had called for the details of bank accounts only. He submitted that the AO did not call the assessee to explain the sources of amounts deposited into the bank account. The Ld A.R submitted that these assessees have been filing returns of income for the past several years along with copies of financial statements containing profit and loss account, Capital account and Balance Sheet. These financial statements of the earlier years depicted the details of financial transactions, especially the loans and advances given by these assessees. He submitted that these assessees have realized th....
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....s. Accordingly he submitted that these financial statements are only self serving documents, which cannot be relied upon. He submitted that these assessees have made deposits into the bank accounts for the first time during the year under consideration. Hence the department could take notice of the deposits so made and accordinlgy asked the assessee to explain the sources thereof. However, both the assessees have failed to substantiate the claims that they represent the amount recovered from the parties to whom the loans and advances were given earlier. He submitted that the documents, now filed by the assessees as additional evidences, have already been considered in detail by Ld CIT(A) and hence no purpose would be served in sending back ....
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....t the assessees were not asked to furnish the details. Accordingly, the Ld A.R submitted that the assessees did not get sufficient opportunities to explain the sources. 8. We have heard the rival contentions and carefully perused the record. From the assessment order, we notice that both the assessees have failed to furnish all the details that were called for by the AO during the course of assessment proceedings. With regard to the claim of Ld A.R that the assessing officer did not call for the details of sources of the deposits made into the bank account of these assessees, the Ld D.R submitted that the details could have been called for by the AO by way of order sheet noting and accordingly submitted that the claim of the assessee requi....
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....e find merit in the claim of the assessees that they did not get sufficient opportunities to substantiate their submissions. Further, we notice that the Ld CIT(A) has proceeded to adjudicate the issue by making certain observations about the failure of the assessee to furnish the details and the said observations are seriously disputed by the Ld A.R. Further the very fact that the assessees have filed copies of returns of income filed for earlier years as additional evidences would show that they were not furnished before the AO during the course of assessment proceedings. Even though, the Ld D.R contends that all those documents have been examined by Ld CIT(A), yet the fact remains that the Ld CIT(A) has made certain presumptions before pr....