TaxTMI 
TaxTMI 
2014 (12) TMI 556
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....1/- for concealment of income and furnishing inaccurate particulars of income. Appeal has been filed in quantum and pending." 3. Apropos deletion of addition of Rs. 11,03,680/- being unexplained cash deposit. 4. The brief facts of the case is that the appellant is an individual, who has derived income from salary and income from other sources. The appellant filed his return of income declaring an income of Rs. 1,23,236/- on 29.10.2007.The case was processed u/s 143{1) and thereafter the case was selected for scrutiny through CASS under AIR category. statutory notice u/s 143(2) were issued on 23.07.2008, 13.03.2009,20.07.2009, 18.09.2009,01.10.2009 and 05.11.2009 and served upon the appellant. In response to the statutory notices, the appellant as well as the ARof the appellant attended the proceedings and filed requisite details and thereafter the case was discussed with them and an order u/s 143(3) was passed on 21.12.2009 assessingthe income of the appellant to the tune of Rs. 12,26,920/- as against the returned income of Rs. 1,23,236/-. 5. Aggrieved by the order passed by the AssessingOfficer dated 21.12.2009,the appellant preferred an appeal before the Ld ClT{A). The L....
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....mentioned above for undertaking the liasoning and coordination work for ferro alloys and textiles at Delhi. The appellant filed a copy of the appointment letter from the company Vasavi Industries Ltd. and also ERTextiles Ltd. Wherein the terms of employment alongwith the pay and allowances were offered to the appellant. The appel/ant also furnished a copy of the bank statement of his account maintained with ING Vyasa bank wherein the cash deposits were found and the appellant explained that these deposits pertained to the above mentioned companies who on need basis remitted the amounts to the bank account of the appellant for incurring expenditure towards freight, liason work with raw material suppliers, booking of air tickets, travel expenditure etc. In support of the same, the appel/ant filed the confirmation from both the abovementioned companies giving income tax particulars etc. In order to verify the nature of the deposits, the Assessing Officer issued a notice u/s 133(6) of the IT Act, 1961 to the branch operations service head, ING Vyasya Bank, Connaught Place where the appellant was maintaining the abovementioned account. Vide letter dated 18.11.2009, information was sent ....
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....aintained a bank account with ING Vysya, Connaught Place vide account NO. 503010008101and the total deposits in the Bank account amounted to Rs. 12,63,176/-which included few cheque deposits and most of the deposit was by way of cash. In order to prove his bona-fides the assesseehad also filed a copy of the appointment letter from both the companies, wherein, the terms of employment was clearly spelt out along with the pay and allowance offered to the assesseewas also revealed. The assesseealso furnished a copy of the bank statement of his bank account maintained with ING Vyasa, wherein, the impugned cash deposits was supposed to have been remitted and the assessee explained that these deposits pertained to the above mentioned companies and deposit was being remitted to the account of the assessee for incurring expenditure towards freight, for liaison work with raw material supplier, towards booking of air tickets, travel expenditure etc. The Ld ClT(A) has also taken note of the fact that the AssessingOfficer had issued a notice u/s 133(6)of the Act to the branch operations service head of the ING Vyasya Bank, Connaught Place, where the assessee was maintaining the abovementioned a....
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....e assessee replied that he was an employee and resident representative at Delhi for two outstation companies i.e. SriVasari Industries Ltd (Head Office at Kolkata) and ERTextiles Ltd, (Head Office at Hyderabad) and doing its liasoning and coordination work for its products ferroalloys and textiles at Delhi; and funds are transferred by the company as and when required for the expenditure on its behalf. The Assessing Officer was not satisfied with the reply and on the reason that assessee failed to produce any supportive documents like the imprest account of the two companies etc and confirmation of the deposits from the said companies, made an addition of Rs. 11,03,680/-. Thereafter the Assessing Officer, after recording satisfaction that the assessee had concealed his income by furnishing inaccurate particulars after issuance of show cause notice, imposed a penalty of Rs. 3,54,511/- . 12. Aggrieved by the said penalty imposed on him the assessee preferred an appeal before the Ld CIT(A) who allowed the appeal preferred by the assessee.The reason given by the Ld CIT(A) is as follows:- "7. In the present case, I find that the appellant has disclosed full faefs pertaining to his....