TaxTMI 
TaxTMI 
2014 (12) TMI 670
X X X X Extracts X X X X
X X X X Extracts X X X X
....ave appreciated that the amounts accepted by the appellant were observed by the AO as "JV participations" in the 143(3) order whereas, the same amounts were classified by him as "deposits" in his reference dated 26/3/2013 made to JCIT, Panaji. 3. The learned CIT(A), Panaji erred in law and on facts in not holding that the AO was functus officio at the time of making reference to the JCIT and hence, in turn, the jurisdiction assumed by the learned JCIT was invalid. 4. The learned CIT(A), Panaji erred in law and on facts in not appreciating that the amounts received by the appellant were IV Participations and not deposits which violate provisions of 269SS of the ITA, 1961. The learned CIT(A), Panaji ought to have appreciated that considering the JV Participation Agreement, it?s contents and related documents, etc.; the said amounts could not have been characterized as deposits. 5. The learned CIT(A), Panaji, further erred in law and on facts in not appreciating that characterizing the amounts received by the appellant as "deposits" was contrary to findings of the regulatory authorities i.e. Ministry of Corporate Affairs, SEBI & CBI, etc. who have categorically held that the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....IT(A). The AO was also not present for hearing before CIT(A) when this evidence was admitted by the CIT(A). 3. The Ld. CIT (A) erred in working out the Urban and rural area deposits based on the ratio of number of records of urban and rural area without actually verifying the deposits record-wise. 4. The CIT(A) erred in accepting the distance analysis method based on the depositors addresses through Google maps to segregate the urban and rural area depositors without actually verifying the availability of the banking facilities in the areas of the depositors considering the fact that these days banking facilities are available in almost all the rural areas. 5. The Ld. CIT(A) erred in not appreciating the Supreme Court decision in the case of ADIT vs. A. B. Shanti reported in 255 ITR 258 wherein it „ was clearly laid down that the assessee has to prove the reasonable cause/urgency of situation for acceptance of deposits in cash to cover its case u/s 273B. 6. The CIT (A) failed to appreciate the decision of Madras High Court in the case of Kasi Consultant Corpn. Vs. DCIT reported in 311 ITR 419 wherein it held that it is the duty of assessee to produce the evidence ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....-3-City/ District and State (iv) Address-4- State The assessee has mapped the distance between village (Address-1) Taluka (Address-2) and profiled the same as Primary distance. The distance between Taluka and City is profiled as Secondary distance. There are totally 232 pages of listing. About 7-8 cases on each page were selected at random for the said Google mapping. The said exercise was based Google Maps website. This exercise was carried out for 1887 cases. Summary of such distances is enclosed herewith and marked as Annesure-21. Along with the said summary, printouts of all Google Maps downloaded for each such distance mapping was also enclosed. From the said summary, it will transpire that in about 1.32% cases are between 0-2 KM primary distance range, 1.70% cases are in 2.5 KM primary distance range and so on. The banking channels have reached upto Tehsil levels yet, majority of the JV participants are staying at places which are beyond 5 KM from the Tehsil Places. The assessee has submitted the data filtering exercise and the data relates to many persons from the villages and urban applicants are 2885 in number. The learned DR submitted that this additional evidence w....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... have reached upto Tehsil levels, though, at times, this is not the case. Assuming that banking channels exist at Tehsil levels, yet, majority of the JV participants are staying at places which are beyond 5 KM from the Tehsil places. b) Data filtering exercise - The detailed listing of CASH JV participations is available in soft form. The said data is in an excel file. Appellant has applied filters to the columns Address-1, Address-2, Address-3 and Address-4. Address-1 and Address-2 fields contain actual village / Vasti / Wadi details of the JV participant. By using excel filter facility, appellant has filtered out all those records which contain the following key words in Address-1 and Address-2 fileds. (i) VIL (ii) PO (iii) P.O. (iv) AT At each step of filtering, the work "Rural" is added to the flat file at the end of the columnar data. Thus, after adding the flag "Rural", the records which could be logically attributed to the rural (non- urban) area can be culled out. In other words, by applying the filter of (blank) in the last column (i.e. flag column), the net urban transactions can be located. Purpose of filtering out the records by usage of these filters was....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t entitled to produce any evidence orally or documentary other than the evidence produce before AO. The following exception have been provided in the said Rule. (a) The AO has refused to admit the evidence which ought to have admitted. (b) The assessee was prevented by sufficient cause from producing the evidence which he was called upon to produce by the AO. (c) The assessee was prevented by sufficient cause from producing the evidence before the AO which is relevant to the ground of the appeal. The AO has made the order without giving sufficient opportunity to the assessee to adduce the evidence relevant to any ground in appeal. Before admission of additional evidence the CIT(A) has to give reasonable opportunity to the AO either to examine the additional evidence or to produce any evidence or document as any witness in rebuttal to the additional evidence produce by the assessee. As per Rule 46A(iv), notwithstanding anything contended in 46A(iv) the CIT(A) has power to direct the assessee for production of any document or the examination of any witness, to enable him to dispose of the appeal, or for any other substantial cause including enhance or imposing the penalty. The pow....