TaxTMI 
TaxTMI 
2015 (6) TMI 795
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....2.2 The Revenue has raised the ground as under:- "Whether on the facts and in the circumstances of the case and in law the ld. CIT(A) is justified in restricting the addition of Rs. 14.72 lacs made by the AO on account of unexplained cash deposits in the bank account." 3.1 Brief facts of the case are that the assessee claims to be a civil contractor and has declared income from house property and civil contract works in the return of income. The turnover being less than Rs. 40.00 lacs, books of accounts are not maintained and the income in this behalf is offered u/s 44AD of the I.T. Act on presumptive basis. During the course of assessment proceedings, on the basis of AIR information AO found that the assessee had deposited huge cash ....
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....rthought to justify the cash available with his father. The facts that father retained the old sale proceeds of agricultural land and used them for money landing business was not believed. Similarly sources of other deposits were not accepted. Consequently, a sum of Rs. 22,42,000/- was added to the assessee's income. 3.2 Aggrieved, the assessee preferred first appeal; wherein it was contended that qua the amount of Rs. 10.00 lacs given by the father of the assessee; an amount of Rs. 4.28 was received by him by sale of agricultural land in the year 1996. Besides, the father of the assessee carried over money lending activities to earn interest from other agriculturists at his native place. The amount of Rs. 20 lacs was thus accumulate....
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....inancial gains from loan transactions which were presented by him qua the power of attorney given by Smt. Saroj Deedwania who could not be presented for examination before AO. It was held that the assessee u/s 44AD could have earned only Rs. 3.20 lacs on contract turnover of Rs. 40.00 lacs. The assessee had himself accepted that he was paying EMI of Rs. 25,000/- per month for purchase of household goods to financial institutions. Thus assessee's yearly cash outflow was at Rs. 4.25 lacs. In conclusion out of entire additions a sum of Rs. 7.70 lacs was confirmed. 3.4 Aggrieved on the respective grounds, both the parties are before us. 3.5 The ld. Counsel for the assessee reiterated the facts as relied on the written submission filed....
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....ey holder still the repayment of loan was prefixed and he has to manage his cash flows accordingly. This may be the reason why assessee has sold his agricultural land holding during the assessment year (d) Further the synopsis of the transaction taken place are as follows:- Date Particulars Amount 18-04-2007 Assessee and his father sold their agriculture land at Dhola (deposited in Urban Co-op. Bank on 16-04-2007 in cash) (+) 10,00,000/- 19-04-2007 Assessee's father made a gift deed favouring assessee (deposited in Canara Bank on 20-04-2007 in cash) (+) 20,00,000/- 01-06-2007 Cash withdrawal from Canara Bank, power of attorney was given by Saroj Deedwania (-) 12,50,000/- 18-06-2007 Cash re-de....
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.... CIT(A). The copy of application for admission of fresh evidence is not filed by the assessee nor ld. CIT(A) has given reasons for conclusion that assessee was prevented by sufficient reasons before AO. The financial year in question is 2007-08 and the affidavits have been sworn by the debtors during 27-07-11 to 25-07-2011 i.e. after the assessment order, the names of these debtors were not given to the AO. Thus the affidavits are nothing but a make believe evidence and an afterthought. The debtors nowhere specified when the loans were taken and when repaid so as to draw any view about availability of cash for the alleged gift. Thus entire edifice of the order is based on unverified, vague and specious pleas and the relief given by the ld. ....