TaxTMI 
TaxTMI 
2014 (12) TMI 1151
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....dividual. For the AY under dispute, assessee filed his return of income on 09/06/2009 declaring total income of Rs. 1,99,040. In course of assessment proceeding, on the basis AIR information, AO found that assessee has made cash deposits to the tune of Rs. 3.36 crores in SB a/c of ICICI Bank Ltd., Tirupati and Rs. 19.64 lakhs in HDFC Bank. AO, therefore, called upon assessee to explain the source of such deposits. Though assessee vide letter dated 26/12/2011 furnished certain information/explanation with regard to deposits made in the bank account, but, AO was not convinced with the same. He observed that assessee could not produce any substantial proof to explain the source of deposits. Accordingly, after verifying the transactions in the ....
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....ions in assessee's bank account relate to business of Mr. K. Lokadri and Mr. K. Lokadri has accounted all the deposits and withdrawals in his books of account, but, since Mr. K. Lokadri went underground and could not be found, assessee in spite of his best efforts could not obtain relevant extract from books of account Mr. K. Lokadri and submit the same before AO. However, assessee could obtain a declaration from Mr. K. Lokadri's sister Smt. Bharathi in support to prove the fact that assessee was only carrying out the duties as per the directions of MoU with Mr. K. Lokadri. It was submitted that assessee also cannot identify the persons by whom deposits were made in his account and also the persons to whom cash was paid, since the entire de....
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....he copy of the FIR filed with police by the mother of Mr. K. Lokadri about his disappearance was; 4. Copy of Photograph of appellant along with Mr. K. Lokadri taken while the appellant was working with him; 5. The statement given by Smt. Bharathi, the only sister of Mr. K. Lokadri about the activities of the appellant while he was with Mr. K. Lokadri. 6. The statement given by Sri Kola Anand, Chairman of Sri Kalahasteeswaraswamy Temple, Srikalahasti; 5. Ld. CIT(A) after considering the submissions of assessee as well as the evidences produced before him, deleted the addition made by AO by holding as under: "4.4 I have considered the submissions made by the appellant, gone through the order of the AO and perused all other material avail....
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....sequent to the date of deposit. Since, the transactions were explained by the appellant, there is no question of such amounts being subjected to tax in a haphazard manner. Here it is important to note that the fact that credits were there was not denied, but the AO was silent on the corresponding debits, which is not proper on his part and to that extent, the AO was not fair to the appellant. In the circumstances, the addition so made by the AO cannot be sustained and it has to be deleted. In view of the above, the AO is directed to delete the addition made by him while finalizing the assessment proceedings." 6. The ld. DR submitted before us that ld. CIT(A) was not justified in allowing assessee's claim after considering the submissions ....