TaxTMI 
TaxTMI 
2015 (7) TMI 682
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....udicated upon. 3. Therefore, the only issue ( as raised in Ground Nos. 4 & 5) which survives for consideration is in respect of the direction of ld. CIT(A) to treat the amount of Rs. 2,42,000 as concealed income of assessee. 4. Briefly the facts relating to this issue are, assessee an individual is carrying his proprietary business in the name and style of M/s Shiv Shakti Transport Company. Assessee is also one of the directors of M/s Maheswari Brothers Coal Ltd. A search and seizure operation u/s 132 of the Act was conducted at the residential premises of assessee on 08/09/10 along with others in the group. As a consequence of search and seizure operation, notice u/s 153A was issued to assessee calling for returns of income. Though, originally assessee has filed return of income for the impugned AY on 11/09/09 admitting income of Rs. 7,62,839, however, in response to the notice u/s 153A, assessee filed return of income on 14/08/12 declaring income of Rs. 30,72,169 including additional income offered by assessee as a result of search. During the assessment proceeding, AO noticed that assessee has sold land at Tirupathi through a registered sale deed executed on 25/07/08 for a con....
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....ve been received by assessee for the purpose of computation of capital gain. There is no dispute to the fact that while assessee in registered sale deed has shown sale consideration at Rs. 21,65,000, registering authority has valued the property for stamp duty purpose at Rs. 24,07,000. Therefore, the sale consideration as per section 50C, which assessee could be deemed to have received is the value adopted by SRO. In fact, not only AO adopted the said value for computing capital gain, but, ld. CIT(A) has also endorsed the view of AO. However, in spite of having held so, ld. CIT(A) in her own wisdom has chosen to delete the addition of Rs. 2,42,000. Revenue has also not challenged that decision. That being the factual position, we fail to understand how ld. CIT(A) can again direct AO to treat the amount of Rs. 2,42,000 as concealed income of assessee. We are at loss to understand under what provision of law such amount can be treated as income of assessee when the only provision under which the SRO value can be considered as deemed sale consideration received is section 50C of the Act. Therefore, once, ld. CIT(A) deleted the addition made by AO u/s 50C of the Act, under no other pro....
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.... furnished all details regarding household expenditure incurred by assessee during the year. It was submitted by ld AR that assessee is staying in a self occupied property, therefore, does not bear any expenditure towards rent. That apart, the expenditure incurred by assessee for the education of his daughter in BDS course during the assessment year under consideration was only Rs. 60,000. Similarly, expenditure incurred towards education of his son for the impugned AY was Rs. 12,000. Therefore, in the aforesaid facts and circumstances, it cannot be said that household expenditure of Rs. 42,070 per month shown by assessee is either insufficient nor inadequate. Ld. AR submitted, there is no material before AO to come to a conclusion that per month household expenditure of assessee is Rs. 70,000. He, therefore, submitted that addition made on this account should be deleted. 14. Ld. DR relied upon the observations of AO and ld. CIT(A). 15. We have considered the submissions of the parties and perused the material on record as well as the orders of revenue authorities. On perusal of the assessment order and order of ld. CIT(A), it is apparent that the addition made on account of alle....
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....lls and vouchers to that extent was not produced by assessee. In our view, when AO has accepted almost 99.9% of the expenditure claimed by assessee by treating it as genuine, there is hardly any scope to believe that assessee would have inflated the expenditure to the extent of Rs. 26,700 only. Therefore, assessee's explanation that considering the nature of expenditure and volume of transaction some of the vouchers might have been lost is believable. Accordingly, we delete the addition of Rs. 26,700. 19. In the result, appeal of assessee is allowed. ITA NO. 1641/Hyd/2014 20. In this appeal also, assessee has raised six grounds. Ground Nos. 1 & 6 being general in nature do not require any specific adjudication. 21. Ground Nos.2 & 3 are with regard to addition of an amount of Rs. 3,23,500 on account of low withdrawals towards household expenditure. This ground is similar to ground Nos. 2 & 3 of AY 2010- 11 in ITA No. 1640/Hyd/2011. Therefore, following the conclusions drawn in that year vide para 15(supra), we delete the addition of Rs. 3,23,500 made on this count. 22. In ground No. 4 assessee has challenged the disallowance of an amount of Rs. 4,78,500 out of freight expendit....
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....he cash of company, how is it possible for M/s MBG commodities Pvt. Ltd. to pay the amount of Rs. 40 lakh to assessee on 09/09/10. As far as the balance amount of Rs. 3,83,250 is concerned, assessee claimed that it was out of his own proprietary concern and reflected in his books. AO, however, rejecting the explanation of assessee treated the entire amount of cash seized of Rs. 43,83,500 as income of assessee and added it to the year under consideration. Being aggrieved of such addition, assessee preferred appeal before ld. CIT(A). Ld. CIT(A) also confirmed the addition by observing as under: 7.3 The assessment order and the submissions of the appellant have been carefully considered. The contention of the appellant cannot be accepted. It is noted from the statement recorded on 28-12-2010 that the appellant has answered to the question no.48 to 50 in respect of the payments claimed to have been made by Maheswari Brothers Group where ledger accounts maintained by them in the name of santosh Kumar Agarwal 'personal' and Santosh Kumar Agarwal 'HUF' in their consolidated books of account. The appellant claimed that he did not have any knowledge of the ledger account ma....
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....ught and fabricated. Reliance is placed on the decision of Hon'ble Supreme Court in Sumati Dayal vs CIT 214 ITR 80 where it has been held that test of human probability and circumstantial evidence has to be kept in mind while deciding the genuineness of transactions. Reliance is also placed on the decision of Hon'ble High Court of Punjab & Haryana in the case of Somnath Maini vs CIT 306 ITR 414 where it has been held that the genuineness of transaction can be rejected even if the assessee backs evidence which is not trust worthy and even if the department does not lead any evidence on such an issue. Though he filed a ledger copy which is only a self-serving document, he has not asked for confrontation or confirmation with Sri Bijay Kumar Mandhani to support his contention. The Managing Director of the Group companies has categorically stated that the appellant has been paid his remuneration in cash, the availability of cash at the residence of the appellant at the time of search corroborates the statement of Sri Mandhani. Therefore, the contention of the appellant that the amount of Rs. 40 lakhs found at his residence actually belongs to the Maheswari Brothers Group cannot ....
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....ng in response to summons issued u/s 131(1), assessee appeared before the departmental authorities and a statement was recorded from him wherein, with reference to a specific question, assessee stated that out of cash seized of Rs. 43,83,250 an amount of Rs. 40 lakh belongs to Maheswari Brothers group and the balance amount of Rs. 3,83,250 is out of assessee's own cash balance. Even, in course of assessment proceeding, assessee has submitted a letter from M/s MBG Commodities Pvt. Ltd. formerly known as M/s Maheswari Brothers confirming that the amount of Rs. 40 lakh cash belonging to the company was kept with the director for security purposes. On perusal of the extract of cash book of M/s Maheswari Brothers, copies of which were submitted before us, it appears that the firm was having closing cash balance of Rs. 69,71,760.33 on 07/09/10. Therefore, assessee's explanation if considered along with availability of cash balance as per the cash book of M/s Maheswari Brothers and also the confirmation letter submitted by M/s MBG Commodities Pvt. Ltd. appears to be credible. As far as the balance cash of Rs. 3,83,250 is concerned, on perusal of the cash book extract of Shiva Shakti Trans....