TaxTMI 
TaxTMI 
TaxTMI 
2015 (8) TMI 320
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....ount of unexplained cash deposits by holding that the same represents the cash received by the assessee from his brother for plying of trucks owned by the assessee inspite of the fact that no such income was shown by the assessee in his returns of income filed. The Appellant craves the right to alter, amend, add or substitute the grounds of appeal." 3. The brief facts of the case are that the assessee filed Return declaring income at Rs. 170477/- was filed electronically on 30.07.2009. The case was selected for scrutiny under CASS (AIR). The assessee is an employee of M/s GIR Movers Pvt. Ltd. As per the AIR data the assessee, had deposited cash amounting to Rs. 21,52,800/- with his ICICI Bank Ltd., ICICI Bank Towers, CIBD, Level-1, West W....
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....the case was selected for scrutiny under CASS (AIR). As per the AIR data he had deposited cash amounting to Rs. 21,52,800/- with his ICICI Bank Hyderabad. During the assessment proceedings, the assessee was asked to furnish details and sources of all cash deposits. In the income tax return for the assessment year 2009-10 the assessee has not declared any income from business or profession or any income from a truck. Vide show cause notice dated 14.10.2011, the assessee was asked to explain cash amounting to Rs. 21,52,800/- deposited with his bank account maintained with ICICI Bank Ltd, Hyderabad with supporting documentary evidences and also to show cause as to the unexplained portion of cash deposits, could not be treated as unexplained ca....
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....ion in the said company. In view of his total pre- occupation with his official duties it became practically impossible for him to find time for managing, his own trucks. Moreover, during the relevant period, he was posted at Hyderabad. In view of these circumstances, he entrusted his elder brother Shri Hari Om Singhal, who also is in transport business, with the management of his trucks. This arrangement continued during the assessment year 2009-10, which is under consideration before us. 8.1 He has further submitted that he owns a plot measuring 450 sq. meters at KWC Kalamboli, Navi Mumbai. With a view to augment his income, he entered into an agreement on 30/3/2008, with M/s Shri Datta Guru Construction, a local contractor for construct....
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....l tax, truck maintenance expenses and other cash expenses of drivers, cleaners etc. in transit. Also, the net margin of the truck owner is very small. It was submitted before the Ld CIT(A) that precisely due to this peculiarity of truck business, the provisions of section 44AE of the Act have been enacted to provide for computation of truck income on a presumptive basis (@ 3,500/- p.m. for each truck), without insisting on maintenance of accounts by small transporters (having up to 10 trucks). 8.4 In support of the aforesaid submissions, the assessee has produced before the Ld CIT(A) the sworn Affidavits of himself and his brother Shri Hari Om Singhal. He has also submitted the Cash Flow Sheets of both his trucks for the relevant period an....
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....r nexus between the payments made by the assessee to the contractor on the one hand; and the payments received by the assessee from his brother on the other in the present case. The necessity of the funds in the present case, has also been proved beyond any doubt. The identity of his brother, Shri Hari Om Singhal is also, beyond any doubt, since he himself is a tax payer. The ld CIT(A) notes that genuineness of the arrangement cannot be reasonably questioned, as the same is between 2 real brothers, who belong to the same family. The ld CIT(A) appreciates the desire of the elder brother to help his younger brother, particularly, when the funds were needed for a genuine purpose, so according to him it cannot be reasonably questioned. 8.6 We ....