TaxTMI 
TaxTMI 
TaxTMI 
2016 (1) TMI 69
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.... to explain the reason for payment of consultancy charges to East Coast Consultants. But the assessee could not furnish the required clarification in spite of repeated opportunities given. The assessee in his letter dated 06.10.2010 stated that the consultancy charges to sister concern Rs. 15,50,000/- is not paid but the consultancy charges was collected on behalf of East Coast Consultant (P) Limited was shown as the amount was paid to Govindammal as land advance." Hence, the assessee has taken the correct net receipts by way of consultancy charges at Rs. 67,41,080/- without including the consultancy charges received on behalf of its sister concern at Rs. 15,50,000/-. The book entry was wrongly added as consultancy Charges since the amount was collected on behalf of East Coast Consultants (P) Limited was credited in his account was reversed by passing book entry. On verifying the details filed the ld. Authorised Representative for assessee who has filed cash flow statement of the assessee for the period ended on 31.03.2007 which reveals that the assessee has shown total consultancy charges at Rs. 82,91,080/- which includes an amount of Rs. 15,50,000/- collected on behalf of the ass....
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....n record do not suggest the reason for the same and services rendered by East Cost consultant to M/s. Commercial Buildwell Pvt. Limited. Being so, in our opinion, it requires re-examination of the issue. We are not in a position to express any opinion regarding the nature of service rendered by East Cost consultant and in the absence of the reason for receipt of the above amount by the assessee on behalf of the East Cost consultant, from M/s. Commercial Buildwell Pvt. Limited. Accordingly, we are not in a position to uphold the of the Commissioner of Income Tax (Appeals) and accordingly this issue is remitted back to the Assessing Officer for fresh consideration. 5. The next ground raised by the Revenue is that the Commissioner of Income Tax (Appeals) erred in deleting the addition of Rs. 15,00,000/- made by the Assessing Officer being the sale of ancestral property reminded as unexplained. 6. The facts of the issue are that a sum of Rs. 15,00,000/- was found in the account of the assessee during the year on sale consideration which represents the sale proceeds of ancestral agricultural land of his brother Shri. P.Srinivasan. The ld. Authorised Representative for assessee has sta....
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.... on record. It was brought on record by the Commissioner of Income Tax (Appeals) that the assessee has received this amount from his brother Shri. P. Srinivasan as loan for which the assessee had paid interest thereon. Further, the name of the assessee's mother is typed instead of assessee's brother, is only a typographical error which is to be condoned. Since the assessee's brother Shri. P. Srinivasan has confirmed the loan given to the assessee and the transaction was routed through banking channel, the identity of the lender is proved as well as the genuineness of the transaction. Accordingly, the deletion of addition made by the Commissioner of Income Tax (Appeals) is justified. This ground of the appeal of the Revenue is dismissed. 8. The last ground raised by the Revenue is with regard to deletion of the addition made by the Assessing Officer on the cash deposit with Axis Bank of Rs. 35,55,580/- and State Bank Rs. 5,64,325/- being unexplained cash deposits. 9. The facts of the issue are that the assessee is an advocate by profession and during the year his gross earning as per his accounts filed with the return was Rs. 67,41,080/- received as consultancy charges....
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....see at some point of time. The AO has also stated that if. the assessee's explanation is considered for cash deposits then one will find that the assessee is taking out cash from one bank and deposited the same or other bank account and vice versa. Hence, the AO has stated that the cash book and explanation filed by the assessee regarding cash deposit in bank accounts cannot relied upon. The AR of the assessee has stated that the major receipts from consultancy charges and the credit of Rs. 25,00,000/-(for which the addition has been separately made by the AO) have been duly reflected in the transaction account which is the Axis Bank Alc No.505 and there are substantial cash withdrawals from this account to meet expenses for both business and personal. The AR of the assessee has stated that the Assessing Officer has not given any break up for Rs..35,55,580/- while the details given in the Assessment order for cash withdrawal totaling up to only Rs. 19,35,580/-. In this amount also there are cheque receipts are as follows: 1.On 10.02.2007 Rs. 13,680 2.On 15.02.2007 Rs. 62,400 3.On 1602.2007. Rs. 10,00,000 Total Rs.10,76,080 Similarly, the AR of the assessee cont....