TaxTMI 
TaxTMI 
2016 (1) TMI 489
X X X X Extracts X X X X
X X X X Extracts X X X X
.... assessee. The ld.AO got an information through Annual Information Wing that the assessee has maintained a saving bank account of Bank of Baroda, in which, cash totaling to Rs. 33,23,500/- has been deposited on various dates during the accounting year relevant to this assessment year. The ld.AO has called for information from the bank under section 133(6) of the Act. On perusal of the bank statement, it revealed to the AO that total deposits made by the assessee in the bank account was Rs. 61,40,980/- which included cash deposit of Rs. 33,23,500/-. The ld.AO has directed the assessee to explain the source of deposits in her bank account. The assessee has made elaborate submission on different aspects. In brief her explanation for the deposits has been given in the written submissions. The explanation is as under: Sr. No. Particulars Amount (Rs.) Erroneous Additions made by AO 1. Cash received from family partition arrangement: Treated capital receipts as unaccounted income * Mrs. Minal Mehta 7,50,000 * Mrs.Dipal Mehta 7,50,000 * Rahi Mehta 5,00,000 2. Receipts from sale of jewellery 16,53,000 Diamond sold and ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... family partition arrangement. The assessee has filed a copy of agreement dated 26.3.2007 effective from 1st day of February, 2007. Copy of this agreement is available at page no.38 to 45 of the paper book. On the strength of this agreement, it was contended by the ld.counsel of the assessee that HUF in the name of Sobhagmal Mehta was in existence and the assessee was the member of this HUF. By virtue of this agreement, the HUF was dissolved and assessee alongwith other family members of the HUF received consideration of Rs. 20 lakhs which was used for deposits in this bank account. The ld. Revenue authorities have not accepted this contention of the assessee. Section 171 of the Income Tax Act deals with assessment after partition of Hindu Undivided Family. It is pertinent to take note of this section as under: "171. (1) A Hindu family hitherto assessed as undivided shall be deemed for the purposes of this Act to continue to be a Hindu undivided family, except where and in so far as a finding of partition has been given under this section in respect of the Hindu undivided family. (2) Where, at the time of making an assessment under section 143 or section 144, it i....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... any penalty, interest, fine or other sum in respect of any period up to date of the partition, whether total or partial, of a Hindu undivided family as they apply in relation to the levy and collection of tax in respect of any such period. (9) Notwithstanding anything contained in the foregoing provisions of this section, where a partial partition has taken place after the 31st day of December, 1978, among the members of a Hindu undivided family hitherto assessed as undivided,- (a) no claim that such partial partition has taken place shall be inquired into under sub-section (2) and no finding shall be recorded under sub-section (3) that such partial partition had taken place and any finding recorded under sub-section (3) to that effect whether before or after the 18th day of June, 1980, being the date of introduction of the Finance (No. 2) Bill, 1980, shall be null and void; (b) such family shall continue to be liable to be assessed under this Act as if no such partial partition had taken place; (c) each member or group of members of such family immediately before such partial partition and the family shall be jointly and severally liable for an....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... sum of Rs. 16,53,000/- which was used for deposits in the bank account. The evidence submitted by the assessee in respect of her claim is as under: Sr.No. Sr.No. Name of Party to whom jewellery sold Amount Proof Attached. 1. Neel Gems 1,69,508 Confirmation, P&I A/c., Balance Sheet, ITR, Computation PAN:AACHD7516K 2. Kasuhal Diamond 6,26,294/- Confirmation, P&I a/c, Balance Sheet, ITR, computation PAN: AAGHS2434C 3. Sonal Gems 8,57,684/- Confirmation, P&I A/c., Balance Sheet, ITR, Computation PAN: ACRPM0529 P Total 16,53,036/- 9. The copies of confirmation and bill etc. have been placed in the paper book. Thus, the assessee has discharged her primary onus by giving an explanation along with supporting evidence. The ld.AO has not issued any notice to these three parties, and has not cross-verified the confirmations submitted by the assessee. He simply disbelieved it. To our mind this is not a right course at the end of the AO. He ought to have disproved the documentary evidences submitted by the assessee or ought to have pointed out the defects in th....