TaxTMI 
TaxTMI 
2012 (12) TMI 1076
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....t and has also not proved the genuineness of transactions 3. The ld. CIT(A) has erred in law and on facts in as much as relying upon the cash flow statement submitted by the AR of the assessee and deciding the matter on the basis of such cash flow statement which was totally baseless and was not supported by any documentary evidences. 4. That on the f acts and in the circumstances of the case, the ld. CIT(A) ought to have upheld the order of the AO" 3. Briefly the facts in the assessment year 2001-02 are that the a search operation u/s 132(1) of the Income Tax Act, 1961(the Act) was taken on Radhe Group by issuing warrants u/s 132(1) of the Act on 4.8.2006 and various documents, books of accounts and other valuable articles were found and seized. On verification of the seized material, it was found that pages No.3,5 and 87 to 100 of seized Annexure A/27 belongs to the assessee. In pursuance to the above observations, the Assessing authority by invoking the provisions of section 153C read with section 153A of the Act issued notice dated 3.2.2009 to the assessee calling upon him to file return of income in the prescribed from within 15 days from the receipt of such notice. ....
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.... on his agricultural activities from the agricultural farm itself and receives cash three times in a year against sale of agricultural produce. Therefore, the assessee stated that amount appearing as credit in these bank accounts is out of the agricultural income less than the income derived from the agricultural activities. 4. On perusal of the bank statement the AO observed that bank statement shows some transfer of funds indicating loan transactions. The assessee produced confirmations thereof and claimed to have made those additions, out of agricultural income and recovery of old loans. The AO observed that the assessee is in the money lending business and earning interest therefrom but the same is not offered to tax. The loan confirmations indicate huge amount of 10-15 lakhs, without having charged any interest, or without being charged interest nor any addressed have been given. Therefore, the AO was of the view that these transactions are fictitious transactions. The AO did not accept the explanation of the assessee. He observed that the assessee was making note of agricultural income and showing his income at ₹ 2,76,000/- for the assessment year 2001-02. The AO also ....
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....on the correctness of figures. It is seen that the source of cheque and cash deposited in bank account was from agricultural income, advances received back and unsecured loans. With regards to agricultural income, the AR has submitted revenue records in from No.7/12, 8A, and 6, the AR has also submitted details of agricultural expenses incurred during the year. In all the agricultural income of the appellant and his family is supported with evidence and is justified. The assessing officer has also granted credit of ₹ 2,76,000/- in respect of agricultural income of the appellant vide para 4.5 of the assessment order while making addition of deposits. Since the assessing officer has made addition of deposits of appellant's family members in the hands of the appellant, the credit of agricultural income of family members is also required to be granted. With regards to advances received back, it is shown to have given in earlier years by cheques. AR has also filed confirmation from respective party indicating name, address and amount received back. Considering over al facts and critical examination of evidence submitted, the deposits made in the bank account of the appellant, ....
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....32 of the Act, 1961(the Act) on Radhe Group taken on 4.8.2006 revealed that certain documents such as copy of Memorandum of Understanding, between Shri Nimesh Panchal and Respondent-assessee, copy of complaint filed under the Negotiable Instrument Act by Respondent- assessee etc. were belonging to the respondent. Accordingly notice u/s 153C of the Act was issued in the name of the assessee. In response thereto, the assessee filed return declaring an income of ₹ 15,200/- as income from others sources and agricultural income amounting to ₹ 2,76,000/-. During the course of assessment proceedings, the assessee has admitted that he does not maintain any books of account nor he has any documentary proof to substantiate the agricultural income declared by him. The AO also scrutinized the bank account of State Bank of Saurashtra in the assessee's name and also in the names of family members while in assessment year 2005-06 there were bank account in the name of family members in Central Bank of India. In this bank account the assessee was found to have made deposits by way of cheques as well as in cash. When asked, the assessee claimed that the entries appearing as deposits....
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....essee in the name of other family members in whose cases such deposits were treated as assessee's own deposits in his assesssment. The inclusion of deposits appearing in the such bank account in the name of various family members as assessee's own deposits is not disputed by way of cross-appeal or cross- objection by the assessee and this fact has acquired finality. 8.3 The only disputes that remains for adjudication is that the AO made additions of aggregate amount of deposits in the bank account of the assessee as well as his family members as assessee's income from other sources as he was not satisfied with the explanation of the assessee. In this respect, the admitted fact is that the assessee has not maintained any books of account. Subsequently books of account complied from the bank statement and cash flow statement that was prepared and laid before the ld. CIT(A) to explain the deposits was for the limited purposes. Such books of accounts could not be treated as books of accounts maintained by the assessee in the regular course of its business of agricultural activities. In a case like this where the books of account have not been maintained in regular course of....