TaxTMI 
TaxTMI 
2016 (3) TMI 1072
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....es to the pilgrims. The business activities of the assessee company includes Air ticket booking, visa stamping for Hajj pilgrims, earning of profit from foreign exchange etc. The relevant assessment year in the present appeal is 2009-10. A search under section 132 of the Act was conducted at the business premises of the assessee company on 10.11.2010. Subsequently notices under section 153A were issued to the assessee for six years i.e. A.Y. 2005-06 to 2010-11. During the course of search at the premises of the assessee company, a computer belonging to the assessee was seized in which collections from Hajj and Umrah services was recorded as Rs. 118,27,12,252/-. The assessing officer observed that the assessee had not accounted for a total amount of Rs. 94,96,37,990/-. It is further revealed from the assessment record that the assessee company had maintained three accounts with Federal Bank, Calicut in which total deposits amounting to Rs. 94,96,37,990/- was made between 20.04.2007 to 29.03.2011. The details of the deposits in the three accounts of Federal Bank are extracted herein below:- Sl.No. F.Y. A/c.No.5501 A/c.No.4967 A/c.4454 Total 1. 2007-08 - 3,03,500 19,20,25,1....
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....ilgrims. 7. Aggrieved by the assessment order dated 30.03.2013, the assessee company preferred appeal before the Ld.CIT(A). The Ld.CIT(A) in its order dated 30.06.2014 observed that the income of the four Hajj Group firms floated by the assessee company deserves to be added to the total income of the assessee company on substantive basis while maintaining the protective assessments in the hands of the four firms as the evidence suggests that it was only the assessee company which had been managing the affairs of providing Hajj and Umrah Services to the pilgrims through its network. 8. Before the Ld.CIT(A), the assessee submitted detailed analysis of the three bank accounts maintained by it in Federal Bank Calicut. Accordingly, the Ld.CIT(A) referred the same to the assessing officer for a remand report. The assessing officer reiterated his observations given in the assessment order. After considering the details submitted by the assessee, the Ld.CIT(A) held that the bank accounts in the name of the assessee in Federal bank cannot be treated as undisclosed bank accounts as the receipts and payments were verifiable. He further observed that the assessee had established a link of in....
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....e company on a substantive basis. The Ld. AR rebutting the submissions made by the Id. DR argues that the receipts as well as the withdrawals appearing in the aforesaid bank accounts have been entered and accounted for in the books of account of the assessee company and all the transactions carried out have been recorded in the books. He submits that the receipts collected by the four firms were deposited in the three accounts mentioned as the firms did not have bank accounts in their own name. The Ld. AR has referred to the letter dated 14.03.2013 by the Managing Director of the asseessee company wherein it was stated that the credits in the bank accounts were reflected in the books of accounts of the assessee company and further withdrawals from the bank accounts were reflected in the cash book maintained. He further submits that the detailed analysis of these three bank accounts had been produced before the ld. CIT(A) wherein the source of deposits in the bank accounts was explained along with complete details of the withdrawals. The same was verified by the ld. CIT(A) on random check basis. He therefore, supports the reasoning given by ld. CIT(A) with respect to the aforesaid g....
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....venue that the reliance should solely be placed on the statement of Sh. M. Narayana Kumar is misplaced. The assessing officer went on a wrong premise and added the entire deposits appearing in the bank accounts without deducting the withdrawals made. It is a settled principle of law that only the real income of the assessee has to be taxed and not notional income. In any case, the assessee could not have been subjected to tax only on the deposits in the bank accounts. 17. As far as the details furnished by the assessee company before the ld.CIT(A) is concerned for which remand report was requested from the assessing officer, no adverse objections had been raised by the assessing officer. The ld.CIT(A) has observed that the source of the receipts in the bank accounts are verifiable. We, therefore, find no infirmity in the order passed by the CIT(A) with respect to the aforesaid addition. The addition pertaining to the deposits made in Federal Bank was rightly deleted by the ld.CIT(A). 18. In result thereof, grounds nos.1 to 3 raised by the revenue are dismissed. The appeal being ITA No.449/C/2014 is dismissed. 19. Now we take up the appeal of the Revenue in ITA No.448/C/2014, 450....
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....xcessive considering the income earned by the other hajj groups. For the above reasons and other arguments those may be put forward at the time of hearing the appellant may submit that the assessment of Rs. 35,46,000/- in respect of income from Kerala Islam Hajj and Umraj Services, Calicut and the income estimate @ Rs. 1,35,39,595/- may be." 25. The ground no.1 & 2 raised by the assessee area already adjudicated by us in the appeal filed by Revenue in ITA No.449/C/2014 wherein, we have held that substantive assessment in respect of four firms floated by the assessee, viz. Kerala Islam Hajj and Umrah Service, Ahlan Hajj and Umrah Services, Salamat Hajj Group and Vazco Hajj Group, is to be made in the hands of the present assessee only. In view, therefore, the issue is remanded to the file of the AO to determine the substantive income of the assessee afresh in accordance with the assessment of four firms stated hereinabove, at the rates determined therein. Thus, grounds to that extent are allowed for statistical purpose. 26. Grounds No. 3 pertain to the estimation of income at Rs. 32,000/-per person by the assessing officer. The ld.CIT(A) estimated the income per person at Rs. 22....