2016 (4) TMI 862

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....e case. 4. The brief facts of this issue are that the assessee has maintained a saving bank account maintained with State Bank of Hyderabad, Park Street Branch, Kolkata vide account no.62003442810, which is a disclosed bank account in the return of income of the assessee. The ld. AO observed that the assessee has also maintained another saving bank account ( no. 003401024457 ) with ICICI Bank 1/1 Ashutosh Choudhury Avenue, Ballygunge Branch, Kolkata, which is undisclosed bank account in the return of income of the assessee. In the said undisclosed bank account, there were cash deposits of Rs. 18,94,400/- and cheque deposits of Rs. 9,58,713/-. The ld.AO treated the entire credits of the said bank accounts as unexplained cash credit u/s. 68 of the Act by disbelieving the contentions of the assessee. On 1st appeal, before the ld. CIT(A) it was pleaded by the assessee that the said bank account belongs to the assessee in his HUF capacity, which was operated by mentioning the PAN of the assessee. The assessee tried to explain the sources of cash deposit as gifts received from his grand mother, Smt. Gita Devi Sanei and also stated that the cheque deposits represent the sale proceeds o....

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....e, we deem it fit and appropriate, in the interest of justice and fair play, to set aside this issue to the file of the ld.AO, to frame this addition based on the workings of peak credit as would be given by the assessee and of course, after verification by the ld.AO. Therefore, the ground nos. 1 to 3 of assessee's appeal are allowed for statistical purpose. 7. The second issue to be decided in this appeal of the assessee is as to whether an addition of Rs. 2,20,000/- could be made towards deemed dividend u/s. 2(22)(e) of the Act in the facts and circumstances of the case. 8. The brief facts of this issue are that the assessee is a director in M/s.G.S Laminators Pvt. Ltd and had received a sum of Rs. 2,20,000/- as unsecured loan from the said company during the assessment year under appeal. The ld. AO observed that M/s. Gopal & Sons (HUF) held 8000 shares of this company, which was close to 80% shareholding of the said company. The ld. AO found that the assessee is one of the members of the said HUF. When this issue was confronted by the ld.AO as to why the provisions of section 2(22)(e) of the Act should not be invoked in the case of assessee, the assessee submitted that he ....

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....he financial years 2007-08 and 2008-09 and to give a definite finding with regard to availability of accumulated profits of the lending company and decide the issue in accordance with law. Ground nos. 4 raised by the assessee is allowed for statistical purpose. 10. The third issue to be decided in this appeal of the assessee is as to whether an addition of Rs. 1,35,000/- on account of alleged director's remuneration could be brought to tax in the facts and circumstances of the case. 11. The brief facts of this issue are that there are certain credits in the same bank account maintained with State Bank of Hyderabad, which the assessee explained to be salary received from M/s.G.S Fertilisers Pvt. Ltd. Accordingly, the ld.AO added the same. But on 1st appeal before the ld.CIT(A), the assessee stated that he had not received the sum of Rs. 1,35,000/- but instead of it, he received a sum of Rs. 1,45,000/- from the said company as loan. The assessee had also repaid the same to the company. Thus, the assessee pleaded before us for deletion of addition of Rs. 1,35,000/- as made by the ld.AO on account of alleged director's remuneration. The ld. CIT(A) held that this is precisely a co....

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....o tax as unexplained cash credit u/s. 68 by the ld.AO. On 1st appeal before the ld.CIT(A) the assessee produced bank statement, which clearly depicted the fact that the amounts were received from these companies and immediately the same were utilized for payment of taxes on behalf of those companies. Accordingly, he pleaded before us for deletion of addition made by the AO. However, the ld. CIT(A) did not admit the bank statement being fresh evidence and confirmed the order of the ld.AO in making the impugned addition. Aggrieved, the assessee is in appeal before us on the following ground:- 6. For that on the facts and in the circumstances of the case, the Ld. CIT(A) was not justified in confirming the addition of Rs. 51,368/- made by the A.O. on account of reimbursement of tax. 16. We have heard the ld.AR and perused the material available on record including the paper book filed by the assessee containing the relevant pages of bank statement/bank account maintained with the State Bank of Hyderabad and copy of tax remittance challan vide pages 30-36 of the paper book. On perusal of the same, we find that the assessee indeed had received the monies from the said compani....