TaxTMI 
TaxTMI 
2016 (8) TMI 458
X X X X Extracts X X X X
X X X X Extracts X X X X
....les and therefore, he filed revised set of grounds on 16.03.2016 which were taken on record. Briefly, the additions made by the A.O. under section 68 of the Act and sustained by the Ld. CIT(A) are challenged before us contending inter alia, that the tax authorities have not properly considered the details of investment and documentary evidence produced before them. 3. The assessee is engaged in the business of manufacturing and processing of affluents (industrial waste chemicals). For the year under consideration, he admitted income of Rs. 1,25,741 which were originally processed under section 143(1) of the Act but later on, it was selected for scrutiny under CASS and notice under section 143(2) of the Act was issued on the assessee and ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... regarding balance cash deposits in the bank on various dates. Having regard to the circumstances of the case, the A.O. came to the conclusion that the entire loan amount from GE Countrywide and City Bank are withdrawn by way of selfcheques which indicates that they have been utilised for some purpose or investment and hence, claim of availability of the amount withdrawn from Bank of Baroda for deposit in Vijaya Bank, as claimed by the assessee, is not tenable. Even with regard to cash loans from 14 parties, the A.O. noticed that none of them maintained any record on transactions and hence, the claim of cash loans from friends and relatives was rejected. Accordingly, he treated the cash deposit of Rs. 4,37,000 and Rs. 3,50,000 as unexplaine....
X X X X Extracts X X X X
X X X X Extracts X X X X
....h were not properly looked into by the A.O. 5.1. With respect to cash deposit of Rs. 3,50,000 it was contended that a sum of Rs. 1,75,000 was withdrawn from the Bank of Baroda account in June, 2006 and another sum of Rs. 1,22,000 was withdrawn on 14th June 2006. These amounts came to the Bank of Baroda account out of Citi Bank loan amounting to Rs. 3,07,443 which was received in 2nd June, 2006. Remaining amounts were received as cash loan from two persons and out of personal savings. 5.2. With respect to other cash deposits aggregating to Rs. 3,84,400, the case of the assessee was that they are out of sales made on various dates and these deposits were utilised for repayment of bank loans, monthly credit card bills etc., In respect of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cted. With regard to balance amount of Rs. 3,84,400, the Ld. CIT(A) observed as under : "4.5. Besides above cash deposits there are several cash deposits on various dates in the bank account of the appellant and it was claimed that these deposits are out of cash sales. In this respect also I do not find any credible evidences produced either before the Assessing Officer. A peculiar feature of these cash deposits are that immediately after the deposits, there are transfer of funds of equivalent amount and these were utilised for monthly credit card bills or repayment of bank loans. Apparent must be considered real until it is shown that there are reasons to believe that the apparent is not the real and that the taxing authorities are enti....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y the source of the cash withdrawals and personal loans taken whereas, in the instant case, no such effort was made by the A.O. Similarly, with regard to cash sales to the tune of Rs. 3,84,400, he adverted our attention to pages 6 to 8 to submit that the date of withdrawals and date of deposits having been explained, the A.O. is not justified in surmising that the money withdrawn is not available for fresh investment. In this regard, he adverted our attention to pages 4 to 9 and pages 33 onwards. Similarly, with regard to the unexplained investment to the tune of Rs. 1,35,644, the Ld. Counsel for the assessee adverted our attention to pages 27 of the paper book as well as page 32 to submit that the A.O. has made the addition, being differen....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of the withdrawals from the Bank of Baroda and other banks were held to be available for investment in the land and accordingly, the deposits made in Vijaya Bank were accepted by the Ld. CIT(A). With regard to hand loans taken from 14 persons, the assessee has not even given PAN etc., and in the absence of maintenance of books of account it was difficult for the tax authorities to crossverify the genuineness of the loans. Even before us, no material whatsoever was filed by the assessee to prove the availability of the loan amounts from 14 parties. We are therefore, of the view that the Ld. CIT(A) was justified in confirming the addition to the extent of the amount referable to the alleged loans taken from 14 parties. However, personal savi....