AI Drafter 
TaxTMI 
TaxTMI 
2016 (10) TMI 414
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....tal advance deposited by the existing tenant of the property acquired by the appellant during the year. 3. The appellant submits that the sum of Rs. 25 lakhs deposited on 7/2/2011 in the bank was by one Mr. Satyamoorthy, an agriculturist and the lower authorities have rejected the submission of the appellant without any enquiry or examination of the said person even though he has given confirmation letter confirming the amount provided by him for purchase of the property. 4. The Commissioner of Income-tax (Appeals) erred in confirming the addition of Rs. 15 lakhs being the cash deposited on 19/2/2011 when the appellant had explained that the same represented the advance received for sale of the property by the appellant. 5. The lower authorities have made the addition even though the appellant had filed confirmation letters and they were rejected without proper enquiry or examination of the concerned persons and therefore they are not justified in making the addition. 6. The Commissioner of Income-tax (Appeals) erred in confirming the addition of Rs. 11 lakhs being the cash deposit made in the bank account of Saravananpet Branch of SBI when it wa....
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....1 Cash Deposit 25,00,000/- 19.02.2011 Cash Deposit 14,50,000/- Total 47,50,000/- Out of the total cash deposit of Rs..47,50,000/-, the amount of Rs..3,00,000/- deposited on 23.08. 2010 was not a subject matter of dispute. The rest of the amount of Rs..44,50,000/- has been added back to the income of the assessee as unexplained cash credits under different explanations. 5.1 With regard to the first addition towards cash deposit of Rs..5,00,000/- on 09.09.2010, before the Assessing Officer, the assessee has stated that this amount has been received on account of the Rental Advance received for letting out on rent his property at Cenotaph road. The assessee has stated that this Cenotaph Road property was acquired by him during this relevant year under consideration. He further stated that the tenant already existed with the previous owner before his purchase of the property and continued the tenancy with him. The rental advance paid by the tenant earlier was held in credit by the previous owner. This sum of Rs..5,00,000/- was transferred to the assessee by the previous owner of the property by directly depositing cash into his above menti....
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....ready existing with the previous owner before my purchase of the property continued the tenancy with me. The Rental Advance made by the tenant earlier was held in Credit by the previous owner. This sum was Rs..5,00,000/- and the same was transferred to me by the previous owner by directly depositing cash into my Bank Account." 5.3 On perusal of the written submissions dated 13.10.2015, the ld. CIT(A) has observed that it is not correct on the part of the assessee to state that there was no need for him to provide any documentary evidence to show the receipt of Rs..6,00,000/- so long the previous owner of the property did not contradict of the payment of the amount to the appellant. It is also incorrect on the part of the appellant to hold that he has discharged the onus cast upon him. The assessee should have provided PAN of the tenant, the copies of the relevant ITR and the nature of his business activity etc. to prove his identity. These explanations do not come to the rescue of the appellant being devoid of any evidentiary value. From the perusal and analysis of the entire submissions of the appellant, it is revealed that besides submitting the above explanations, the appella....
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....ny of the authorities. Not only that the assessee has not furnished any details about the PAN number, identity of the tenants, etc. In the absence of any valid evidence, the submissions of the assessee are not acceptable. In the written submission dated 13.10.2015 before the ld. CIT(A), the assessee has also submitted that no independent enquiry was made by the Assessing Officer. Without giving any details about the tenants, it is not possible for the Assessing Officer or the ld. CIT(A) to make enquiry or order the Assessing Officer to make enquiry. Hence the submission is vague. In the written submission dated 13.10.2015 before the ld. CIT(A) at para 3.9, the assessee submits that "there is no need for him to provide any documentary evidence to show the receipt of Rs..6,00,000/- so long the previous owner of the Cenatoph Road property did not contradict the payment of Rs..6,00,000/- to the assessee or the Assessing Officer has any information to that effect which he has chosen to bring upon record in support of the assessment order", appears to be contrary to the rental agreement, wherein, it was mentioned that the tenants have paid the rental advance/payable to the owner of the p....
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....efore the Assessing Officer. 6.2 Further, the assessee has not substantiated the receipt of Rs..25,00,000/- in cash with any documentary proof. The assessee has not produced any proof of receipt of such cash from the 'previous owner' as claimed by the assessee in his response to the show cause. It also raises the doubt on the credibility of S. Sathyamurthy, being a small farmer and hailing from a small village, having mobilised a huge chunk of cash of Rs..25,00,000/- on a single day in his house. Further, the following entry is found in the cash book of the assessee for the financial year 2010-11 with respect to the said cash credit of Rs..25,00,000/-: Date Particulars Debit Credit Balance 07-02-2011 State Bank of India 25,00,000.00 27,04,722.50 Dr 08-02-2011 State Bank of India 25,00,000.00 2,04,722.50 Dr The above entry indicates that the cash of Rs..25,00,000/- was taken from bank on 07.02.2011 and the same deposited next day into the same bank account. But it is found from the Gopalapuram Branch of SBI bank through a letter dated 10.01.2014 by calling for information under section133(6) of the Ac....
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....oper enquiries are made with Shri S. Sathyamurthy, the actual facts will not come to the light. Under the above facts and circumstances, we are of the considered opinion that the assessee should be given one more opportunity to produce Shri S. Sathyamurthy along with his saving details before the Assessing Officer for verification. Accordingly, we set aside the order of the ld. CIT(A) on this issue and remit the matter to the file of the Assessing Officer for summoning Shri S. Sathyamurthy for making enquiry and verification of his savings. If Shri S. Sathyamurthy fails to appear or the assessee fails to produce Shri S. Sathyamurthy before the Assessing Officer along with all details, the addition made by the Assessing Officer stands sustained. With the above directions, the ground raised by the assessee is allowed for statistical purposes. 7. The next ground raised by the assessee is that the ld. CIT(A) erred in confirming the addition of Rs.15,00,000/- made by the Assessing Officer as unexplained cash deposit. The Assessing Officer has observed that the assessee has shown a cash deposit of Rs..14,50,000/- on 19.02.2011 in his saving bank account with the State Bank of India ac....
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....this advance of Rs. .15,00,000/- has been returned before 31.03.2011 as Rs. .10,80,000/- from his bank account and Rs. .4,20,000/- by cash. But it is found from the bank statement of the assessee that with respect to Rs. .10,80,000/- the assessee has himself withdrawn Rs. .10,80,000/- as cash on 14.03.2011. And with respect to Rs. .4,20,000/- the assessee himself submitted that he has returned in cash. In both the transactions, the assessee has failed to establish the genuineness of such transaction i.e. the assessee has not substantiated such payment of Rs. .15,00,000/- in cash with any documentary proof. The assessee has not produced any proof of payment of such cash and also has not established the identity to whom it was paid." 7.2 Hence, in view of the above reasons as well as since the assessee has not explained the nature and source of such cash credit of Rs..15,00,000/- into his cash book on 06.02.2011 satisfactorily, the Assessing Officer has treated the same as unexplained cash credit under section 68 of the Act and added to the total income of the assessee. 7.3 The assessee carried the matter in appeal before the ld. CIT(A). The assessee has furnished a written rep....
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....s noticed that the assessee was maintaining one more saving bank account with the State Bank of India at Saravanampatti. This bank account was not revealed by the assessee in his income tax return and nor in response to the notice under section 142(1) of the Act. The AR of the assessee has informed the Assessing Officer that the assessee was not having any such bank account. As per the information obtained from the bank, the details of cash deposits in the said bank account are as under: Date Particulars Amount 17.09.2010 Cash Deposit Self 3,00,000/- 04.11.2010 Cash Deposit Self 3,00,000/- 11.12.2010 Cash Deposit Self 5,00,000/- Total 11,00,000/- In reply to the queries of the Assessing Officer, the assessee stated as under: "In addition to the above you have also called for explanation for cash deposits aggregating Rs..11,00,000 in my one another Bank Account with SBI, Saravnampatti. This relates to a business venture planned with my friend R. Vigayananthan, carrying on business under the name and style Shree Bhagavathi Enterprises. R. Vijayananthan is known to me for more than 10 years. He has 2 bu....
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....lanation in his submission to the show cause. Unless the scrutiny is done, this concealment could not have been unearthed i.e. except for the efforts of the department, the assessee would not have revealed this information of having a bank account in Saravanampatti Branch of SBI. As pointed out above (para 4), even when the assessee was asked to produce the details of all bank accounts and copies of the bank statements of the same during the assessment proceedings, the assessee submitted that he had only one savings bank A/c in Gopalapuram (Chennai) in SBI having A/c no. 30725338862. 8.3 Hence in view of the above reasons discussed and since the assessee has not explained the nature and source of acquisition of such money of Rs..11,00,000/- satisfactorily, the Assessing Officer has added the said amount to the income of the assessee as unexplained money under section 69A of Act. 8.4 The assessee carried the matter in appeal before the ld. CIT(A). The assessee filed a written reply vide letter dated 13.10.2015 during the course of appellate proceeding by reiterating the same submissions as made before the Assessing Officer. The assessee also filed a confirmation letter from Shri ....
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.... gone through the orders of authorities below. With regard to the addition of Rs..11,00,000/-, other than the piece of paper in the form of confirmation letter, the assessee has not filed any details even before the Tribunal. However, we are of the opinion that until and unless proper enquiries are made with Shri R. Vijayanathan, the actual facts will not come to the light. Under the above facts and circumstances, we are of the considered opinion that the assessee should be given one more opportunity to produce Shri R. Vijayanathan along with books of account, etc. before the Assessing Officer for verification. Accordingly, we set aside the order of the ld. CIT(A) on this issue and remit the matter to the file of the Assessing Officer for summoning Shri R. Vijayanathan under section 131 of the Act for making enquiry and verification of his savings. If Shri R. Vijayanathan fails to appear or the assessee fails to produce Shri R. Vijayanathan before the Assessing Officer along with all details as may be required by the Assessing Officer, the addition of Rs.. 11,00,000/- made by the Assessing Officer stands sustained. With the above directions, the ground raised by the assessee is all....