TaxTMI 
TaxTMI 
2017 (1) TMI 175
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.... Projects Pvt Ltd. The income was offered thereon u/s 44AE of the Act at the rate of Rs. 3,500/- per month in the absence of maintenance of books of accounts. The return of income was selected for scrutiny through Computer Assisted Selection of cases for Scrutiny (CASS) on the basis of AIR information in respect of cash deposits made in the assessee's bank account with Axis Bank and ICICI Bank. The ld AO, on obtaining information u/s 133(6) of the Act from Axis Bank, City Centre Branch, in the form of bank statement of the assessee , observed that cash was deposited in the said bank account and the closing balance in the said bank account was Rs. 8,95,662.85 as on 31.3.2009 which was not disclosed in the balance sheet filed by the assessee. The assessee replied that the transactions in Axis Bank account were reflected in his personal balance sheet which was not disclosed in the return of income due to lack of relevant column in the electronic filing of return form in ITR V. The assessee was directed to produce the last three years balance sheet and in response to the same, the authorized representative of the assessee submitted the statement of affairs of self and proprietory conce....
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....ome , only Rs. 2,00,000/- has been deposited in cash on 3.4.2008 and Rs. 2,00,000/- deposited in cash on 26.9.2008. (f) Rs. 1,62,000/- was deposited in cash in ICICI Bank during the course of financial year 2008-09. These amounts were deposited for paying instalments on vehicle loan account. A sum of Rs. 5,58,719/- was received in cash against transport receipts from M/s Piyunshu Projects Pvt Ltd apart from cheques received from them. This fact was also verified by the ld AO. This sum of Rs. 5,58,719/- explains the total cash deposits of Rs. 4,00,000/- in Axis Bank (i.e the left over portion as per point (e) above) and Rs. 1,62,000/- in ICICI Bank. The meager difference of Rs. 3,281/- is met out of cash balance of the assessee. Based on these submissions, the assessee prayed for deletion of the additions made towards cash credit u/s 68 of the Act. 2.3. The ld CITA observed that the assessee had disclosed the interest income from Axis Bank and ICICI Bank in his return of income and hence there was no intention to conceal the said bank accounts in the return. He also gave a finding that the Axis bank account maintained is for non business purposes and hence the said savings bank ac....
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....,58,719/- in cash from M/s Piyanshu Projects Pvt Ltd towards transport receipts apart from cheques received from them. It is also not in dispute that the assessee was in receipt of hire charges from M/s Piyanshu Projects Pvt Ltd. This fund is also available for explaining the source for cash deposits. With regard to the cheque deposits of Rs. 10 lacs and Rs. 5 lacs credited in the said bank account, we find that the assessee had duly explained the source and nature of those credits together with the party (Sri Suresh Kumar Gourisiria) from whom the same were received which were also subject to verification by the Inspector of Income Tax. With regard to the other cheque deposits of Rs. 5 lacs and Rs. 2.50 lacs, the same were explained by the assessee to be received towards sale of cars. This fact has not been disputed by the revenue before us. In fact, the same AO had accepted this fact while framing a separate addition towards capital gains on sale of the said cars. Hence we hold that there is no case made out by the revenue for making an addition in the sums of Rs. 1,62,000/- and Rs. 45,20,000/- in the facts and circumstances of the case. Accordingly, the ground no.1 raised by th....
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....rt of his response. The ld AO observed from the said bank statement, that there was a similar deposit to the tune of Rs. 15,00,000/- by cheque on the same date on which the cheque for similar amount was issued to the assessee. The ld AO also observed that the annual income of the said party was Rs. 4,13,566/-. Accordingly, the ld AO concluded that the said party did not possess sufficient creditworthiness to advance monies to the assessee and added a sum of Rs. 15,00,000/- as unexplained cash credit in the hands of the assessee. Similarly the ld AO observed that the assessee had paid Rs. 7,39,000/- to Mr S K Mukherjee towards advance for purchase of residential property, whereas the said party confirmed that he had received Rs. 9,39,000/- from the assessee. Accordingly, the ld AO concluded that the sum of Rs. 2,00,000/- was met by the assessee out of his undisclosed income. 4.2. The ld CITA observed that Sri Suresh Kumar Gourisaria did not have any evidence in hand to prove that the nature of transaction is towards advance paid to assessee. These sums were credited to SB Account with Axis Bank of the assessee in two instalments of Rs. 10,00,000/- and Rs. 5,00,000/- on 4.7.2008 and....