TaxTMI 
TaxTMI 
2017 (4) TMI 1192
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....n the facts and circumstances of the case and as per law, the learned AO has erred in treating the entire cash deposits of Rs. 15,01,000/- in Assessee's bank Account as from unexplained sources and adding the same to the returned income despite of the fact that Assessee has explained the sources and furnished the evidences there for as being collection from customers. (2) In the facts and circumstances of the case and as per law, the learned AO has erred in Date of Hearing: 02.03.2017 Date of Pronouncement: 26.04.2017 treating s. 32,00,000/= as unexplained investment and adding the same to the returned income despite of the fact that the Assessee has furnished full details and evidences regarding sources and has factually contributed onl....
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....he assessee was withdrawing the same on different dates and depositing the same into his bank a/c as cash deposit and then paying back to M/s. Samaritan Agencies through cheques/cash as the assessee's contribution towards his capital. It was also submitted that no repayment has been made to the firm M/s. Samaritan Agencies towards debtors. The AO, vide show cause notice dated 20.02.2013 asked the assessee to explain as to why the debtors did not pay directly to the firm by way of cheques and as to why the amount belonging to the firm was introduced as assessee's capital in the firm and whether the assessee was receiving any interest on the capital of the assessee. The assessee, vide letter dated 14.3.2013 submitted the partnership firm was ....
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....the firm, we are inclined to accept the assessee's contentions that the debtors of the firm issued cheques in his name or that they paid in cash to the assessee. The assessee had submitted before the AO that this amount was shown in the books of the firm as loans and advances, while it is shown as payable in the assessee's books of account. This contention of the assessee has not been verified by any of the authorities below. The AO has brushed it aside on the ground that the copies of the ledger extracts are prepared by the assessee himself/the firm as per his/their convenience and therefore not reliable. The assessee has filed the copy of the Partnership Deed and we find that the partners inducted are not in any way related to the assesse....
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....ed the assessee to explain the sources for such capital. The assessee explained that the transactions done with M/s. Filmors during the year is Rs. 32.00 lakhs but the net investment is only Rs. 18,50,000. The source for this investment was explained as the amount received from various debtors of M/s. Samaritans Agencies on various dates by the assessee. The AO did not accept the assessee's contentions because in the audited books of M/s. Filmors, the capital introduced by the assessee is shown to be Rs. 32.00 lakhs. He also has not accepted the assessee's contentions as regards the source of the deposit as well. We find that the CIT (A) has reproduced the capital account of the assessee in the books of M/s. Filmors wherein the capital brou....