TaxTMI 
TaxTMI 
2017 (5) TMI 357
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....T Act, 1961. 2. The assessee craves right to add, alter or amended any of the ground of the appeal." 2. The brief facts arising herein are that the assessee during the year under consideration was a student of ICFAI University, Dehradhun perusing Masters in Business Administration. The AO on the basis of information that the assessee has invested Rs. 5 lakhs for purchase of units of UTI Mutual Fund, initiated proceedings u/s 147 of the Income Tax Act, 1961 (hereinafter referred as the Act) as assessee has not filed the return. The assessee explained that during the relevant year he was a student and has no source of income. He had a joint account with PNB along with his father, Shri Santosh Lohani from which investment of Rs. 5 lakhs w....
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....Santosh Lohani has sold agriculture land hold in the name of his wife Smt. Devi Lohani vide agreements dtd. 12.02.2008. In these agreement sale value of Rs. 13,00,000/- (Rs. 6,50,000/- + Rs. 6,50,000/-) which was taken by cheque of Rs. 10,00,000/- (Rs. 5,00,000/- + Rs. 5,00,000/-) and Rs. 3,00,000/- (Rs. 1,50,000/- + Rs. 1,50,000) was received in cash. Copies of sale agreements are enclosed herewith. On these sales amount of consideration was also received in cash other than registered value, amount was deposited in Joint account on varies dates as follows: Sl. No. Date of cash deposit Amount of cash deposited in Joint account No. 0052000109134490 1. 14/02/2008 45,000/- 2. 15/02/2008 45,000/- 3. 16/02/2008 45,000/....
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....onfirmed. 4. Being further aggrieved, the assessee has preferred appeal before us. The ld AR of the assessee has submitted that that the bank account in which cash deposit of Rs. 3,21,000/- is made is not in the name of the assessee only but in the joint name of the assessee and his father, Shri Santosh Lohani. The mode of operation of account was either / or survivor. The assessee has no source of income during the relevant year as he was studying at Dehradun in the ICFAI University. Thus, when assessee has no source of income and the cash was deposited in the bank account which is in the joint name with his father, the addition made in the hands of the assessee is not justified. He further submitted that it may be noted that the source o....
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....urchase another agricultural land. Thus, neither the assessee has deposited this amount in his bank account nor he is beneficiary of this amount. Hence, addition made by the AO and confirmed by the Ld. CIT(A) is unjustified. The ld AR further referred to the case of CIT Vs. Smt. P.K. Noorjahan 237 ITR 570 (SC) and vehemently argued that the case of the assessee is squarely covered by the decision of the Hon'ble Apex Court. 5. The ld. D.R., on the other hand, supported the orders of the authorities below. 6. We have perused the case records, analysed the facts and circumstances of the case and heard the rival contentions. The Hon'ble Apex Court in the case of CIT Vs. Smt. P.K. Noorjahan (supra) wherein the assessee was a Muslim lad....
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....me of her own and in these circumstances the Tribunal was right in refusing to make an addition of the value of the investments to the income of the assessee. Ld. counsel appearing for the Revenue, has urged that the Tribunal as well as the High Court were in error in their interpretation of Section 69 of the Act. It was held by Hon'ble Supreme Court as under:- "We are unable to agree. As pointed out by the Tribunal, in the corresponding clause in the Bill which was introduced in Parliament, the word "shall" had been used but during the course of consideration of the Bill and on the recommendation of the Select Committee, the said word was substituted by the word "may". This clearly indicates that the intention of Parliament in enacting s....
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.... was a student of ICFAI University, Dehradun and had no source of income. The bank account details filed clearly shows that both the accounts, one was the joint account with his father and another was with the mother of the assessee. From taking guidance of the Hon'ble Supreme Court's decision (supra) the question whether source of investment should be treated as income U/s 69 of the Act has to be considered in the light of the facts of each case. A discretion has been conferred on the ITO U/s 69 of the Act to treat the source of investment as income of the assessee if the explanation offered by the assessee is not found satisfactory. However, the said discretion should be exercised keeping in view the facts and circumstances of a parti....