TaxTMI 
TaxTMI 
2017 (6) TMI 399
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....learned lower authorities erred in making and confirming the addition of Rs. 13,00,000/- on assumptions and presumptions contrary to the evidences on record. 3.The learned lower authorities failed to appreciate the evidences and law in the facts of the case in the right perspective as pointed out in "the case of the appellant before Honorable ITAT under statement of facts". 4.The action of the assessing officer is bad in law since the AO could have cross verified the confirming party in person if he had doubt about the transaction that had taken place. 5.For these are any other grounds of appeal that may be urged at the time of hearing it is prayed that this Honorable Tribunal may be pleased to allow this appeal in the Interest of Equ....
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.... family members and the assessee settled down at Bellary the assessee decided to purchase the residential house at Bellary and therefore the said amount was of Rs. 13 lakhs was received back. The ld. AR has submitted that the AO has rejected the confirmation filed by the assessee on the ground that the stamp paper used for confirmation was purchased on 28.02.2014 whereas the amount was claimed to have received during the month of April 2010. Further the advance was claimed to have been given by the assessee during the Financial Year 2004-05 which was received back during the Financial Year 2010-11. Therefore the genuineness of the transaction was doubted by the AO. The ld. AR has referred the assessment order for the assessment year 2010-11....
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....dence. The AO accepted the source of deposit to the extent of Rs. 29,83,188/- however the AO rejected the source of deposit to the extent of Rs. 13 lakhs as explained by the assessee through confirmation of family members that the said amount was received by the assessee during the year under consideration which was given as an advance to the family members to purchase the ancestral property. This advance of Rs. 13 lakhs given to the family members by the assessee for purchase of ancestral property has been reflected by the assessee in the balance sheet for the year 2010-11 and the Assessing Officer has accepted the same while passing the assessment order under section 143(3) on 28.03.2013. The ld. AR of the assessee referred to the stateme....
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....aid confirmation at the threshold without further examination and verification of the veracity of the confirmation by conducting a proper enquiry is not justified on the part of the AO. 6. Further it is settled proposition of law that in case of deposits in bank the corresponding withdrawal for subsequent deposits can be considered as a proper source of fund in the hand of the assessee. Therefore in case whether there are multiple transaction of deposit and withdrawal on regular basis then only peak credit can be considered for the purpose of making addition on this account. The Hon'ble Allahabad High Court in case of CIT Vs Sharraf Trading Co. (376 ITR 534) has held in para 30 and 31 as under. "30. We may also notice that against Tribuna....