TaxTMI 
TaxTMI 
2017 (6) TMI 399
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....n of Rs. 13,00,000/- is concerned. 2.The 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 plea....
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.... to Bellary. Because of the subsequent death of the 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 t....
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....lained the source of deposits and also produced the evidence. 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 28.03.2....
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....ment to the family members. Accordingly rejecting the said 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 3....
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....1. This plea is generally accepted as it is logical and acceptable (whether the creditor is a genuine party or not), provided there is nothing in the material on record to show that a particular withdrawal/repayment could not have been available on the date of the subsequent credit. 15. A refinement or extension of the plea occurs where the credits appear not in the same account but in the accounts of different persons. Even then, if the genuineness of all the person is disbelieved and all the credits appearing in the different account are held to be the assessee's own moneys, the assessee will be entitled to set off and a determination of the peak credit after arranging all the credits in the chronological order." 31. In view of ....