TaxTMI 
TaxTMI 
2017 (7) TMI 767
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....e grounds that the sources are past withdrawals." 3. The brief facts of the case are that the assessee is an individual who is a director in M/s JMA appliance private limited. It derives only the salary income and income from other sources. For the impugned assessment year he filed his return of income on 31st of March 2008 declaring an income of Rs. 124565/-. However, during the course of assessment proceedings it was noticed by the Ld. assessing officer that the assessee as income such a short term capital gain, interest income and dividend income, which was not shown by him in his return of income. It was also noted by the Ld. assessing officer that he has deposited a sum of Rs. 6 698500/- in his Punjab National bank account No. 47241, 4242 and HDFC bank account No. 191120. On query by the Ld. assessing officer, it was submitted that that assessee is a secretary of one of the educational Institute who was finding a plot of land at Noida for purchases and therefore this money was given by them for purchase of plot which was not materialized during the year it was submitted that the same sum was returned back to school. However Ld. assessing officer did not believe the explanat....
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....not find any reference to the application made by the assessee for not submitting these details before the Assessing Officer and therefore any request before him to admit these evidences and adjucate. Even otherwise, he has not obtained the comments of the Assessing Officer with respect to these evidences. In para No. 9 the ld CIT(A) has held as under:- 9. I have gone through the assessment order and written submissions of the appellant. I have also perused the documents and details filed during the course of appellate proceedings and case laws relied upon by the appellant. The Assessing Officer has made certain additions in respect of cash deposits regarding that the appellant has rebutted each and every contention of the Assessing Officer and has filed the following documents: Alay Hasan educational Society- Rs. 13750007- - Copy of confirmation duly stamped along with Pan No. - Memorandum of Association of Alay Hasan Society. - Certificate of Registration of the society. - List of governing body duly stamped & signed by President. - Copy of Pan Card of Alay Hasan educational Society. Copy of Resolution of the....
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....lant to that society. It is interesting to note that if the plot is not purchased then the sum was used by the assessee up to 18th may 2006 when Rs. 3 lakhs was repaid and on 3/2/2007 Rs. 5.75,000/- was repaid. The time between the sum paid by the society to the appellant and the sum repaid by the assessee to the society does not inspire confidence about the genuineness of the transaction. Similarly, another conformation was provided by the assessee that is from St Xavier School but signed by some chairman there also the permanent account number of the person who has paid cash to the assessee is missing. Furthermore we do not approve of the reasoning given by the Ld. CIT appeal that the same assessing officer who passed the order for assessment year 2007 - 08 wherein the cash withdrawal shown by previous entries before the date of cash deposited in bank account has been duly considered and accepted. According to us this reason he is full of fallacy. During the year the cash has been deposited of the magnitude of Rs. 66.98 lakhs and it is always factual exercise for the every year and for each and every transaction. Such precedents or instances cited by the CIT appeal cannot be appr....
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....ve documents his existence and genuineness residential address is proved. As an agriculturist his Identity & Credit worthiness are also established. The Assessing Officer has only considered all the cash deposits and treated it as unexplained cash deposits and income from undisclosed sources. The Assessing Officer has failed to consider the withdrawal from these three bank accounts on different dates, prior to the deposit dates and has arrived at a wrong finding of facts. The Assessing Officer has also not taken cognizance of two entries appearing in PNB account No. 47241 which was received from Md. Ilyas on 19.7.2006 and 29.07.2006 of Rs. 7,00,000/- and 5,00,000/- respectively through account payee cheques. The appellant has filed required evidence in this regard. On close perusal of the cash flow statement which was also filed before the Assessing Officer on 22.12.2009 it is seen that the total cash was out of circulating cash in hand of the appellant. 10. In the light of the above Judicial decisions and facts and circumstances of this appeal, the cash deposit in Bank Saving Bank accounts out of earlier withdrawals from the accounts as per evidences and....
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.... 923500/-. He referred to the submission of the assessee at para No. 7 and 8 of the order of the Ld. CIT appeal as well as the his decision at para 9. From this is submitted that without any reference to the same the Ld. CIT appeal has deleted the whole addition of Rs. 6698500/-. 14. The Ld. authorized representative submitted that a complete explanation was submitted before the Ld. CIT appeal and therefore he was convinced that the amount has been wrongly added by the Ld. assessing officer. 15. We have carefully considered the rival contention and also gone through the order of the Ld. CIT (A) deleting the above addition and also the reasons given by the assessing officer for making the addition. The Ld. assessing officer has identified three bank accounts were a sum of Rs. 6 698500/- was deposited by the assessee in cash. During the course of assessment proceedings the assessee was asked to explain the source of such amount out of which it stated that amount of Rs. 1 375000/- is held to be made out of one society. With respect to the deposit of Rs. 1 200000/- he submitted that it has been received from Sri Muhammad Ilyas. Regarding the balance cash deposit of Rs. 4123500/- ....