TaxTMI 
TaxTMI 
2017 (9) TMI 1021
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....e assessee submitted some details and tried to support the entries contained in the bank account, but after due enquiry, the Ld. Assessing Officer found that despite specific opportunity being given to the assessee the cash-book i.e. Annexure-I prepared and produced by the assessee was held to be unreliable and, therefore, same was rejected. In addition, the assessee had furnished confirmation of 17 persons out of 33 persons from whom assessee has stated to have received 'gifts'. Out of 17 confirmations, in 8 cases PAN was not given and further in 9 cases containing PAN, out of which in 3 cases PAN AKIPS 4839 B was repeated, which was later on found to be related to one Shri Ramji Prasad Sharma, i.e., father of the assessee and in another case, i.e. Smt. Savtri Devi Sharma, i.e., the mother of the assessee, and her PAN was found to be invalid, therefore, out of 17 confirmations, the assessee could provide PAN of only 6 persons, which are correct and out of the 6 confirmations, 2 confirmations related to spouse of the relatives. Apart from the above, several other observations were made by the A.O. Moreover, the Assessing Officer noted that assessee has not been able to disc....
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....We have heard the rival submissions perused the orders of the authorities below. The Ld.CIT(A) sustained the addition u/s 68 observing as under: - "2.1 During the assessment proceedings the AO has called for details of bank account maintained by the assessee in individual capacity or jointly with others or operated by him in any capacity. In response to the show cause notice the AR of the appellant has submitted copy of bank accounts of the appellant with Canara Bank, Vile Parle East Branch and State Bank of Saurashtra, Vile Pane East Branch. The AR of the appellant was asked to submit copies of these bank accounts and also to explain the credit entries in these accounts. The Department had received information that the assessee has also maintained bank accounts with Oriental Bank of Commerce, Vile Pane Branch in which the cash deposit of Rs. 14,37,000/- was made. Again a show cause notice was issued to the assessee to explain the same. In response to this the AR of the appellant has submitted certificate of cash deposits and withdrawals of Canara Bank and statement of account of the assessee with Oriental Bank of Commerce. The AO also asked the assessee to produce the cas....
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....cussed by the AO at pages 7 and 8 of the assessment order. Further the AO has given a chart of 35 names showing the relationship of the donor with the assessee, amount of gift, PAN of the donor and PAN validity. Out of these 35 names only persons at S.No.1 to 14 has submitted confirmations and PAN. But only the PAN in 5 cases was found correct. In other cases PAN mentioned was wrong and at S. Nos. 15 to 35 no confirmation was filed. In absence of any documentary evidence, occasion of gift the AO has held that there was no occasion of gift and the assessee has failed to submit the confirmation from the donors. Therefore, the gift amount of Rs.9,00,000/- claimed by the assessee was treated as unexplained cash credit u/s68. In view of these facts and circumstances, the total cash deposits amounting to Rs,28,35.400/- in three bank accounts maintained by the assessee were treated as unexplained cash credit u/s 68 of the I.T. Act and added back to the taxable income. 2.2 Before me the appellant submitted as under: Whatever cash was deposited in the bank accounts was out of cash withdrawal from the other bank accounts of the assessee. it is only a circulation of the mone....
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....nt proceedings, the assessing officer raised the questions, as to why gifts of Rs. 9,00,000/- were received from various relatives by the appellant and his wife when there was neither 20th anniversary nor 25th anniversary of marriage, why the assessee's spouse used to give tuition when she belonged to a known family and whose father was the President of J C Mills and various prominent industrialists, businessmen, journalists, politicians and eminent citizen attended the marriage. in reply to the same, it was explained to the assessing officer that the assessee's marriage took place in 1987 and due to financial problem in the family and unfortunately due to no business of the assessee, there were disputes in both the spouses and the marriage of more than 23 years was on the verge of divorce. There was a marriage function in the family of a relative of the assessee and all the relatives attended the said marriage and since the marriage anniversary of the assessee was also at that time on February 7, the relatives of the assessee tried to solve the issue and to avoid divorce, anniversary function was arranged during the said marriage function and gifts were given to the assess....
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....ment order, the assessing officer has mentioned that the Submission of the assessee that his spouse supplements his monthly withdrawal's of Rs.10, 000/ with the receipt of her tuition fees to meet her domestic and personal expenses is held as untrue and unsubstantiated and a story cooked up subsequently to cover up low withdrawals of Rs.10,000/- pm. shown by the assessee. Further, the amounts withdrawn by the assessee from his bank accounts from time to time were utilized/incurred for meeting unrecorded out-of-book various expenditures towards domestic / personal and social obligations. In response to the same, as already submitted in preceding pares it is repeated that the financial position of the assessee was not good the marriage of the assessee was on the verge of end. Due to the financial reasons only there were disputes in the family and the assessee was not doing anything during the period. Under these circumstances, the wife of the assessee was also giving tuitions and was earning for the livelihood. The assessing officer has merely on assumptions and presumptions taken a stand that the story is cooked up without appreciating the facts and if he was having any doubt regard....
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...." 2.3 I have considered the submissions of the appellant, order of the AO and facts of the case carefully. It is noticed that the AO has called for details of bank accounts maintained by the assessee. In response to this show cause notice the AR of the appellant has submitted that the assessee has maintained bank account with Canara Bank and State Bank of Saurashtra. But the AO has received information from the AIR that assessee has also maintained bank account with Oriental Bank of Commerce in which the cash deposit of Rs.14,37,000/- has been made The AO has confronted this with the assessee and the assessee has submitted a copy of the cash book for the period 14.2009 to 31.3.2010 and copy of bank accounts maintained with Canara Bank, State Bank of Saurashtra and Oriental Bank of Commerce. The AO has discussed the entries of the cash book at pages 7 and 8 of the assessment order and also discussed the gift received at Rs.9 lakhs from relatives at page 9 and 10 of the assessment order. The assessee was asked to explain the source of these cash deposit in this bank account and also asked to submit complete names and addresses with PAN numbers and confirmation of the donors ....
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....of the submissions and facts of the case it is an undisputed issue that that assessee has maintained three bank accounts with Genera Bank, State Bank of Saurashtra and Oriental Bank of Commerce. In these bank accounts the assessee has made cash deposits of Rs.28,35,400/- during the year under consideration. When the AO has asked the assessee to submit complete details and documentary evidences for source of these deposits. The AR of the appellant could not submit any satisfactory reply and evidence except by telling that the cash deposit was made out of cash withdrawals from the other bank accounts. No reconciliation as nexus was provided against the withdrawal and cash deposit in the other bank accounts. The assessee has also received a gift of Rs.9,00,000/- from relatives on the marriage anniversary of the assessee. When asked by the AO to prove the Oneness of gift by giving the name, address, PAN of the donors the assessee has failed to submit the complete names and confirmations with J except in 6 cases Where the PAN were found correct and in others the PAN were wrongly mentioned and in 16 cases no confirmation filed. The AO has also observed that there was no function for marr....
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.... the assessee has failed to submit reconciliation statement and nexus between the cash withdrawals and cash deposits. Therefore, this story is also not acceptable. In totality of facts and circumstances, it is held that the assessee has failed to submit any documentary evidence to prove the source of cash deposits in the bank accounts amounting to Rs.28,35,400/-. Therefore, the addition made by the AO as unexplained cash credit u/s.68 of the I.T. Act is upheld and ground of appeal is dismissed." 7. We have also gone through the material available on record and case laws cited as well as orders of the lower authorities, after perusal of the order of the CIT(A) we are of the considered view that the CIT(A) has considered the case of the assessee from all angles and have also considered all the submissions of the assessee put forth before the Ld. CIT(A) and the first appellate authority has rightly held that assessee has three bank accounts which were maintained at Canara Bank; State Bank of Saurashtra; and Oriental Bank of Commerce. During the year under consideration, assessee had made cash deposit of Rs. 28,35,400/- in all these three bank accounts combined together. The Ld. CIT....