TaxTMI 
TaxTMI 
2017 (12) TMI 1333
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....the addition made by the learned A.O. was justified on the facts of the case. 4] The learned CIT(A) failed to appreciate that the assessee had given explanation regarding the sources of the cash deposits in the above two accounts and therefore, there was no reason to hold that the assessee had failed to prove the sources of the cash deposits in the two bank accounts and hence, the addition made may kindly be deleted. 5] The learned CIT(A) erred in not appreciating that the assessee had received amounts from various persons in cash which were deposited by the assessee in the two bank accounts and all these persons had admitted giving of the amounts to the assessee and accordingly, there was no reason to sustain the addition on account of unexplained cash deposits in the above two accounts. 6] The learned CIT(A) erred in confirming the disallowance u/s 40(a)(ia) of Rs. 2,09,838/- on the ground that the assessee had failed to deduct TDS on the interest paid without appreciating that no TDS was required to be deducted on the said amount and hence, the disallowance of interest u/s 40(a)(ia) is not warranted at all. 3. The first issue raised vide grounds of appeal No.1 to 5 is aga....
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....200/-. The assessee explained that the source for the said cash was out of money collected from different persons for purchasing fertilizers and seeds for agricultural purposes. However, the assessee could not produce the said persons within week for verification and even after the reminder. The Assessing Officer held the same to be undisclosed income of the assessee. Further, the Assessing Officer noted that the assessee had paid interest of Rs. 2,09,838/- to his father on unsecured loans raised. However, no tax was deducted at source from the said payment and in view of provisions of section 40(a)(ia) of the Act, the said sum of Rs. 2,09,838/- was added to the total income of the assessee. 5. Before the CIT(A), the assessee furnished written submissions in which he explained the source of cash deposited. The assessee also explained that because he had met with an accident, he could not produce the said persons. The assessee filed affidavits of the said lenders / contributors during appellate proceedings. The said information was forwarded to the Assessing Officer, who was directed to examine additional evidences filed by the assessee. The Assessing Officer in the remand proceedi....
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....ade under section 40(a)(ia) of the Act for not deducting tax at source out of interest payment. 6. The assessee is in appeal against the order of CIT(A). 7. The learned Authorized Representative for the assessee pointed out that the Savings Bank Account was in individual names and the sources of cash deposits in the two accounts were explained by the assessee before the Assessing Officer himself, wherein the amounts were received from different persons and names of the said persons were given during remand proceedings. Out of total seven lenders, wherein amount received from two lenders was deposited in Bank of India and amount received from five lenders was deposited in Loknete Dattaji Patil Sah. Bank, six persons were produced and since the seventh person being an old man about 85 years old could not be produced. He further stated that all six lenders admitted to have advanced the said amount to the assessee, even 7/12 extracts and sale patties evidencing the agricultural income were produced. Our attention was drawn to submissions made before the CIT(A), which are placed at pages 9 to 11 of the Paper Book and the copy of remand report at pages 12 to 15 of the Paper Book. He fu....
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....sourcing of agricultural income. Another aspect which was found by the Assessing Officer was the cash deposit in Loknete Dattaji Patil Sah. Bank totaling Rs. 10,05,200/-. The explanation of assessee in this regard was also that part of the amount i.e. about Rs. 1,40,000/- was out of his cash savings and balance was the amount received from different persons for buying fertilizers, seeds, etc. He explained that the assessee was doing the said business on sideline and as strategy it was decided to purchase itemwise of fertilizers or agricultural equipment on cumulative basis in order to avail discounts. Hence, it was not the case where the assessee had received loans which were deposited in his account with Loknete Dattaji Patil Sah. Bank. Before the CIT(A), the assessee produced all the persons except one who was about the age of 85 years old. He also produced 7/12 extracts of the landholding of the said persons and also sale patties in respect of certain sale of agricultural produce and also admitted in the statement that they had made the said advances. Despite all these evidences were available before the Assessing Officer during the course of remand proceedings, copy of which ar....