2018 (5) TMI 805

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ear under consideration on 31.03.2011 declaring a total income of Rs. 1,54,180/-. During the course of assessment proceedings, it was noticed by the A.O. that the assessee has maintained two saving bank accounts with Axis Bank Ltd. and United Bank of India in which cash deposits of Rs. 25,82,000/- and Rs. 18,23,590/- were made during the year under consideration. While explaining the source of the said deposits, a cash flow statement was furnished by the assessee. From the perusal of the said cash flow statement, it was noticed by the A.O. that the expenditure of Rs. 2,06,737/- incurred by the assessee was not reflected in the said cash flow statement. He also noticed that personal and household expenses to the extent of Rs. 2,00,000/- of t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....lected in the cash flow statement. Ground No. 1 is accordingly treated as allowed for statistical purposes. 5. Ground No. 2 raised by the assessee in this appeal challenging the addition of Rs. 4,00,000/- made by the A.O. and confirmed by the Ld. CIT(A) on account of unexplained investment in shares is not pressed by the learned counsel for the assessee. The same is accordingly dismissed as not pressed. 6. The issue raised in ground no 3 relates to the addition of Rs. 7,14,436/- made by the A.O. and confirmed by the Ld. CIT(A) on account of disallowance of interest under section 40(a)(ia) for non deduction of tax at source. 7. During the year under consideration, the assessee had incurred interest expenditure of Rs. 7,14,436/- and ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he Ld. CIT(A) to the total income of the assessee on account of interest on bank accounts. 10. As found by the A.O. from the information directly received from United Bank of India, the assessee had earned interest of Rs. 3,84,249/- on fixed deposits during the year under consideration. Since the assessee had disclosed income on account of bank interest only to the extent of Rs. 44,345/-, he was called upon by the A.O. to explain the reason for non disclosure of the balance amount of bank interest. In reply, it was submitted by the assessee that the relevant fixed deposits with United Bank of India were actually belonging to M/s. Anand Vinayak Coalfield Ltd. after takeover of his propriety concern and the same by mistake confirmed in his....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ddition made in the hands of the assessee on account of same income is liable to be deleted as the same would otherwise result in double addition. Ground No. 4 is accordingly treated as allowed for statistical purposes 12. The issue involved in ground no 5 relates to the addition of Rs. 28,96,502/- made by the A.O. and confirmed by the Ld. CIT(A) on account of deemed dividend under section 2(22)(e) of the Act. 13. As found by the A.O. from the cash flow statement furnished by the assessee, the assessee had received total amount of Rs. 28,96,502/- from M/s. Anand Vinayak Coalfield Ltd. According to the A.O., the said amount received by the assessee was in the nature of loans and advances and since the provisions of section 2(22)(e) wer....