TaxTMI 
TaxTMI 
2014 (10) TMI 975
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....osited in the various bank accounts. (3) In the facts and circumstances of the case, the ld CIT(A) erred in not considering the factual facts arrived at by the AO in asst order while making additions under section 69A on account of unexplained money in the bank accounts. (4) In the facts and circumstances of the case, the ld CIT(A) erred in ignoring the fact that during the course of survey the assessee himself has stated that he has deposited unaccounted business proceeds into these accounts and therefore, the cash flow statement made as an afterthought cannot be relied upon." 2. The Cross Objections filed by the Assessee are supportive to the order of CIT(A). Since the facts and the quantum of deletion against which the Revenue has come in appeal are different, therefore, each year of appeal is being disposed off as under. 3. The brief facts of the case are that there had been a survey u/s 133A at the business premises of Assessee's firm, M/s. Belgaum Pipes and Tubes on 24.8.2011. It was noted during the course of the survey that the Assessee had made deposits by cheque and cash in various bank accounts with Axis Bank, Canara Bank, pygmy accounts with Lokm....
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....,500/-, as is appearing at pg. 23, as cash in hand but when we inquired from the learned counsel whether the Assessee has filed any Wealth Tax return as cash in hand in excess of Rs. 50,000/- was chargeable to wealth tax as an asset, the learned counsel agreed that no wealth tax return in this regard has been filed. Learned counsel even could not produce any evidence before us to prove how this opening balance of cash in hand of Rs. 24,49,500/- has been shown in the cash flow statement for working out the peak credit. CIT(A) on the basis of this cash flow statement and specific noting that the Assessee was having cash in hand of Rs. 24,49,500/- at the beginning of the year i.e. 1.4.2005 after noting that the total cash withdrawal made by the Assessee were Rs. 24,80,198/- and the deposits made are only of Rs. 21,35,000/- and since cash in hand was Rs. 27,94,699/-, deleted the addition in respect of cash deposit and directed the AO that the assessed income of the Assessee would come to Rs. 18,25,586/- i.e. amount originally returned - Rs. 1,38,737/-, cheque deposited - Rs. 15,84,000/- and interest on bank - Rs. 1,02,849/-. Subsequently, when we asked the Assessee what happened in the....
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.... 5,21,953/- while the total deposit in the bank was to the extent of Rs. 15,93,271/-. Therefore, the AO made addition of Rs. 10,71,318/-. The AO was of the view that there was no nexus between the withdrawal of the cash and the deposits made in the bank account but where he found there was nexus, he gave due credit and worked out the peak credit at Rs. 10,39,297/- including cheque deposit of Rs. 2,81,000/-. When the matter went before CIT(A), before the CIT(A) the Assessee submitted peak in respect of cash deposit at Nil and cheque deposit at Rs. 2,81,000/- and the interest credit amounting to Rs. 35,597/- and thus claimed relief of Rs. 12,76,674/-. We noted that CIT(A) on the basis of the submission of the Assessee noted that the total cash withdrawal made by the Assessee during the year is Rs. 24,64,583/- while the deposits were only Rs. 15,83,950/- and thus the Assessee was having cash in hand of Rs. 61,79,332/-. As the Assessee has shown cash in hand as on 1.4.2007 amounting to Rs. 52,98,699/-, he also gave the finding that there was no negative balance of cash during the year. We asked the ld. AR in the court to prove the opening cash balance at Rs. 52,98,699/- and whether the....
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....ires, to take the action under the Wealth Tax Act. ITA NO. 186/PNJ/2014 (A.Y 2010-11) : 3.3 We heard the rival submissions and carefully considered the same alongwith the order of the tax authorities below. In this year also we noted that the AO noted that the Assessee has deposited a sum of Rs. 50,56,220/- through cheque (Rs.23,22,720 + Rs. 27,33,500) in the undisclosed bank accounts, a sum of Rs. 1,24,62,990/- in cash (Rs.76,01,000 + Rs. 3,08,990 + Rs. 33,50,000 + 12,03,000) in the undisclosed bank accounts. There was also credit in respect of interest in this bank account amounting to Rs. 56,196/-, Rs. 4,836/-, Rs. 49,350/- and Rs. 19,097/-. Thus, he was of the view that during the year the Assessee has deposited a sum of Rs. 1,76,48,689/- but declared peak credit of Rs. 56,67,585/-. The AO, therefore, worked out the dues of Rs. 1,19,81,104/- which consists of interest of Rs. 1,10,382/- and added the sum in the income of the Assessee. The Assessee went in appeal before CIT(A). Before CIT(A) the Assessee submitted that the peak credit has been taken by the AO on ad hoc basis, even though the AO accepted that the peak credit has to be added. The Assessee worked out the peak ....