AI Drafter 
TaxTMI 
TaxTMI 
2017 (10) TMI 1358
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.... addition of Rs. 82 lakhs under section 68/69A of the I. T. Act and addition of Rs. 60, 000. /- 3. 1 As regards addition of Rs. 82 lakhs, the A. O. noted that assessee is a partner of M/s. Srimander Dass & Sons. During the year, the assessee has income from house property, remuneration, share of profit and interest from the firm and income from other sources. The assessee has not carried any business activity during the year in his individual capacity. During the year, assessee has made cash deposits of Rs. 82, 14, 000/- in the savings account maintained with Jammu & Kashmir Bank. During the assessment proceedings, the assessee was given an opportunity to explain source of the cash deposits in the bank account. The assessee submitted tha....
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....ation of assessee to be satisfactory and issued note to the assessee to show cause as to why the entire cash deposits of Rs. 82, 41, 000/- should not be treated as his income from undisclosed sources. The assessee again reiterated the same submissions before A. O. It was similarly explained that amounts were withdrawn from the same bank account which were re-deposited. 3.2 The A. O. after considering the explanation of assessee noted that no single instance was occurred where the assessee could establish the genuineness of the cash deposits in the S. B. account. Further, the submissions of the assessee that cash deposits were out of cash withdrawn made earlier through the same account after meeting the expenditure of construction is also....
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.... deposited, which proves that cash withdrawn from the bank was utilized for expenditure of construction of property at Noida or subsequent deposit in the bank account. The A. O. therefore, treated the cash deposited of Rs. 82 lakhs in S. B. account as unexplained and made the addition. 3.3 The assessee reiterated the same submissions before the Ld. CIT(A). The Ld. CIT(A), in principle, confirmed the finding of fact recorded by the A. O. that cash deposited in the bank account has not been explained by the assessee. The Ld. CIT(A) however, found that the bank account in which cash have been deposited is owned by three persons including the assessee. Therefore, the whole amount of Rs. 82 lakhs should not be taxed in the hands of the assess....
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....elow and submitted that Ld. CIT(A) has rightly applied Section 69A of the I. T. Act. Since no bills of construction have been produced, no payment is made by cheque, no details of construction expenses have been prepared or filed, no details of the expenses shown in the cash have been filed, therefore, cash flow statement is doubtful. The assessee did not prove the nexus of the amount withdrawn from the bank account with the re-deposited amount in the S. B. account. The cash flow statement is not reliable and supported by any evidence. 6. We have considered the rival contentions and do not find any merit in this ground of appeal of assessee. It is well settled law that Ld. CIT(A) being the First Appellate Authority has co-terminus powers....
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....e assessee also failed to provide any details of cost of construction incurred by the assessee and others in the property. Even no bills of purchase of material or any payment to contractor have been produced before A. O. It, therefore, clearly proved that assessee has no evidence at all to explain as to how much amount has been incurred in construction of the property. These facts prove that assessee has no evidence of any amount invested in construction of property in assessment year under appeal because no bills of material purchased have been filed before the authorities below. The assessee did not incur any construction expenditure through banking channel. No details of construction expenses were prepared or filed before A. O. No detai....
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....plained when huge cash amount have been withdrawn, why only part amount have been used for construction and if sufficient cash was available to assessee on prior dates, why there is again huge cash withdrawal on subsequent dates without incurring any expenditure on construction. Ld. D. R. therefore, rightly contended that cash flow statement is wholly unreliable and full of doubts. The cash flow statement would not prove any nexus between the withdrawals of the cash account from the bank and redeposit as claimed by the assessee. The totality of the facts and circumstances clearly prove that assessee failed to explain deposit of huge cash in the joint bank account to the satisfaction of the authorities below. The authorities below therefore,....