TaxTMI 
TaxTMI 
2018 (10) TMI 1390
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....g to Rs. 78,75,000/-as under: Account No.05681050000918 Date Amount (Rs.) 1 18.05.2010 100000 2 14.12.2010 50000 3 25.02.2011 950000 4 24.03.2011 25000 Total 1125000 Account No.5681000008659 Date Amount (Rs.) 1 25.02.2011 950000 2 26.02.2011 1900000 3 28.02.2011 1500000 4 03.03.2011 1500000 5 22.03.2011 900000 Total: 6750000 3. During the assessment proceedings, the A.O. requested the assessee to submit explanation for the source of deposits. The assessee explained the source of deposits as realization of the advances made by him to his friends and relatives, which was recovered in cash and withdrawals from the bank (ATM), loans from friends and relatives. The A.O. has issued summons to some of the debtors and in response to the summons, 6 persons have appeared and confirmed the loans taken and repaid in cash. In addition the A.O. issued the letters to the following persons, which were returned un-served or there was no response from the persons who stated to have repaid the loans given by the assessee: Sl.No. Name....
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....r credits of Rs. 78,75,000/- as under: 1. Account No.05681050000918: Date Amount (Rs.) Source for the deposit 1 18.05.2010 100000 Hand loan of Rs. 50,000/- each given to two persons returned on 18.5.2010. 2 14.12.2010 50000 Hand loan of Rs. 25,000/- each given to two employees was returned and deposited on 14.10.2010 3 25.02.2011 950000 Hand loans returned from 5 persons cash of Rs. 5,000/- with drawn in ATMRs. 4 24.03.2011 25000 Amount deposited by appellant's sister which was to drawn to hand over to her friend. 2. Account No.5681000008659 Date Amount (Rs.) Source for the deposit Hand loans given were recovered and deposited into bank account. Majority of the loans were given to staff of Optimum Commodity Futures Pvt. Ltd., for which the appellant is one of the founder Directors. 1 25.02.2011 950000 2 26.02.2011 1900000 3 28.02.2011 1500000 4 03.03.2011 1500000 5 22.03.2011 900000 8. Before the Ld. CIT(A) the Ld. A.R. of the assessee filed copies of returns of income, reconciliation of cash deposits and withdrawals made during the financial year 201....
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....wals from the bank account and recovered the same in cash, no evidence was produced to establish that the assessee has given the loans in cash and recovered the same in cash. The assessee had furnished the names of the persons, however, the letters sent to the purported debtors were returned un-served or no reply was received from the debtors. Therefore, the A.O. issued show cause notice to establish the genuineness of the source of cash deposits made into the bank account for which the assessee has requested to complete the assessment by making the addition. Since the assessee has agreed for the addition, no further enquiry was made. Before the first appellate authority, the assessee has submitted additional evidence in the form of books of accounts and bank account statement, which was not placed before the A.O. The Ld. CIT(A) also did not call for the remand report. Even before the CIT(A), the assessee has not established the genuineness of the source of credit, identification capacity and creditworthiness of the person from whom the cash was received. Though assessee has stated that he has given loans in cash, the same was not established with any documentary evidence. Simil....
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....para 5.1 to 5.1.1, which reads as under: "5.1 The submissions are verified with reference to bank statement, cash book etc. For instance, the appellant has deposited Rs. 9,50,000/- on 25.2.2011. The appellant claimed that this amount was repayment of advance given earlier received in cash from various persons like Sri A.V. Satyanarayana - Rs. 3,70,000/-. Sri B. Manoj Kumar Naidu - Rs. 2,00,000/-, T. Rama Devi - Rs. 2,00,000/-, Sri Hansaram - Rs. 1,50,000, Sri M. Chandra Sekhara Singh - Rs. 25,000/- on 24.2.2011 and cash withdrawn from ATM for Rs. 5,000/- on 21.2.2011. He claimed that he gave advance of Rs. 1,50,000/- on 3.4.2010, Rs. 70,000/- on 13.4.2010, Rs. 1,00,000/- on 16.4.2010 and Rs. 50,000/- on 30.4.2010 to Sri A.V. Satyanarayana. Like wise amount advanced to Sri B. Manoj Kumar Naidu was Rs. 1,00,000/- on 21.4.2010 and Rs. 1,00,000/- on 11.5.2010. In the case of t. Rama Devi, Rs. 1,50,000/- was given on 21.6.2010 and Rs. 50,000/- on 4.10.2010. In the case of Sri Hansaram, Rs. 1,00,000/- was given on 15.7.2010 and Rs. 50,000/- on 10.8.2010. In the case of M. Chandra Sekhara Singh, Rs. 25,000/- was advanced on 10.6.2010. The appellant claimed that all these....