TaxTMI 
TaxTMI 
2019 (1) TMI 88
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....eciating the fact that expenses claimed by the assessee are not directly attributable to the income of the assessee. (II) In the fact and circumstances of the case, the Ld. CIT(A) has erred in deleting the addition of Rs. 1,35,87,820/- made u/s 68 of the act and addition of Rs. 70,29,249/- made u/s 69 of the act without appreciating the fact that assessee failed to substantiate its claim regarding cash deposits and term deposits during the assessment proceedings and additional evidence was accepted under rule 46A without taking into consideration the remand report submitted by the A.O. (III) That the appellant, craves, leave to add, amend or modify the ground(s) of appeal at any time. Relief claimed in appeal ....
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.... bank accounts to an extent of Rs. 89,50,000/-. Further on examination of cash book it was observed that assessee was having cash in hand of Rs. 1,55,39,251/-. On examination of bank statements filed by assessee Ld.AO observed that assessee has deposited cash in bank to an extent of Rs. 46,37,820/-. Ld.AO asked assessee to explain source of these cash in hand for which neither any details were furnished nor any satisfactory explanation was tendered. Ld.AO thus made an addition of Rs. 1,35,87,820/- as cash deposits under section 68 of the Act. 2.3. Further Ld.AO observed that as per AIR information assessee had made term deposits with bank for which the source of income was not explained. As assessee failed to substantiate the same by way....
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....granting relief to assessee. She further casted heavy doubt on the expenses incurred by assessee which has been claimed against the rental income. Assessee has not filed any bills or vouchers in respect of huge expenses claimed for year under consideration, for which business purpose has not been proved, as required under section 37 (1). 4.2. Ld.AR on the contrary, submitted that, assessee is also having money lending activities, against which, expenses were incurred for year under consideration. He submitted that Ld. CIT (A) correctly observed that Department has accepted money lending activity carried on by assessee in the preceding Assessment Years and admittedly interest income were treated as business income of assessee, against whi....
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....ittedly assessee has not filed before the authorities below any of the details regarding huge expenditure alleged to have been incurred for discharge of obligation in terms of repairs. We, therefore fail to understand, on what basis Ld.CIT (A) held that, assessee has discharged a number of obligations which was agreed upon between the parties to the sub-lease. We find there is difference in sub-lease agreement, relied upon by Ld.CIT(A) and sub-lease agreement that is placed before us in the paper book. 5.3. We accordingly set aside this issue back to Ld.AO for verification. Assessee is directed to produce lease Agreements before Ld.AO in connection with the demised premises therein, along with bills/vouchers in respect of expenditure inc....
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....ssment proceedings. 6.2. Ld.Sr.DR submitted that Ld. CIT (A), after calling for the report from Assessing Officer on the additional evidences so filed, deleted the addition without verifying the genuineness of the transaction, identity and creditworthiness of the parties from whom the cash has been received back on alleged cancelled transactions. She submitted that these documents were objected by Ld. AO as they were not verified. 6.3. On the contrary Ld.AR submitted that assessee is in the business of leasing and sub-leasing of properties and during the year under consideration cash deposits in the bank as claimed to have been made from cash in hand. He submitted that purpose of keeping cash in hand is for giving advances to the farm....
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....d most importantly genuineness of transaction, that has been alleged to have been cancelled, in lieu of which, cash were deposited back into the accounts. 7.2. Insofar as the withdrawals are concerned assessee is directed to reconcile the statement of withdrawals with deposits into bank accounts maintained by assessee. In the event the co- relation of withdrawals with the deposits is successfully made by assessee in terms of the deals that has been cancelled, no further enquiries need to be made by Ld. AO. On the contrary, if there are certain cash in hand/deposits in bank, for which there is no corresponding withdrawal, assessee is directed to establish source of such cash/deposits in the bank to the satisfaction of Ld. AO as per sectio....