TaxTMI 
TaxTMI 
2019 (1) TMI 402
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....ort term capital gain'. 3. That on the facts and in the circumstances of the petitioner's case, the learned Commissioner of Income-tax (Appeals) was wrong in upholding the addition of Rs. 2,58,472/- made by the Assessing Officer, for alleged payments to multiplex capital Limited. 4. That on the facts and in the circumstances of the petitioner's case, the learned Commissioner of Income-tax (Appeals) was wrong in upholding the action of the Assessing Officer in charging interest of Rs. 5,28,695/- under section 234A and 234B of the Income Tax Act, 1961." 2. Brief facts of the case shows that the assessee is an individual, derived its income from salary, business and other sources. The assessee is also engaged in trading of shares. The assessee filed its return of income on 31.03.2010 declaring total income of Rs. 154473/-. The assessment u/s 143(3) of the Act was passed on 31.03.2010 declaring total income of Rs. 41,24,573/-. The assessment u/s 143(3) of the Act was passed on 26.12.2011 where three additions were made (i) additions of Rs. 3392703/- as undisclosed payment towards various credit cards; (ii) short term capital gain of Rs. 318925/-; (iii) undisclosed ....
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....Karur Visya Bank, Karnatka BankTHDf C Bank, RBS and AXIS Bank) and Credit Cards from 8 different organizations (ICICI Bank, RBS, Indslnd, Citi Bank, SB1 Tata, HDFC, HSBC and Std. Chartered Bank). It was noticed that the second Paper Book (dated 28.12.12) claimed to have filed statements of 41 Cards from 8 organizations and 4 Bank Accounts from 3 Bank (Axis Bank, Karnatka Bank and Karur Visya Bank). Thus it is seen that even the second Paper Book did not give the complete details of all the bank accounts, as against accounts in 5 Banks admitted by the Appellant vide his letter dated 29.10.12, the second Paper Book (dated 28.12.12) gave the details of bank accounts from only 3 Banks, leaving out the bank accounts from 2 Banks. Further, it is also seen that even the second Paper Book did not give the complete details of all the Credit Cards, as against Credit Cards from 8 organizations admitted by the Appellant vide his letter dated 29.10.12, the second Paper Book (dated 28.12.12) gave the details of Credit Cards from only 7 of those 8 organizations mentioned, leaving out the Credit Cards from "Indslnd", which was mentioned in point no. 5| of the Submissions dated 29.10.12 as one of t....
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....ard HDFC HDFC- 2 Cards 6. SBI Tata- 1 Card SBI Tata SBI Tata- 1 Card 7. HSBC- 1 Card HSBC HSBC- 2 Cards 8. SCB SCB- 27 Cards 9. Indslnd Total 7 Organizations, 10 Cards 8 Organizations, No. of Cards unspecified 8 Organizations, 41 Cards 8.7 Thus it is seen that the Appellant never came out with the truth and the exact number of Credit Cards and even the exact specification of the organizations from which the Credit Cards were obtained. Though both the Submissions dated 29.10.12 and the Second Paper Book (dated 28.12.12) mention the number of organizations from which Credit Cards w'ere obtained as 8, but perusal of the above chart shows that these not the same and the Submissions dated 29.10.12 show that Credit Cards were obtained from "Indslnd" also, but no Credit Cards from this organizations is mentioned in the Second Paper Book (dated 28.12.12) which specifies 41 Credit Cards, but none from "Indslnd". The First Paper Book also does not mention any Credit Card from "Indslnd" and also from SCB, and even for the organizations which are common between the First and the Second Paper Boo....
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....ellant rather than giving the details of those undisclosed Credit Cards has made the false claim that the photocopies of all the Credit Cards have already been filed. In fact, the details filed are not the exact photocopies of all the accounts and most of them are typed accounts. However, it is seen that on one hand, the Ld. Counsel admitted on 28.12.12 that there are 2 or 3 more Credit Cards whose details have not been given, and on the other hand. Submissions dated 28.12.12 are filed on 02.01.13 that copies of all the Credit Cards have been already given, which is a totally false claim. 8.11 Another false claim made in the above Submissions dated 28.12.12 filed on 02.01.13 is that all the payments are from one Card to another or from bank accounts. Perusal of the accounts filed with the Second Paper Book (dated 28.12.12) show that there are substantial Cash Deposits in some of these accounts. Some of the details of the Cash Deposits (which are obviously not complete as all the Credit Cards and bank accounts have not been given and most of the statements filed with the Second Paper Book are documents typed out by the Appellant himself) seen from these accounts are as unde....
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....d also a large number of bank accounts from several Banks, has substantial unaccounted transactions and in an attempt to evade coming out with the truth so as to evade paying the due taxes, the Assessee sought to give incomplete information and incomplete documents and made false claims as discussed above. 8.13 In view of the undisclosed cash deposits of Rs. 8,18,500/- noticed from the above bank accounts, an addition for the same should be made to the total income of the Assessee, and an enhancement of this amount to the income should be made. Also in view of the undisclosed credit entry of Rs. 5,00,000/- appearing in the abovementioned Axis Bank Account, an addition for the same should be made and in enhancement of this amount of Rs. 5,00,000/- should also be made. It is also seen that there are several other smaller unaccounted transactions in the hank accounts and Credit Cards accounts. It is also seen that these are still incomplete, as the copies and details of all the bank accounts and all the Credit Cards Accounts have not been filed by the Assessee. However, in view of the addition of Rs. 33,92,703/- made by the Assessing Officer towards unaccounted payments invol....
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....osit in the bank accounts. The assessee was neither asked to show the source of the cash deposit and there is no mention of any notice issued by the ld CIT(A) for enhancement. In any case, as the lower authorities have not verified the whole transaction cycle carried out by the assessee of withdrawing from one credit card and depositing it in the second credit card, we set aside the whole matter back to the file of the ld AO with a direction to the assessee to substantiate the inter credit card transaction and also the deposit of cash in various bank accounts. The ld AO may verify the same and examine the whole issue afresh. Accordingly, ground No. 1 of the appeal is set aside to the file of the ld AO with above direction. 8. Ground NO. 2 of the appeal is with relation to the addition of Rs. 318925/- based on the information received from M/s. Multiplex Capital Ltd u/s 133(6) of the Act. The ld CIT(A) also confirmed the same. 9. The ld AR submitted that the ld AO has only considered the transactions of sale and purchase of the shares but has ignored the opening and closing balance of securities. The assessee submitted that in fact the assessee has incurred loss of Rs. 146160/....