AI Drafter 
TaxTMI 
TaxTMI 
2019 (4) TMI 96
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..... Real Estate Group on 06/10/2006. During the course of search & seizure proceedings some incriminating documents and cash relating to the assessee were found and seized. Hence, notice under section 153C of the Income Tax Act, 1961 (hereinafter referred to as 'Act') was issued to the assessee on 14/08/2007 for six assessment years i.e. from A.Y. 2001-02 to 2006-07 immediately preceding the financial year in which search action was initiated, to file his return of income on or before 31/08/2007. The Assessing Officer after following due procedure, assessment was completed under section 143(3) r.w.s. 153C of the Act on 31/12/2008. During the course of assessment proceedings, the Assessing Officer has noted that a show-cause notice dated 22/12/2008 was served by affixture at the residential premises of the assessee, as the assessee was not available at that time and the local enquiries revealed that he is out of country. Before the Assessing Officer, the assessee‟s counsel appeared and submitted that the assessee is not carrying onbusiness and as such regular books of accounts are not maintained. However, the bank accounts available with the assessee were already furnish....
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....e Commissioner of Income-tax (Appeals) is requested to decide the case on merits." 4. The ld. CIT(A) asked the assessee to file objections, if any on the remand report. In response to that, assessee has submitted that the assessee has filed confirmation letters, source of income of the creditors, genuineness of the transaction, but the Assessing Officer without making any enquiry simply submitted a remand report justifying the additions, is not correct. It was also submitted before the ld. CIT(A) that all the papers filed in the form of additional evidence signed by the assessee and the ld.CIT(A) only sent Xerox copies, therefore non-appearing ofsignatures on the details filed by the assessee, for that assessee cannot be faulted. The ld. CIT(A) has considered all the arguments and confirmed the order of the Assessing Officer by observing as under:- "I have carefully considered the facts, grounds of appeal, written submissions, remand report and the averments of Assessing Officer in the assessment order dated 31.12.2008. This is a search related assessment u/s. 153C of the Act consequent to a search on 6.10.2006 against M/C R.K. Real Estate group. The solitary issue in t....
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....tance, the appellant had failed to explain or establish two crucial factors i.e. creditworthiness and genuineness of loan creditors due to the fact that he is away in USA during the assessment proceedings. The appellant was given adequate opportunity under Rule 46A to explain the case or establish his claim before the Assessing Officer in the remand proceedings. The appellant has filed confirmation letters of loan creditors which is repetition and nothing new about it. Besides, the bank account of appellant and loan creditors and details of lands held by loan creditors were furnished in a tabular form which is not signed by the appellant. By filing these details, the AR of the appellant felt that he has discharged his legal obligation. According to me, these documents by themselves have no meaning unless they are correlated and corroborated with the entries in the bank account of appellant especially when the appellant claims that he is not maintaining regular books of account. Further, all the entries are in the form of cash. It is not known whether the Assessing Officer has invoked Section 269SS of the Act in this case. 9.6) I have perused the bank account copy of appell....
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....the matter in appeal before this Tribunal. 6. Ld. counsel for the assessee has submitted that the assessee has filed an application for admission of additional grounds and submitted that assessment order passed under section 143 r.w.s. 153C is not correct. The Assessing Officer ought to have been passed assessment order under section 153A of the Act. For the sake of convenience, the relevant grounds for admission of additional evidence are reproduced as under:- "1) The appellant/applicant preferred appeal against the order passed by the Deputy Commission of Income Tax, Central Circle-1, Visakhapatnam dated 31/12/2008 under section 143(3) r.w.s. 153C of the Income Tax Act. 2) The appellant /applicant submit that the assessment under section 143(3) r.w.s. 153C was passed in pursuance of notice under section 153C dated 14/08/2007 issued. 3) The appellant /applicant now raised additional grounds of appeal challenging the notice issued by the department. 4) The appellant /applicant would like to submit that no additional evidence or papers are required to be submitted in support of the additional grounds now raised. The additional issues now raised....
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....use the assessee was not available in India and he was in abroad. Therefore, the identity of the party, creditworthiness and genuineness of the transaction was also not proved. Before the ld. CIT(A), the assessee has filed a tabular form which shows the name and details of the creditor, land holding of the creditor, business carried by the creditor and filed confirmation letter. The same was forwarded by the ld. CIT(A) to the Assessing Officer for his comments. The Assessing Officer has examined all the details and submitted a remand report to the ld. CIT(A) that the assessee failed to prove the creditworthiness of the creditor, genuineness and veracity of the transaction except filing of confirmation letter. So far as details filed by the assessee during the appellate proceedings are concerned, the Assessing Officer gave a categorical finding that no single paper was signed neither by the assessee nor by the AR of the assessee, therefore, the same cannot be considered. When this was pointed out to the AR of the assessee, it is submitted before the ld. CIT(A) that Xerox copies of the papers are forwarded to the Assessing Officer during the course of remand proceedings, theref....
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....IZ/2017 10. Ground Nos. 7 & 8 raised by the assessee relates to sale of lorry at Rs. 3,20,000/-. In the assessment order, the Assessing Officer has noted that the AR of the assessee show-caused as to why the sale of lorry is not to be treated as his income as he is filing his return of income under section 44AE. The AR of the assessee did not produce any evidence in respect of claim and he is not able to explain the genuineness of the claim. Accordingly, the Assessing Officer has treated the sale of lorry as unexplained income amounting to Rs. 3,20,000/-, the same is added to the total income of the assessee. 11. On appeal, ld. CIT(A) gave a find that „regarding addition on account of sale of lorry, the appellant, except stating that the Assessing Officer has made the addition without taking into consideration the explanation offered by the appellant‟s auditor, no evidence was brought on file. However, on this issue no explanation was offered by the AR of the appellant before me in the letter dated 04/03/2016. It is also not know from the records that whether it is a case fallen u/s 44AE of the Act or otherwise. On one hand, the appellant states that he is not ....
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....amounts were received from various persons such as Sri K. Satya Mahendra, Sri V. Gandhi, Sri Y. Vishnu Vardhana Rao, Sri A. Venkata Rao, Sri C. Satyanarayana, Smt. K. Krishna Kumari, Sri M.Basava Sanakara Rao and Smt. C. Varalakshmi without any interest. It is also seen from the bank account that the appellant had withdrawn these amounts by 'self' either immediately or with small passage of time. All the entries are in the form of cash. It is not known whether the Assessing Officer has invoked Section 269SS of the Act in this case. 9.4) I have also perused the confirmation letters filed by the appellant before the Assessing Officer as well as before me. The confirmation letters of different persons (as cited supra) reveals that they have lent money to the appellant on different dates during the year under consideration. The confirmation letters also reveal that the appellant has repaid the said loans but no entries were found in the bank account of the appellant corresponding to the repayment. No corroborative entries were found in the bank account of appellant. It is the burden of the appellant to prove the manner in which he paid the amounts as he claimed that de....