TaxTMI 
TaxTMI 
2019 (4) TMI 277
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....Bhopal detailed as under; Name of assessee Assessment Year Date of CIT order Date of A.O order Order passed u/s M/s Indus Holidays & Tours India Pvt. Ltd 2007-08 2013-14 to 14.02.2017 23.03.2015 153A r.w.s. 143(3) Smt. Neeta Bhadauria 2007-08 2013-14 to 15.02.2017 16.03.2015 -do- Smt. Sunita Nigam 2007-08, 2009-10, 2010-11 21.03.2017 31.12.2014 -do- M/s Purple Vacations Pvt. Ltd 2010-11 06.03.2017 28.01.2015 -do- Shri Ajay Bhadauria 2007-08 2013-14 to 15.12.2017 24.03.2015 -do- 2. As the issues raised in these appeals are common, therefore these were heard together and are being disposed off by this common order for sake of convenience and brevity. 3. First will take up the lead case i.e. M/s. Indus Holidays & Tours India Pvt. Ltd in which assessee has filed appeal for Assessment Years 2007-08 to 2013-14 and the revenue has filed Cross appeal for 2011-12 to 2012-13. 4. Briefly stated facts as culled out from the records are that the assessee is a private limited company engaged in the business of tourist agent and contractors to facilitate ....
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....ss and correctness of the books of accounts maintained by the assessee in the regular course of business are wholly wrong, unlawful and injudicious, hence be quashed and it be held that the provisions of section 145 are not applicable. The income as shown in the account be kindly accepted and the addition of Rs. 2756 as sustained by CIT(A) be kindly deleted. 4. That on the facts and in the circumstances of the case and in law, the findings of the learned lower authorities that there is suppression of receipts (turnover) in the relevant year was Rs. 137815 are neither lawful nor justified hence be quashed. The addition of Rs. 2756as sustained by CIT(A) be kindly deleted. 5. That on the facts and in the circumstances of the case and in law, the levy of interest u/s 234A, 234B & 234C are wholly unlawful and contrary to the provisions of the Act, hence be cancelled" Assessment Year 2008-09 1. That on the facts and in the circumstances of the case, the decision is contrary to law, without jurisdiction, materially irregular and unsustainable in law as well as on facts and that all the adverse findings recorded in making various additions in the order a....
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....n of search and also in the search, no incriminating material was found suggesting the suppressed income in the nature of business receipts of Rs. 4916388 and, therefore, is absence of such incriminating material/concrete evidence, the assessment is bad in law hence be quashed and the addition of Rs. 98327 as sustained by CIT(A) is unlawful and unjustified and, therefore, be deleted. 3. That on the facts and in the circumstances of the case and in law, the findings of the learned lower authorities with regard the completeness and correctness of the books of accounts maintained by the assessee in the regular course of business are wholly wrong, unlawful and injudicious, hence be quashed and it be held that the provisions of section 145 are not applicable. The income as shown in the account be kindly accepted and the addition of Rs. 98327 as sustained by CIT(A) be kindly deleted. 4. That on the facts and in the circumstances of the case and in law, the findings of the learned lower authorities that there is suppression of receipts (turnover) in the relevant year was Rs. 4916388 are neither lawful nor justified hence be quashed. The addition of Rs. 98327 as sustained....
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....of the case, the decision is contrary to law, without jurisdiction, materially irregular and unsustainable in law as well as on facts and that all the adverse findings recorded in making various additions in the order are incorrect and unlawful. 2. That on the facts and in the circumstances of the case, the law that the impugned assessment year, the return of income was filed in due course before search and such return was stood completed u/s 143(1)(a) and no proceedings for assessment/re-assessment were pending on the date of initiation of search and also in the search, no incriminating material was found suggesting the suppressed income in the nature of business receipts of Rs. 8211907 and, therefore, is absence of such incriminating material/concrete evidence, the assessment is bad in law hence be quashed and the addition of Rs. 164238 as sustained by CIT(A) is unlawful and unjustified and, therefore, be deleted. 3. That on the facts and in the circumstances of the case and in law, the findings of the learned lower authorities with regard the completeness and correctness of the books of accounts maintained by the assessee in the regular course of business are w....
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....n law, the findings of the learned lower authorities that there is suppression of receipts (turnover) in the relevant year was Rs. 7361630 are neither lawful nor justified hence be quashed. The addition of Rs. 147232 as sustained by CIT(A) be kindly deleted. 5. That on the facts and in the circumstances of the case and in law, the levy of interest u/s 234A, 234B & 234C are wholly unlawful and contrary to the provisions of the Act, hence be cancelled" Assessment Year 2013-14 1.That on the facts and in the circumstances of the case, the decision is contrary to law, without jurisdiction, materially irregular and unsustainable in law as well as on facts and that all the adverse findings recorded in making various additions in the order are incorrect and unlawful. 2.That on the facts and in the circumstances of the case, the law that the impugned assessment year, the return of income was filed in due course before search and such return was stood completed u/s 143(1)(a) and no proceedings for assessment/re-assessment were pending on the date of initiation of search and also in the search, no incriminating material was found suggesting the suppressed i....
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....s brought into light by the A.O during assessment proceedings. 2. On facts and circumstances of the case the Ld. CIT(Appeals) erred in estimating Net profit @2% on suppressed receipts in absence of any evidence of expenditure against the suppressed receipts. 3. The appellant reserves his right to add, amend or alter the grounds of appeal on or before the date, the appeal is finally heard for disposal. Assessment Year 2013-14 1. On the facts and circumstances of the case the Ld. CIT(Appeals) erred in deleting the addition made by the A.O. of Rs. 74,53,365/- on account of suppression of receipts without appreciating the facts and evidences brought into light by the A.O during assessment proceedings. 2. On facts and circumstances of the case the Ld. CIT(Appeals) erred in estimating Net profit @2% on suppressed receipts in absence of any evidence of expenditure against the suppressed receipts. 3. The appellant reserves his right to add, amend or alter the grounds of appeal on or before the date, the appeal is finally heard for disposal. 8. From perusal of the grounds raised by both the parties, we observe that the assessee has ra....
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....ore ITAT - Mukesh Sangla (HUF) (2016) 27 ITJ 172 g. Hon'ble Jurisdictional Bench of Indore ITAT - Chanderbhan Lalchandani IT(SS)A No. 121/IND/2015 to 126/IND/2015 h. Hon'ble High Court of Bombay - Continental Warehousing Corporatl (NhavaSheva) Limited - 374 ITR 645 dated 21.04.2015[ClPB 18-31] SLP dismissed i. Hon'ble Delhi High Court - Kabul Chawla[2015] 61 taxmann.com 412 dated 28.08.2015[ClPB 32-38] j. Hon'ble Delhi Bench of ITAT - Sanjay Aggrawal 169 TTJ 282/291 dated 16.06.2014 k. Hon'ble Kolkata Bench of ITAT - Budhiya Marketing Pvt Ltd 173 TTJ 649 Cal dated 10.07.2015 l. Hon'ble High Court of Bombay - Continental Warehousing Corporation (NhavaSheva) Limited - 374 ITR 645 dated 21.04.2015[ClPB 18-31] SLP dismissed m. Hon'ble Delhi Bench of ITAT - Sanjay Aggrawal 169 TTJ 282/291 dated 16.06.2014 n. Hon'ble Kolkata Bench of ITAT - Budhiya Marketing Pvt Ltd 173 TTJ 649 Cal dated 10.07.2015 11. Per contra Ld. Departmental Representative vehemently argued and supporting the orders of both the lower authorities and contended that the additions made were on the basis of seized ....
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....sment Year 2007-08 to 2011-12 have been made by Ld. A.O on the basis of incriminating material found during the course of search and such incriminating material has no specific mention of the assessment year for which they relates except for few entries, therefore the Ld. A.O was within his powers to make the additions for the block of assessments for Assessment Years 2007-08 to 2013-14 taking the basis of incriminating material found during the course of search. Therefore this common Ground No.2 raised by the assessee for Assessment Year 2007-08 to 2011-12 needs to be dismissed. We accordingly order so. 16. Now we take up next common issue wherein the assessee is challenging the addition on the suppressed receipts whereas the revenue is challenging the deletion of part of the addition by Ld. CIT(A) for the suppressed receipts. 17. The Ld. Counsel for the assessee submitted that the seized documents referred to by the Ld. A.O are dumb documents. No discrepancy has been noted in the books of accounts and therefore rejection of books of accounts was not valid and therefore Ld. A.O erred in estimating the suppressed receipts. In support of his contention that there should be a s....
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....ein it was held that total sale cannot be regarded as a profit of the assessee. The net profit rate has to be adopted. Following above judgment, Ld. CIT(A) after observing the net profit rates disclosed by the assessee in the regular books of accounts applied the net profit rate @2% treating it to be as reasonable and computed the addition on account of suppressed receipts observing as follows; Para 4. 1 During the course of appellate proceedings the details of net profit as shown by the appellant assessee in past 7 preceding years was filed which is in between 0.59 - 2.05%. A.Y Gross receipts as per P&L a/c Net shown assessee P&L a/c profit by in % of profit as per assessee 2007-08 1378148 26129 1.90 2008-09 1423244 29246 2.05 2009-10 49163878 289851 0.59 2010-11 54167677 304582 0.59 2011-12 82119067 501995 0.61 2012-13 73616303 522572 0.71 2013-14 76054743 900645 1.18 The net profit of 2% should be reasonable keeping in view the net profit declared by the appellant assessee in the past years. In view o....
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....ntrary to law, without jurisdiction, materially irregular and unsustainable in law as well as on facts and that all the adverse findings recorded in making various additions in the order are incorrect and unlawful. 2. That on the facts and in the circumstances of the case, the law that the impugned assessment year, the return of income was filed in due course before search and such return was stood completed u/s 143(1)(a) and no proceedings for assessment/re-assessment were pending on the date of initiation of search and also in the search, no incriminating material was found suggesting the suppressed income in the nature of cash deposit in bank of Rs. 32000 and, therefore, in absence of such incriminating material/concrete evidence, the assessment is bad in law and the addition made at Rs. 32000 is unlawful and unjustified and, therefore, be deleted. 3. That on the facts and in the circumstances of the case and in law, and having regard to the explanation furnished, the findings of the learned lower authorities, that the cash deposits of the assessee of Rs. 32000 in his bank account are unexplained deposits representing undisclosed income, are wholly unjustified,....
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....t any event only the peak amount may be added and the addition of Rs. 17900 be kindly deleted. 5. That on the facts and in the circumstances of the case and in law, the levy of interest u/s 234A, 234B & 234C are wholly unlawful and contrary to the provisions of the Act, hence be cancelled" Assessment Year 2009-10 1. That on the facts and in the circumstances of the case, the decision is contrary to law, without jurisdiction, materially irregular and unsustainable in law as well as on facts and that all the adverse findings recorded in making various additions in the order are incorrect and unlawful. 2. That on the facts and in the circumstances of the case, the law that the impugned assessment year, the return of income was filed in due course before search and such return was stood completed u/s 143(1)(a) and no proceedings for assessment/re-assessment were pending on the date of initiation of search and also in the search, no incriminating material was found suggesting the suppressed income in the nature of cash deposit in the bank of Rs. 2000 and, therefore, in absence of such incriminating material/concrete evidence, the assessment is bad in ....
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.... income, are wholly unjustified, opposed to facts and unlawful and, therefore, the same be quashed and the addition sustained at Rs. 3000 be kindly deleted. 4. That on the facts and in the circumstances of the case and in law, at any event, there is no justification in treating the entire cash deposits in the bank as the unexplained deposits, without giving the benefit of peak credit. The assessee submits that at any event only the peak amount may be added and the addition of Rs. 3000 be kindly deleted. 5. That on the facts and in the circumstances of the case and in law, the levy of interest u/s 234A, 234B & 234C are wholly unlawful and contrary to the provisions of the Act, hence be cancelled" Assessment Year 2012-13 1. That on the facts and in the circumstances of the case, the decision is contrary to law, without jurisdiction, materially irregular and unsustainable in law as well as on facts and that all the adverse findings recorded in making various additions in the order are incorrect and unlawful. 2. That on the facts and in the circumstances of the case and in law, and having regard to the explanation furnished, the findings of ....
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....s. 143(3) of the Act for the completed assessments before the date of search. (ii) Challenging the addition u/s 68 of the Act for unexplained cash deposited in bank account. 27. Apropos first common issue Ld. Counsel for the assessee referred and relied upon the same set of judgments as were relied in the case of M/s. Indus Holidays & Tours India Pvt. Ltd is referred in para 10 above. It was argued that Income Tax Returns for Assessment Year 2007-08 to 2010-11 were regularly filed u/s 139(1) of the Act and the time limit for issuance of notice u/s 143(2) of the Act stood expired on 30.09.2010 for the return filed for Assessment Year 2010-11. Search took place on 30.11.2012. Additions made for unexplained cash deposit are not on the basis of any incriminating material. 28. Per contra Ld. Departmental Representative vehemently argued and supported the order of lower authorities. 29. We have heard rival contentions and perused the records placed before us. 30. The common issue raised by the assessee i.e Smt. Neeta Bhaduria is that no additions without any basis of any incriminating material should stand for as the assessment proceedings for Assessment Year 2010-11....
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....limit for issue of notice u/s 143(2) of the Act in all those cases has expired. The search was initiated in the business premises of the assessee on 29.1.2014 and therefore the time limit for issue of notice u/s 143(2) of the Act is lapsed. All the assessment years from 2008-09 to 2012-13 are concluded and non abated assessments. The A.O. cannot reopen the assessments u/s 153A of the Act. In so far as the above submission is concerned from the assessment order and even from the Ld. CIT(A)'s order, there is nothing on the record which says that the additions made by the A.O. are based on any incriminating material. Even when the same was pointed out to Ld. D.R., she is not able to establish the fact that additions are based on any incriminating material, therefore we find that the additions made by the A.O. for all the years are not based on any incriminating material found during the course of search. It is only based on subsequent search by issue of notice u/s 153A of the Act calling for the various documents from the assessee additions are made. In so far as the arguments of the Ld. Counsel for the assessee in respect of concluded assessments cannot be reopened, we find that in a....
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....e requisition. 13. In the case of Commissioner of Income Tax (Central)-3 Kabul Chawla (2015) 61 Taxman.com 412 (Del.), the Hon'ble Delhi High Court has considered the scope of section 132 of the Act and 153A(1) observed as under: 14. From the above decision, it is very clear that in respect of concluded assessments additions cannot be made without incriminating material. 15. The Hon'ble Delhi High Court in the case of PCIT Vs. Meeta Gutgutia 395 ITR 296 (Delhi) has held that it was only if during the course of the search u/s 132 of the Act incriminating material justifying the reopening of the assessment years for 6 previous years was found that invocation of section 153A of the Act qua each of the assessment year would justify. 16. In the case of Principal CIT Vs. Soumya Constructions 387 I TR 529 (Guj.) the Hon'ble Gujarat High Court has observed that the addition was based on statement of the third person and not based on any incriminating material found during the course of search, therefore the addition deleted by the Tribunal was upheld. 17. In the case of PCIT Vs. Lata Jain 384 ITR 543 (Del) (supra), the Hon'ble Delhi High Court h....
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....a High Court and Karnataka High Court are against the assessee. We find that after examining the facts and circumstances of the case, the judgement of the Hon'ble Supreme Court in the case of Vegetable Products (supra) has to be followed. The Hon'ble Supreme Court in the above case has held that "if two reasonable constructions of a taxing provisions are possible, then that construction, which favours the assessee must be adopted." 22. In the interest of justice, the decision of the Hon'ble Supreme Court in the case of Vegetable Products (supra) has to be followed. Therefore, we respectively following the decision of Hon'ble Delhi High Court in the case of Kabul Chawla (supra), Hon'ble Bombay High Court in the case of Continental Warehousing Corporation (supra) and also Hon'ble Gujarat High Court in the case of PCIT Vs. Meeta Gutgutia (supra), we hold that no addition can be made in respect of concluded assessments u/s 153A of the Act unless there is any incriminating material found during the course of search. We would like to make it clear that where the assessment is completed u/s 143(1) or 143(3) of the Act unless A.O. has a time to issue notice u/s....
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....obal Logistics Ltd (Supra) confirmed the view taken by the Special Bench of I.T.A.T. Mumbai Bench decided in favour of assessee dismissing the revenue's appeal holding that there was noincriminating material found during the course of search, the Tribunal was right in holding the power conferred u/s 153A being not expected to be exercised routinely, should be exercised if the search revealed any incriminating material. If that was not found then in relation to the second phase of three years, there was no warrant for making an order within the meaning of this provision". 10. Similar view was also taken by the Hon'ble High Court of Delhi in the case of Kabul Chawla (2015) 61 taxmann 412. 11. We therefore in the given facts and circumstances of the case and respectfully following the judgments referred and relied by the Ld. Counsel for the assessee are of the considered view that no addition/disallowance was called for Assessment Year 2008-09 to 2010-11 as no incriminating material was found during the course of search at the premises of the assessee as the time limit of issuance of notice u/s 143(2) of the Act stood expired much before the date of conducting se....
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.... course of search. Therefore we are inclined to follow the judicial pronouncements referred above and allow the assessee's ground No.2 for Assessment Year 2007-08 to 2010-11 and direct the Ld. A.O to delete the addition for Rs. 32,000/-, Rs. 17,900/-, Rs. 2,000/- and Rs. 3,000/- for Assessment Year 2007-08 to 2010-11 respectively. In the result the appeals of the assessee for Assessment Year 2007-08 to 2010-11 are allowed. 33. Apropos the second common issue for Assessment Year 2012- 13 and 2013-14 wherein the assessee is challenging the findings of Ld. CIT(A) confirming the addition of Rs. 9,52,712/- and Rs. 31,30,750/- for unexplained cash deposited in bank account u/s 68 of the Act. Ld. Counsel for the assessee submitted that the basic requirement for making the provisions of Section 68 of the Act is maintenance of books of account. Bank statement/pass book is not an account maintained by the assessee. Reliance was placed on following judgments in support of the contention that if no books of accounts are maintained then no addition under the provision of Section 68 of the Act are called for; a. Mansi Mahendra Pitkar (2016) 73 taxmann.com 68 (Mumbai) order dated 12.0....
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....s Agrawal (1983) 144 ITR 143 - dated 30.08.1982. b. Hon'ble Rajasthan High Court in the case of Sindh Medical Stores - 117 DTR 497 dated 12.11.2014. c. Hon'ble jurisdictional High Court of Madhya Pradesh in the case of Agrawal Warehousing & Leasing Ltd (2002) 124 Taxman 440 d. Hon'ble jurisdictional High Court of Madhya Pradesh in the case of Govindram Sakseria Charity Trust (1987) 168 Taxman 384 - order pronounced on 05.02.1987. 37. Per contra Ld. Departmental Representative vehemently argued and supporting the detailed finding of fact by Ld. CIT(A). 38. We have heard rival contentions and perused the record placed before us and carefully gone through the judgments referred and relied by both the parties. 39. The common issue of addition for unexplained cash deposit at Rs. 9,52,752/- and Rs. 31,30,750/- has been taken up by the assessee challenging the order of Ld. CIT(A). 40. Ld. A.O during the course of assessment proceedings asked the assessee to file the copies of bank statement. On perusal of the same it was observed that cash has been deposited on various dates. The assessee was asked to explain the source of the cash. Various submissio....
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....for Assessment Year 2012- 13 is partly allowed and that for Assessment Year 2013-14 is allowed. 44. Now we take up the appeal of the assessee namely Smt. Sunita Nigam for Assessment Year 2007-08, 2009-10 and Assessment Year 2010-11 raising following grounds; IV. Smt. Sunita Nigam ITA(SS) No.121 & 122/Ind/2017 Assessment Year 2007-08 1. That on the facts and in the circumstances of the case and in law, that in the impugned assessment year, the return of income was filed in due course before search and such return was stood completed u/s 143(1)(a) and no proceedings for assessment/reassessment were pending on the date of initiation of search and also in the search, no incriminating material was found suggesting the suppressed income in the nature of cash deposit in the bank and the household expenses and, therefore, in absence of such incriminating material/concrete evidence, the assessment is bad in law and hence be cancelled and the additions made/sustained at Rs. 60000 & Rs. 26000 by learned lower authorities are unlawful and unjustified and, therefore, be deleted. 2. That on the facts and in the circumstances of the case and in law, and having regard....
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.... the case and in law, the levy of interest u/s 234A, 234B & 234C are wholly unlawful and contrary to the provisions of the Act, hence be cancelled" Assessment Year 2010-11 1. That on the facts and in the circumstances of the case and in law, that in the impugned assessment year, the return of income was filed in due course before search and such return was stood completed u/s 143(1)(a) and no proceedings for assessment/reassessment were pending on the date of initiation of search and also in the search, no incriminating material was found suggesting the suppressed income in the nature of cash deposit in the bank and the household expenses and, therefore, in absence of such incriminating material/concrete evidence, the assessment is bad in law and hence be cancelled and the additions made/sustained at Rs. 60000 & Rs. 26000 by learned lower authorities are unlawful and unjustified and, therefore, be deleted. 2. That on the facts and in the circumstances of the case and in law, and having regard to the explanation furnished/on record, the learned lower authorities are not justified in their findings that on the opening day of the previous year i.e. on 01.04.....
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....r making the addition for Assessment Year 2007-08, 2009-10 and 2010-11 for three assessment years was not justified and deserves to be deleted. We accordingly order so and allow the common issue raised by the assessee. 46. Ground No.2 raised on the merits of the case needs no adjudication as it becomes infructuous as we have already deleted all the addition for Assessment Year 2007-08, 2009-10 and 2010- 11 by allowing common Ground No.1 above. In the result all the three appeals of the assessee namely Smt. Sunita Nigam for Assessment Years 2007-08, 2009-10 and 2010-11 are allowed. 47. Now we take up the appeal in the case of M/s. Purple Vacations Pvt. Ltd for Assessment Year 2010-11 raising following grounds of appeal; V. Purple Vacations Pvt. Ltd ITA(SS) No.120/Ind/2017 Assessment Year 2010-11 1. That on the facts and in the circumstances of the case, the decision is contrary to law, without jurisdiction, materially irregular and unsustainable in law as well as on facts and that all the adverse findings recorded in making various additions in the order are incorrect and unlawful. 2. That on the facts and in the circumstances of the case, the impugn....
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.... to merits of the case becomes infructuous as we have already deleted the addition. Ground No.4 is general in nature which needs no adjudication. In the result appeals of the assessee for Assessment Year 2010-11 is allowed. 49. Now we take up appeals related to Shri Ajay Singh Bhaduria for Assessment Year 2008-09 to 2013-14 raising following grounds of appeal; VI. Shri Ajay Bhadauria ITA(SS) No.90 to 95/Ind/2017 & ITA No.271/Ind/2017 Assessment Year 2007-08 1. That on the facts and in the circumstances of the case, the decision is contrary to law, without jurisdiction, materially irregular and unsustainable in law as well as on facts and that all the adverse findings recorded in making various additions in the order are incorrect and unlawful. 2. That on the facts and in the circumstances of the case, the law that the impugned assessment year, the return of income was filed in due course before search and such return was stood completed u/s 143(1)(a) and no proceedings for assessment/re-assessment were pending on the date of initiation of search and also in the search, no incriminating material was found suggesting the suppressed income in the nature o....
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....e learned lower authorities, that the cash deposits of the assessee of Rs. 755500 in his bank account are unexplained deposits representing undisclosed income, are wholly unjustified, opposed to facts and unlawful and, therefore, the same be quashed and the addition sustained at Rs. 755500 be kindly deleted. 4. That on the facts and in the circumstances of the case and in law, at any event, there is no justification in treating the entire cash deposits in the bank as the unexplained deposits, without giving the benefit of peak credit. The assessee submits that at any event only the peak amount may be added and the addition of Rs. 755500 be kindly deleted. 5. That on the facts and in the circumstances of the case and in law, the levy of interest u/s 234A, 234B & 234C are wholly unlawful and contrary to the provisions of the Act, hence be cancelled" Assessment Year 2009-10 1. That on the facts and in the circumstances of the case, the decision is contrary to law, without jurisdiction, materially irregular and unsustainable in law as well as on facts and that all the adverse findings recorded in making various additions in the order are incorrect an....
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....s found suggesting the suppressed income in the nature of cash deposit in the bank of Rs. 1331500 and, therefore, in absence of such incriminating material/concrete evidence, the assessment is bad in law and the addition made at Rs. 1331500 is unlawful and unjustified and, therefore, be deleted. 3. That on the facts and in the circumstances of the case and in law, and having regard to the explanation furnished, the findings of the learned lower authorities, that the cash deposits of the assessee of Rs. 1331500 in his bank account are unexplained deposits representing undisclosed income, are wholly unjustified, opposed to facts and unlawful and, therefore, the same be quashed and the addition sustained at Rs. 1331500 be kindly deleted. 5. That on the facts and in the circumstances of the case and in law, at any event, there is no justification in treating the entire cash deposits in the bank as the unexplained deposits, without giving the benefit of peak credit. The assessee submits that at any event only the peak amount may be added and the addition of Rs. 1331500 be kindly deleted. 6. That on the facts and in the circumstances of the case and in law, the....
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....arned authorities, that the cash deposit of the assessee of Rs. 285410 in his bank account are unexplained deposits representing undisclosed income, are wholly justified, opposed to facts and unlawful and, therefore, the same be quashed and the addition sustained at Rs. 285410 be kindly deleted. 3. That on the facts and in the circumstances of the case and in law, at any event, there is no justification in treating the entire cash deposits in the bank as the unexplained deposits, without giving the benefit of peak credit. The assessee submits that at any event only the peak amount may be added and the addition of Rs. 285410. 4. That on the facts and in the circumstances of the case and in law, the levy of interest u/s 234A, 234B & 234C are wholly unlawful and contrary to the provisions of the Act, hence be cancelled" Assessment Year 2013-14 1. That on the facts and in the circumstances of the case, the decision is contrary to law, without jurisdiction, materially irregular and unsustainable in law as well as on facts and that all the adverse findings recorded in making various additions in the order are incorrect and unlawful. 2. That on....
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....he case of Smt. Neeta Bhaduria (ITA (SS) No.85 to 89/Ind/2017 & ITA No.270/Ind/2017) wherein we have referred and relied on the Tribunal decision in the case Omprakash Gupta V/s ACIT 277 to 281/Ind/2018 in which judgment of Hon'ble High Court in the case of Kabul Chawla (2015) 61 Taxmann 412 was followed to allow the assessee's appeal. In the light of above decisions and our discussions in the preceding paras we have examined the facts of Shri Ajay Singh Bhaduria and find that except for 2010-11 for the remaining four assessment years i.e. 2007-08, 2008-09, 2009-10 & 2011-12 the alleged additions are only for the unexplained cash deposit in the bank accounts regularly disclosed by the assessee in its return of income. No incriminating material is there. Regular returns of income for Assessment Years 2007-08, 2008-09, 2009-10 & 2011-12 were filed on/before the due dates u/s 139(1) of the Act as mentioned in the assessment order. There is no evidence on record to show that notice u/s 143(2) of the Act were issued for these four assessment years nor any assessment proceedings was pending on the date of search. Therefore applying the same consistent approach we are of the considered op....
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....tions have been written which has the mention of dates at some pages & mention of Shri Ajay Bhaduria. It is quite possible that some employee of the assessee or the group company has written these figures but these documents were found at the assessee's premises and has the reference of assessee but he failed to explain the transactions in these seized documents even when the burden lies heavily on the shoulders of the assessee, which in the instant case seems not to have been properly fulfilled. As the reply/submission made by the assessee/Ld. Counsel for the assessee in our view are unsatisfactory and vague, we find no reason to make any interference in the findings of Ld. CIT(A) confirming the addition for unaccounted cash receipt of Rs. 9,25,500/-. Ground No. 5 & 6 of the assessee's appeal for Assessment Year 2010-11 is dismissed. 54. Now we have to deal with the appeals by the assesse Shri Ajay Bhaduria for Assessment Year 2012-13 & 2013-14. In these two appeals first common issue relates to unexplained cash deposit in bank at Rs. 2,85,410/- and Rs. 1,11,000/- respectively. Similar issue came up before us in the case of assessee's wife namely Smt. Neeta Bhaduria wherein in ....
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.... basis of seized paper bearing page No.54 of LPS-2. 57. Ld. Counsel for the assessee reiterating the same submission as made before the lower authorities submitted that the assessee is not the owner of the paper and nor the author of the paper. Details mentioned on the loose sheet are rough notings and jottings and do not convey in any manner about the assessee's undisclosed income. This piece of paper is also not signed. 58. Per contra Departmental Representative vehemently argued and supported the orders of lower authorities and also referred to the Agra project of IBD Group which is related to the assessee and also brought to our notice that in the seized paper Page No.54 of LPS-2 below the word Agra, various amounts have been mentioned along with the dates which connotes that this seized paper have a direct connection with the assessee vis-à-vis Agra Project. 59. We have heard rival contentions and perused the records placed before us. The assessee is challenging the addition of un accounted investment/expenditure of Rs. 7,33,000/-. This addition was made by the Ld. A.O on the basis of seized paper Page-54 of LPS-2 seized during the course of search conducted on....