TaxTMI 
TaxTMI 
2019 (7) TMI 872
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.... 2) The Commissioner of Income Tax(Appeals) while deleting the additions made on account of unexplained cash credits, has overlooked the sworn statement dated 7/8/2015 of Shri Rajendra Babu K.V. in whose name the bearer cheques was issued in most of the cases where in it was admitted that the signature on the bearer cheques belongs to him and the money was withdrawn as per the instructions of Shri A. Jayakrishnan, for the purpose of Hotel construction which was going on at Hotel Vysali. 3) The CIT(A) has erred in accepting the copy of the certificate obtained from the Thodupuzha Municipality, issued at a later date, stating that no hotel or commercial building construction was going on at Thodupuzha, during the period from 1/4/2011 to 31/3/2014, without verification of the same. 3. The facts of the case as narrated in ITA No. 559/Coch/2018 are that search revealed large financial dealings between Shri, Sunil Kumar of Kollam and the assessee. The assessee had accepted the following loans from the concerns belonging to Shri Sunil Kumar @ Sunil Swamy. Date A.Y Concern Amount . 15.09.2011 2012-13 Sabari Quality Foods Rs. 2,00,00,000/- 03.....
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....Rs. 30,00,000/- 25.08.2011 Federal Bank A/c 169277 Rs. 22,00,000/- 01.09.2011 Federal Bank A/c 169277 Rs. 5,00,000/- 15.09.2011 Federal Bank A/c 169277 Rs. 6,05,000/- 17.09.2011 ING Vysya A/c 15531 Rs. 25,00,000/- 17.09.2011 ING Vysya A/c 15531 Rs. 25,00,000/- 17.09.2011 ING Vysya A/c 15531 Rs. 25,00,000/- 17.09.2011 ING Vysya A/c 15531 Rs. 25,00,000/- 26.09.2011 ING Vysya A/c 15531 Rs. 50,00,000/- 01.10.2011 ING Vysya A/c 15531 Rs. 25,00,000/- 03.10.2011 ING Vysya A/c 15531 Rs. 20,00,000/- 08.10.2011 ING Vysya A/c 15531 Rs. 24,00,000/- 22.10.2011 ING Vysya A/c 15531 Rs. 6,00,000/- 30.12.2011 Kumaly gate Rs. 6,00,000/- 23.01.2012 ING Vysya A/c 15531 Rs. 10,00,000/- 25.01.2012 ING Vysya A/c 15531 Rs. 4,00,000/- 26.01.2012 Wingspark Hotel Rs. 10,00,000/- 14.02.2012 ING Vysya A/c 15531 Rs. 10,00,000/- 14.02.2012 ING Vysya A/c 15531 Rs. 15,00,000/- 01.03.2012 ING Vysya A/c 15531 Rs. 15,00,000/- 01.03.2012 ING Vysya A/c 15531 Rs. 15,00,000/- 01.03.2012 ING Vysya A/c 15531 Rs. 20,00,000/- 30.03.2012....
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....odupuzha 22.10.2011 ING Vysya 15531 Rs. 6,00,000/- Withdrawn by Harish 30.12.2011 Kumaly Gate Rs. 6,00,000/- 23.01.2012 ING Vysya 15531 Rs. 10,00,000/- On-going hotel construction at Thodupuzlia 25.01.2012 ING Vysya 15531 Rs. 4,00,000/- Hotel Vysali, Thodupuzha 26.01.2012 Wingspark Hotel Rs. 4,00,000/- 14.02.2012 ING Vysya 15531 Rs. 10,00,000/- For Construction of Bar Hotel 14.02.2012 ING Vysya 15531 Rs. 15,00,000/- For Construction of Bar Hotel 01.03.2012 ING Vysya 15531 Rs. 15,00,000/- Amount Drawn for Construction of Bar Hotel 01.03.2012 ING Vysya 15531 Rs. 20,00,000/- Cash Drawn for Bar Hotel construction 30.03.2012 ING Vysya 15531 Rs. 49,00,000/- Hotel Vysali Thodupuzha 31.03.2012 Agricultural income Rs. 6,00,000/- Rs. 6,44,55,000/- 3.4 From the above, the Assessing Officer noticed that out of the cash claimed to have been introduced in the books of the Fish Business by withdrawing from the Bank, Rs. 3,17,00,000/- was withdrawn for the purpose of construction of a bar hotel at Thodupuzha whi....
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.... generated which was then deposited in the bank account of the assessee. According to the CIT(A), no incriminating material evidencing generation of unaccounted cash was found during the course of search and cash withdrawals from one's own bank account cannot be treated as income. In view of all these facts discussed above, the CIT(A) was of the view that the A.O. was not justified in making addition of Rs. 3,17,00,000/- on account of cash withdrawal from the Bank and deleted the addition. 4.1 Similarly, for the assessment year 2013-14, on identical reasons, the CIT(A) deleted the addition of Rs. 1.62 crores on account of cash withdrawal from own bank account. 4.2 For the assessment year 2014-15, addition was made for an amount of Rs. 52,25,000/- on account of cash withdrawal from Bank account, The A.O. observed that as per the narration at the back of the withdrawal slip, the cash was withdrawn for paying bar license fee and this was an unexplained expenditure of the assessee. It was contended that the assessee had no bar license in his name and no such fees were paid by him. On identical reasons, the CIT(A) deleted the addition of Rs. 52,25,000/- on account of cash w....
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....struction made during the year which was certified by the Secretary, Thodupuzha Municipality stating that the assessee had not constructed any commercial building during the said period was not considered by the Assessing Officer. It was submitted that the utilization of the amount withdrawn from the Bank account over the period of one year was truly reflected in the cash book as for business purposes and not for building construction. It was submitted that the employee who withdrew the cash from the bank account was examined. However, it was submitted that the assessing officer without any verification or without bringing any evidence or material on record mechanically treated the utilization of the cash as unexplained credits and brought the same and assessed the same by invoking section 69 of the Act. 6.2 As regards, the addition of Rs. 52,25,000/- for the assessment year 2014-15, the assessee clearly explained that the withdrawal of Rs. 52,25,000/- was for payment of Bar License Renewal Fees and the same was utilized for that purpose as per the cash book. It was submitted that the assessing officer had mechanically added the amount by relying upon the copies of cheques obtai....