TaxTMI 
TaxTMI 
2019 (9) TMI 1231
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....ssessin officr for the alleged unexplained investment on account of variouos items. 2. It is therefore prayed that the above addition made by assessing Officer and confirmed by learned Commissioner of Income tax (Appeals) may be deleted. 3. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal. The issue raised by the assessee is that the Ld. CIT (A) erred in restricting the addition made by the AO for Rs. 4,32,13,153/- out of the total addition of Rs. 4,75,71,951/- on account of unexplained investment. 2. Brief facts of the case are that the assessee is an Individual and declared income from the source of pension and interest in the year under consideration. 2.1 The AO on the basis of AIR information found that the assesse has deposited cash amounting to Rs. 32,35,000/- in his Central Bank of India bank account and similarly Rs. 19,00,000/- in his HDFC bank account. Moreover it was also reported that the assessee has purchased an immovable property on 18-02-2010 for Rs. 2,25,08,550/- only. Regarding the cash deposit of Rs. 19,00,000/- in HDFC Bank A/c 2.3 The assessee during the asse....
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....oad, Baroda where he had deposited Rs. 55,99,400/- during the previous year 2009-10 relevant to the assessment year 2010-11. 2.9 However the assessee in respect of the source of credit entries appearing in the above said account submitted that the amount was deposited from his agricultural income whereas he did not submit any documentary evidence during the assessment proceedings. Thus the AO made an addition of Rs. 55,99,400/- towards total income of the assesse as unexplained cash credits within the meaning of section 68 of the Act. Regarding the unsecured loan of Rs. 132.26 lacs 2.10 The AO in the scrutiny proceedings of KIT Pvt Ltd noted that the assessee, in the capacity of director, provided unsecured loans to the company amounting to Rs. 75.26 Lakhs during the year. Similarly another director Smt. Margi Darpan Shah daughter-in-law of assessee has also deposited Rs. 57.00 Lakhs in the company through the bank account of the assessee. He further admitted vide a letter dated 24-12-2012 that he provided loans of Rs. 22 Lakhs and Rs. 35 Lakhs on the dates 24-11-2009 & 26-11-2009 respectively to his daughter-in-law which was further deposited in the company KIT Pvt Ltd....
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....e investment in land of Rs. 2.36 crores and investment in KIT Pvt Ltd submitted that he made investment in land from the bank accounts belonging to him and Vandana H Shah (wife of the assessee). The investment was made out of the premature encashment of FD of Rs. 64,51,331/-. The funds available in the account of Vandana M shah was transferred from the company KIT Pvt Ltd or from his bank accounts. The details stand as under: Date Bank Name Cheque No. Amount (Rs.) Particulars 18.02.2010 Central Bank Of India 607110 15,00,000 Transferred from Krish Immigration pvt. Ltd. 01.12.2009 Central Bank of India 166802 17,00,000 Transferred from CBI Bank of Haresh Shah 22.02.2010 Central Bank of India 169983 53,00,000 Transferred from CBI Bank of Haresh Shah TOTAL 85,00,000 3.5 However the AO in his remand report submitted that the source of investment towards purchase of land out of the loans received was not provided by him. In order to verify the statement of the assesse, that he made part payment for purchase of property out of the FD, the AO called upon the details of FD which is available ....
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.... seen that these three FDs were prematurely withdrawn and following amounts were credited in the same bank account on 26.11.2009. i. FD No.03054752752 of Rs. 3,01,282/- ii. FD No.03054753018 of Rs. 3,01,153/- iii. FD No.03054759893 of Rs. 3,26,389/- 4.2 Later these FDs were prematurely withdrawn which was credited in the same bank account with interest of Rs. 3824/-. As the sources of such FDs were explained accordingly the prematurity amount of Rs. 9.25 lakhs was also considered as explained. As the whole premature FDs amount including interest was already added as unexplained investment, therefore the remaining unexplained credits works out to Rs. 3,30,44,153 minus (Rs. 9,35,000/- + Rs. 9,25,000/- + Rs. 23,00,000/-) Rs. 2,88,84,153/-. 4.3 The Ld. CIT (A) further observed that out of the above unexplained deposits, investment in purchase of land was made for Rs. 1,12,54,275/- on dated 20-02-2010 and similarly an identical amounts was invested from the bank account of Vandana Shah, wife of the assessee. The amount invested by Vandana Shah of Rs. 17,00,000/- and Rs. 53,00,000/- on dated 01-12-2009 and 22-02-2010 respectively was transferred from the ....
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....ls of rhe same are as under: Date Amount (Rs.) Chq No. 25.12.2009 17,00,000 166806 12.03.2010 16,50,000 169984 TOTAL 33,50,000 Both the above cheques aggregating to Rs. 33,50,000/- have been issued by the appellant to KIT for the purpose of making an investment from Central Bank of India - 3054663362 - f Haresh Shah himself. It is the same bank account for which all the credit entries have been added to the total income. Thus, it seems that there is duplication of addition of Rs. 33,50,000/-. Duplication of Addition: 2 (57,00,000) Hon'ble CIT(A) had confirmed the addition, in respect of investment made by Margi Darpan Shah of Rs. 57,00,000/- into Krish Immigration & Tours Pvt. Ltd. However, it is pertinent to submit that Margi Darpan Shah is assessed to tax and the assessment of Margi Darpan Shah for A.Y. 2010-11 has already been completed on 03.01.2013 by making additions of Rs. 10,65,200/- for unexplained credit entries. It implies that the addition made by the AO is unwarranted and this credit is already considered in the individual case of Margi Darpan Shah. Thus, in the....