TaxTMI 
TaxTMI 
2019 (10) TMI 1118
X X X X Extracts X X X X
X X X X Extracts X X X X
.... various companies and firms, which are in the business of manufacture and selling fire-works. There was a search on the group of companies and firms, and the partners being Shri V.Arumugasamy group on 09.07.2013. As a consequence of search, all the assessees in the group filed Petition before the Settlement Commission. On account of peculiar state of affairs in the case of assessee, the Settlement Commission rejected the application of assessee for settlement vide order dated 05.04.2016. It was submitted that for assessment years 2010-11 & 2011-12, the issue was in respect of Savings bank account maintained by the assessee with Indian Bank, Sivakasi Branch, at new road, branch code No.1484 being Account No. 881752106. It was a further submission that admittedly this bank account was an undisclosed bank account. It was submitted that the bank manager of the said bank also knew that the said bank account was an undisclosed bank account and consequently, the Bank Manager used the said account of the assessee for certain unaccounted transactions of other customers of said branch. It was a submission that for assessment year 2010-11, the total credit in the said bank account was to an ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... credits were made and explain us how this was done. Ans. (i) On 30th of March 2010 Shri Vasanthavikas has deposited bulk number of clearing cheques total amounting to Rs. 32,88,176/- for which I am producing computer screenshot and copy of voucher. On the same day cash of Rs. 20,00,000/- was withdrawn and I am producing copy of voucher bearing the signature of Shri Vasanthavikas at the back of the voucher. (ii) With regard to transactions on 31.03.2010, I stand by the reply of my branch Manager furnished vide letter dated 28.03.2016 as under:- "On 31.03.2010 several credits amounting to Rs. 236.00 lakhs were credited to the subject account and reversed by way of debits on 03.04.2010. On verifiction of the records, we infer that these two transactions on 31.03.2010 and 03.04.2010 amounting to Rs. 236.00 lakhs each were not relating to Mr A. Vasanthavikas, but to different customers. On perusal of the statement of accounts of these customers we find that the sums were debited on 31.03.2010 and credited back to their accounts on 03.04.2010." Q.3. In the above reply, you have stated that the transactions on 31st March and 3rd April amounting to Rs. 236.00 lakhs do not belo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....to Question No.2. It was submitted that in the said letter it has been admitted by the Manager that for the year ended 31.03.2010, several credits amounts to Rs. 236 lakhs were reversed by way of debits on 03.04.2010 and such transactions did not relate to the assessee. Similarly, also in Qn.No.4 in respect of Rs. 1.41 crores. It was submitted that this evidence was available with the Revenue, when the Settlement application was even rejected by the Settlement Commission on 05.04.2016. It was submitted that as it has been admitted by the Branch Manager that the transactions did not belong to the assessee, the addition representing the same was liable to be deleted. It was a prayer in respect of the transaction relating to the assessee for the relevant two assessment years, that GP rate of 24% may be at the worst be confirmed. 4. In reply, ld.DR vehemently supported the order of the Assessing Officer and the order of the ld.CIT(A). Ld.DR submitted that the transactions in the said bank account having clearly been found as unaccounted transactions, the capital required for the said transaction was liable to be added. It was submitted that on an estimate basis, the GP rate be fixed ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cepted by the assessee to an extent of Rs. 2,59,70,330/- for the assessment year 2011-12. 6. In the result, the appeals filed by the assessee for the assessment years 2010-11 & 2011-12 stands partly allowed. 7. In respect of assessment years 2012-13, 2013-14, and 2014-15, it was submitted by ld.AR that the additions in the said assessment years represented the unexplained expenditure. It was submitted that the said unexplained expenditure admittedly had been incurred by the assessee out of the said unaccounted income for the assessment years 2010-11 & 2011-12. The said income was available to the assessee for meeting the expenses for the assessment years 2012-13, 2013-14 & 2014-15. It was submitted that for assessment year 2012-13, the unexplained expenditures were an amount of Rs. 1,50,000/- on account of foreign travel expenses, an amount of Rs. 14,60,960/- paid to M/s.Vadivel Pyrotech Pvt Ltd and of Rs. 13,900/- paid to Shri T.Muruganandham for purchase of land. It was submitted that for the assessment year 2013-14, the additions were Rs. 1/- lakh towards foreign travel expenses, and Rs. 35 lakhs invested in HDFC Life insurance. It was submitted that for assessment year 2014....