AI Drafter 
TaxTMI 
TaxTMI 
2020 (1) TMI 348
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....ssee without verifying the genuineness and giving merit to the supporting produced during the assessment proceedings. Their opinion is merely based on their own discretion. 4. The assessing officer has erred in not giving an opportunity of additional submission requested by the assessee in letter dated 10th December 2018. 5. The Assessee craves to leave, add/ amend or alter any of the above grounds of appeal." 3. Briefly stated the relevant facts include that the Assessing Officer issued a notice u/s 147 of the Act for reassessing the cash deposits in the bank account of the assessee amounting to Rs. 13,57,500/- maintained with the ICICI Bank. In the reassessment proceedings, the Assessing Officer asked for the sources of the same. Taking resort to the exempt agricultural income, personal and family savings, gifts from relatives such as husband, father-in-law, two brothers, mother etc, the assessee attempted to explain the sources of the said cash deposits of Rs. 13,57,500/-. Rejecting the above explanations of the assessee, the Assessing Officer restricted the addition to Rs. 10,07,500/-. The details of the same are tabulated as under :- Sr.No. Particula....
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....capement of income. As mentioned in the open Court, I proceed to dismiss the legal ground no.1 and 2 raised by the assessee. Accordingly, the grounds no.1 and 2 are dismissed. 9. Regarding the issue raised in grounds no.3 and 4, I considered the counsel's arguments about insufficiency of opportunity granted to the assessee for explaining the details relating to the sources of funds i.e. agricultural income, personal and family savings, gifts from relatives such as husband, father-in-law, two brothers, mother etc. In this regard, I perused the contents of para 6.3 to 6.8 of the order of the CIT(A) and find relevant to extract the same. The same are extracted hereunder :- "6.3. DECISION :- The observations of the AO, submissions of the appellant and the material on record have been considered. 6.4 The case of appellant was re-opened u/s 147 of the Act as the appellant made various cash deposits amounting to Rs. 13,57,500/- in account with ICICI Bank during FY 2010-11 and she did not file ITR. The notice u/s 148 of the Act was issued to the appellant on 29.03.2018. The appellant filed return of income on 22-10-2018 declaring income of Rs. 28,506. The appellant sse....
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....nstruction was issued on 21-02-2017 and it was issued in relation to cash deposits after the announcement of demonetization. Thus, the said instruction is not applicable to the case of the appellant. As already discussed, the explanation given by the appellant that an amount of Rs. 1,50,000/- was saved from the withdrawals of Rs. 8.39 Lakhs (over two years) made by the husband and another amount of Rs. 2,00,000/- was given as gift to the appellant out of the same withdrawals is not credible Accordingly, the income of the appellant is enhanced by Rs. 2,00,000/- the addition of Rs. 10,07,500/- is enhanced to Rs. 12,07,500/, Grounds No 7,8 & 9 of the appellant are DISMISSED." 10. From the above facts and extractions of the order of the CIT(A), it is an undisputed fact that the assessee executed transactions of cash deposits amounting to Rs. 13,57,500/-. According to the assessee, the agricultural income of Rs. 2 lakhs, the personal savings of Rs. 2.5 lakhs, gifts of Rs. 9.25 lakhs i.e. gift from the husband (Balaji Wattamvar)/gift from the father-in-law (Namdeo Wattamvar)/gift from the mother (Premlata Bagave)/gift from the brother (Sandeep Bagave) and gift from another brother (Sa....
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....ve gift in November, 2010 and land was sold later. From statement of bank account, it is seen that he did not make any withdrawal during September to November, 2010 from account. No documents in support of amount given by Namdeo Wattamwar in month of November have been submitted. Thus, it is clear that it is an afterthought of assessee. The claim of assessee is not accepted. 3.5 Gift from Mother Premlata Bagave for Rs. 2 Lakhs. The AR stated that assessee received Rs. 2 Lakhs from her Mother as gift in November, 2010. In support of claim, he submitted deed of land sold by her in 2007, statement of pension account for November, 2017 to January, 2018 and 7/12 extracts of land held by family and confirmation from mother. However, assessee could not submit any document showing that her mother was actually having cash of Rs. 2 Lakhs at the time of giving gift to assessee. Hence, claim of assessee is not accepted, 3.6 Gift from brother Sandeep Bagave for Rs. 2 Lakhs. The AR stated that assessee received Rs. 2 Lakhs from her brother as gift in November, 2010. In support of claim, AR submitted Form - 16 of Sandeep Bagave for AY 2012-13, statemen....
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....e donorwise discussion and the decision. A. Gift from the Husband: Regarding Rs. 2 lakhs gift from husband, it is claim of the assessee that the husband, Balaji Wattamvar reported cash withdrawals amounting to Rs. 8.39 lakhs over the preceding two years. The CIT(A) reasoned that the same works out to average withdrawals of Rs. 35,000/- per month, which is good enough to meet the household expenditure. As per the CIT(A), no adequate savings is possible with cash withdrawals for giving gift to his wife. Therefore, considering the above explanation, the CIT(A) held that the explanation given by the assessee is farfetched. No additional evidence is brought to my notice during the present proceedings before me. B. Gift from Father-in-law: Regarding the gift of Rs. 2 lakhs from father-in-law, Sri Namdeo Wattamvar, it is a fact that Namdeo Wattamvar is a pensioner and retired from the post department. The assessee's explanation is that the Assessing Officer is barred from examining the 'source of the sources'. However, no details of payments for his family for household expenditure are given to estimate the likely savings for giving gift to the daughter in law. In any case, it is th....