TaxTMI 
TaxTMI 
2021 (2) TMI 652
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.... to reverse the Assessing Officer's action treating the assessee's loans of Rs. 7,57,98,800/- as his income in the course of the regular assessment framed on 01-08-2011. Learned CIT-DR vehemently contended during the course of hearing that the Assessing Officer had rightly added the impugned sum since the assessee had neither put in appearance in Section 142(2A) special audit proceedings nor he had sufficiently discharged onus of having received the sum in issue from one Shri B. Suryanarayana Raju. He next took us to the CIT(A)'s detailed discussion on the issue reading as following: "7. I have carefully considered the submissions of the appellant, the order of the Assessing Officer, the additional evidence furnished as well a....
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....sessing Officer in the assessment records. The advance in question given to the assessee is duly reflected under the heading 'Dues to family members'. Further, the AR of the appellant has furnished the bank accounts of the assessee as well as Shri B. Suryanarayana Raju and the other family members, in which all the transactions are duly reflected. During remand proceedings before the Assessing Officer, the assessee has filed a written submission on 02-08-2017, stating as under: "v) Kind reference is invited to the bank account of Sri Mallappa Raju with Axis Bank. The entries in the account explain the following credit entries (deposits) pertaining to transfer of the amounts by B. Suryanarayana Raju from his savings bank account wi....
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....he two remand reports of the Assessing Officer reproduced in Para 6.3 and Para 6.7 above, it can be seen that this explanation, alongwith the bank statements has been duly filed before the Assessing Officer, but the Assessing Officer has simply brushed aside the same by stating that "the acceptability of bank statements without due Audit/reflection of same in statement of affairs and its genuineness as accounted transactions stands unreconcilable on merits. The statements provided are related to Axis Bank and the bank account mentioned in the return of income is noticed as HDFC bank in the case of Sri B. Suryanarayana Raju". In this regard, it has been explained by the appellant's AR during remand proceedings before the Assessing Office....
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....of Shri B. Suryanarayana Raju, in whose case, the assessment for AY 2007-08 was completed u/s. 143(3) on 14-07-2010, earlier to the completion of the assessment in appeal here. It is also the contention of the appellant's AR that the investment in question was actually made in the AY 2007-08, and on this ground also, no addition could have been made in the AY 2008-09. It can be seen from the remand report reproduced above in Para 6.7 above that the Assessing Officer has rejected this contention on the grounds that "the assessee's contention on this analogy is apparently not reconcilable and same is not acceptable not to treat as unexplained investment of assessee of AY 2008-09 as it is appearing as opening asset in AY 2008-09 with....