TaxTMI 
TaxTMI 
2021 (4) TMI 483
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....explanation of the assessee on the basis of assumption and presumption and without finding the explanation of the assessee incorrect or untrue. c) Confirming the addition of Rs. 12,000/- on the basis of estimate without finding the explanation of the assessee untrue and also when the payment of rent under question was not found to be untrue. 2. On the facts and in the circumstances of the case the order passed by the CIT(A) appeal under reference is bad in law, perverse and not sustainable in law since this has been passed on 28.03.2017 as per date given at the top of the appeal order whereas we have received the appeal order on 15.03.2017." 2. The facts in brief are that the assessee is deriving income from proprietorship concern, namely, M/s. KNT Overseas, who is engaged in the business of export of fabric, garments and miscellaneous items. AIR information was received that assessee has purchased immovable property for consideration of Rs. 4.60 crores and assessee was asked to furnish details of payment and its source with evidence. The assessee in reply submitted that it has purchased property along with M/s. Glaze Trading India (P) Ltd. for a consideration ....
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....d and seen by the Assessing officer at the time of assessment, yet the Assessing Officer did not listen and even after pointing out his attention to the cash book he proceeded to make the addition. The Assessing officer therefore ignoring the Cash Book held that the assessee had not filed any confirmation relating to the deposit in the bank treated the amount of Rs. 52,75,000/- as unexplained money liable to be taxed U/s. 69 of the Income Tax Act. We are now in appeal and submit as under. We have filed the return of income along with details of Audited books of account. During assessment proceedings books of account including the Cash Book was produced and examined. Each deposit in the bank is supported from the balance available in the cash book. To put it differently the deposit is out of cash book audited and maintained in the regular course of business. The books of account were produced before the assessing officer and examined. After examination the assessing officer enquired about several details and all such details filed, examined and placed on record as is evident from the assessment order itself. The, Assessing officer did not find any defect or discrepancy of a....
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....asked to submit the source of cash deposits. AR of the Appellant has stated that Rs. 10,00,000/- and Rs. 5,00,000/- were received from M/s. PAM Fashion on 31.05.2011 and 02.01.2012 respectively. Regarding the claim that amount of Rs. 15,00,000/- was received from M/s. PAM Fashions, it is seen that Appellant has not made any application for admission of additional evidence neither any evidence regarding the receipt of cash from M/s. PAM Fashions has been submitted. Apart from this, no submission regarding the balance amount of Rs. 37,75,000/- has been submitted by the Appellant. Appellant has to justify his claim that amounts of cash deposited as per cash book are in the regular course of business with supporting evidences. It is seen that either amounts have been withdrawn from the bank or received from M/s. PAM Fashions. However, Appellant has not submitted any evidence as to the source of deposits nor he has shown that the amounts are on account of sale and loan etc. neither he has correlated the entries with the ledger for sale etc. There is no basis in the claim of Appellant that explanation was available in the cash book and the books of account are audited. Hon'ble Delhi ....
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....submitted that during the course of assessment proceedings, the assessee had given following details of cash deposits and drawing. The copy of which is appearing at page 33 of the paper book. 7. Detail of cash deposit and drawings in current a/c A. Opening Balance of cash in hand 746238.39 Drawings From Bank 5360000.00 Total 6106238.39 Add-Cash Deposit in Current A/c and expenditure On various dates during the year 5995858.00 Closing Balance of cash as at 31.03.2014 110380.00 10. Thus, he submitted that out of total cash deposits made during the year for sums aggregating to Rs. 52,75,000/-, the source of cash deposits of Rs. 37,75,000/- was from opening cash balance of Rs. 7,46,238/- and cash withdrawal of Rs. 34,34,000/- from the bank account and remaining cash deposits of Rs. 15 lac is received from PAM Fashions. In support, he has filed the summary of cash transaction made during the year and the date-wise detail reproduced hereunder: Sr. No. Particulars Amount (in Rs.) i) Opening Balance as on 1.4.2011 7,46,238 ii) Add: Cash withdrawal 34,40,000 Add: Cash receipt from PAM ....
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....;23. 08.07.2011 5,11,968 5,30,000 -- -- 480 10,41,488 24. 12.07.2011 10,41,488 5,20,000 -- -- -- 15,61,488 25. 15.07.2011 to 22.07.2011 15,61,488 -- -- -- 1,645 15,59,843 26. 23.07.2011 15,59,843 -- -- 15,000 -- 15,44,843 27. 25.07.2011 to 8.9.2011 15,44,843 -- -- - 63,115 14,81,728 28. 09.09.2011 14,81,728 -- -- 4,00,000 -- 10,81,728 29. 13.09.2011 10,81,728 -- -- 2,00,000 -- 8,81,728 30. 15.09.2011 to 20.09.2011 8,81,728 -- -- -- 1,680 8,80,048 31. 23.09.2011 8,80,048 6,00,000 - -- -- 14,80,048 32. 24.09.2011 14,80,048 -- -- -- 430 14,79,618 33. 26.09.2011 14,79,618 3,50,000 -- --- -- 18,29,618 34. 28.9.2011 18,29,618 -- -- -- 395 18,29,223 35. 29.09.2011 18,29,223 1,60,000 -- -- -- 19,89,223 36. 30.09.2011 19,89,223 -- -- -- 10,295 19,78,928 37. 01.10.2011 19,78,928 3,80,000 -- -- -- 23,58,928 38. 0....
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....ount of household expenses, he submitted that before the Assessing Officer following explanation was given:- 12.1 It is submitted that appellant during the year under consideration is living with his parents and is not having any child. It is further submitted that during the course of assessment proceedings vide his reply placed at page 32 of Paper Book has submitted as under: "2. Detail of Drawings made in capital account of Proprietor from KNT Overseas A. Amount transferred from Current a/c to Saving account shown in drawings: 10,62,500 B. LIC Paid 22,478 Total 1,10,84,978.... 4. Detail of household expenses LIC paid from KNT Overseas 22,478 LIC 12,262 Household expenses Cash drawing from Saving A/c. 60,000 Thus, he submitted that the addition is based on assumption from bare perusal of the current account, and therefore, same cannot be sustained. 13. Lastly, with regard to addition of Rs. 12,000/- on the basis of difference as per the amount mentioned in rent agreement and shown in the P&L account, he submitted that rent agreement was executed on 30.11.2009 which was for the period of 1....