TaxTMI 
TaxTMI 
2021 (5) TMI 654
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....rcumstances of the case and applicable law, Ld. CIT(A)-I, Bhopal erred in not providing the copy of reasons recorded which forms the basis of making assessment under section 147 rws 143(3). 3. On the facts and circumstances of the case and applicable law, Ld. CIT(A)-I, Bhopal erred in sustaining the addition of Rs. 4,50,000/- as deposit of cash in savings bank account from undisclosed income. 4. On the facts and circumstances of the case and applicable law, Ld. CIT(A)-I, Bhopal erred in not considering facts of the case in proper perspective. 5. On the facts and circumstances of the case and applicable law, Ld. CIT(A)-I, Bhopal erred in not admitting the additional evidences filed under rule 46A which go the root of the matter. 6. On the facts and circumstances of the case and applicable law, Ld. CIT(A)-I, Bhopal erred in sustaining addition of Rs. 4,50,000/- under section 69A which was made by Ld. A.O of by applying the provisions of section 68 of the Act. 7. That, the appellant, carves leave to add, amend, alter or otherwise raise any other ground of appeal. Assessment Year 2011-12 1. On the facts and circumstances of....
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....inst these additions assessee preferred appeal before Ld. CIT(A) but could not succeed. 4. Now the assessee in appeal before the Tribunal. 5. At the outset Ld. Counsel for the assessee requested for not pressing the legal ground challenging the validity of assessment proceedings u/s 143(3) r.w.s. 147 of the Act. Written submissions filed by the assessee are reproduced below:- Synopsis 1. Assessee is an individual deriving income from running of restaurant. 2. AY 2010-11- Addition of Rs. 4,50,000 made u/s 68. Sr. No. Date Amount {Rs.} Cheque No. 1 24.04.2009 1,35,000 644745 2 05.05.2009 1,50,000 644747 3 27.04.2009 1,65,000 506483 TOTAL 4,50,000 For the items at Sr. No.1 and 2 - These amounts were received as loan from Shri Arun Kumar Tiwari. Loan confirmation letter and bank statement of Shri Arun Kumar Tiwari was submitted. Identity of lender - Address of Shri Arun Kumar Tiwari is mentioned both on the loan confirmation letter and his bank statement Genuineness of transaction - Transactions are executed through banking channel Creditworthin....
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....on'ble Delhi Bench (SMC) of ITAT in the case of Amitabh Bansal- [2019] 102 taxmann.com 229 - order pronounced on 11.02.2019- Para 6.2 - "From above provisions it is crystal clear that mere bank statement which is issued by bank to its client/account holder can't be elevated to status of books maintained by assessee within the meaning of section 2 clause 12A and section 44AA of the Act.N [emphasis supplied] 3.Considering the above mentioned facts and circumstances of the case and the applicable law, addition made u/s 68 ought to be deleted. The closing balance of cash as on 31.03.2010 of Rs. 20,52,304 is available as opening cash balance as on 01.04.2010 i.e. for AY 2011-12. [PB 7 - AY 2010-11] 4. AY 2011-12 - addition of Rs. 35,00,000 u/s 68 a.Closing balance of cash as on 31.03.2010 of Rs. 20,52,304 is available as opening cash balance as on 01.04.2010 for the impugned year i.e. AY 2011-12. [PB 9 - AY 2011-12] b.Assessment for AY 2011-12 was completed u/s 143(3) on 11.02.2014 by assessing the income same as returned income. [PB 03-04 - AY 2011-12] c.The closing cash balance of Rs. 20,52,304 stands accepted as no doubt h....
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..... We have heard rival contentions and perused the records placed before us. The assessee is in appeal for Assessment Years 2010-11 and 2011-12. 8. Legal ground No. 1 & 2 for Assessment Years 2010-11 and 2011-12 challenging the validity of assessment proceedings u/s 143(3) r.w.s. 147 of the Act are dismissed as not pressed. 9. Common Ground No.5 raised for Assessment Year 2010-11 and Assessment Year 2011-12 alleging that Ld. CIT(A) erred by not admitting additional evidence filed u/s 46A of the Income Tax Rules also deserves to be dismissed as no submissions have been putforth before us by the Ld. Counsel for the assessee. 10. Now the effective grounds on merits are with regard to addition made u/s 68 of the Act at Rs. 4,50,000/- for Assessment Year 2010-11 and u/s 69A of the Act at Rs. 35,00,000/- for Assessment Year 2011-12. 11. As regards the addition for Rs. 4,50,000/- for Assessment Year 2010-11, we find that the addition has been made for following three amounts credited in the bank account. S.No Date Amount (Rs.) Cheque No. 1 24.04.2009 1,35,000 644745 2 05.05.2009 1,50,000 644747 3 27.04.2009 1,65,000 506483 &nbs....
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....ng the transaction of purchase of land to materialise. 17. Further going through the finding of Ld. CIT(A), we find that he has observed that the assessee is keeping a huge cash in hand. There were repeated withdrawals during January, 2010 to May, 2010 and the assessee continued to accumulate cash till she deposited Rs. 35,00,000/- in bank account in October, 2010. During the assessment appellant claimed to have made payment to Shri Mahesh Sahu and Surendra Sahu but failed to furnish any evidence of nexus between the cash withdrawals and redeposit in the bank account. 18. So far as assessee's contention that there is no legal hurdle in keeping idle cash in hand, we find merit but surrounding circumstances also needs to support the contention of keeping idle cash. Now in the case of the assessee admittedly no books of accounts are maintained. Her source of income includes income from House Property and income from restaurant. As there were no details filed about the type of business but prime facie it seems that the assessee is carrying out the business and offering income on presumptive basis, liable to be taxed u/s 44AF/44AD of the Act. 19. During the proceedings be....