TaxTMI 
TaxTMI 
2021 (5) TMI 959
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....l. 3. The ld. AO further erred in law as well as on the facts of the case in charging interest u/s 234A, 234B, 234C and 234D of the Act and as also in withdrawing interest u/s 244A of the Act. The appellant totally denies its liability of charging and withdrawal of any such interest. The interest so charged/withdrawn, being contrary to the provisions of law and facts, kindly be deleted in full. 4. The appellant prays your honour indulgences to add, amend or alter of or any of the grounds of the appeal on or before the date of hearing." 2. The hearing of the appeal and C.O. were concluded through video conference in view of the prevailing situation of Covid-19 Pandemic. 3. The brief facts of the case are that the during the year under consideration, the assessee filed his return of income declaring total income at Rs. 1,68,000/- and agricultural income of Rs. 25,17,195/- on 10/07/2015. However, the assessment was completed at Rs. 27,30,260/- U/s 143(3) of the Income Tax Act, 1961 (in short, the Act) dated 30/11/2016 by making addition of Rs. 7,17,195/- on account of undisclosed income in the shape of agricultural income and Rs. 18,45,060/- on account of cash ....
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....8) starting from A.Y. 2011-12 onward, was submitted before the ld. CIT(A) (compiling the information based on the bank statement and other details already available on record.) and also reproduced by him at Pg-14 in Pr-III. The chart was prepared in a systematic and scientific method fairly taking into considerations all the receipts and outgoings on a reasonable basis. The assessee considered the agriculture income along with other income of each year and after reducing the utilization thereof in the cash deposits and also household expenses, left substantial amount of cash in hand in each year and in any case in the subjected year, the total availability of cash, this way, was Rs. 50.49 Lakhs out of which the subjected cash deposits of Rs. 43,62,255/- (Rs. 43,12,255/- + Rs. 50,000/-) were made or could have been made and after further utilization of household withdrawals of Rs. 4,52,265/-. The assessee was still left with cash in hand of Rs. 2.34 Lakhs (PB 28, CIT(A) Pg-14). However, the authorities is below completely failed to rebut or disprove the facts narrated in the chart. Even the ld. CIT(A) did not make any adverse comment on the contents of the chart (except mak....
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....ing were initiated only by making a reference to the cash deposits made in the Bank Account No. a/c no. 913010019544021 with Axis Bank, Tonk Road Branch, Jaipur (PB 13-16), perhaps based on AIR information selected for CASS (Refer AO Pg-1 3rd Line). Therefore, when asked, the assessee disclosed with regard to the other two bank accounts also for complete information. Kindly refer Pr-2 Pg-4 of the assessment order. 3.2 Secondly, otherwise also there was no specific requirement made in the applicable ITR Form i.e. ITR-2 applicable to the assessee in A.Y. 2014-15 to disclose the details of all the bank accounts being maintained & operated by the assessee. It was only for and from A.Y. 2015-16 when the CBDT vide Notification No. 41/2015, Dated-15th day of April, 2015 notified several changes in ITR-1 ITR-2 ITR-4S ITR-V for A.Y. 2015-16. The CBDT has for the first time required an assessee to compulsorily provide details of all Bank Accounts held in India (including in joint names) at any time during financial year 2014-15 (A.Y. 2015-16) including details of those which were closed during the year as mentioned below: "Number of bank accounts held by you at any....
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....so generated from the income of the earlier years, stood utilized elsewhere and was not available with the assessee in the current year for onward deposit in the bank. The law is well settled that unless the AO has established the utilization of the cash generated from the income admitted and assessed, the availability of the same cannot be denied unless the AO has fully establish the utilization of the same elsewhere. On the contrary, in this case the AO himself has admitted the availability of the income in the current year but wrongly ignored the availability of the income though admitted and assessed of the preceding years." 5. Supporting Case Laws: (i) CIT v/s P.V. Bhoopathy (2006) 205 CTR 495 (Mad) held (ii) CIT vs Kulwant Rai (2007) 210 CTR 380 (Delhi) para 16-17 (iii) Anand Prakash Soni v/s DCIT (2006) 101 TTJ 97 (Jd) para 5-6 (iv) Shivcharan Dass vs. CIT (1980) 126 ITR 0263 (P&H) 6. The various case laws cited before the ld. CIT(A) strongly and directly supporting the case of the appellant, were completely ignored by the ld. CIT(A) in as much as he is not whispered a single word thereon. The cited decisions wer....
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....culture income and in order to support this contention, the assessee also filed cash flow statement which is reproduced below: Financial Year Opening Cash Balance Agriculture Income Rent Total Cash Generation Cash Deposited Utilized Total cash utilized Closing cash balance 2010-11 3,14,548 29,45,153 12,0000 3,379,701 1,248,450 12,48,450 21,31,251 2011-12 2,131,251 5,57,926 18,0000 28,69,177 11,52,680 11,52,680 17,16,497 2012-13 17,16,497 17,03,424 18,0000 35,99,921 13,08,150 13,08,150 22,91,771 2013-14 22,91,771 25,17,195 24,0000 50,48,966 48,14,520 48,14,520 2,34,446 From the cumulative consideration of both the charts i.e. chart containing agriculture income disclosing the return of income and also the chart containing cash flow statement, we noticed that the department had given benefit of the current year's agricultural income to the tune of Rs. 25,17,195/-. However, from the cash flow statement, it was reflected that during the year under consideration, total cash generation was Rs. 50,48,966/- and the opening cash balance for the year under consideration ....
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....04.02.2001 and was explained to be out of the cash withdrawal in Dec-2000. The Coordinate Bench of Jodhpur ITAT in the case of Anand Prakash Soni v/s DCIT (2006) 101 TTJ 97 (Jd) has held as under: "Search and seizure-Block assessment-Computation of undisclosed income-Cash found during search-Assessee is entitled to furnish cash flow statement to explain the transactions when no books of account are maintained-In such circumstances it becomes the duty of the AO to verify the balance sheet and cash flow statement with the necessary material including the details already filed along with the returns in the past-Assessee explained that the cash found at the time of search was withdrawn from the bank some time back which was partly used for purchasing gold and part of the amount was given by the assessee to his wife-There is nothing to suggest the utilization of the withdrawal amount elsewhere-Said withdrawal is duly reflected in the cash flow statement and closing cash balance is more than the amount found at the time of search-Thus, addition cannot be sustained" The Hon'ble Punjab & Haryana High Court in the case of Shivcharan Dass vs. CIT (1980) 126 ITR 0263 (P&H) has ....