TaxTMI 
TaxTMI 
2021 (6) TMI 175
X X X X Extracts X X X X
X X X X Extracts X X X X
.... declaring total income at Rs. 6,12,050/-. The case of the assessee was selected for scrutiny assessment and notice under section 143(2) was issued and served upon the assessee. On scrutiny of the accounts, it revealed to the AO that the assessee has deposited a cash of Rs. 7 lakhs on 2.9.2008 and Rs. 7 lakhs on 3.10.2008. He directed the assessee to explain the source of cash deposits in the Corporation Bank, Satellite Road, Ahmedabad. In response to the query of the AO, it was contended by the assessee that he was a retired IAS having pension and interest income. He has given cheque of Rs. 14,25,000/- to T. Ramkrishna and S. Bhaskara Rao for purchase of some immovable property at Chennai. They have returned this amount in cash and redepos....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rding to the assessee, the sources of the deposits are the receipt of money, which were returned from these persons. This explanation of the assessee was not accepted by the AO for want of confirmation from these persons. Therefore, addition was made; but it is not sufficient to visit the assessee with penalty also. Apart from the above, the ld.counsel for the assessee invited my attention towards two-three more defects. He pointed out that notice dated 21.01.2013 issued upon the assessee under section 274 read with section 271(1)(c) of the Act was for the Asstt.Year 2010-11. In other words, the assessment year was wrongly mentioned by the AO. Thus, there is a defect even in the notice issued by the AO. He also pointed out that the AO ha....
X X X X Extracts X X X X
X X X X Extracts X X X X
....espect of any facts material to the computation of the total income of any person under this Act, (A) Such person fails to offer an explanation or offers an explanation which is found by the Assessing Officer or the Commissioner (Appeals) or the CIT to be false, or (B) such person offers an explanation which he is not able to substantiate and fails to prove that such explanation is bona fide and that all the facts relating to the same and material to the computation of his total income have been disclosed by him, then, the amount added or disallowed in computing the total income or such person as a result thereof shall, for the purposes of Clause (c) of this sub-section, be deemed to represent the income in respect of whic....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ubstantiate the explanation and the assessee fails, to prove that such explanation is bona fide and that the assessee had disclosed all the facts relating to the same and material to the computation of the total income. Under first situation, the deeming fiction would come to play if the assessee failed to give any explanation with respect to any fact material to the computation of total income or by action of the Assessing Officer or the Learned CIT(Appeals) by giving a categorical finding to the effect that explanation given by the assessee is false. In the second situation, the deeming fiction would come to play by the failure of the assessee to substantiate his explanation in respect of any fact material to the computation of total inco....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... back and died during the pendency of the appeal before the ld.CIT(A). I have gone through the bank statement. It is duly reflected that in the month of April, he has given advance of roughly Rs. 14 lakhs. Thereafter, in the month of September and October, Rs. 14 lakhs has been deposited in his account. To some extent, the explanation of the assessee is plausible that he has given advance for purchase of the property which was not materialized and received back the amount during the year itself. The only deficiency in his explanation was that he could not buttress this explanation with supporting evidence i.e. confirmation from two persons viz. T. Ramkrishna & S. Bhaskara Rao. To my mind, he failed to explain the source with support of evid....