AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2019 (7) TMI 1845
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.... 2.1 For the Assessment Year 2014-15, the assessee has raised following grounds:- ''1. The ld. CIT(A) has erred on facts and in law in confirming the addition of Rs. 45,997/-u/s 68 of the I.T. Act, 1961 by treating the deposit in the HSBC Bank account, Hong Kong as unexplained cash credit without giving any finding on this ground. 2. The ld. CIT(A) has erred on facts and in law in confirming the addition of Rs. 45,107/- u/s 69C of I.T. Act, 1961 on account of unexplained expenditure incurred through credit card of Bank of America by not accepting the contention of assessee that payment of this card was made by his uncle Shri Sailesh Lakhi who is residing in USA.'' 3.1 Ground No. 1 is regarding addition of Rs. 45,997/- made by the AO u/....
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..... CIT(A) but could not succeed. 3.4 Before us, the ld.AR of the assessee submitted that this account was opened in the name of the assessee on behalf of these two firms i.e. M/s. Bihari Lal Holaram, partnership firm and M/s. Lakhi Gems. Therefore, the amount of USD 700 was deposited on behalf of those firms. The ld.AR of the assessee also referred to the settlement petition u/s 245C of the Act on 31-10-2017 as well as the order of the ld. Settlement Commission dated 22-04-2019 and submitted that the undisclosed income offered by these firms including this amount has been accepted by the ld. Settlement Commission which would amount to double taxation on the same income. Hence, the ld.AR of the assessee submitted that once the said amount be....
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....cash credit in the hands of the assessee and added to his total income for the year under consideration. Penalty proceedings u/s 271(1)( c) of the I.T. Act are initiated for concealment of income in the form of unaccounted deposits in the HSBC, Hongkong Bank account. Addition of Rs. 45,997/- 7.4 The partnership firms of the assessee M/s. Bihari Lal Holaram, partnership firm and M/s. Lakhi Gems have filed an application u/s 245C of the I.T. Act before the Income Tax Settlement Commission for the A.Y. 2010-11 to A.Y. 2017-18. In their petition, the unaccounted amount of USD 700 has been offered for taxation before the Hon'ble ITSC. However, the addition is being made here since the undisclosed bank account is in the name of the assesse....
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.... was holding a Credit Card of Bank of America and certain payments have been made through the Credit Card. The assessee furnished the details of payments made through credit card and also explained that payment of credit card bill has been paid by his uncle Shri Sailesh Lakhi who is a resident in USA. The AO was not satisfied with the explanation of the assessee and held that the assessee has incurred the unexplained expenditure through Bank of America Credit Card for all these three years and accordingly made the addition of the respective amounts as under:- A.Y. Amount 2014-15 Rs. 45,107/- 2015-16 Rs. 3,09,003/- 2017-17 Rs. 81,920 4.3 The assessee challenged the action of the AO before the ld. CIT(A) but could not succeed. 4.4 B....
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....essee in his reply before the AO has explained the source of payment of credit card bill for all the three years as such payments were made by his uncle Shri Shailesh Lakhi, resident of USA. The assessee also filed the confirmation of his uncle Shri Shailesh Lakhi regarding the payment of the credit card bill of the assessee. These facts were not disputed by the AO in his following findings in para 7.2. and 8 of his order for the Assessment Year 2015-16. ''7.2 The reply of the assessee has been considered but not found acceptable. This is because the credit stands inte name of assessee. Further, various expenses through the card have admittedly been made by the assessee. As such, the assessee was required to disclose such expenditure as w....