2021 (9) TMI 289

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....,41,930/-. The AO issued statutory notice u/s 143(2) of the Act and also a questionnaire along with notice u/s 142(1) of the Act. During the course of assessment proceedings, the AO noted that the assessee was introducer in opening of bank accounts in the case of about 30 parties. On perusal of the bank statement of these parties, he noted that there are various cash deposits in these accounts and the amount credited in these bank accounts are rotated either in the accounts of the companies controlled by the assessee such as Bansal Infinlease (P) Ltd. and Bansal Inhold Ltd. or the cheques have been issued to different parties. He therefore, asked the assessee to explain as to why the deposits in these bank accounts should not be treated as income of the assessee in the year of deposits. He also asked the assessee to explain the various entries in the diaries found during the course of search by giving details such as names of the persons to whom it pertains, the date of transaction, amount of transaction, etc. He also asked the assessee to explain the various transaction and the details of loans and gifts taken by the assessee. Since, there was no compliance, a summon u/s 131 of th....

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.... 3,91,191 105,61,05,072 5 1794/Del/2017 2011-12 6,03,819 83,35,88,812 6 1795/Del/2017 2012-13 5,46,480 49,77,40,380 6. In appeal, the learned CIT(A) in the ex-parte order passed by him sustained both the additions made by the AO. 7. So far as the addition of Rs. 1,68,42,930/- is concerned, the learned CIT(A) sustained the addition made by the AO by observing as under:- "From the above, it is clear that the appellant/AR failed to substantiate the objections raised through various grounds filed in this appeal, since: • In case of the appellant, it is clear that at the time of search, the documents were found, which were seized and inventorised as Annexure A-I to A-II, which contain the information relating to different bank accounts of different persons, in whose case appellant is the introducer. These bank accounts are operated by the appellant. Accordingly, it is clear that the Annexure A-I to A-II, are incriminating document, since income from the alleged transactions in these bank accounts, is not taken into account by the appellant. • It is also, established by the A.O. in the assessment proceedings tha....

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.... From the discussion of the A.O. in the assessment order, in respect of seized material, statement of the assessee recorded u/s 132(4) of the Act, it is clear that the appellant failed to discharge the onus u/s 68 of the Act, for the unexplained cash deposits in these alleged bank accounts, operated and used by the appellant, in the assessment proceedings as well as in the appellate proceedings, inspite of several opportunities allowed by the A.O., as well as in the appellate proceedings. Accordingly, it is clear that the appellant failed to substantiate the objections raised through various grounds of appeal. In view of the above, I am of the considered opinion that the appellant failed to discharge the onus cast upon u/s 68 of the Act, not only in the assessment proceedings, but also in the appellate proceedings. In these facts and circumstances, I do not find any infirmity in the findings of the A.O. and therefore, addition u/s 68 of the Act, of Rs. 1,68,42,943/-, is confirmed." 8. So far as the addition of Rs. 24,000/- on account of gift received is concerned, the learned CIT(A) sustained the addition by observing as under:- "9.3 I have carefully cons....

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....s cast upon u/s 68 of the Act, not only in the assessment proceedings, but also in the appellate proceedings. In these facts and circumstances, 1 do not find any infirmity in the findings of the A.O. and therefore, addition u/s 68 of the Act, of Rs. 24,000/-, on account of alleged gifts, is confirmed." 9. Aggrieved with such order of the learned CIT(A), the assessee is in appeal before the Tribunal by raising the following grounds:- 1. On the facts and circumstances of the case, the order passed by the learned Commissioner of Income Tax (Appeals) [CIT(A)j is bad both in the eye of law and on facts. 2. On the facts and circumstances of the case, learned CIT(A) has erred both on facts and in law in passing the order without giving assessee a proper and adequate opportunity of being heard in clear violation of principle of natural justice. 3. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in rejecting the contention of the assessee that the proceedings initiated under Section 153A and order passed by the learned Assessing Officer (AO) under Section 153A/143(3) is without jurisdiction. 4. On the f....

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....f the assessee. 11. (i) On the facts and circumstances of the case, learned CIT(A) has erred both on facts and in law in confirming addition of Rs. 24,000/- made by the AO on account of gifts received by the assessee. (ii) That the addition has been confirmed despite the assessee bringing explanation and evidences on record to prove the identity and creditworthiness of the donor as well as genuineness of the gift received. 10. The learned counsel for the assessee strongly challenged the ex-parte order of the learned CIT(A) in confirming the various additions made by the AO. He submitted that in all these assessment years, the AO made high pitch assessment by making huge additions on account of clerical error. Referring to various pages of the paper book, he submitted that the credits in the bank accounts of the clients of the assessee have been added to the income of the assessee despite no incriminating material was found during the course of search. Referring to various bank accounts, he submitted that there is double addition of the bank deposits i.e. in the hands of the assessee as well as in the hands of two companies i.e. Bansal Infinlease (P) Ltd. and Ba....

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....neness of the transactions including the gift transaction. Therefore, the addition made by the AO and sustained by the learned CIT(A) should be upheld. In her alternate contention, she submitted that the matter may be remanded to the file of the AO. 12. The learned counsel for the assessee in his rejoinder submitted that since the credits in the bank account of the clients of the assessee are added and certain additions have been made twice in the hands of the assessee as well as in the hands of various companies and other persons, therefore, even if the matter is restored to the file of the learned CIT(A), he has to call for a remand report from the Assessing Officer. He submitted that in the interest of justice and to save time, the matter should be restored to the file of the Assessing Officer so that proper verification can be made by him of the seized documents. 13. We have considered the rival arguments made by both the sides, perused the orders of the Assessing Officer and the learned CIT(A) and the paper book filed on behalf of the assessee. We have also considered the various decisions cited before us. We find the AO in the instant case made addition of Rs. 1,68,42,9....