TaxTMI 
TaxTMI 
2021 (9) TMI 974
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....4 of the Act requiring the assessee to show cause as to why the entire deposit of Rs. 10 lakhs should not be treated as unexplained money u/s. 69A of the Act. The assessee filed a letter on 18.9.2019 submitting that he has retired as a Deputy Director [IES] during the year 2010 and the retirement benefits and pension which were deposited into his bank account were withdrawn for his day-to-day personal, family and medical expenses and with an intention of renovating his house, he had kept cash balance of accumulated withdrawals of Rs. 10 lakhs over a period of 6 to 7 years and after announcement of demonetization, he had to deposit the same into his bank account. It was further submitted that since the renovation of the house was not done, the said deposit of Rs. 10 lakhs was immediately converted to F.D. on 23.11.2016 with SBI, EMI Centre branch, Secunderabad with an intention to make investment in an immovable property. He also enclosed a statement of computation of income, to the said reply. 2.1. On verification of the above details, the AO observed that assessee was withdrawing pension to meet his family expenditure and the contention of the assessee that the sum of Rs. 10,00....
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....he matter when the submissions were not considered in entirety. 4. Appellant submits that in the absence of speaking order, vitiating the grounds raised and the merits of jurisprudence supplied in co-relation to the facts of the case, and in the absence of the grounds or reason for arriving such conclusion the impugned order is required to be quashed. 5. Appellant submits that the Learned CIT(A) has upheld the order passed under Section 144 stating that the compliance from the Appellant has been very poor. 6. Appellant submits that from the above, it is evident that Learned CIT(A) has confirmed the action of ITO in passing the order under Section 144 based on the compliance history. Appellant submits that the impugned order has confirmed the assessment under Section 144 only on the reason that a return has not been filed by the Appellant in pursuance to the notice issued under Section 142(1). In this connection, Appellant submits that a notice under Section 142(1) of IT Act was issued on 13.03.2018 asking to file the return of income for A.Y. 2017-18 by 31.03.2018. 7. Appellant submits that by the time he became aware of the said notice, the due ....
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....onourable Tribunal for an appropriate relief. In Re: Learned CIT(A) had erred by confirming the additions made by ITO, where such additions are permitted neither under Section 68 nor under Section 69A of the Act: 12. Appellant submits that as stated in facts, he had been in employment with Indian Engineering Services (IES) and retired in the capacity of Deputy Director with MSME in 2010 and has been a regular taxpayer since few decades. At the time of retirement, he has received monetary retirement benefits to the tune Rs. 15,77,369/- which were credited to his savings bank account of State Bank of India during the 2010. Further to the above, the Appellant was also in receipt of monthly pension and certain interest from balances in savings account held with various banks. 13. Appellant submits that the above was the only source of his income which was already subjected to tax vide withholding obligations. The salary, retirement benefits and pension were subjected to withholding obligations by the employer and interest is subjected to withholding obligations by the banker. Hence, all the incomes which were hit to the accounts of the Appellant were subjecte....
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.... that the appellant resides in densely populated locality which accepts digital payments and accordingly the said ground was dismissed. Learned CIT(A) has further reproduced the Google Maps to demonstrate that the said locality is densely populated. 21. In this connection, Appellant submits that the approach adopted by Learned CIT(A) is erroneous and completely devoid of merits. As stated in facts, the amounts were withdrawn over a period of 6 to 7 years and got accumulated to the extent of Rs. 10,00,000/-. In other words, the withdrawals were for the period 2010 to 2016 and were deposited during the demonetization period. Accordingly, if the Learned CIT(A) wishes to demonstrate that the locality where the Appellant resides is densely populated or not, the Google Maps image should pertain to the period between 2010 and 2016 and not in Year 2020. Accordingly, the approach adopted by Learned CIT(A) fails since reliance is placed on the Google Maps of Year 2020. Appellant submits that no person would stop withdrawing money based on the infrastructure facilities which are going to be available in future. The withdrawals will be based on the situations based on the day on which....
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.... cash for payments which are less than Rs. 2,00,000/-. Appellant submits that when there is no disincentive to accept cash payments till 1st April 2017, it is only utopian world, that the payments will be accepted by the businesses that in the locality where the Appellant resides. The Learned CIT(A) passing an order imagining utopian world by ignoring the complete reality has to be kept aside and appropriate relief has to be granted. 25. Appellant submits that he has survived a heart attack and to meet such an emergency, he used to regularly withdraw every month certain amounts for immediate disposal. Appellant also submits that since there is no support from his immediate family in case of emergency, he made sure all the time a minimum amount is at his disposal for meeting any unforeseen medical emergencies. Appellant submits that his account always subjected to maximum daily withdrawal and it would be practically impossible to withdraw amounts when he would be hospitalised. Hence, Appellant made sure that he always had sufficient amount of money at his disposal to meet any medical emergencies. 26. Without prejudice to the foregoing, Appellant submits that the im....
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....ation of fixed deposits reveals that the amount was belonging to the Appellant and there is no scope for applicability of addition either under Section 69A or Section 69 or Section 68 or any other section. 30. In light of the above submissions, it is prayed before Honourable Tribunal to consider and pass an appropriate order granting an appropriate relief. Notice under Section 68 and Order under Section 69A: 31. Without prejudice to the foregoing, Appellant submits that the Learned CIT(A) has upheld the additions made by the Learned Respondent under section 69A of the Act, by stating that the Learned Respondent has correctly quoted Section 69A while confirming the demand. 32. In this regard, Appellant wishes to submit that Learned CIT(A) has failed to understand the contentions raised before him. Appellant submits that the notice issued by Learned Respondent proposed to tax the deposits under Section 68. However, the order confirming the said proposal is made under Section 69A. This action of the Learned Respondent has brought to the notice of Learned CIT(A) praying that notice cannot be issued under one section and order confirming the notice ca....
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....out prejudice to the foregoing, Appellant submits that assuming that bank account does not form part of books of accounts, even in such case, when the Appellant explains the reasons for the source of cash, then there cannot be any addition under Section 69A. 37. Appellant submits that from the above judgment, it is evident that, if the Appellant submits that the source of cash is explained and if it can be established that the cash found is withdrawn from the bank accounts, there could not be any addition under Section 69A. Appellant submits that the entire source for the said cash was explained in detail to the Learned Respondent which went unconsidered. The same was also brought to the attention of Learned CIT(A) stating that the said cash was withdrawn for the purposes of renovation of house and meeting the unplanned exigencies. However, as stated earlier, the same went unnoticed by the Learned CIT(A) also. Hence, it is prayed before the Honourable Tribunal to consider and order that there cannot be any addition under Section 69A for the reasons as submitted hereunder. 38. Without prejudice to the foregoing, Appellant submits that assuming but not admitting tha....
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....of 6 to 7 years amounting to Rs. 10,00,000/- was found not convincing and Learned CIT(A) vide his impugned order found no mistake in such an action. 46. In this connection, Appellant submits that when he has retired in the capacity of Deputy Director after a service of decades and when he was in receipt of monthly pension, an amount of Rs. 10,00,000/- as savings for a period of 6 to 7 years is not at all abnormal and assessing officer should have made proper enquiry before confirming such an addition. Further, the appellant has withdrawn an amount of Rs. 28,82,000/- from the day of retirement and has deposited balance of Rs. 10,00,000/- when the demonetisation was announced. This proves the regular habit of the appellant and assessing officer if applied his mind and made a proper enquiry, the addition looks unwarranted. 47. Without prejudice to the foregoing, Appellant submits that the Assessing Officer cannot just pass the Assessment Order stating the contention of the assessee is not convincing, which is nothing but an afterthought. 48. Appellant further submits that the addition of amounts under Section 68 on a mere suspicion is bad in law. The Learned....
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.... evident from the provisions of Section 234A, the relevant provision is reproduced hereunder for ready reference: (1) Where the return of income for any assessment year under sub-section (1) or sub-section (4) of section 139, or in response to a notice under sub-section (1) of section 142, is furnished after the due date, or is not furnished, the assessee shall be liable to pay simple interest at the rate of one per cent for every month or part of a month comprised in the period commencing on the date immediately following the due date, and,- (a) where the return is furnished after the due date, ending on the date of furnishing of the return; or (b) where no return has been furnished, ending on the date of completion of the assessment under section 144. 54. Appellant submits that from the above, it is evident that, the interest under Section 234A will trigger only when a return under Section 139(1) or Section 139(4) is furnished after the due date or is not furnished. In other words, the interest would be applicable only if the return is required to be filed under Section 139(1). In this connection, Appellant submits that in case where a return i....
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....ellant in light of the above submissions, if at all there is a liability under Section 234A, it would be from the due date for filing the return as a response to the notice under Section 142(1) but not the due date for filing the return under Section 139(1). As stated in facts, since the due date for filing the return in the notice under Section 142(1) is stated to be 31.03.2018, the interest under Section 234A will trigger only after 31.03.2018 and not prior to that. Appellant submits that, if the due date is taken as 31.03.2018 and date of completion of assessment as 07.12.2019, the interest under Section 234A shall be payable only for 20 months (01.04.18 to 07.12.2019) as against 29 months confirmed by the impugned order. Appellant submits that if the period of 20 months is considered, the interest liability shall be to the tune of Rs. 1,55,034/- and accordingly prayed for consideration of the same towards interest. Prayer Wherefore it is prayed: a. The impugned order to be set aside b. To hold that there are no additions under Section 69A c. To hold that no interest under Section 234A is payable d. Any other consequential relief to b....