TaxTMI 
TaxTMI 
2021 (10) TMI 159
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....tructed not to visit the assessee's father's house due to the fear of him contracting Covid. Copy of the medical certificate stating that the assessee's father was severally diabetic is also placed on record. It was submitted that if the appeal is not heard on merits, it will lead to irreparable hardship to the assessee and reliance was placed on the following case laws:- (i) Collector, Land Acquisition v. Mst. Katiji and Others (1987) 167 ITR 471 (SC) (ii) Concord of India Insurance Co. Ltd. v. Smt. Nirmal Devi and Others 118 ITR 507. (iii) Radha Krishna Rai v. Allahabad Bank & Others [2000] 9 Supreme Court Cases 733. 2.1. I have heard the learned AR and the learned Standing Counsel. I find that there is sufficient reason for belatedly filing of this appeal and no latches can be attributed to the assessee. Hence, I condone the delay in filing this appeal and proceed to dispose of the appeal on merits. 3. Two issues are raised in this appeal - (i) addition in respect of unexplained investment of Rs. 5,62,854; and (ii) addition in respect of unexplained credit of Rs. 4,46,086. We shall adjudicate the above issues as under: Addition ....
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....e sources for the investments made by the appellant. 16. The Appellant's AR was requested to file sale deeds and rental agreements and submit reply as to how availability of money/cash explains Appellant's position. I had asked specifically to submit evidences for claim over and above already considered by the AO." 4.2. The assessee being aggrieved, has raised this issue before the Tribunal. The learned AR submitted a paper book comprising of 60 pages enclosing therein the written submissions filed before the AO/CIT(A). Copy of the sale deed of the site from BDA dated 09.03.2006, copy of sale deed for sale of agricultural land dated 22.06.2004 for a consideration of Rs. 15 lakh, copy of the rejoinder to the remand report of the A.O. etc. The learned AR reiterated the submissions made before the Income Tax Authorities. 4.3. The learned Standing Counsel supported the orders of the AO/CIT. 4.4. I have heard rival submissions and perused the material on record. The total cost including other incidental charges for purchase of a site through auction from BDA by the assessee is a sum of Rs. 41,89,654. During the course of assessment proceedings, the assessee exp....
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....ngs and drawing from Citi Bank is concerned, I noticed from the statement of the Citi Bank (which is placed at pages 13 to 18 of the paper book filed by the assessee), the withdrawals are for meeting the specific expenditure such as credit card payments and cheque payments to specified entities. The cash withdrawals in the Citi Bank account is not much. The few cash withdrawals, in all probabilities, would have been only for the purpose of meeting the personal expenses of the assessee. Therefore, I confirm the addition of Rs. 1,44,500 made by the A.O. As regards the sales proceeds of HUF property, I am of the view that a sum of Rs. 3,00,000 cannot be given credit because agricultural property was sold in June 2004 and the same in all likelihood would not have been available for making a purchase of the site much subsequently, i.e., on 09.03.2006. In this context, it is important to mention that the A.O. has already given a credit of Rs. 9,51,800 out of the sale proceeds of agricultural land of HUF towards the purchase of the site (since the initial installment towards payment for the purchase of site was made by the assessee in August 2004). Therefore, I confirm the addition of Rs.....
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.... verifying the facts and the documents collected- (a) The assessee's contention that, the bank account No. 139401011000055 is a joint account in the name of himself and his father Sri. Lakshminarayana Reddy, is not correct, as it is evident from the statement furnished by the Chief Manager, Vijaya Bank, Koramangala branch, Bangalore that, the said account is only in the name of the assessee and there are not joint account holders. (b) The said account may be operated by the assessee's father, only on the assessee's behalf, as he is the Power of Attorney holder of the assessee. (c) The assessee has indeed obtained two Demand drafts, of Rs. 1,80,908 and Rs. 3,44,597 from his above account. The demand draft for Rs. 3,44,597 has been taken on 09-03-2006 after depositing cash, of Rs. 3,44,500 on the same day. (d) It is seen from the account statement, of Sri. Mohan. L, who happens to be the assessee's brother that, he has given a cheque for Rs. 8,00,000, to the assessee and the same has been credited to the assessee's account, on 02-04-2005. The explanation of the assessee, on this credit is accepted, since the same has been receiv....
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....tify availability of money/which explains Appellant's position [except Rs. 30,790 which is allowed]. 21. Thus, these grounds of appeal are partly allowed as above." 5.4. Aggrieved by the order of the CIT(A), the assessee has raised this issue before the Tribunal. Copies of the bank statement of Citi Bank and Vijaya Bank, copy of the certificate issued by Vijay Bank stating that the assessee's bank account is a joint account with assessee's father, reconciliation of credit in Vijaya Bank, copy of the loan application filed with employer, copy of bank statement depicting the cash in hand and credits are placed on record. The learned Counsel for the assessee reiterated the submissions made before the Income Tax Authorities. 5.5. The learned Standing Counsel supported the assessment and the CIT(A)'s order. 5.6. I have heard rival submissions and perused the material on record. With regard to the credits of Citi Bank, the A.O. has made an addition of Rs. 1,29,326. According to the A.O., the assessee was not able to prove the source of credits to the extent of Rs. 1,29,324. On perusal of the Citi Bank account, which is placed at pages 13 to 18 of the pap....
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.... Hence, in view of the aforesaid reasoning, I sustain an addition of Rs. 24,011 (reimbursement of Rs. 23,011 + in house transfers of Rs. 1,000). Therefore, the assessee gets a relief of Rs. 1,05,350 on account of addition made by the A.O. for unexplained credits made in Citi Bank account maintained by the assessee. In other words, the addition to the extent of Rs. 24,011 is sustained instead of addition of Rs. 1,29,326 made by the A.O. 5.8. From the perusal of the Vijaya Bank statement of account, which is placed at pages 23 and 23 of the paper book, it is seen that the assessee's total credits was for a sum of Rs. 32,24,567. The assessee has sought to reconcile and explain the credits in Vijaya Bank as follows:- Total credits in Vijaya Bank 32,24,557 02.04.2005 Advance received 8,00,000 19.04.2005 Interest on FD 1,490 04.05.2005 Interest on FD 1,490 14.05.2005 Loan 50,000 20.05.2005 Interest on FD 1,490 20.05.2005 FD encashed 8,00,000 15.06.2005 Loan 1,20,363 09.07.2005 Loan 5,83,973 20.07.2005 ....