TaxTMI 
TaxTMI 
2022 (1) TMI 36
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....2007-08. 2. Brief facts of the case are as under: There was a Search & Seizure Operation under section 132 of the Income Tax Act in the case of Shri. K. Nagesh Reddy & Others on 19.10.2012. The assessee, Mr. K. Nagesh Reddy is one of the five sons of Mr. Krishna Reddy. He stays with his other four brothers. The brothers including the present assessee are actively involved as real estate commission agents and facilitators in Sarjapur area. During the course of Search action, undisclosed bank account number 1028-2014238 in Karnataka State Co-operative Apex Bank Ltd, Koramangala branch held in the name of the assessee was found. 2.1 On verification of the same, it was noticed that there were several cash deposits in the said bank account. It was also found that the assessee was not maintaining any books of accounts for the real estate business carried on by him and the cash book prepared was not considered by the Ld.AO. The seized material found during the course of Search and Seizure operation revealed that the assessee had made cash deposits to the tune Rs. 1,46,50,000/- into his bank accounts during the year 01.04.2006 to 31.03.2007 relevant to assessment year 2007-08 and ....
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....deposited in its bank account, the Assessing officer was justified in adding said amount to assessee's taxable income U/s 68. 2.4 The assessee had submitted that the cash withdrawn by employees should also be considered as these persons have withdrawn the cash on behalf of the family members and handed over to the concerned member. The Ld.AO discussed in his order which is as under: "The assessee had also submitted that the cash withdrawn by the individuals as reflected in the bank statement obtained from the bank and reproduced above at page 4-7 should also be considered as the cash available on hand since these persons who had withdrawn the cash on behalf of the assessee were his employees and they had handed over the cash to him. The contention of the assessee is that the cash withdrawn by the above said persons was available with him while making the cash deposits during the year. 4.11 Vide order sheet noting dated 16.03.2015, the assessee was asked to furnish the details of the above said persons like name, address and also to produce the said persons physically for verification on 20.03.2015. The assessee appeared on 20.03.2015 but did not produce the....
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....) has erred in confirming the additions for the cash deposits made to bank as unexplained cash credits. 3. The Assessing officer and the Honorable Commissioner Of Income Tax (Appeals)- has erred in not considering the withdrawals made by your appellant through bearer cheques in the name of the employees. 4. The Honorable Commissioner Of Income Tax (Appeals) has not considered the valid explanation given by your Appellant in this regard. 5. That on the facts and Circumstances of the case, the Honorable Commissioner Of Income Tax (Appeals) was not justified in adding back the cash deposits treating it as unexplained cash credits. It is respectfully submitted that we may be permitted to add, delete and / or put forward any other grounds and fact of appeal and other related points at the time of hearing." 4. Before us, the assessee filed additional evidence in the form of confirmations given by the employees along with their identity proof. It is submitted that the documents may be remanded for verification in the interest of justice to assessee. The Ld.AR submitted that assessee was unable to produce these evidences before the authorities below d....
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....uments, we note that prima facie the confirmations filed by these persons deserves verification which would help in disposing of the issue under consideration in accordance with law. We note that in the paper book that was field before the authorities below, the assessee has given bank certificates wherein it is certified that the amounts have been withdrawn by various parties in cash. The said details forms part of the assessment order. The details / evidences now filed by assessee needs to be considered in light of the bank statements. In our considered opinion, the evidences filed by Ld.AR before us needs to be verified in order to appreciate the claim as per law. 6. Decisions relied by Ld.CIT.DR are on different facts which are distinguishable with the present case before us. More particularly, the decision of Hon'ble Madhya Pradesh High Court relied by Ld.CIT.DR deals with an issue as to whether Rule 29 enables the revenue to tender fresh evidence in support of the new point was to make out a new case which, Hon'ble Court answer in negative. 6.1 We therefore inclined to admit the additional evidence filed by assessee and remand the same to the Ld.CIT(A). The Ld.CIT(A)....