TaxTMI 
TaxTMI 
2022 (4) TMI 1309
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....ssessee has raised the following grounds of appeal:- "1. That the CIT(A) has erred on facts and in law in confirming the action of the assessing officer in making an addition of Rs. 8,98,620, being cash deposited by the appellant in his bank account during the relevant assessment year, alleging the same to be in the nature of unexplained deposits in terms of section 69A of the Income Tax Act, 1961. 1.1 That the CIT(A) has erred on facts and in law in holding as above without appreciating that the aforesaid cash deposits were made out of cash withdrawn by the appellant during the relevant assessment year from the same bank account and, therefore, no addition can be made in the hands of the appellant in terms of section 69A ....
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....ct of the said account, it was observed that the account belongs to Sh. B.K. Gupta S/o. Sh. D.P. Gupta and the nominee of the account was Smt. Kalpana Gupta W/o. Sh. BK Gupta. It was further gathered by ITO Ward-4, Phagwara that address of the assessee was "Near Badal Toka, G.T. Road, Goraua". Verification letter dated 19.10.2015 was issued at this address and on being enquired from Sh. Jaskaran Singh, Manager/Supervisor of the concern! it was gathered that the firm M/s. Badal Taka, Goraya was acquired by Sh. BK Dewan (Bal Krishan Dewan) who was also the director of M/s. Neha Toka Put Ltd. Further enquiries revealed that other directors of the company were Sh. Vaibhav Dewan and Smt. Kalpana Dewan. From the PAN database, the PAN of Sh. B.K. ....
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.... other than Shri B.K. Gupta, who opened the bank account No. 0185000103306320 with Punjab National Bank, Goraya and the cash deposit in the said account belongs to Sh. Bal Krishan Dewan. A perusal of Income Tax Return for A.Y. 2008-09 reveals that the assessee had declared bank account No. 03610001005568 maintained with Punjab National Bank, Naruiana, Jind, Haryana only but no other bank account was declared in the ITR. Further, the deposit in bank account No. 0185000103306320 with Punjab National Bank, Goraya of more than Rs. 53 lakhs is not commensurate with the income declared in the ITR. Therefore, I have reasons to believe that the Rs. 53,91,284/- being cash deposit in the impugned saving bank account was the income of the ass....
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..... (ii) Copy of complete ITR along with acknowledgement reflecting rental income of Rs. 6 lacs of M/s. Sri Vallabha Investment (P) Ltd. having PAN: AAACS3775R for A.Y. 2009-10. Copy of same appears at page 25 to 27 of the paper book. (iii) Copy of Audited financial of M/s. Sri Vallabha Investment (P) Ltd. for A.Y. 2009-10. Copy of the same appears at page 28 to 31 of the paper book. (iv) Copy of TDS certificate issued by M/s. HPL Socomec Pvt. Ltd. appears at 32 of the paper book. 2.3 The total rent received during the relevant assessment year as per 26AS form is Rs. 15,56,136/- out of which a sum of Rs. 6,00,000/- was paid to M/s. Sri Vallabha Investment (P) Ltd. which is duly reflected in its books of acc....
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.... had declared rental income of Rs. 9,56,136/- and Rs. 6,00,000/- was paid to Sri Vallabha Investment Pvt. Ltd. which has been shown in its return of income & balance sheet as rental income. In support, he drew our attention to computation of total income of Sri Vallabha Investment Pvt. Ltd., available at page 26 of the paper book, wherein the said party has shown rent of Rs. 6,00,000/-. Thus, no addition could have been made in the hands of the assessee on the ground that the assessee had not shown the entire rent receipt in its own hand. 8. Insofar as the cash deposits of Rs. 8.98.620/-, he drew our attention to cash flow chart available at pages 52 to 53 of the paper book and pointed out that there were earlier withdrawal of cash for w....