TaxTMI 
TaxTMI 
2022 (5) TMI 1054
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....d CIT(A) by the same order. 3. For the sake of clarity, we take the facts for Assessment Year 2009-10 first. The fact shows that assessee is an individual showing income from business and income from other sources. He filed return of income on 31st July, 2009 at Rs. 1,41,030/-. 4. Case of assessee was reopened by issue of notice under section 148 of the Act on 31st March, 2016. Reasons recorded shows that:- i. information is received from Deputy Director of income-tax (Investigation), Unit-8 vide letter dated 28th March, 2016, stated that in bank account of assessee with Union Bank of India in the name of M/s. PK Trading Company, Gowalia Tank Branch, where in credit transaction of Rs. 5,03,23,960/- has taken place. ii. The return of income field by assessee is processed on 30th December, 2010 at the same income. iii. Therefore, the learned Assessing Officer stated that he has reason to belief that income chargeable to tax has escaped assessment to the extent of above sum. 5. In response, the above notice on 7th April, 2016 and 24th May, 2016 along with copy of return of income already filed, requesting the same to treat return and response to abo....
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....sidential address of the assessee. Further, the signature of the application form and other documents are same as signed on the PAN card. The Gaondevi police station did not confirm the filing of the FIR and therefore, Assessing Officer asked assessee that why the credit entries in the bank account of M/s. PK Trading Company should not be added to the income of the assessee under section 68 of the Act. The Assessing Officer tabulated the credit entries from FY 2008-09 to FY 2012-13. 10. Assessee submitted reply reiterating the same facts. Assessee further stated that same fraudulent third party has carried out the transactions in his name. The signatures are forged. He stated that the introducer is Mr. Satish Kundanmal Porwal, who is proprietor of M/s. Yash Impex as appearing from the findings of the investigating authorities. It was further stated that the KYC form was not filled by the assessee and the mobile number was of the introducer M/s. Yash Impex. Assessee pointed out that the copy of the Permanent Account Number card wherein the bank statement is affixed shows the date 7th April, 2007, and mobile bill dated 25th June, 2007, whereas date of the opening of the account is....
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....ox copy of the PAN card it is seen that the PAN has been attested by Union bank officer on 7 kg. 2007 whereas the account was opened on 18 January 2008 why there is a gap of nine months between attestation and opening the account? Ans. The PAN card is attested on 7 April 2007 for any other purpose of the party and may have kept the Xerox copy of the attested PAN the same Xerox is submitted for opening the account. As far as telephone bill is concerned it pertains to the bill date 21 January 2007 which was 21 submitted for opening the account. 13. Please give details of the introducer of account of M/s. PK Trading Ans. The introducer of this account is M/s. Yash impex proprietor Shri Satish Kundanmal Porwal who is owning PAN No AADPP9461D 14. Is the account of M/s. Yash Impex proprietor Shri Satish Kunnanme Porwal operative as on date? Ans. No. the account is inoperative and closed on 8 September 2009 am providing the account opening form of M/s. Yash Impex proprietor Shin Satish Kundanmal Porval along with copies of thanks giving letter. 15. Please confirm whether this account is opened in your branch by Shri Nayan Arvind Lalan or someone else ha....
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....uch known to Shri Nayan A Lalan and introduced him to open the account in Union Bank of India. 16. The simple device of opening and operating the bank account with Union Bank of India and further not producing the substantial evidence of filing FIR with police or further proceeding regarding the said case and his inability to produce Shri Satish Kundanmal Porwal before the police, bank manager or before the undersigned can be viewed as a way out to escape from the tax liability As such the assessee simply made baseless allegations and challenged the re-opening of assessment. It is very much clear that the case was reopened within the purview of income Tax Act and there is reason to believe that income has escaped assessment & not due to change of opinion for reopening assessment u/s. 147 of the Income Tax Act, 1961. The case laws quoted are not fitting into the four corners of assesses case. Under the circumstances, in the absence of any substantial evidence provided by the assessee to prove otherwise that the account is not opened and operated by him, the credit transaction of Rs. 5,03,23,960/- is added to the total income of the assessee as unexplained cash credit u/s. 6....
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.... examined him as Union Bank of India at the time of opening the bank account, had issued letter dated 18.01.2008 informing customer no account ld., and account opening date addressed to M/s. P.K Trading, room no. 51, 2nd floor, Jiya Masum Chawl, N.M. Joshi Marg, Lower Parel, Mumbai-400013 which was residential address of the assessee. 6.3 The appellant had not explained whether he had any business or longer period of about 5 years and the probability of operating any account for a longer period by a third person without being caught is very less. 6.4 The Chief Manager of UBI in his statement has stated categorically that no person can open account in name of any third party in his branch. He also stated that signature of the appellant on his PAN card and account opening form seems to be identical. For opening the bank account, the assessee had submitted his photograph, copy of ration card no. 020605 in his father's name wherein his name appears at sr. no. 3, copy of his PAN Card no. ACDPL5255B, mobile bill for his mobile no. 9820997621. 6.5 As stated by the appellant, Ld. Metropolitan Magistrate has directed the police to conduct enquiry vide order da....
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....ssessing Officer though his statement is relied upon. Judgments relied CIT v/s Odeon Builder Pvt. Ltd. (2020) 17 SCC 311" 17. The first additional ground challenges that amount deposited in the bank account cannot be added under section 68 of the income-tax Act, 1961 (the Act) and the second additional ground states that addition cannot be made in the hands of assessee without granting cross examination of bank manager. For the first ground assessee relied on the decision of Hon'ble Bombay High Court in CIT Vs. Bhaichand H. Gandhi (141 ITR 67 (Bom).For second proposition assessee relied on CIT vs. Odeon Builder Pvt. Ltd. (2020) 17 SCC 311. 18. The learned Departmental Representative vehemently objected to the additional ground. However, as these are legal grounds, does not require any further facts to be investigated, goes to the root of the matter, we admit the same. 19. Coming to the first Additional ground that whether Provisions of Section 68 of the Act can be applied or not in deposits in the bank statements. We find that the issue is squarely covered against the assessee by the decision of Hon'ble Bombay High Court in case of shri Arunkumar J. Muchha....
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....s received from State Bank of India and immediately same was transferred to CD 36046 A/c amounting to Rs. 13,35,000/-. ix. Further, in the month of May, 2008, in this bank account high value transactions of Rs. 10 lacs each were carried out and some of the transactions were resulted into benefit of Yash Impex as amount was transferred to Yash Impex. x. Some of the high value transactions were also in the name of other persons mentioned, xi. modus operandi of transferring from CD 36046 of Rs. 1 lakh each in the bank account credited and withdrawn in cash subsequently was carried out. xii. On 29th October, 2008, the credit of Rs. 39,61,000/- was received and on 29th October, 2012, itself Rs. 26,60,000/- was transferred to Yash Impex. xiii. Like these transactions were carried out where sum is received and paid from Pushparatna Avenue. xiv. Therefore, on examination of the bank account, from 18th October, 2008, to 18th October, 2016 sum of Rs. 9,81,61,540/- has been deposited in this bank account and same have been withdrawn on the date of credit or within a short span of time leaving a meager sum as balance of Rs. 125.57 paisa. ....
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....ficers. However, there is no reference in whose presence it was signed, how it is captured and who verified it. Reference is specifically to page no. 77 of the paper book. There are apparent infirmities in the dates which are mentioned on respective documents submitted for opening of the account. It is rather unusual that a banker accepts PAN Card and other evidences which are not current. At page no. 88 there is welcome letter by the bank to M/s. PK Trading Co. dated 18th January, 2008, which was produced by the Bank Manager. There is no information whether this letter was served to the account holder as well introducer. Further, on the same date letter was issued to Yash Impex but there is no indication how it reached to the introducer also. Only purpose of welcome letter is to confirm that information, mainly address, submitted at the time of opening of account is correct, and if that person has not opened bank account, he may immediately revert to bank. There is no evidence to this effect. Further, the cheques issued for withdrawal of cash from the bank account in the denomination of Rs. 1 lacs each which are not less than 100 in numbers, who take away this cash from the bank a....
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....view of this, we set aside all these appeals back to the file of the learned Assessing Officer with following directions. i. To obtain information of the above bank account such as the ownership of CD account wherefrom the cheques were received, signature of persons who withdrew cash of Rs. 1 lakhs on more than 100 occasions, where and how cheque books were issued, who are the owners of the bank accounts where the sums are diverted, These evidences may be obtained by the learned Assessing Officer by use of powers under section 133(6) as well as under section 131 of the Act. The Assessing Officer may also use any other provisions of the law which he is empowered to. ii. to obtain the complete details of Yash Impex, whose permanent account number is available in the statement recorded by the Bank Manager. Apparently, Yash Impex is the real beneficiary of the flow of the funds from this bank account. It may be possible that M/s. Yash Impex may also be carrying similar transactions and the real beneficiary may be other persons. iii. The Assessing Officer may also invoke the provisions of section 147 of the Act in all those persons who entered in to these tran....