TaxTMI 
TaxTMI 
2022 (8) TMI 1026
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....s.29,56,260/-. During the course of assessment proceedings, the Assessing Officer noted that the assessee has deposited cash of Rs.44,90,000/- in Saving Bank A/c(s) during the financial year 2015-16. He, therefore, asked the assessee to explain the nature and source for the deposits made in the said Bank A/c with supporting documentary evidence. 3.1 The assessee explained that during the year he has deposited an amount of Rs.43,48,500/- in various bank a/c the source of which is out of income from house properties to the tune of Rs.26,87,500/-, an amount of Rs.4,40,000/- pertains to amounts drawn from other banks and Rs.10,21,000/- pertains to accumulated cash balance in hand. However, the Assessing Officer was not satisfied with the arguments advanced by the assessee. From the various details furnished by the assessee, he noted that the assessee does not have any income from house property. Therefore, an amount of Rs.26,87,500/- pertaining to rental income was rejected by him. So far as the drawal from other Banks of Rs.4,40,000/- is concerned, the Assessing Officer accepted the same. So far as accumulated cash balance of Rs.10,21,000/- is concerned, the Assessing Officer, in abs....
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....ged the order of the learned CIT (A) in deleting the addition made by the Assessing Officer. Referring to the contents of the remand report which have been reproduced by the learned CIT (A) in his order, he drew the attention of the Bench to the same and submitted that the entire rents were received in cash and no particulars of tenants or receipt books were furnished substantiating such rental income. Further, the assessee could not explain satisfactorily regarding the availability of accumulated cash of Rs.10,21,000/-. Referring to the computation of income filed in the paper book, he submitted that the rent is offered as annual lettable value and the rent receivable is shows at Nil. Therefore, in absence of names of the tenants and the manner of receipt of such cash from the properties which are situated at different places such as Puttaparthi, Visakhapatnam and Gachibowli etc., such rental income as source for deposit in the Bank A/c could not have been accepted by the learned CIT (A) without proper verification. He submitted that in the instant case, the Assessing Officer had clearly brought on record the non-availability of various evidences such as rent receipts, name of the....
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....erifying the contents of the remand report accepted the claim of the assessee regarding availability of cash to the tune of Rs.26,87,000/- as available for deposit in the Bank A/c which, in our opinion, is not justified. Similarly, the explanation of the assessee to the tune of Rs.10,21,000/- as available for deposit in the Bank A/c out of the accumulated cash was also not properly verified by the learned CIT (A) especially when the assessee in his balance sheet is showing cash in hand and cash balance differently. In our opinion, the matter requires a revisit to the file of the learned CIT (A) to decide as to how rent declared on the basis of annual lettable value can be available for cash deposit in the Bank A/c especially when the assessee is showing rent receivable at nil. Since the reasoning given by the learned CIT (A) while deleting both the additions are cryptic and merely based on the submissions filed by the assessee, therefore, considering the totality of the fact of the case and in the interest of justice, we deem it proper to restore the issue to the file of the learned CIT (A) with a direction to adjudicate the issue afresh after going through the computation of total....
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....ted by the Assessing Officer as unexplained in absence of any satisfactory explanation to substantiate the source of the same. The Assessing Officer accordingly invoked the provisions of section 69B of the Act and made addition of Rs.5,14,62,261/- (i.e., Rs.82,44,250/- + Rs.4,32,18,311/-). 12. Before the learned CIT (A), the assessee made elaborate arguments and filed certain additional evidences based on which the learned CIT (A) called for a remand report from the Assessing Officer and after considering the remand report of the Assessing Officer and rejoinder of the assessee to such remand report, the learned CIT (A) sustained the addition to the tune of Rs.14.00 lakhs and deleted the balance addition of Rs.4,18,18,311/- by observing as under: "5.3.4. I have carefully perused the submissions made by the appellant, as well as the order of the Assessing Officer and in the remand report and the comments of the appellant thereon. From the facts figures filed as additional evidence during the Course appellant proceedings, it is clear that the appellant has received unsecured loans of Rs.4,60,00,000/- and Rs.2,10,00,000/-respectively from M/s Swiss India resorts Pvt Ltd and M/s Swis....
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.... Venkatanarayana in his letter dated 27.5.2019 has stated that he had transferred the amounts to the tune of Rs.4.60 crores to M/s. Swiss India Infrastructures (P) Ltd and Rs.2.10 crores to M/s Swiss India Resorts (P) Ltd on behalf of the assessee as per the terms of the MOU. He submitted that the MOU was never produced before the Assessing Officer. Further, the assessee himself is the Director of the two companies from which he is stated to have obtained the amount. Both the companies are having meagre share capital and are showing nil income. Therefore, the learned CIT (A) without verifying the veracity of the statement and the creditworthiness of the above two companies was carried away by the submissions made before him and deleted the addition which under the facts and circumstances of the case is not justified. 15. The learned Counsel for the assessee, on the other hand, heavily relied on the order of the learned CIT (A). He submitted that the assessee has filed all the details before the learned CIT (A) to substantiate the unsecured loan of Rs.2,10,00,000/- received from Swiss India Infrastructures (P) Ltd and Rs.4,60,00,000/- from Swiss India Resorts (P) Ltd and the amount....
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....oned by him. The details of the loan taken by him and as submitted before the learned CIT (A) are as under: "With respect to the Acquisition of house property of Rs.4,32,18,311/- we have paid the above consideration in the following dates and their sources are as follows: Date Amount Sources 27.4.2015 10,00,000 Un Secured Loan of Rs. 11,00,000/- from k venkatanarayana on 24-04-2015. 9.5.2015 10,00,000 LIC Loan Rs17,56,167/- on 27-4-2015. 4.6.2015 30,00,000 Un Secured Loan of Rs. 31,00,000/- from k venkatanarayana on 29-05-2015. 6.10.2015 50,00,000 Un Secured Loan of Rs. 50,00,000/- from k venkatanarayana on 05-10-2015. 6.10.2015 1,00,000 Out of business proceeds 29.10.2015 18,03,078 Un Secured Loan of Rs. 50,00,000/- from k venkatanarayana on 26-10-2015. 31.10.2015 2,00,00,000 Unsecured loan of Rs.2,00,00,000/- rom k venkatanarayana on 30.10.2015 Improvement expenses from 30.10.2015 1,07,90,233 Unsecured loan of Rs.1,60,00,000 from k venkatanarayana on 30.10.2015 04.11.2015 2,00,000 Out of business proceeds 21.11.2015 2,00,000 Out of business proceeds 22.12.2015 25,000 Out of business proceeds 10.2.2016 1,00,000 Out ....