TaxTMI 
TaxTMI 
2023 (6) TMI 563
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....r sale to the prospective buyers in the area of Ghaziabad. Return declaring income of Rs. 6,89,560/- was filed by the assessee and the case of the assessee was selected for scrutiny to examine the source of expenditure/ investment including information from AIR and to examine the source of cash deposits in the savings bank account. 2.1 During assessment, apart from other additions and adjustments learned AO had made following addition. 2.2 On account of excessive cost of construction incurred for Vaishali plot with covered area of 3097.70 sq. ft. and the cost of construction was shown at Rs. 46,59,713/-. Learned AO felt that cost of Rs. 1504/- per sq. ft. is higher than approximately Rs. 800/- per sq. ft. taken by Sub Registrar, Ghaziabad. The assessee's response was not found sustainable and after rejecting the books of account of assessee construction cost of Rs. 22,54,805/- was added back to the total income. 2.3 Further, learned AO was not satisfied with the low withdrawals and by taking into consideration the status and responsibilities of the assessee, assets and liabilities and investments, Learned AO believed that assessee should have annual house-hold expenses of ....
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.... without appreciating the facts/evidence of the case, confirmed addition on account of unverifiable expenses debited in Profit and Loss account, even though payment for the majority of the expenses have been made through cross account payee cheques or credit cards and necessary evidence was produced. The details of expenses are given below: Sl. No. Particulars Amount 1. Conveyance and Car Expenses 1,25,864/- 2. Building Repairs 23,700/- 3. Business Promotion 81,388/- 4. General Expenses 42,160/- 5. Entertainment Expenses 38,547/- 7. That the appellant reserves its right to withdraw, alter, amend, vary and make further additions to grounds of appeal." 5. Heard and perused the record. 6. At the time of hearing, learned AR made an endorsement on the appeal memo for not pressing ground no. 6 accordingly same is disposed not pressed.. The determination of remaining grounds as raised by the assessee is as follows. 7. In regard to Ground no. 2 it can be observed that learned CIT(Appeals) was impressed by the assessee with certain evidences in the form of Government Approved Valuer's report, certifying the cost of cons....
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....om the sale deed that at page no. 35 there is reference of following payments made by the assessee: "Rs. 12,00,000/- by Ch. No. 277957 dated 06.11.2009 of HDFC Bank Indirapuram, Ghaziabad. Rs. 8,00,000/- by Ch. No. 277958 dated 05.11.2009 of HDFC Bank Indirapuram, Ghaziabad Rs. 5,00,000/- by Ch. No. 372861 dated 11.09.2009 of HDFC Bank Indirapuram, Ghaziabad Rs. 1,40,000/- by Ch. No. 372863 dated 15.09.2009 of HDFC Bank Indirapuram, Ghaziabad Rs. 5,00,000/- by Ch. No. 372856 dated 07.09.2009 of HDFC Bank Indirapuram, Ghaziabad Rs. 2,80,000/- by cash. 9.1. The plea of the assessee before learned Tax Authorities has been that the payment was made on urgent basis to the seller which was new to the assessee and the plot was to be purchased. The assessee has claimed before Ld. AO as mentioned in para 5.4 o the assessment order that Rs. 2,80,000/- were given in cash on 02.06.2009 and cheque dated 07.09.2009 on HDFC Bank of Rs. 5,00,000/- was given as token advance to materialize the deal for purchase of plot. 9.2 The Bench is of the considered view that aforesaid is apparently unsustainable plea as in ledger account of purchase ....
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....ce of cash deposit of Rs. 13,00,000/- in HDFC Bank, OD account No.65 and Rs.25,25,000/- in Oriental Bank of Commerce. The assessee produce the cash book for the period under consideration and claimed that the cash was deposited out of cash in hand. However, the Assessing Officer on reconciliation of the cash book with the bank statement found that the source of cash deposit of Rs.5 lacs made on 04.03.2010 and Rs.8 lacs made on 20.11.2009 were not furnished. Inspite of repeated opportunities the assessee did not file any explanation in regard to the source of the cash deposits made with HDFC Bank. The Assessing Officer therefore made an addition of Rs. 13 lacs. In appeal, the appellant claimed that the amount was out of cash balance available in the cash book from earlier withdrawal made from the bank account. It was claimed that the copy of the cash books and the relevant bank statement were enclosed. However, the cash book enclosed showed opening cash in hand and therefore was no explanation in regard to the source of the cash in hand. The appellant then produced extract of cash book for the period 01.10.2009 to 30.11.2009 and 01.02.2010 to 31.03.2011. However, in the absence of c....