TaxTMI 
TaxTMI 
2023 (7) TMI 402
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....iled to furnish with documentary evidences to prove the source of cash deposit of Rs. 10,00,000/- ? 2. Whether on facts and in law the Ld. CIT (A) was justified in deleting the addition of Rs. 2,73,91,415/- made by the AO on account of Time deposit made by the assessee in State Bank of Mysore by accepting the submission of the assessee that the source of same was out of the sale proceeds of the plots, without considering the fact that during the assessment proceedings as well as the remand proceedings, the assessee had failed, to furnish with documentary evidences to show that amounts invested by him in Time Deposit was actually out of the amounts received from sale proceeds ? 3. Whether on facts and in law the Ld. CIT (A) was justified in deleting the addition of Rs. 1,49,80,000/- made by the AO on account of Time Deposit made by the assessee in HDFC Bank by accepting Submission of the assessee that the source of same was out of the sale proceeds of the plots, without considering the fact that during the assessment proceedings as well as the remand proceedings, the assessee had failed to furnish with documentary evidences to show that amounts invested by him in T....
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....ass surgery of heart. The assessee remained admitted in hospital from 26/02/2014 to 04/03/2014 and was advised complete bed rest and not to take any mental or physical strain for any work. Under such circumstances, the assessee was confined to bed and all his family members were busy in attending his health care, therefore, the required details could not be furnished during the assessment proceedings before the Assessing Officer. The Assessing Officer made various additions which resulted into high pitched assessment with multi fold additions on the same source of income. 5. On the addition of Rs. 1.50 crores on account of unexplained and undisclosed sales consideration, the assessee explained that on the basis of AIR information, the Assessing Officer noted that the assessee sold non-agricultural land situated at Gavier village jointly with other persons at Rs. 10.00 crores, on which the assessee received Rs. 1.50 crore as his share on various dates. To verify the investment as well as sale consideration, the assessee was asked to furnish supporting details in show cause notice dated 14/03/2014. Due to ill health, the assessee could not furnish details and in absence of such de....
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....e assessee submitted that the assessing officer made this addition by taking view that the assessee made time deposits to that extent on various dates with bank of Mysore Varachha Road. In response to the show cause notice the assessee could not filed required details as he was hospitalised. The assessee submitted that on receipt of sale consideration he deposited Rs. 90.00 Lacks in his saving bank account with State Bank of Mysore Varachha Road for short period, and on its maturity it was again deposited with same Bank for short period with same bank and it was rotated again. The assessee furnished the flow of investment and filed copies of time deposits. The same amount deposited initially was invested and reinvested again. The assessing officer failed to consider such facts and made addition of Rs. 2.37 Crore. 8. On the additions of Rs. 10.00 lacks, the assessee submitted that this addition is covered by the additions of Rs. 11.29 lacks. The assessing officer made double additions by making this separate addition. The assessee furnished the dates of deposits of Rs. 5.00 lacks each on 06.11.2010 and 08.11.2010, which is already included the addition of Rs. 11.29 lacks. 9. O....
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.... as unexplained. The assessees son is partner in the Samural Textile. The amount credited to the bank account was clearly establishing the source of funds from where the funds were received by the assessee. 11. In addition to the above facts, the assessee further explained that details of receipt of sale proceeds of land in the following manner; Amount received as per details in sale deed in Bank of Baroda 07.07.2010 3,000,000/- 12.07.2010 1,500,000/- 18.08.2010 1,500,000/- 01.09.2010 3,000,000/- 16.09.2010 1,500,000/- Total sale consideration received 02.10.2010 4,500,000/- 15,000,000/- 12. The assessee also furnished the chart of investment in fixed time deposits in Bank of Baroda in the following manner; Particular Date of term deposits Amount Rs. 000/- Amount invested in Short Term Time deposits with bank of Baroda out of sales proceeds 24.07.2010 4,480,000.00 28.08.2010 1,500,000.00 01.09.2010 3,000,000.00 17.09.2010 1,500,000.00 &....
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....were furnished with submissions. The submissions of assessee was forwarded to Assessing Office for his remand report. The Assessing Officer furnished his remand report vide letter dated 03.07.2015. In the remand report, the Assessing Officer objected against the admission of additional evidence. No comments on the various evidences and on merit on various issues, were made. The Ld. CIT(A) considered the admissibility of additional (new) evidences and find that assessee has shown sufficient cause for non-appearance and not filing such evidence before the Assessing Office. The Ld. CIT(A) recorded that assessee submitted that during assessment, he suffered severe heart-attack in the month of February, 2014 and he had to undergone bypass surgery and was hospitalized from 26.02.2014 to 04.03.2014 and was advised complete bed-rest. Such facts were considered as reasonable cause by Ld. CIT(A) for non-submissions of such evidences and admitted such additional evidence for his consideration. 14. The Ld. CIT(A) on considering the contents of assessment order, submission of assessee and the evidences so furnished by assessee granted partial relief to the assessee. On the addition of Rs. 1.....
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....s a separate investment, though the original investment is only of Rs. 90.00 lakhs. The Ld. CIT(A) held that the source of investment was clearly explained, the addition is a result of multiplication same figure and source of income and accordingly deleted the entire addition of Rs. 2.73 Crore as well. 16. On the addition of unexplained advance of Rs. 65 lakhs, the Ld. CIT(A) held that Assessing Officer made addition by taking view that assessee failed to provide details called for like PAN, address of parties, nature of transaction and confirmation etc. The Ld. CIT(A) recorded that on considering the submission of assessee it is noted that assessee has given advance of Rs. 55.00 lakhs from his HDFC bank account to Samuria Textile, a partnership firm, in which his son is also a partner. The assessee has received Rs. 1.50 crores on sale of assets, out of which Rs. 90.00 lakhs was invested in time deposit. Out of the balance amount, the assessee has given advance by cheque to the said firm. The Ld. CIT(A) held that he is agreeing with the contention of assessee that either source or investment can be taxed or the application and the source of funds (land proceeds) is already taxed....
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....parties. The Ld. CIT(A) accepted the explanation of assessee about the source of Rs. 55.00 lakhs which is not acceptable as the assessee during assessment failed to provide the availability of fund. 20. On the other hand, Ld. AR for the assessee submits that during the assessment, the assessee suffered heart attack and was hospitalized and ultimately gone through heart surgery in the month of February, March, 2014. The family members of assessee were taking care of assessee, which resulted in non-compliance of notices issued by Assessing Officer. However, before Ld. CIT(A) the assessee explained the source of investment in bank deposit, time deposit with HDFC bank, which were transferred to State Bank of Mysore. The assessee also prove the source of advances given to a firm where the son of assessee is a partner. The Ld.AR for the assessee submits before Ld.CIT(A) he has furnished exhausted written submission, with additional evidence, which was appreciated by Ld. CIT(A) and on appreciation of sufficient cause, the Ld. CIT(A) remanded the additional evidence to the Assessing Officer for his remand report. The Assessing Officer has not given his adverse remarks on the evidences r....
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..... The original source of such time deposit was sale proceed of plots of land. The Ld. CIT(A) noted that initially assessee received Rs. 1.50 cores, out of which the assessee invested in short term FDR of Bank of Baroda to the tune of Rs. 1.498 crore and the maturity proceed were received back in first week of October, 2010. It was also noted that the assessee transferred Rs. 90.00 lakhs to the State Bank of Mysore for investment in short term deposit. The assessee also transferred Rs. 45 lakhs to another bank account with HDFC Bank. Thus, addition of Rs. 1.49 crores is stand explained and deleted accordingly. For other addition of Rs. 2.73 crores the Ld. CIT(A) recorded that from the chart submitted by assessee that it is clearly explained that maturity amount of Rs. 90 lakhs FDR with Bank of Baroda was transferred to Bank of Mysore and it was rotated twice and assessee received maturity amount of Rs. 92.92 lakhs and Rs. 92.99 lakhs respectively. The ld CIT(A) held that the Assessing Officer wrongly considered this investment and maturity as a separate investment and made addition of Rs. 2,73,91,415/- (90,00,000 + 90,92,107 + 92,99,308), which is clear mistake by assessing officer.....