2025 (6) TMI 876

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....Ys. 2011-12 & 2012-13. Since common facts and issues for consideration are involved for both the years under consideration, both appeals filed by the Department are being taken up together. 2. The Department has taken the following grounds of appeal:- ITA No. 1923/Ahd/2024 (A.Y. 2011-12) "1. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) was justified in deleting the addition of Rs. 2,37,29,197/- on account unexplained cash credit, without appreciating the fact that the assessee failed to furnish any substantial documentary evidence during the assessment stage to prove source of the cash deposits? 2. The appellant craves leave to amend or alter any ground or add a new grounds, which may be nece....

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....did not belong to the assessee but it belonged to M/s. Greendiam Exim Pvt. Ltd. and the assessee had nothing to do with the cash deposits made in this bank account. However, the Assessing Officer did not concur with the objections taken by the assessee and was of the view that the cash was substantively deposited by the assessee himself, since the company M/s. Greendiam Exim Pvt. Ltd. belonged to the assessee as the assessee was the Director in the said company, together with his father, Shri Champat Sanghvi. Therefore, in the above circumstances, the Assessing Officer was of the view that the assessee was under a legal obligation to explain the genuineness of the funds so deposited in cash by him. Further, the Assessing Officer noted that ....

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....endiam Exim Pvt. Ltd. towards cash deposited in HDFC Bank acount, the addition of the same amount in the hands of the assessee would amount to double taxation, which is not justifiable. Accordingly, Ld. CIT(A) deleted addition in the hands of the assessee with the following observations: "7.2 During the appellate proceedings, the appellant has submitted a copy of bank statement for the bank account number 00482320003512 maintained by M/s. Grendiam Exim Pvt. Ltd. in HDFC Bank, Vejalpur Branch. The appellant has also submitted copy of assessment order in the case of M/s. Greendiam Exim Pvt. Ltd. for assessment year under reference wherein an addition of Rs. 3,50,39,050/- was made by the AO on account of cash deposit in the above mentioned b....

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....unt maintained by M/s Greendiam Exim Pvt. Ltd. 7.4. Since, the addition in the hands of M/s Greendiam Exim Pvt. Ltd. has already been made on account of the same cash deposit, the addition in the hands of appellant tantamount to double addition, which is not justified. During the appellate proceedings, the remand report was called from the AO on this issue, but despite issuing of several reminders and after laps of more than 7 months the AO did not furnish the requisite remand report. On the basis of the information available on record and documents filed by the appellant, I am of the considered opinion that addition of Rs. 2,37,29,197/- on account of cash deposit is not justified as the bank account wherein cash deposited does not belon....