TaxTMI 
TaxTMI 
2015 (3) TMI 1451
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.... 91,551/- 61,000/- 2000-2001 96,992/- 65,000/- 2001-2002 81,419/- 65,000/- 2002-2003 72,430/- 50,000/- 2003-2004 80,624/- 54,000/- 2004-2005 75,138/- 50,000/- 3. Facts of the case, in brief, are that the assessee is an individual and derives income from interest and agricultural income. A search and seizure action u/s. 132 of the I. T. Act was conducted on 19-07-2003. During the course of search, an amount of Rs. 1,18,500/- was found from the residential premises of the assessee out of which cash of Rs. 1 lakh was seized as the assessee could not explain the source of the said cash during the search proceedings. Similarly, jewellery and gold ornaments valued at Rs. 11,41,457/- were found at the residential premises as valued by the registered valuer, out of which jewellery and gold ornaments valued at Rs. 4,87,325/- were seized. Further, certain loose papers along with FDRs worth Rs. 45,000/- were also seized from the residential premises of the assessee. Cash of Rs. 555/- was found at the business premises of M/s. Jasbir Enterprises at 1879, Kumar Castle, Convent Street, Camp, Pune. 3.1 In response to notice u/s. 153A(a) of t....
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....V Central Circle-2(3), Pune wherein the JCIT had evidently taken the following view : "In the present proceedings that assessee claims that she had maintained the vouchers and expenses, but the facts that these vouchers were not found at the time of search. After taking into consideration the amount of income shown and expense claimed in the returns it seems that disallowance of 2/3rd percentage is excessive and may be restricted to 1/3rd of the claim it deemed fit". 5.2 Since the report was unsigned the then CIT(A) addressed a letter dated 27-07-2010 to the ACIT Central Circle-2(3) pointing out that the remand report dated 09-03-2007 submitted by the then JCIT was unsigned. Thereafter another remand report dated 08-09- 2010 was received by the CIT(A) from the ACIT, Central Circle- 2(3), Pune in which the Assessing Officer reported as under : (i) Issue of disallowances of expenses : In the assessment order the assessing officer has made certain disallowances of the expenses claimed from the profit and loss A/c. The Assessing Officer disallowed these expenses being they are excessive and unverifiable disallowance are made as under : A.Y. Expenses ....
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....had stated that disallowance of 2/3rd of expenses is excessive for which he had opined to restrict the same to 1/3rd of the expenses. He submitted that non-signature by the then Assessing Officer in the remand report is not a fault attributable to the assessee. It is an admitted fact that the bills and vouchers cannot be produced at this juncture as these are already destroyed. He accordingly submitted that a reasonable view may be taken. 8. The Ld Departmental Representative on the other hand heavily relied on the order of the CIT(A). He submitted that the onus was on the assessee to substantiate with evidence to the satisfaction of the Assessing Officer regarding the claim of expenses. Since the assessee has failed to discharge the onus cast on him, therefore, under the facts and circumstances of the case, no relief should be granted to the assessee. 9. I have considered the rival arguments made by both the sides, perused the orders of the Assessing Officer and the CIT(A) and the paper book filed on behalf of the assessee. It is an admitted fact that during the course of search and seizure proceedings no books of account were found to have been maintained. The assessee on t....
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.... search. After taking into consideration the amount of income shown and expense claimed in the returns it seems that disallowance of 2/3rd percentage is excessive and may be restricted to l/3rd of the claim, if deemed fit. The another point for consideration is that certain addition have been made in the assessment orders on the basis of bank deposit in the bank account of the assessee. In the assessment order these addition have been made on the basis that the assessee has not maintained the books of accounts at the time of search and not such books were found in the search. In the appellate proceedings the assessee claims that the cash books has been prepared on the basis of withdrawals and deposits in the bank account and, therefore, the genuineness of the transactions could not be doubted. It was also claimed that these deposits were mdse out of withdrawals effected earlier. The assessing officer has brushed aside the contentions of the assessee stating that it was very difficult to believe the authenticity of the cash balances on those particular days without giving any cogent reasons. In the order referred above it is therefore directed to consider the cash book prod....
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....he claim is excessive, I direct the Assessing Officer to restrict the disallowance to 1/3rd of the claim that has been made in the profit and loss account as against 2/3rd disallowed by him. I hold and direct accordingly. The grounds raised by the assessee are accordingly partly allowed. ITA Nos. 1233/PN/2013 to 1238/PN/2013 (A.Y. 99-00 to 2004-05) 10. The first issue raised by the assessee in all these appeals are regarding disallowance of expenses which has been confirmed by the Ld.CIT(A). 11. After hearing both the sides, I find the Assessing Officer disallowed the expenses claimed in the profit and loss account being excessive and unverifiable in nature, the details of which are as under : Asst. Year Amt. disallowed by the AO 1999-00 61,000/- 2000-01 65,000/- 2001-02 65,000/- 2002-03 50,000/- 2003-04 54,000/- 2004-05 50,000/- 11.1 The Ld.CIT(A) upheld the disallowances made by the Assessing Officer for all the years for which the assessee is in appeal. 12. I have already decided this issue in ITA No .1232/PN/2013 for A.Y. 1998-99. Following the same reasonings, I direct the Assessing Officer to restrict the disallowance t....
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....s. 58,297/- prior to the deposit as on 11-12-98 2000-01 30,000/- Rs. 10,000/- deposited on 6-8-99 out of the withdrawals of Rs. 3,10,000/- on same day. Rs. 20,000/- are deposited in fixed deposit on 12- 1-99 out of balance in hand out of earlier withdrawal. 2001-02 2,00,000/- The deposit of Rs. 1,50,000/- on 22-8-2000 and Rs. 50,000/- on 20-10-2000 are out of earlier withdrawal from bank total amounting to Rs. 4,64,600/- considering of deposit in the bank and maturity of fixed deposit. 2002-03 1,55,000/- The deposits in the bank in this year are mainly on account of deposit in the recurring deposit account of Rs. 10,000 Oct, 2001 and single deposit in S.B. Account of Rs. 35,000 on 9-8-2001. The amount deposited in the account if our of old balance in hand income from agricultural activities. 2003-04 2,20,000/- The deposit in this year comprise of 22 installment of Rs. 10,000/- each deposited in monthly recurring deposit account. The sources of deposit are partly from the amount taken from Jasbir Enterprises (Rs. 6,07,000/- in total) and income from agricultural activity. 2004-05 3,51,000/- Out of the total amount deposit considered in th....
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....ccounts. No proper voucher has been made and therefore there is no authenticity of the cash book / bank book maintained. The assessee has prepared Cash Book at the filing of return of income and therefore, the same cannot be considered as reliable. In view of this the evidence produced by the assessee deserves to be rejected. I would also like to further mention, the accounts for relevant years were prepared only subsequent to the search and are not supported by any contemporaneous records. It should also be kept in mind that the assessee had not filed any returns of income for the earlier years. The claim of opening cash is, therefore, not established and cannot be accepted." 16.1 The Ld.CIT(A) called for the comments of the assessee who objected to such remand report. It was argued that the JCIT in his remand report had considered the issue of bank deposits which was explained to him as out of cash withdrawals from the said bank. It was submitted that while giving the first remand report the JCIT has categorically stated that there was sufficient cash balance on the date of deposits made by the assessee in her bank account and the claim made by the assessee in her sub....
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....at the outset submitted that it is an admitted fact that no books of accounts were maintained at the time of search. He submitted that after the search took place the assessee, on the basis of the deposits and withdrawals from the bank account and the available bills and vouchers prepared the cash book and filed the return of income. He submitted that as per the cash book, there is no negative cash balance on the dates on which cash was deposited in the bank account. There was no evidence that the assessee has utilised the available cash otherwise. Referring to the first remand report, he submitted that the then JCIT after going through the cash book produced before him, has held that sufficient cash balance was available in the books before the cash was deposited in the bank account. He submitted that a copy of remand report was received by the assessee and a copy was also received by the office of the CIT(A) through RPAD. No fault can be attributable to the assessee for non-signature in the remand report by the then JCIT. It has not been proved that such remand report was false, fabricated or untrue. This is an internal matter of the department and the assessee should not suffer ....
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.... some force in the submission of the Ld. Counsel for the assessee. Admittedly, no books of accounts were maintained at the time of search. However, it is also a fact that the books of accounts were prepared subsequent to the search on the basis of the deposits and withdrawals as per the bank statement and other available data. Such books were produced before the Assessing Officer during assessment proceedings. The then JCIT in his remand report has given a categorical finding that sufficient cash was available in the books before the deposits were made. The contents of the remand report has already been reproduced at para No. 9 of the impugned order. Merely because the said remand report was not signed by the JCIT and only one sd/- copy was forwarded to the office of the CIT(A), the same in my opinion cannot be a ground to take a view against the assessee. The assessee is at no fault for non-submission of the signed remand report by the then JCIT. Further, nothing has been found by the search party at the time of search that the assessee has utilised the cash towards purchase of any other asset or incurring of any unexplained expenditure. 22.1 The Delhi Bench of the Tribunal in ....