TaxTMI 
TaxTMI 
TaxTMI 
2016 (5) TMI 1631
X X X X Extracts X X X X
X X X X Extracts X X X X
....processed u/s. 143(1) of the Act . The case was selected for scrutiny and notice u/s. 143(2) of the act was issued. In compliance to above notice, the ld. Authorised Representative of assessee appeared and filed details for verification. The ld. Assessing Officer alleged that as per the Annual Information Report (AIR) the assessee has made cash deposits aggregating to Rs. 45,01,000/- with The Lakshmi Vilas Bank Ltd, R.S. Puram branch, Coimbatore and was asked to file explanations in the assessment proceedings. The ld. Authorised Representative explained that the assessee has omitted to enter cash deposits in the cash book and she was not in a position to pinpoint accurately the sources and nature of the deposits further to buy peace with the Department filed letter dated 22.11.2011 offering voluntarily the entire deposits for taxation and paid tax liability of Rs. 15,00,000/-. The Assessing Officer completed the assessment as unexplained investments and passed order u/s. 143(3) of the Act dated 23.11.2011. The ld. Assessing Officer also initiated penalty proceedings by issue of notice u/s. 274 r.w.s 271(1)(c) of the Act. In compliance to notice, the ld. Authorised Representative of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s. 45,01,000/- for assessment before detection by the department and that the AO has made the addition on agreed basis. The submissions made by the AR are not acceptable. As already stated, the assessee filed her original return of income for the assessment year under consideration on 29.07.2009 and scrutiny notice in her case was issued on 30.08.2010. The period between the dates mentioned above, the assessee had chosen not to file any revised return of income admitting the income omitted in the original return of income tiled. The assessee had disclosed all her bank accounts held during the financial year 2008-09 along with the details of balance at her credit as on 31.03.2009 in her regular books of account except the savings bank account held by her with Lakshmi Vilas bank. On a perusal of the statement of account of the assessee's savings bank account with the said bank, it is seen that a total cash deposit of Rs. 45,01,0001- has been made during the months of February and March 2009. This is a huge transaction which would not be omitted to disclose in the regular books of account maintained by any prudent tax payer. However, the assessee had not only omitted the said ba....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ispose off the appeal on merits as Smt. S. Gokulammal (assessee) who was more than 80 years died on 30.04.2013 and the legal heir Shri. S. Badri was impleaded. The ld. Authorised Representative submitted detailed explanations and the reasons with supporting judicial decisions to the facts of the case referred at page 3 by ld.CIT(A). The assessee sold inherited jewellery in the financial year 2008-2009 and the proceed in Lakshmi Vilas Bank, as the assessee was aged and senior citizen being uneducated was under mistaken belief that sale of personal assets are not taxable and omitted to include in the return and the assessee accepted income in assessment proceedings and filed letter on 21.11.2012. But the Commissioner of Income Tax (Appeals) observed at page 6 of his order and dismissed the appeal as under:- "As seen from the balance sheet filed by the assessee, the fixed deposits with Karur Vysya Bank and regarding deposits with Tamilnadu mercantile Bank and cash and bank balances with Indian Overseas Bank, Canara Bank, The Tamilnadu Mercantile Bank and Karur Vysya Banks were declared. The details for cash and bank balances clearly show the cash with different banks. Similarly, the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he grounds. 7. We heard rival submissions, perused the material on record and judicial decisions cited. The ld. Authorised Representative expressed and emphasized on the grounds that the assessee has voluntarily accepted the income in the assessment proceedings and genuine explanations were provided for omitting to include in the balance sheet. The explanations are bonafide, considering the age of the assessee and sources of income declared in the income tax return. The assessee is a senior citizen and also deriving income from marriage hall, rental income and income from other sources and regularly filing income tax returns. The deposits in Lakshmi Vilas Bank pertains to sale of inheritanted jewellery, which assessee has treated as personal Asset and omitted to include in the return. The assessee filed letter voluntarily offering the income and payment of taxes. On perusal of orders of lower authorities, we found the Assessing Officer has calculated tax liability in the income tax computation sheet and omitted to give credit to the tax paid of Rs. 15,00,000/- which was paid much before completion of assessment on 23.11.2011. The ld. Authorised Representative drew attention to the....