TaxTMI 
TaxTMI 
2026 (9) TMI 1442
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....e. 3. At the time of hearing, the Ld. Counsel briefly narrated the facts that a search and seizure operation under section 132 of the Income-tax Act, 1961 was conducted on 26.08.2015 in the case of Pacific Group, Udaipur, and simultaneously in the case of the assessee. Consequent to the search, notice under section 153A was issued and assessments for six years were framed by the Assessing Officer (in short "the AO"). 4. The 1stground raised in all the appeals pertains to jurisdiction assumed under section 153A on the grounds that no incriminating material was found during the course of search pertaining to the impugned assessment years. 5. The Ld. Authorized Representative (AR) submitted that the impugned years are unabated assessments, as no proceedings were pending on the date of search. The additions have been made solely on the basis of, bank statements and routine financial entries which were already available with the Department. No material found during search, bank statements cannot be said to be incriminating in nature. The law is well settled on the scope of Section 153A of the Act. The Hon'ble Supreme Court in CIT vs. Abhisar Buildwell Pvt. Ltd. (2023) 332 CTR (....
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....at a detailed fund flow statement was submitted explaining availability of funds. It is also submitted that certain additions are factually incorrect as transfer entries treated as cash deposits and salary and interest has been taxed again. 9. The contention of the appellant had been that the assessee had filed her return of income from Assessment Year 2010-11 to AY 2015-16 declaring the following taxable income: S. No Assessment Year Date of filing Return of income 1. 2010-11 09/03/2016 7,584/- 2. 2011-12 09/03/2016 8,212/- 3. 2012-13 09/03/2016 89,780/- 4. 2013-14 09/03/2016 99,920/- 5. 2014-15 09/03/2016 1,46,560/- 6. 2015-16 09/03/2016 1,56,060/- 10. The AR submitted that addition in all these six years pertains to addition on account of all credits in the bank account belonging to the appellant and one joint account with her mother. In relation to the joint account with mother the addition has been made equally in the hands of the appellant and her mother. The cash deposit is of very petty nature and source of these are from the regular savings of the appellant and her mother and petty gi....
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....law is settled on legal principles in the given facts of the present case where the Hon'ble Courts have consistently held that small deposits consistent with income profile should be examined on practical considerations, not suspicion. Once the assessee provides a reasonable explanation, the burden shifts to the Revenue. It is seen that the assessee has demonstrated regular withdrawals, and Salary receipts. The cumulative availability of funds with the assessee has sufficiently explained deposits. It is noted that Deposits are small and spread across years and consistent with modest financial background. The appellant's mother is independently earning and deposits in the joint account are from the sources of the two persons. In our view, the additions are based on non-consideration of evidence, and presumption. The explanation offered is reasonable and supported by material evidence therefore the addition made on account of unexplained cash deposit deserves to be deleted. 15. The next issue is related to the addition on account of salary income of Rs. 1,02,000/- in A.Y. 2012-13 Rs. 2,16,000/- in A.Y. 2013-14 Rs. 70,000/- in A.Y. 2014-15 Rs. 3,42,000/- in A.Y. 2015-16 and Rs. 2,7....
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....urely based on presumption and lacks evidentiary value and therefore deserve to be deleted. 19. Another addition of Rs. 8,61,620/-, in the A.Y. 2015-16, has been made based on a mobile noting mentioning "30 tolas". There was no actual purchase evidence found by the deaprtment. It is noted that even during the course of search proceeding, the Jewellery found was 750 grams which belongs to Assessee, her mother, and one sister. It is seen that in one of the notes in mobile phone there was one noting of 30 tolas and figure of 8,62,620/- was mentioned. Based on such noting, the AO has presumed that there was purchase of gold ornaments for Rs. 8,62,620/- and addition has been made. 20. We find that the family of the appellant consists of herself, her mother and one sister as her father had already expired in the year 2000 who was having a small shop of utensils. At the time of search, the total gross gold jewellery found from the residence and locker of the assessee was about 750 gms. The department did not produce any corroborative evidence as there was no evidence of any purchase or any transaction of purchased jewellery. The appellant also referred to certain judicial decisions ....
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....59/- 5. 2015-16 120337/- 6. 2016-17 1,44,414/- 26. It is seen that in the A.Y. 2010-11, the appellant has received payment of Rs. 3,0,000/- by cheque, on account of sale of parental property and thus, there was no cash deposit. Further, the amount of Rs. 1,00,000/- was deposited out of current savings and past savings besides Rs. 30,380/- was out of income of Anjana Jain. Similarly, in A.Y. 2011-12 and A.Y. 2012-13, the amount of deposit was out of current income only. In A.Y. 2014-15 it was reported that there was one maturity of Recurring deposit with Post office amounting to Rs. 3,35,610/- and further withdrawal from bank for Rs. 1,50,000/- and balance out of current income were used for the deposit in the bank. In A.Y. 2015-17, the amount of Rs. 77,080/- was received from PF account, and balance was out of income and savings. Lastly, in the A.Y. 20-16- 17, assessee had received advance of Rs. 5,00,000/- from Pacific Medical University. 27. We find similar reasons, as per our observation in the cases of Ms. Mayuri Jain, that the law is settled on legal principles in the given facts of the present case where the Hon'ble Courts have consistently held that s....