TaxTMI 
TaxTMI 
2026 (9) TMI 1980
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....e Tax Act, 1961 (for short 'the Act'), the appellant has proposed the following substantial questions of law, arising out of the common order dated 27th December, 2021 passed by the Income Tax Appellate Tribunal (for short 'the Tribunal'), 'Rajkot' Bench, Rajkot in ITA Nos. 129/Rjt/2020 and 119/Rjt/2020 respectively for Assessment Year 2005-06: "Tax Appeal No.324 of 2022: Whether on the facts and circumstances of the case and in law the Appellate Tribunal has erred in deleting the addition of Rs. 19,09,60,000/- made on account of unaccounted deposits made in HSBC, Geneva, by merely relying on the self-serving documents prepared by the assessee, though, the assessee failed to produce the relevant bank statement to prove the....
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....osit to the tune of Rs. 39.60 Crore was unaccounted and agreed to pay tax on the same. 4.3. During the course of the assessment proceedings for the year under consideration, details of accounts statements were called for from the assessee from time to time and the assessment were finalised from the evidence gathered during the search, documents received from various agencies, information containing the appraisal report and considering the details submitted by the assessee during the course of the assessment proceedings. 4.4. The Assessing Officer made an addition of Rs. 19,09,60,000/- on account of unaccounted deposits after scrutinising the bank accounts statements. Being aggrieved by the Assessment Order, the assessees preferred an ....
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....n the two sons, that investment of USD 43,40,000/-in HSBC account No.4432533 was made on 10.12.2004 out of ABN AMRO bank account No.G208164, that the complete account of ABN AMRO Bank was not available with the appellant at the relevant point of time (of assessment) as the bank was merged with other bank and yet the appellant had furnished summary of funds available in the said account to the AO but this was not accepted by the AO. During the appeal proceedings the appellant claimed to have gathered evidences in support of the earlier submitted summary and furnished the copy of same and explained that ABN AMRO Bank Switzerland had accumulated deposits of USD 54,51,627/- of which USD 54,00,000/- was fiduciary deposit made on 08.12.2013 out o....
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....kot to examine the appellant's submissions and evidences and to furnish the remand repost along with comments on the same. It was followed by reminders. Vide letter dated 19.02.2018, the AO sought time of 10 days (i.e. upto 08.03.2018) for submitting the remand report called for. A remand report vide DCIT/CC-2/Appeal/Remand/RVM/2017-18 dated 23.02.2018 was received on 27.02.2018 through the letter dated 27.02.2018 of the Jt.CIT, Central Range, Rajkot. The Assessing Officer has objected to admission of evidences under Rule 46A at appellate stage and has stated that the simply submitting of Xerox copy of statements) of alleged Bank (ABN AMRO) account cannot be the evidences as to the source of fund credited in the said account without bei....
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....d such explanation cannot be rejected by an Income Tax Authority without bringing on record any cogent material disproving the assessee's claim. The AO is directed to delete the addition of Rs.19.09,60,000/- made in the assessment order. The related grounds succeed." 4.5. Being aggrieved, the appellant-Revenue preferred an Appeal before the Tribunal, who upheld the order of the CIT(Appeals) by observing as under: "20. Regarding the appeal of the revenue vide ITA No. 129/Rj/2020 the learned CIT(A) has deleted the addition holding that the said account was not belonging to Shri Ravichandra V. Mehta but it was belonging to Shri Balakrishnan. Following the decision of the ITAT as referred above we do not find any infirmity in th....
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....Tribunal, which are reproduced herein above. It is revealed from the findings of fact recorded by the CIT(Appeals) that there was an internal transfer of funds from one bank account to another bank account, where there was already an availability of fund of USD 54,00,000/- on 16th January, 2004 and payment order was made and credited, and out of these deposits, the assessee had accumulated USD 53,42,810/- and payment order of Rs. 43,40,000/- was debited on 10th December, 2004, duly reflected in the account, transferred to HSBC account. Thus, there was a finding of fact that the fund transferred, was with the ABN AMRO Bank account since long and no fresh deposits were introduced for the first time in the Financial Year 2004-05. 6. In view....