2019 (12) TMI 1237 - AT - Income Tax

Addition being the difference in the amount surrendered during the survey and the income offered for tax while filing the return of income - survey action u/s 133A - HELD THAT - Addition of Rs. 3, 78, 150/- in respect of the difference in the amount surrendered during the course of survey and income offered for filing of return of income. As gone through the evidence filed by the assessee. The amount was retracted even filing of the return of income. In respect of amount of Rs. 1, 58, 600/- the assessee has demonstrated that the amount was given during the assessment year 2003-04. Therefore the amount was required to be added in that year. The assessing officer is directed accordingly. Regarding the amount of Rs. 1, 19, 550/- it is stated that the amount outstanding was received back before the date of survey. In support of this the assessee has drawn my attention to the written submissions. However no supporting evidence has been filed. Therefore I sustain this addition. Regarding amount of Rs. 1 lakh it is stated that the Ld. CIT(A) has wrongly confirmed the addition of Rs. 2 lakhs. In fact the land was jointly owned by two persons therefore the addition should have been restricted to Rs. 1 lakh. As perused the agreement. As per this agreement the land is jointly owned. Therefore the assessing officer should have made addition of Rs. 1 lakh only. I find merit into the contention of the assessee. Therefore the A.O. is directed to delete this addition. Ground No.1 is partly allowed. Addition u/s 68 - entire amount of cheques/cash deposited by the appellant in current account with bank - HELD THAT - As stated that detailed explanation was submitted along with the documentary evidences for each and every credit entry. It is submitted that a sum of Rs. 6, 56, 500/- was deposited by way of cheques. The narration of such deposits is given in respect of the cash deposit. It is stated that Rs. 46, 500/- was surrendered during the survey and deposit of Rs. 2 lakhs was out of the cash surrendered during the survey. Further it is contended that a sum of Rs. 75, 000/- Rs. 1 lakh and Rs. 35, 000/- were realised from the debtors. So far the cheque deposit in bank account the assessee has given supporting evidences therefore the A.O. is directed to delete this addition. However in respect of the cash deposit of Rs. 6.66 lakhs it is stated that Rs. 4, 46, 500/- is out of voluntary surrender made by the assessee during the course of survey. Hence the A.O. is directed to delete this addition. In respect of the remaining amount of Rs. 2, 10, 000/- it is stated to have been received from the realisation of sale proceeds. The assessee has not filed any confirmation from the debtors. Hence the addition of Rs. 2, 10, 000/- is sustained. This ground of assessee s appeal is partly allowed. Addition being the amount of credit entries during the whole year in savings bank account of the wife of the assessee - HELD THAT - Amount of credit entries during the whole year in the savings bank account of wife of the assessee Smt. Jyotibala Jain who is assessed to tax and the amount was properly reflected in the books of accounts has been added. In support of this the assessee has filed her return of income of the current and earlier years were filed and as per the balance sheet as on 31.3.2005 31.3.2004 accumulated capital was Rs. 3, 40, 578/- and Rs. 4, 08, 721/-. Looking to the evidences submitted and more particularly the amount which has been credited in the account of the wife of the assessee who herself is assessed to tax it is also informed that no action has been taken in her hands. I therefore under these facts cannot sustain these additions.

Summary

Issues Involved:
1. Addition of surrendered amount during survey and income offered for tax.
2. Addition related to purchase of agricultural land.
3. Addition of cheques/cash deposited in the bank account.
4. Addition of credit entries in wife's savings bank account.

Issue 1: Addition of Surrendered Amount During Survey and Income Offered for Tax:
The appeal contested the addition of Rs. 3,78,150 due to the variance between the amount surrendered during the survey and the income declared for tax purposes. The appellant argued that the retraction of Rs. 3,78,150 was supported by a valid explanation and should not have been confirmed. The Tribunal found merit in the appellant's contentions. It directed the assessing officer to consider the amount of Rs. 1,58,600 as related to the previous financial year and to restrict the addition to Rs. 1 lakh for the joint ownership of the land, leading to a partial allowance of this ground.

Issue 2: Addition Related to Purchase of Agricultural Land:
The appellant challenged the addition of Rs. 2 lakhs related to the purchase of agricultural land, asserting that only Rs. 1 lakh should have been considered as their share according to the agreement. The Tribunal, after reviewing the agreement, agreed with the appellant's argument and directed the deletion of the addition, thereby allowing this ground of appeal.

Issue 3: Addition of Cheques/Cash Deposited in the Bank Account:
The appeal contested the addition of Rs. 13,27,300 representing cheques/cash deposited in the appellant's bank account. The Tribunal examined the evidence provided by the appellant, distinguishing between cheque and cash deposits. It directed the assessing officer to delete the addition related to cheque deposits but sustained the addition of Rs. 2,10,000 due to lack of confirmation from debtors, resulting in a partial allowance of this ground.

Issue 4: Addition of Credit Entries in Wife's Savings Bank Account:
The appellant disputed the addition of Rs. 6,21,591 concerning credit entries in the wife's savings bank account, arguing that the amount was properly reflected in her books and should not have been added. The Tribunal, after reviewing the evidence and submissions, directed the assessing officer to delete this addition, thereby allowing this ground of appeal.

In conclusion, the Tribunal partially allowed the appellant's appeal, providing detailed analysis and directions on each issue raised, leading to modifications in the additions made by the authorities in the assessment for the year 2004-05.