9911796707
TMI Blog2003 (12) TMI 315X X X X Extracts X X X X X X X X Extracts X X X X ..... the fact that the bank account held by assessee together with Smt. Yojana Wattarnwar with United Western Bank, Chandrapur is a saving bank account and not NRI account in which the entire money of Rs. 8.50 lakhs was credited by transfer entries. (5) On the facts and in the circumstances of the case, the learned CIT(A) erred in directing to delete addition of Rs. 11,111 on account of interest credited by United Western Bank, Chandrapur." 2. The facts and circumstances under which the above grounds of appeal arise are as follows: The assessee is an individual who derives income in the form of salary from M/s Janata Textiles, Chandrapur which is the proprietrix business of his mother. For the asst. yr. 1994-95, the assessee filed the return of income showing salary income of Rs. 33,000. As to whether any assessment was made originally or not is not mentioned in the order of assessment which is the subject-matter of this appeal passed under s. 147. It was later noticed by the AO that in the balance sheet of the assessee as on 31st March, 1993, a loan of Rs. 4,08,870 was outstanding which was payable to M/s Janata Textiles. In the balance sheet as on 31st March, 1994, the loan pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lf of Mrs. Yojana was also filed. 3. On scrutiny of this bank statement obtained from UW Bank, Chandrapur, the AO noticed that there were deposits in this bank account to the extent of Rs. 8,50,000 on six different dates between 20th May, 1993, to 28th May, 1993. There were withdrawals of these amounts also. The deposits as well as withdrawals were by the assessee and this finding is based on the pay-in-slips, withdrawal slips, DD/Cheques, copies of which were obtained by the AO from the Bank. The AO, therefore, called upon the assessee to explain the source of funds for the deposits to the tune of Rs. 8,50,000. The reply of the assessee was that these moneys never belonged to him but belonged to Mrs. Yojana. A fax message from USA by Mrs. Yojana was filed before the AO (Mrs. Yojana is the sister of the assessee and was a non-resident Indian living in USA). The same reads as follows: "I have received a request of clarification from my brother Mr. Pravin Upganlawar. In response to his request, I would like to present the following facts. My name is Mrs. Yojana Suresh Wattamwar formerly Yojana Ramakrishna Upganlawar. We are married since 1978. I moved to United States in 1979 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atel of Mumbai which was collected by the assessee from Mr. Hitesh Kumar Patel on behalf of Mrs. Yojana and deposited in the joint account with UW Bank, Chandrapur. With regard to the deposit of Rs. 40,000 each by five drafts, it was the case of the assessee that Mrs. Yojana had lent a sum of Rs. 2,00,000 to one Mr. V.G. Raghaji, Solapur in 1989 and the said loan was repaid by the borrower by five demand drafts all drawn on United Western Bank, Solapur favouring Mrs. Yojana. Mr. V.G. Raghoji filed confirmation letter confirming the facts as stated by the assessee and he was also an assessee on the file of ITO, Ward 2(1), Solapur under PAN 39-017-PV-0742. Mrs. Yojana also filed an affidavit duly notarized by a Notary Public of USA before the CIT(A) confirming the fact that she was the owner of all the funds lying in the joint account with the assessee in UW Bank, Chandrapur. She also filed a certificate duly notarized confirming that the source of moneys deposited in the said joint account was out of her NRI funds. In the light of all these documents, the CIT(A) held that since the source of the deposit was duly explained by the assessee, the assessee cannot be said to be the owne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umar Patel or evidence that loan was given in the year 1989 by Mrs. Yojana to Mr. V.G. Rahoji. He also submitted that there is no correlation between the FDs and the source of funds to the extent of Rs. 8,50,000. 6. The learned counsel for the assessee very strongly relied on the order of the CIT(A). In particular, he relied upon the circumstances viz., the confirmations, affidavit and certificate of Mrs. Yojana filed in the proceedings which have gone unrebutted in the proceedings. His submission was that the fact that Mrs. Yojana confirmed the ownership of the funds was enough to discharge the burden that lay on the assessee. According to him, the Assessee has gone one step ahead and proved the source of Mrs. Yojana also. According to him, there was no new additional evidence filed before the CIT(A). Affidavits or certificate or confirmations cannot be equated to additional evidence. In any event, according to him, the CIT(A) had inherent power to receive such additional evidence. He also brought to our notice the fact that the AO was afforded due opportunity by the CIT(A). 7. We have considered the rival submissions. We at the outset wish to state that as far as the third pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted only against Mrs. Yojana and not the assessee. It is not the case of the Revenue that there are some other material to show that the assessee is, in fact, the owner of these moneys or it is the assessee's investment except the fact that the moneys were lying in a joint account and one of the account holder was the assessee. In such circumstances, the AO has not made out any prima facie case by rejecting the claim of Mrs. Yojana that the moneys belonged to her. 7.1. Even otherwise, Mrs. Yojana's credibility is beyond doubt. The various investments in her name in FDRs amply prove that she was a lady of enough means. The loans given by her to one Shri V.J. Raghoji in 1989 were repaid by five demand drafts all drawn in favour of Mrs. Yojana and these DDs were deposited in the joint account. The confirmation of Mr. Raghoji has not been established to be false. Thus, the source of Mrs. Yojana to the extent of Rs. 2,00,000 stands established. Regarding the source of Rs. 6,50,000 being moneys collected by the assessee, on behalf of Mrs. Yojana from Mr. Hiteshkumar Patel of Mumbai, the assessee had confirmed these facts and so has Mrs. Yojana in a Fax message before the CIT(A). To put ..... X X X X Extracts X X X X X X X X Extracts X X X X
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