9911796707
TMI Blog2012 (9) TMI 791X X X X Extracts X X X X X X X X Extracts X X X X ..... dition on account of unexplained cash and addition on account of loans is also restored to file of CIT(A) - Appeal allowed for statistical purposes. - ITA No.5464/Mum/2010 & ITA No.4964/Mum/2010 - - - Dated:- 6-7-2012 - SHRI D. MANMOHAN AND SHRI RAJENDRA SINGH, JJ. Assessee by : Shri K. Gopal Department by : Shri C.G.K. Nair ORDER PER RAJENDRA SINGH, AM: These cross appeals are directed against the order dated 30.3.2010 of CIT(A) for the assessment year 2006-07. These are being disposed off by a single consolidated order for the sake of convenience. The disputes raised in these appeals relate to addition on account of cash deposited in banks, on account of loans, on account of money received from share broker and nature of income from share transactions. 2. Facts in brief are that the assessee who was engaged in wedding card business had declared total income of Rs.3,10,290/- for assessment year 2006-07. The AO during the assessment proceedings obtained the bank statements of the assessee for the relevant year from Bharat Co-operative Bank and North Kanara GSP Co-operative Bank Limited. He noted from the statements that there was cash deposit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt after examination of details furnished by the assessee. The AO in the remand report dated 5.3.2010 objected to the additional evidence submitted by the assessee on the ground that during the assessment proceedings the assessee had been provided several opportunities but had not given the details and evidences. The AO, however, gave his report on the various factual position mentioned in the submission of the assessee. In relation to cash deposit of Rs.16,19,550/- the AO submitted that the assessee had given the source of cash deposit as under :- i) Cash withdrawal from Bharat Co-op. Bank Rs.7,15,800/- ii) Cash withdrawal from North Karana GSB Rs.3,54,650/- iii) Sale of wedding cards Rs. 1,45,686/- iv) Consultancy charges Rs.4,32,352/- Total Rs.16,48,488/- 3.3 The AO pointed out that out of sales of wedding cards of Rs.1,45,686/-, a sum of Rs.79,192/- was by cheque as was clearly mentioned in the Table earlier. Further the assessee had incurred cash expenses of Rs.1,57,752/- on salary, conveyance, legal charges, drawings and payment to creditors etc. The AO also pointed out that the assessee had withdrawn cash to the tune of R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le and purchase of shares should be treated as business income. 3.6 As regards, the receipt of Rs.8,95,971/- from Kedia Shares Stock Brokers Ltd., the AO observed in the remand report that the assessee had furnished only ledger extract for the year and no documentary evidence was furnished for the receipt. The broker had credited the account of assessee on 16.3.2006 by Rs.8,95,971/- and thereafter debited the account on 20.3.2006 by the same amount. The assessee could not furnish the details and evidence regarding nature of credit and therefore genuineness of claim of the assessee was not verifiable. 3.7 In relation to loans, the AO reported that the assessee had shown receipt of Rs.2,22,000/- from Shridhar Biyani which was repaid during the year. The assessee could not furnish copies of income tax return, P.A. number etc. of the creditor and therefore the genuineness was not verifiable. Similarly, from Nitin Bhattad, the total receivable during the year including opening balance was Rs.3,26,242/- out of which a sum of Rs.1,55,000/- had been received during the year and, therefore, receivable at the end of the year was Rs.1,71,242.94 but no such balance was reflected in the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 94-140 of the paper book. The assessee has also obtained contract notes from KDR shares and confirmation of accounts etc. which have been placed at pages 141 to 146 of the paper book and transaction details at pages 141 to 188 of the paper book. It has been requested that the same may be accepted as additional evidence in the interest of justice. It has also been pointed out that in assessment year 2005-06 also, similar additional evidences had been filed by the assessee which had been admitted by the Tribunal in order dated 29.7.2011 in ITA No.5463/Mum/2010. It was further submitted that the issue relating to unexplained cash and loans should also be sent back to CIT(A) as these also had not been properly examined with full opportunity to the assessee. 5.1 The ld. Departmental Representative had no objection if the matter was remanded to the CIT(A) for fresh examination. 6. We have perused the records and considered the rival contentions carefully. The assessee was engaged in the wedding card business had also purchased and sold shares. The AO noted that gross receipts of the assessee from Wedding card business, consultancy charges, interest and dividend etc. were to the tun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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