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TMI Blog2013 (10) TMI 704X X X X Extracts X X X X X X X X Extracts X X X X ..... DFC Bank in the name of the assessee which was confirmed by the Bank. (ii) On the facts and in the circumstances of the case as well as in law, the Ld. CIT(A) erred in deleting the addition made by the AO on account of undisclosed dividend income ignoring the fact that there was bank account in the name of the assessee. (iii) On the facts and in the circumstances of the case as well as in law, the ld. CIT(A) erred in deleting the addition made by the AO on account of bank deposit u/s. 69 of the Act as unexplained investment of Rs. 90 lakhs ignoring the fact that there was a bank account in the name of the assessee. (iv) The appellant prays that the order of CIT(A) on the above ground be set aside and that of the Assessing Officer be rest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the individual name of the assessee and there was no indication that the said account was belonging to HUF. He also found that even the relevant TDS certificate issued by the bank in respect of interest received on FD was in the individual name of the assessee. He therefore treated the investment of Rs. 90 lacs FD made in the bank as unexplained investment of the assessee and added the said amount to the total income of the assessee. Similarly, the interest income of Rs. 11,51,683/- and dividend income of Rs. 12,88,440/- was treated by the A.O. as undisclosed income of the assessee and the same was added to the total income of the assessee in the assessment completed u/s 143(3) of the Income Tax Act, 1961 vide an order dated 28-12-2010. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opies of relevant balance sheet and Income Tax return of the HUF were also filed by the assessee before the ld. CIT(A) in support of this stand of the assessee. After considering the submission made by the assessee and the documentary evidence filed in support, the ld. CIT(A) accepted the stand of the assessee that the bank A/c No. 00791050011074 maintained in the individual name of the assessee with HDFC Bank was actually belonging to the HUF and the interest income and dividend income credited therein was also belonging to that HUF which was duly offered to tax in the hands of the HUF. He also accepted the stand of the assessee that the investment of Rs. 90 lacs made in the bank FD out of the said bank account was made out HUF own funds a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt at Rs. 90 lakhs u/s.69 being the fixed deposit of Rs. 90 lakhs made from this hank account no. OO791050011074 (ground no.3). The main question for consideration is as to whether the bank account no.007910500l 1074 in the HDFC Bank was belonging to the appellant or to his HUF. During appellate proceedings, the appellant foiled statement of total income (enclosed with return of income) and balance sheet from AY 2005-06 to 2008-09 in respect of Shri Shailesh C. Choksi, HUF. In the said balance sheets, the HDFC SB account no.00791050011074 and Central Bank of India, SB account no. 8124 were shown as current assets of the HUF. In the computation of income of A.Y. 2008-O9 of HUF, the interest income of Rs.11,51,683/- (TDS of Rs. 1,07,401/-) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as "Karta" of HUF and not in his individual capacity. Appellant's argument has force since the said bank account was duly being reflected in the return of income of HUF. The HUF was in existence since 1980 having its separate source of income. The HDFC Bank issued TDS certificate dtd. 13.04.2008 in the name of appellant showing payment/credit of different amount on account of interest on fixed deposit. Since the account no. 00791050011074 (belonging to HUF) and account no.00791050010746 (belonging to appellant) both were in HDFC Bank and in the name of appellant, therefore, the HDFC bank issued a single/consolidated TDS certificate. However, the interest income shown in TDS certificate was offered to tax in individual, as well as HUF hands ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ence also clearly shows that the amounts credited in the said bank account were belonging to the HUF and the investment in bank deposits of Rs. 90 lacs was made out of the funds of the HUF. Similarly, the interest on such FDs as well as the dividend income credited in the relevant bank account was belonging to the HUF and the same was duly offered to tax in the return of income filed by the HUF. As rightly held by the ld. CIT(A) on the basis of this documentary evidence, the relevant bank account thus was maintained in the individual name as "karta" of the said HUF and the action of the A.O. in treating the said bank account as well as investment made from the said bank account as well as income credited therein as the income of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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