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TMI Blog2015 (10) TMI 315X X X X Extracts X X X X X X X X Extracts X X X X ..... different students by the assessee in cash and drawing of demand drafts by the assessee on behalf of the said students. Even the explanation of the assessee as regards the cash deposits of ₹ 14,62,719 having been made from the contract receipts of his business requires verification by the A.O. We therefore, set aside the impugned order of the Ld. CIT(A) and restore the matter to the file of the A.O. for deciding the same afresh after verifying the explanation of the assessee. Needless to observe that the A.O. shall afford proper and sufficient opportunity of being heard to the assessee before deciding this issue finally in set aside proceedings. - Decided in favour of revenue for statistical purposes. - ITA.No.103/Hyd/2014 - - - Dated:- 4-9-2015 - SHRI P.M. JAGTAP, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER For The Revenue : Mr. Ramakrishna Bandi For The Assessee : Mr. S. Rama Rao ORDER PER P.M. JAGTAP, A.M. This appeal is preferred by the Revenue against the Order of the Ld. CIT(A)-V, Hyderabad dated 30.09.2013 and the solitary issue raised therein relates to the deletion by the Ld. CIT(A) of the addition of ₹ 47,86,800 made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant as mentioned hereunder : Sl. No. Name of the depositor Amount deposited/ Date DD No. DD date DD favouring DD amt 1. Ramidi Srinath Reddy Rs.4,02,005 16 10.08.2008 University of Essex 5000 pounds 2. Md. Khalid Mohiuddin Rs.2,91,100 17 11.08.2008 University of Teesside 3625 pounds 3. Md.Ikramuddin Rs.2,91,100 18 11.08.2008 University of Teesside 3625 pounds 4. Ichapuram Srikanth Rs.2,85,000 45 14.08.2008 University of Teesside 3625 pounds 5. Rashid Hussain Sayeed Rs.3,28,000 44 14.08.2008 University of Teesside 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and this was also deposited into the bank account. This amount was also not considered by the Assessing Officer. Further, the Assessing Officer ought to have observed the fact that cash was deposited and on the same day or on the next day DDs were purchased in favour of the relevant Universities which would clearly indicate that the students have deposited the cash into the bank account of the appellant and purchased DDs. The Assessing Officer ought to have seen that it is only to facilitate the purchase of DDs by the said students, the appellant allowed his bank account to be operated by outsiders. If this was to be considered, there would not be any unexplained deposits into the bank account. The appellant humbly submits that the said information may kindly be taken on record and the addition made by the Assessing Officer be deleted. 3.1. The above submissions made by the assessee were forwarded by the Ld. CIT(A) to the A.O. seeking the latter s comments. In his remand report submitted to the Ld. CIT(A), the A.O. stated that there was failure on the part of the assessee to give any satisfactory reasons for Mr. Venugopal Reddy, Hyderabad. allowing his bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the meantime the Assessing Officer completed the assessment ex-parte. It can be seen from the certificate issued by the Development Credit Bank Ltd., that the certificate was issued at a later dated on 01-10-2012 after the completion of the assessment. Similarly, the Demand Drafts and the other details of the receipts were to be obtained from the concerned which took substantial time. Therefore, the appellant was prevented by sufficient reason in not filing the details at the time of regular assessment proceedings. It may kindly be seen from the assessment order that the Assessing Officer provided about three months time and the appellant could not obtain the details from the banks and various persons within the limited time. Therefore, the information provided is authentic being the bank accounts and, therefore, the Assessing Officer ought to have suggested that the additional evidence be admitted. The appellant submits that the Addl. CIT is of the view that there is no reason as to why the students have deposited the amounts with the bank account of the appellant. In this regard, the appellant submits that it is only to facilitate some of the students in obtai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... receipts are taken into account, the total deposits would be ₹ 48,34,195/-. 7.2. I also find that there were cash withdrawals from the bank account and cash deposits made into the same bank account. Considering all these facts, I am of the view that the deposits in the bank account do not represent the income of the appellant as they are properly explained by the appellant. The addition of ₹ 47,86,800 made by the Assessing Officer is, therefore, deleted. 4. Aggrieved by the Order of the Ld. CIT(A) giving relief to the assessee, the Revenue has preferred this appeal before the Tribunal. 5. We have heard the arguments of both the sides and also perused the relevant material on record. The Ld. Counsel for the assessee has placed on record before us a copy of bank account maintained with ICICI Bank at page Nos. 5 to 8 to point out that the amounts received by the assessee in cash from different students was first deposited in the said account and the same was subsequently transferred to Development Credit Bank for drawing the demand drafts towards fees payable in foreign exchange by the said students to different foreign universities. He has also invited our ..... X X X X Extracts X X X X X X X X Extracts X X X X
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