9911796707
TMI Blog2016 (1) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... eing the sale of ancestral property reminded as unexplained - CIT(A) deleted the addition - Held that:- It was brought on record by the Commissioner of Income Tax (Appeals) that the assessee has received this amount from his brother Shri. P. Srinivasan as loan for which the assessee had paid interest thereon. Further, the name of the assessee's mother is typed instead of assessee's brother, is only a typographical error which is to be condoned. Since the assessee's brother Shri. P. Srinivasan has confirmed the loan given to the assessee and the transaction was routed through banking channel, the identity of the lender is proved as well as the genuineness of the transaction. Accordingly, the deletion of addition made by the Commissioner of Income Tax (Appeals) is justified. - Decided against revenue Addition on the cash deposit with Axis Bank being unexplained cash deposits - CIT(A) deleted the addition - Held that:- As narrated by the Commissioner of Income Tax (Appeals) the funds transactions are duly reflected in the books of accounts of the assessee and the assessee also explained the parties from whom the funds were received. Hence, these deposits cannot be claimed as unexpl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 15,50,000/- collected on behalf of the assessee's sister concern i.e. East Coast Consultancy. The assessee has paid the consultancy charges collected on behalf of East Coast Consultancy Private Ltd., by way of cheque to the above concern which was duly reflected in the return of income filed by the assessee's sister concern. Hence, the ld.AR of assessee objected to add this amount to the consultancy charges in the case of the assessee as this amount of Rs..15,50,000/- is related to the assessee's sister concern. The AR of the assessee has also stated that the amount is collected on behalf of his sister concern from M/s. Commercial Buildwell Pvt. Limited at ₹ 22,20,960/-. The ld. Authorised Representative for assessee has produced a form No.26AS duly reflecting the above transaction on which TDS also deducted at ₹ 1,24,596/- Out of the amount received at ₹ 22,20,960/- the assessee had paid to Govindammal by way of cheque on 05.03.2007 for ₹ 5,56,000/- and ₹ 9,94,000/- which was reflected in assessee's books of account as well as the books of accounts of the sister concern i.e. East Coast Consultant whereas the assessee has passe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al land of his brother Shri. P.Srinivasan. The ld. Authorised Representative for assessee has stated that crediting of ₹ 15,00,000/- in the account of the assessee was actually taken as a loan from Shri.P. Srinivasan who in turn confirmed the loan. The Assessing Officer has not considered the explanantion of the assessee, confirmation given by Shri. Srinivasan, brother of the assessee and added the amount as unexplained credit in the hands of the assessee. The ld. Authorised Representative for assessee has shown the loan taken from his brother at a simple interest on 12% p.a. repayable for a period of three years and shown the amount as loan from mother instead of mentioning the name of the assessee's brother i.e. Shri P.Srinivasan The transaction of obtaining loan at ₹ 15,00,000/- from the brother of assessee and verifiable from the bank statement from the Axis bank, the AR of assessee is of the opinion, that the AO should have verified the transaction either by summoning Shri P.Srinivasan who has given a confirmation letter on 31.03.2007 who has lend the amount of ₹ 15,00,000/- vide cheque to the assessee repayable for a period of 3 years at a simple interes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and during the year his gross earning as per his accounts filed with the return was ₹ 67,41,080/- received as consultancy charges. During the course of assessment proceedings, the Assessing Officer has observed that the assessee has received ₹ 36,55,200/- from M/s. Dawn Realtors Pvt. Limited and ₹ 22,20,960/- from M/s. Commercial Buildwel (P) Ltd and the remaining amount Rs..8,84,600/- from other parties. At the time of explaining the difference in gross receipts it was stated by ld. Authorised Representative for assessee that the assessee paid ₹ 15,50,000/- as consultancy charges to M/s. East Coast consultants in which assessee himself is the main partner, and the net amount of ₹ 67,41,080/- is shown as gross receipt in the P L Account. Another amount of ₹ 15,00,000/-- was shown to have been paid to M/s East Coast consultants through a journal entry made on 31.03.2007 and such amount is shown as sundry creditor at the end of the year. The AR of the assessee has stated that the receipts from the above companies are in cheque after duly deducting TDS. The AO has observed that on examination of statement of both the bank accounts of the assessee, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eque receipts are as follows: 1.On 10.02.2007 ₹ 13,680 2.On 15.02.2007 ₹ 62,400 3.On 1602.2007. ₹ 10,00,000 Total Rs.10,76,080 Similarly, the AR of the assessee contended that the AO has also wrongly taken deposit in SBI account against ₹ 8,500/- on 29.01.2007 as Rs..20,000/-. The AR of the assessee has given the details of Axis Bank deposits on various dates and sources thereof out of the opening balance available on the previous day including some cheque receipts as mentioned above. Similarly, the date wise analysis of SBI deposits have been explained along with the sources thereof and on verifying the details filed by the AR of the assessee all the above transactions have been duly reflected in cash book and cash flow statement filed by the appellant. The AO has also worked out the cash deposit in SBI account of the assessee at ₹ 5,64,325/- starting from 02.05.2006 to 29.01.2007. During the course of assessment proceedings, the AO has called for details of cash deposits in the bank ..... X X X X Extracts X X X X X X X X Extracts X X X X
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