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TMI Blog2016 (10) TMI 414X X X X Extracts X X X X X X X X Extracts X X X X ..... aper does not contain valid details such as PAN number of two tenants or the rental agreement was notarised by Registered Notary or it is registered document. As in the document, it was mentioned that the amount of .5,00,000/- towards rental advance shall be payable by the tenants to the owner of the property, but no evidence has been filed by the assessee before any of the authorities. Not only that the assessee has not furnished any details about the PAN number, identity of the tenants, etc. In the absence of any valid evidence, the submissions of the assessee are not acceptable. In the written submission dated 13.10.2015 before the ld. CIT(A), the assessee has also submitted that no independent enquiry was made by the Assessing Officer. Without giving any details about the tenants, it is not possible for the Assessing Officer or the ld. CIT(A) to make enquiry or order the Assessing Officer to make enquiry. Hence the submission is vague. In the written submission dated 13.10.2015 before the ld. CIT(A) at para 3.9, the assessee submits that “there is no need for him to provide any documentary evidence to show the receipt of .6,00,000/- so long the previous owner of the Cenatoph Ro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jected without proper enquiry or examination of the concerned persons and therefore they are not justified in making the addition. 6. The Commissioner of Income-tax (Appeals) erred in confirming the addition of ₹ 11 lakhs being the cash deposit made in the bank account of Saravananpet Branch of SBI when it was made by the appellant's friend Mr. R.Vijayanathan for starting a new business and the same was also taken back by him when the intended business could not start. The amount was held by the appellant only as a custodian of Mr. R.Vijayanathan and it does not belong to the appellant. The lower authorities have rejected the confirmation given by the said person without any valid reason and without any examination of the concerned person. 7. The appellant submits that he has discharged his initial onus of proving the credits/deposits by filing confirmation letters form the said parties and they were also identified. The creditworthiness of the parties were not put to examination by summoning the said creditors and the amounts were added without any valid grounds. 8. The appellant therefore prays that the addition of ₹ 57,00,000/- made by the assessing offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perty and continued the tenancy with him. The rental advance paid by the tenant earlier was held in credit by the previous owner. This sum of ₹.5,00,000/- was transferred to the assessee by the previous owner of the property by directly depositing cash into his above mentioned Bank account no. 30725338862. The Assessing Officer has observed that the onus was on the assessee to prove the genuineness of the cash credit by establishing the identity of the person, genuineness of the transaction and creditworthiness of the person. Since the assessee has failed to establish the identity of the person who actually remitted this advance money through the previous owner although he was his own tenant at a later stage. He failed to furnish his name and address as well. Moreover, the assessee has not produced any proof of receipt of such amount from the previous owner and any other relevant documentary evidence and further, the Assessing Officer has noticed that this cash deposit of ₹.5,00,000/- did not reflect in the relevant cash book of the assessee. The Assessing Officer has also noticed that the cash of ₹.5,00,000/- was deposited by the assessee himself in the bank and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f his business activity etc. to prove his identity. These explanations do not come to the rescue of the appellant being devoid of any evidentiary value. From the perusal and analysis of the entire submissions of the appellant, it is revealed that besides submitting the above explanations, the appellant has not been able to provide any documentary evidences to prove the genuineness of the transaction, the identity of the tenant and his creditworthiness. The assessee has not been able to discharge the very basic onus cast upon him. Moreover, the contradiction in the replies of the assessee that this amount of ₹ 5,00,000/-was deposited in his bank account by the previous owner and not by himself, also goes against the assessee. Therefore, after considering the submissions of the assessee, but not accepting the same and in the light of the facts of the case, the ld. CIT(A) confirmed the addition made by the Assessing Officer. 5.4 Before us, by reiterating the submissions as made before the lower authorities, the ld. Counsel for the assessee has submitted that the addition made by the Assessing Officer should be deleted. He also filed paper book containing various documents inclu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7;.6,00,000/- to the assessee or the Assessing Officer has any information to that effect which he has chosen to bring upon record in support of the assessment order", appears to be contrary to the rental agreement, wherein, it was mentioned that the tenants have paid the rental advance/payable to the owner of the property Shri Selvam, the assessee. In view of the above fact and circumstances, we are of the opinion that the addition made by the Assessing Officer was rightly confirmed by the ld. CIT(A) and accordingly, the ground raised by the assessee is dismissed. 6. The next ground raised in the appeal of the assessee is that the ld. CIT(A) has erred in confirming the disallowance of ₹.25,00,000/- made by the Assessing Officer as unexplained cash credit under section 68 of the Act. The Assessing Officer has observed that there was cash deposit of ₹.25,00,000/- in the saving bank account number 30725338862 of the assessee with the SBI Gopalpuram. When the assessee was asked to furnish source for the above deposit, the assessee has submitted before the Assessing Officer as under: "This is all amount deposited by my cousin brother S.Satyamurthy (my father's elder ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve entry indicates that the cash of ₹.25,00,000/- was taken from bank on 07.02.2011 and the same deposited next day into the same bank account. But it is found from the Gopalapuram Branch of SBI bank through a letter dated 10.01.2014 by calling for information under section133(6) of the Act that the said cash of ₹.25,00,000/- was deposited by the assessee himself only on 07.02.2011 and not on 08.02.2011. This improper accounting of said cash credit itself gives raise to doubt on the credibility of such transaction. The proper accounting of said cash credit into the bank account of the assessee on 07.02.2011 should have been as below, Date Particulars Debit Credit Balance 07-02-2011 State Bank of India 25,00,000.00 -22,95,277.5 Cr From the above it is clear that there will be negative cash balance i.e. credit balance in cash book of the assessee as on 07.02.2011. Hence in view of the above reasons discussed and since the assessee has not explained the nature and source of such cash credit of ₹.25,00,000/- satisfactorily, the Assessing Officer added the cash credit of ₹.25,00,000/- to the income of the assessee as unexplained cash credits under secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the addition of ₹15,00,000/- made by the Assessing Officer as unexplained cash deposit. The Assessing Officer has observed that the assessee has shown a cash deposit of ₹.14,50,000/- on 19.02.2011 in his saving bank account with the State Bank of India account number 30725338862. During the course of the assessment proceeding, the assessee was asked to prove the genuineness of source of this cash credit. In reply, the assessee stated as under: "This deposit is out of cash balance available on that date. On an earlier date, that is on 06/02/2011 an amount of ₹.15,00,000 was received in cash as an advance for sale of my property at Cenotaph Road. The sale did not take place and this advance of ₹.15,00,000 has been returned before 31/03/11 as ₹.10,80,000 from my Bank and ₹.4,20,000 by Cash." 7.1 The Assessing Officer considered the reply of the assessee and observed as follows: "For any unexplained cash credits, the burden is on the assessee to establish the identity of the person, genuineness of the transaction and creditworthiness of the person. The assessee has made submission that he had received the said cash of ₹ .15,00,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actorily, the Assessing Officer has treated the same as unexplained cash credit under section 68 of the Act and added to the total income of the assessee. 7.3 The assessee carried the matter in appeal before the ld. CIT(A). The assessee has furnished a written reply vide his letter dated 13.10.2015 reiterating the submissions as made before the Assessing Officer, but not indicated any details with regard to the identity of person from whom he has received the advance, creditworthiness and genuineness of the transaction. Therefore, the ld. CIT(A) confirmed the addition made by the Assessing Officer. 7.4 Aggrieved, the assessee is in appeal before the Tribunal. 7.5 We have heard rival contentions and perused the records. The assessee has shown a cash deposit of ₹.14,50,000/- on 19.02.2011 in his saving bank account with the State Bank of India account number 30725338862. The assessee has submitted that he has received the above amount in cash as an advance for sale of his property at Cenotaph Road. Since, the sale did not take place, the advance money of ₹.15,00,000 has been returned before 31.03.2011 as ₹.10,80,000/- from his bank account and ₹.4,20,000 by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i. This relates to a business venture planned with my friend R. Vigayananthan, carrying on business under the name and style Shree Bhagavathi Enterprises. R. Vijayananthan is known to me for more than 10 years. He has 2 businesses - Rice Mill and Automobiles. We embarked on a plan to trade big in posh and luxury cars, cars with fancy numbers and cars owned by leading personalities. He advanced money to me on 3 occasions, all aggregating to ₹.11,00,000 to pay advance and block if any such car being put to sale would come to my knowledge. Being involved in political and public service I get acquaintances and information on this. However, at that time, during FY 10-11 due to increased harness in the political scenario I could not concentrate and follow up all this so as to commercially exploit. The advances received have also been returned to R. Vijayananthan from the same Bank Account. You would observe that such advance received from R. Vinayananthan in my Bank Account was retained in it only and any repayment could be made to R.Vijayananthan whenever he insisted, as no Car Deals could be fructified. I have obtained a confirmation Letter from R. Vijayananthan on this. The s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ritten reply vide letter dated 13.10.2015 during the course of appellate proceeding by reiterating the same submissions as made before the Assessing Officer. The assessee also filed a confirmation letter from Shri R. Vijayanathan and after considering the same, the ld. CIT(A) has observed as under: "From the perusal of the confirmation letter, it is revealed that it is a narrative story which is not based on any documentary evidences in the shape of the relevant books of accounts to substantiate the confirmation. There is no documentary evidence to prove that these two persons had prepared some project of the nature discussed in the confirmation letter. There is no documentary evidences to prove that the advances were received from a particular person or party for the purpose mentioned in the confirmation certificate. The entire transaction is effected in cash with the alleged customers and also with the present assessee, which is quite an abnormal thing to be noticed. Nevertheless, all such transactions must get reflected in the books of accounts maintained for the purpose by the said entity. There is no exception to this that the appellant was simply a custodian of the money. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... along with all details as may be required by the Assessing Officer, the addition of ₹. 11,00,000/- made by the Assessing Officer stands sustained. With the above directions, the ground raised by the assessee is allowed for statistical purposes. 9. The ld. Counsel for the assessee filed copy of the order of the Ahmedabad Benches of the Tribunal in the case of DCIT v. Gaurang Manibhai Patel in I.T.A. No. 322/Ahd/2013 dated 13.01.2016 and also filed copy of various case law in the paper book. The primary requirement of an assessee is to furnish full disclosure of income of the assessee and furnishing complete information including books of accounts, profit and loss account, balance sheet, identity of cash creditor, confirmation of the cash credit, creditworthiness of the creditor and genuineness of the transaction. Until and unless the assessee furnish all true and complete particulars before the Assessing Officer and just filing one piece of paper in the form of confirmation, the assessee cannot escape from his responsibility and the onus lies on the assessee till furnishing the details as required by the Assessing Officer. There is no decision of any Court exists that without ..... X X X X Extracts X X X X X X X X Extracts X X X X
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