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TMI Blog2018 (6) TMI 1229X X X X Extracts X X X X X X X X Extracts X X X X ..... cashed the traveler cheques and deposited cash in the bank account. The amounts are explained and hence the addition is not warranted. We are surprised to note that while Ld.CIT(A) accepts that the provisions of Section 68 cannot be invoked, he invokes Section 69 of the Act, which does not apply to the facts of the case. AO has not made out any case of unexplained investments made by assessee. These are simply deposits in the bank account which are generally considered as ‘cash credits’ and provisions of Section 68 are correctly invoked by AO. For the reasons best known to the CIT(A), he invokes Section 69 which does not apply to the facts of the case. Since assessee has given proper explanation, we are of the opinion that no addition is wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r and the lack of nexus between the said sources and the cash deposits in the bank account, AO added a sum of ₹ 17,71,964/- as unexplained credits u/s. 68 of the Income Tax Act [Act]. 2.2. Aggrieved by the addition, assessee preferred an appeal before Ld. CIT(A) appeal. During the course of proceedings, assessee filed Paper book on 24-08-2015 enclosing copy of affidavit from Sri Venu Myneni, details of deposits in NRO Account, details of withdrawals made from NRE Account, confirmation from Shri M. Srinivasa Rao, father of assessee, ITR and computation of income of Sri M. Srinivasa Rao. Assessee also filed written submissions on the same day explaining the sources for cash credits and relied on the decision of DCIT Vs. Finlay Corporat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that there is no direct nexus between the so called withdrawal of cash by the father and deposit by the son i.e., assessee as there is a long gap of 7 months between the withdrawal of cash and deposit of cash in these bank accounts. 4. Ld.CIT(A) has sent remand report to assessee for his comments. Assessee vide letter dt. NIL filed on 27-06-2016 reproduced his earlier contentions and relied on various decisions. However, assessee filed letter dt. 27-06-2016 giving additional evidence as per Rule 46A of the Act. In this submission, assessee filed confirmation letter dt. NIL from Sri M. Srinivasa Rao with regard to the gift given to the son i.e., assessee and filed a copy of account with Indian Bank bearing account No. 403288570. Ld.CIT(A) d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed before the Assessing Officer. As already mentioned, the evidence submitted during these proceedings is not admitted in the absence of any justification in terms of Rule 46A of the I.T. Rules, 1962. There is a long time gap between the withdrawal of cash by the assessee and re-deposit of the same in the appellant's account. The source for entire cash deposits added by the Assessing Officer is not proved by the appellant. 11.7 Even if provisions of Section 68 are not applicable, they are to be added under section 69 of the I.T. Act. This does not invalidate the addition made in the absence of sources for the deposits. Therefore, entire addition made by the Assessing Officer is confirmed. In view of the above, ground nos. 2 to 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... devoid of merits. It is assessee's contention that he has brought traveler cheques encashed them and deposited the money in the bank accounts. After lapse of time, the details of traveler cheques are generally not available with assessee but the fact is that an amount of ₹ 5 Lakhs was out of withdrawal from NRE A/c on 12-11-2009, which is evidenced by Bank entries and even this amount was not given credit by the authorities. A small amount of ₹ 1,93,000/- is stated to be out of the amount given by his father who also withdrew money from his bank account. Just because the confirmation was not dated, the same cannot be rejected, unless the same is proved to be false. Inspite of remanding the matter to AO, no enquiries have been co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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