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TMI Blog2019 (1) TMI 1525X X X X Extracts X X X X X X X X Extracts X X X X ..... ricultural income of Shri Haresh M Shah who is the director of the company by ignoring the real fact that no agricultural income was shown by Shri Haresh M Shah m his individual return of income ? 3. Brief facts of the case are that the assessee at the relevant time was engaged in the business of providing tours and immigration facilities. It has filed its return of income electronically on 14.10.2010 declaring total income at Rs. 22,83,786/-. The case of the assessee was selected for scrutiny assessment and notice under section 143(2) was issued and served upon the assessee. On scrutiny of the accounts, it revealed to the AO that the assessee-company has purchased immovable property amounting to Rs. 5,51,74,160/- (including stamp duty charges). The purchase of the immovable property and other additions in the block of assets including motor car, furniture and computers were balanced through unsecured loans and sundry creditors. The AO thereafter took note of details of unsecured loans and sundry creditors which were reflected in the accounts. For the purpose of present appeal, we are concerned with the amount of Rs. 4.65 crores appeared against name of LTC College, London ("LTCC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rwarded to the AO vide this office letter dated 13/06/2014 and he was requested to furnish his remand report on this issue also after making verification. Accordingly, the AO has sent his remand report dated 26/03/2015 through forwarding letter of the Addl. CIT. In such remand report dated 26/03/2015, the AO has mentioned that the appellant during the course of remand proceedings had filed the photocopy of confirmation from LTC College, London. As per the AO a letter was written to the HDFC Bank, R.C. Dutt Road, Baroda on 21/10/2014 in respect of amount of Rs. 4,18,45,447/-, mentioning the details of cheques deposited in the bank account of the appellant company during FY 2009-10. As per the AO the HDFC Bank vide letter dated 28/11/2014 has confirmed the LTC College, London 15-17, Great Portland Street, London as remitter. In other words, the HDFC Bank, Baroda has confirmed that the LTC College, London is a remitter. Thus, as per the AO it is obvious that the fund has been transferred into account of the appellant through banking channel. However, the HDFC Bank Ltd. Alkapuri, Baroda in its letter dated 28/11/2014 has confirmed the LTC College, London as remitter only in respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... LTC College, London. Thus, this amount of Rs. 47,07,699/- was not part of any loan amount remitted by the LTC College, London to the appellant. Considering these facts, the AO is directed to verify from the relevant books of accounts and records etc. of the appellant and on verification if it is found by him that this amount of Rs. 47,07,699/- was never remitted by LTC College, London to it and in fact it was rather required to be paid by the appellant to this party because of its liability then he is directed to delete this addition of Rs. 47,07,699/- as this amount cannot be treated as income of the appellant. 12.4 As regards the remaining amount of Rs. 4,18,45,447/- (i.e. Rs. 4,65,53,146 - Rs. 47,07,699), the AO in his remand report dated 11/06/2015 has stated that the appellant has filed another confirmation from the LTC College, London in respect of an amount of Rs. 3,52,33,234/- only. As per the AO in respect of remaining amount of Rs. 66,12,213/- (i.e. Rs. 4,18,45,447 - Rs. 3,52,33,234), the appellant could not file confirmation. The AO has enclosed a paper book with his remand report dated 11/06/2015 and which also consists a copy of confirmation dated 26/05/2015 from L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted by the appellant to him during the course of remand proceedings. This letter dated 10/04/2015 of the AO was earlier received through forwarding letter dated 17/04/2015 of Addl. CIT, Range-1(1), Vadodara. In this letter dated 17/04/2015, the Addl. CIT, Range-1(1), Baroda has stated that in the previous remand report, the AO has submitted the confirmation from LTC College, London and the details of cheque deposited in the Assessee's account of HDFC bank and the confirmation of the HDFC bank, thereby proving the creditworthiness and the identity of the creditor. Considering all these findings of the AO and Addl. CIT, Range- 1(1), Vadodara has given in his remand report dated 11/06/2015, it is held that the appellant has not been able to explain the source of amounts of Rs. 66,12,213/- which was earlier shown by it as part of amount of Rs. 4,18,45,447/- being foreign remittance received as loan from LTC College, London. In view of this, the amount of Rs. 66,12,213/- is treated as unexplained cash credit u/s 68 of the IT Act and the same is added to the total income of the appellant. As regards another remaining amount of Rs. 3,52,33,234/-, it is held that the same cannot be tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany which was filed to him to explain the sources of cash deposited in the bank accounts. It may be mentioned that the AO was requested twice i.e. vide letter dated 13/06/2014 and vide letter dated 22/05/2015 to furnish his remand report by calling for relevant details/ documents from the appellant and by giving his findings with regard to sources of amounts of Rs. 85 lacs and Rs. 58 lacs which were deposited in cash in HDFC Bank account and in Kotak Mahindra Bank account. Accordingly, the AO has furnished his remand report dated 26/03/2015 and 11/06/2015 and in these two remand reports on any adverse findings with regard to sources of above amounts of Rs. 85 lacs and Rs. 58 lacs as deposited in cash in the bank accounts are given. Rather the AO in his remand report dated 26/03/2015 has mentioned that the appellant had also filed date-wise details of cash withdrawals and cash deposits in both the above bank accounts. The AO in his another remand report dated 11/06/2015 has mentioned that with regard to difference of Rs. 49.79 lacs during the course of remand proceedings, the appellant had filed copy of cash book of the company to explain the sources of amounts of cash deposited i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the bank. However, in the appellate proceedings, the assessee has submitted confirmation and other supporting evidences. The ld.CIT(A) has called for a remand report which was submitted to it vide letter dated 27.3.2015. This remand report is dated 26.3.2015. But, the ld.CIT(A) was of the view that the AO failed to clarify certain aspects. Therefore, a further show cause notice was issued by the ld.CIT(A) for submitting a fresh remand report. The issues on which clarification was required by the ld.CIT(A) have been reproduced in the impugned order at page nos.13 to 16. The ld.CIT(A) has based his order on two remand reports. In the remand reports, the AO has admitted that "LTCC" is remitting the money through banking channel and the college has given confirmation. Doubts have not been raised. When we have confronted this aspect to the ld.DR, then he was unable to rebut the finding of the ld.CIT(A), rather conceded that this finding has been recorded on the basis of remand report given by the AO under the tutelage of additional CIT. 8. Similarly, as far as the issue agitated in the second ground of appeal is concerned, we find that the ld.CIT(A) has deleted this addition after rep ..... X X X X Extracts X X X X X X X X Extracts X X X X
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