9911796707
TMI Blog2019 (5) TMI 1269X X X X Extracts X X X X X X X X Extracts X X X X ..... was recorded on 7.10.2016 and she was asked to explain the source of ₹ 8,50,000/-. It was stated by her that they were rearing 4 to 5 buffaloes and were selling milk for ₹ 4000/: to ₹ 5,000/- p.m. The assessee s family were almost remained in the fields, school/colleges, therefore, assessee s version that the huge cash amount of ₹ 8,50,000/- was lying at home does not appear to be correct. If any person has so much huge amount of cash he will keep the same in bank for safe custody and for earning interest income thereon. There were seven members in the assessee s family i.e. the assessee herself, her husband Sh. Jai Pal, her sons Sh. Pawan and Sh. Satish, wife and two daughters of Sh. Pawan. The educational qualification of Sh. Satish is 10+2. He completed 10+2 one and half year back. Sh. Satish was working as a security guard on the ATM machine of Indian Bank located in the village of the assessee. He joined as security guard approximately four months back and is drawing salary of ₹ 7,000/- p.m. The assessee was asked when the marriage of Sh. Pawan was solemnized. It was stated that her son Sh. Pawan was got married in the year 2011 it was a si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt or any family member have not business income. 5. That the appellant hereby appeals to delete the addition made by the AO and confirmed by the CIT(A). 6. That the appellant craves to add, forego, amend and to substitute any further ground/s of appeals at the time of hearing of and in any case before the disposal of this appeal. 2. The brief facts of the case are that on the receipt of information from the office of DDIT (Inv.)., Panipat, AO observed that the assessee deposited cash of ₹ 62,70,000/- on 27.04.2012 in the Saving Bank Account No.2032101002715 maintained by her with Canara Bank, Babarpur Mandi, G.T. Road, Panipat. The assessee did not make any compliance of the verification letters issued by the DDIT(lnv.), Panipat. The source of cash deposited in saving bank account could not be verified as no income tax return was filed by the assessee. The case of the assessee was re-opened by initiating proceedings u/s 147 of the Income Tax Act, 1961 (in short Act ) and Notice u/s 148 of the Income Tax Act, 1961 dated 30.04.2015 was issued and duly served on 08.06.2015 requiring her to file return of income for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s sold by assessee s husband for a consideration of ₹ 4,00,000/- and the said sale proceeds of the plot was given by him to his wife Smt. Santor Devi, the assessee. The counsel of the assessee was asked to produce the purchaser of plot for verification. The purchaser of plot, Sh. Rajender S/0 Sh. Ram Prashad r/o Village Barauli, Distt. Panipat was produced for verification on 20.09.2016. In his statement Sh. Rajender admitted the purchase of plot measuring 175 sq. yds. from Sh. Jai Pal, husband of the assessee for a consideration of ₹ 4,00,000/- on 20.09.2016. It was further stated by Sh. Rajender that the plot was situated within the Lai Dora Limit of Village Barauli, therefore, the registration deed of the plot was not executed. Regarding the source of the amount invested in the purchase of plot it was stated by Sh. Rajdener that he alongwith his two sons were carrying out the work of Mason and out of the savings of mason work he purchased the plot, It was further stated by Sh. Rajender that ₹ 2,00,000/- was paid at the time of purchase of plot i.e. on 9.4.2012 and the remaining amount was paid in four equal installments of ₹ 50,000/- each during the n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d amount. She simply stated that ₹ 4,00,000/- given to her by her husband and he can explain the source of the said amount. She was confronted with the statement of Sh. Jai Pal and she was again told that her husband has failed in explaining the source of the remaining amount of ₹ 2,00,000/-, therefore, as to why the said amount may not be added to your taxable income. It was stated by her that her husband could give answer and she had no knowledge about the same. If any sum is found credited in the bank account of the assessee the onus lies on her to prove the source of the same. The onus is on the assessee to discharge the onus that the cash creditor is a man of means. The creditworthiness of Sh. Jaipal could not be proved. The assessee has failed in proving the source of the cash of ₹ 2,00,000/- deposited in the bank account, therefore, the same is added to her total income by treating the same as her income from undisclosed sources. Further, during assessment proceedings it was submitted by the assessee that ₹ 2,64,000/- was given by her son Sh. Pawan. Statement of Sh. Pawan was also recorded on 7.10.2010. It was stated by him that he did graduation (B.A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndisclosed sources as the assessee has failed in proving the creditworthiness of Sh. Pawan. It was submitted by the assessee that she deposited cash of ₹ 8,50,000/- out of her past savings of dairy work and sales of live stock etc. Statement of the assessee was recorded on 7.10.2016 and she was asked to explain the source of ₹ 8,50,000/-. It was stated by her that they were rearing 4 to 5 buffaloes and were selling milk for ₹ 4000/- to ₹ 5,000/- p.m. She was asked how much live stock was sold and also state the period when the same was sold. It was stated that she did not remember when the live stock was sold and the number of live stock sold. The assessee was asked where she kept ₹ 8,50,000/-. It was stated that the cash amount of ₹ 8,50,000/- was kept at home. The assessee has been maintaining bank account with Canara Bank, Babarpur Mandi since 1991. The assessee s family were almost remained in the fields, school/colleges, therefore, assessee s version that the huge cash amount of ₹ 8,50,000/- was lying at home does not appear to be correct. If any person has so much huge amount of cash he will keep the same in bank for safe custody and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case. Some of the highlights/abstracts from the above decision are as under:- a) Mere deposits into bank can't be treated as income for notice u/s 147/148 of I T Act, 1961 b) All receipts are not income and all incomes are not taxable. c) There can be no. of sources of cash deposit by the assessee in the bank a/c. Unless and until it is brought out in reasons to believe as to how the cash deposits represents income from undisclosed sources, same cannot give justification to reopen the case u/s 147/148 of I.T. Act, 1961. 3.1 It was further submitted that in the case of assessee, the notice u/s 147/148 of I.T. Act, 1961 issued is also bad in the eyes of law. The orders of assessment made/confirmed by both the lower authorities is invalid and be quashed. 3.2 It was further submitted that the total addition ₹ 937000/- on diff. counts as under, which are not based on facts but only on presumption basis be deleted. a) Addition of ₹ 200000/- out of ₹ 400000/- is baseless as the head of the family Sh. Jai Pal has admitted in his statement that the amount was given/deposit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from her son. I, therefore, confirm the said addition by upholding the order of the Ld. CIT(A) on this issue and reject the ground raised by the assessee. As regards addition of ₹ 6 lacs on estimation basis is concerned, it is noted that the assessee deposited cash of ₹ 8,50,000/- out of her past savings of dairy work and sales of live stock etc. Statement of the assessee was recorded on 7.10.2016 and she was asked to explain the source of ₹ 8,50,000/-. It was stated by her that they were rearing 4 to 5 buffaloes and were selling milk for ₹ 4000/: to ₹ 5,000/- p.m. She was asked how much live stock was sold and also state the period when the same was sold. It was further stated that she did not remember when the live stock was sold and the number of live stock sold. The assessee was asked where she kept ₹ 8,50,000/-. It was stated that the cash amount of ₹ 8,50,000/- was kept at home. The assessee has been maintaining bank account with Canara Bank, Babarpur Mandi since 1991. The assessee s family were almost remained in the fields, school/colleges, therefore, assessee s version that the huge cash amount of ₹ 8,50,000/- ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
