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TMI Blog2019 (7) TMI 872X X X X Extracts X X X X X X X X Extracts X X X X ..... that the signature on the back side of the cheque belonged to him and money was withdrawn as per the instructions of the assessee, Shri Jayakrishnan. AO observed that construction of hotel was going at Hotel Vysali in Thodupuzha and construction was managed by one Shri Abhilash. However, contrary to this, the CIT(A) observed that there was no construction activity with regard to Hotel Vysali in Thodupuzha and the said hotel was owned by the assessee and two more partners and not by the assessee himself. The building was taken on rent and no construction work has been carried out at the said hotel. For this purpose, he relied on the certificate issued by Secretary, Thodupuzha Municipality. Each entry in the cash book for introduction of cash was not at all explained by the assessee. The assessee made a general statement that there was no construction activity at Hotel Vysali and the amount was available for introduction into the cash book. The assessee has to explain each entry in the cash book. AO has to prove that if there is construction activity, how much amount has been spent for construction activity at the said hotel after providing opportunity of cross-examination of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the assessee. The assessee had accepted the following loans from the concerns belonging to Shri Sunil Kumar @ Sunil Swamy. Date A.Y Concern Amount . 15.09.2011 2012-13 Sabari Quality Foods ₹ 2,00,00,000/- 03.10.2011 2012-13 Sabari Quality Foods ₹ 1,44,00,000/- 21.10.2011 2012-13 Sabari Quality Foods ₹ 6,00,000/- 20.04.2012 2013-14 Sabari Switch Gears(P)Ltd. ₹ 1,25,00,000/- 3.1. These credits appeared in assessee s bank accounts with Kotak Mahindra Bank, Thodupuzha Branch. A/c No. 15531. It was seen that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... il Kumar ₹ 80,00,000/- ₹ 1,40,00,000/- ₹ 46,70,000/- 3.2 In order to explain cash deposits, the assessee prepared a cash book. All the cash deposits in bank accounts were explained as withdrawal from cash book and deposits in cash book were explained as withdrawal from bank accounts. Corresponding to the deposits of ₹ 12,75,000/- on 30.11.2011 and 01.12.2011, there were cash withdrawals shown in the cash book on these days. Similarly corresponding to cash deposits in the cash book, there were withdrawals from the various banks. Total cash introduced in the cash book is as follows: Date Particulars Amount 20.04.2011 EAP Jewellery ₹ 30,00,000/- 20.04.2011 EAP Jewellery partners A/c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 24,00,000/- 22.10.2011 ING Vysya A/c 15531 ₹ 6,00,000/- 30.12.2011 Kumaly gate ₹ 6,00,000/- 23.01.2012 ING Vysya A/c 15531 ₹ 10,00,000/- 25.01.2012 ING Vysya A/c 15531 ₹ 4,00,000/- 26.01.2012 Wingspark Hotel ₹ 10,00,000/- 14.02.2012 ING Vysya A/c 15531 ₹ 10,00,000/- 14.02.2012 ING Vysya A/c 15531 ₹ 15,00,000/- 01.03.2012 ING Vysya A/c 15531 ₹ 15,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Federal Bank A/c 169277 ₹ 10,00,000/- 05.07.2011 Federal Bank A/c 169277 ₹ 20,00,000/- 07.07.2011 Federal Bank A/c 169277 ₹ 30,00,000/- 25.08.2011 Federal Bank A/c 169277 ₹ 22,00,000/- 01.09.2011 Federal Bank A/c 169277 ₹ 5,00,000/- 15.09.2011 Federal Bank A/c 169277 ₹ 6,05,000/- 17.09.2011 ING Vysya 15531 ₹ 25,00,000/- On-going hotel construction at Thodupuzha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14.02.2012 ING Vysya 15531 ₹ 10,00,000/- For Construction of Bar Hotel 14.02.2012 ING Vysya 15531 ₹ 15,00,000/- For Construction of Bar Hotel 01.03.2012 ING Vysya 15531 ₹ 15,00,000/- Amount Drawn for Construction of Bar Hotel 01.03.2012 ING Vysya 15531 ₹ 20,00,000/- Cash Drawn for Bar Hotel construction 30.03.2012 ING Vysya 15531 ₹ 49,00,000/- Hotel Vysali Thodupuzha 31.03.2012 Agricultural income ₹ 6,00,000/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proved that it was a reasonably small premise and no construction work was carried out at the said hotel. The CIT(A) observed that the source of bank deposits was explained and there was no dispute about withdrawals made. According to the CIT(A), the A.O. had not pointed out to any specific mistakes in the cash-book maintained by the assessee and the A.O. had also not indicated any other source through which cash was being generated which was then deposited in the bank account of the assessee. According to the CIT(A), no incriminating material evidencing generation of unaccounted cash was found during the course of search and cash withdrawals from one's own bank account cannot be treated as income. In view of all these facts discussed above, the CIT(A) was of the view that the A.O. was not justified in making addition of ₹ 3,17,00,000/- on account of cash withdrawal from the Bank and deleted the addition. 4.1 Similarly, for the assessment year 2013-14, on identical reasons, the CIT(A) deleted the addition of ₹ 1.62 crores on account of cash withdrawal from own bank account. 4.2 For the assessment year 2014-15, addition was made for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esented the withdrawal from the Bank account in ING Vysya Bank on 31.03.2014. It was submitted that two withdrawals of ₹ 10,00,000/- and ₹ 42,25,000/- were treated as unexplained credit without any verification or enquiry. According to the Ld. AR, ₹ 42,25,000/- was withdrawn for renewing Bar licence fee and the above sum was added mechanically as undisclosed income which was rightly deleted by the CIT(A). 6.1 The Ld. AR pointed out that for assessment year 2012-13, the explanation of the assessee that there was no hotel construction made during the year which was certified by the Secretary, Thodupuzha Municipality stating that the assessee had not constructed any commercial building during the said period was not considered by the Assessing Officer. It was submitted that the utilization of the amount withdrawn from the Bank account over the period of one year was truly reflected in the cash book as for business purposes and not for building construction. It was submitted that the employee who withdrew the cash from the bank account was examined. However, it was submitted that the assessing officer without any verification or without bringing any e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment year 2012-13 as per the narration written on the back side of the cheque. Out of the above amount, ₹ 3,17,00,000/- was withdrawn by the assessee from the Bank account for the purpose of construction of bar/hotel in Thodupuzha. This was evidenced by copies of cheques obtained from the Bank by the Assessing Officer. As such, the Assessing Officer observed that the sum of ₹ 3.17 crores which was introduced into the cash book was not at all available with the assessee as it was used for the construction of bar/hotel. To support this, the Assessing Officer relied on the sworn statement recorded from Shri Rajendra Babu K.V. in whose name the bearer cheque was issued in most of the cases. Shri Rajendra Babu admitted that the signature on the back side of the cheque belonged to him and money was withdrawn as per the instructions of the assessee, Shri Jayakrishnan. The Assessing Officer observed that construction of hotel was going at Hotel Vysali in Thodupuzha and construction was managed by one Shri Abhilash. However, contrary to this, the CIT(A) observed that there was no construction activity with regard to Hotel Vysali in Thodupuzha and the said hotel was owned by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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