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TMI Blog2014 (10) TMI 1022X X X X Extracts X X X X X X X X Extracts X X X X ..... account of the assessee maintained with IndusInd Bank were not only considered by the assessing officer, but the source of deposits found to be made in the said bank account as explained by the assessee as the money received by him from his son and daughter in law in USA through proper banking channel was accepted by the AO, after applying his mind. Therefore, cannot be said that the source of deposits found to be made in the bank account of the assessee with IndusInd Bank was not verified by the AO and there was an error in the order of the AO, as alleged by the CIT in his impugned order u/s 263. If the learned Commissioner contemplates that the AO should have enquired into the source of funds in the hands of the son and daughter-in-law of the assessee, the same, in our opinion, would amount to verifying the source of source, which is not permissible. As such, considering all the facts of the case, we are of the view that there was no error in the assessment made by the AO as alleged by the learned Commissioner in his impugned order passed under S.263 - Appeal of the assessee is allowed. - ITA No.1649/Hyd/2013 - - - Dated:- 1-10-2014 - SHRI P.M. JAGTAP, ACCOUNTANT MEMBER A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et aside. In reply, it was submitted by the assessee that his son and daughter-in-law are staying in USA and the amounts remitted by them to his bank account with Indus Ind Bank, Kodad through banking channels were withdrawn and deposited in another bank account with State Bank of Hyderabad. It was explained that the amounts deposited with State Bank of Hyderabad were then withdrawn and utilised for the construction of the function hall. It was explained that while examining the issue relating to the investment made by the assessee in the construction of function hall, the Assessing Officer analysed the bank deposits and withdrawls from the IndusInd Bank and the deposits with State Bank of Hyderabad and came to the conclusion that the source of deposits with State Bank of Hyderabad to the extent of ₹ 35,17,229 was not properly explained by the assessee. It was submitted that the Assessing Officer however, was duly satisfied with the deposits found to be made in the bank account of the assessee with IndusInd Bank and the genuineness of the said deposits was accepted by him, after considering the entries in the said bank account as well as the explanation of the assessee for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -tax set aside the assessment made by the Assessing Officer, with a direction to him to redo the same as per law after providing opportunity to the assessee. 6. Aggrieved by the order of the learned Commissioner passed under S.263, the assessee has preferred this appeal before the Tribunal. 7. The learned counsel for the assessee reiterated the submissions made before the Commissioner of Income-tax in respect of his stand that there was no error in the assessment made by the Assessing Officer, as alleged by the learned Commissioner of Income-tax. He invited our attention to the relevant portion of the written submissions filed before the Assessing Officer during the course of assessment proceedings as well as that of the assessment order passed by the Assessing Officer to point out that the bank account of the assessee maintained with IndusInd Bank was not only verified by the Assessing Officer, but the source of the deposits found to be made in the said bank account was accepted by him, on application of his mind. 8. The Learned Departmental Representative, on the other hand, submitted that although the source of deposits found to be made in the bank account of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on offered by the assessee in support of source of investment made in the construction of function hall was considered and dealt with by him at page 2 as under- On 29.08.2011 the assessee Sri Ganna Sarvaiah filed a letter Dt.01-11-2010 in this letter it is stated by him that he returned the business income under Sec.44AF and he purchased a plot for ₹ 53,000/- on 09-02-2009 and started construction of Function Hall after obtaining permission from Grama Panchayathi on 15-12-2008. And the sources for the construction for this function hall are from the amounts sent by his son and daughter-in-law who are in USA. It is also stated by him that the amounts so received from USA were directly entered in his Indusind Bank A/c No.0183H9407900 and the construction work was not given to any contractor. On 18-11-2011, notices u/s. 143(2) and 142(1) were issued alongwith a letter calling for information from the assessee. In this letter it was requested the assessee to explain the difference between the amounts informed to Valuation Officer and the actual amount spent by him towards construction of Function Hall. It was also requested to explain the amount of expenditure which were excl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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