9911796707
TMI Blog2021 (4) TMI 483X X X X Extracts X X X X X X X X Extracts X X X X ..... umption and without finding the explanation of the assessee incorrect or untrue. c) Confirming the addition of Rs. 12,000/- on the basis of estimate without finding the explanation of the assessee untrue and also when the payment of rent under question was not found to be untrue. 2. On the facts and in the circumstances of the case the order passed by the CIT(A) appeal under reference is bad in law, perverse and not sustainable in law since this has been passed on 28.03.2017 as per date given at the top of the appeal order whereas we have received the appeal order on 15.03.2017." 2. The facts in brief are that the assessee is deriving income from proprietorship concern, namely, M/s. KNT Overseas, who is engaged in the business of export of fabric, garments and miscellaneous items. AIR information was received that assessee has purchased immovable property for consideration of Rs. 4.60 crores and assessee was asked to furnish details of payment and its source with evidence. The assessee in reply submitted that it has purchased property along with M/s. Glaze Trading India (P) Ltd. for a consideration of Rs. 4.60 crores in which assessee is having only 25% share. The copy of sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not listen and even after pointing out his attention to the cash book he proceeded to make the addition. The Assessing officer therefore ignoring the Cash Book held that the assessee had not filed any confirmation relating to the deposit in the bank treated the amount of Rs. 52,75,000/- as unexplained money liable to be taxed U/s. 69 of the Income Tax Act. We are now in appeal and submit as under. We have filed the return of income along with details of Audited books of account. During assessment proceedings books of account including the Cash Book was produced and examined. Each deposit in the bank is supported from the balance available in the cash book. To put it differently the deposit is out of cash book audited and maintained in the regular course of business. The books of account were produced before the assessing officer and examined. After examination the assessing officer enquired about several details and all such details filed, examined and placed on record as is evident from the assessment order itself. The, Assessing officer did not find any defect or discrepancy of any kind or of any nature and therefore accepted the books of account and also the book results. No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s. PAM Fashion on 31.05.2011 and 02.01.2012 respectively. Regarding the claim that amount of Rs. 15,00,000/- was received from M/s. PAM Fashions, it is seen that Appellant has not made any application for admission of additional evidence neither any evidence regarding the receipt of cash from M/s. PAM Fashions has been submitted. Apart from this, no submission regarding the balance amount of Rs. 37,75,000/- has been submitted by the Appellant. Appellant has to justify his claim that amounts of cash deposited as per cash book are in the regular course of business with supporting evidences. It is seen that either amounts have been withdrawn from the bank or received from M/s. PAM Fashions. However, Appellant has not submitted any evidence as to the source of deposits nor he has shown that the amounts are on account of sale and loan etc. neither he has correlated the entries with the ledger for sale etc. There is no basis in the claim of Appellant that explanation was available in the cash book and the books of account are audited. Hon'ble Delhi High Court in the case of Goodyear India Ltd., 246 ITR 116 (Del) have held that the broad proposition that once there is tax audit u/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is appearing at page 33 of the paper book. 7. Detail of cash deposit and drawings in current a/c A. Opening Balance of cash in hand 746238.39 Drawings From Bank 5360000.00 Total 6106238.39 Add-Cash Deposit in Current A/c and expenditure On various dates during the year 5995858.00 Closing Balance of cash as at 31.03.2014 110380.00 10. Thus, he submitted that out of total cash deposits made during the year for sums aggregating to Rs. 52,75,000/-, the source of cash deposits of Rs. 37,75,000/- was from opening cash balance of Rs. 7,46,238/- and cash withdrawal of Rs. 34,34,000/- from the bank account and remaining cash deposits of Rs. 15 lac is received from PAM Fashions. In support, he has filed the summary of cash transaction made during the year and the date-wise detail reproduced hereunder: Sr. No. Particulars Amount (in Rs.) i) Opening Balance as on 1.4.2011 7,46,238 ii) Add: Cash withdrawal 34,40,000 Add: Cash receipt from PAM fashion 15,00,000 49,40,000 iii) Total 58,86,238 iv) Less: Cash deposit 52,75,000 56,35,651 Less; Cash payment 3,60,651 v) Cash balance as on 5.3.2012 (last date of cash deposit) He also s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -- 430 14,79,618 33. 26.09.2011 14,79,618 3,50,000 -- --- -- 18,29,618 34. 28.9.2011 18,29,618 -- -- -- 395 18,29,223 35. 29.09.2011 18,29,223 1,60,000 -- -- -- 19,89,223 36. 30.09.2011 19,89,223 -- -- -- 10,295 19,78,928 37. 01.10.2011 19,78,928 3,80,000 -- -- -- 23,58,928 38. 06.10.2011 to 07.10.2011 23,58,928 -- -- -- 17,805 23,41,123 39. 12.10.2011 23,41,123 -- -- 12,70,000 -- 10,71,123 40. 14.10.2011 10,71,123 -- -- 3,51,000 470 7,19,653 41. 16.10.2011 7,19,653 -- -- -- 380 7,19,273 42. 17.10.2011 7,19,273 -- -- 1,00,000 ---- 6,19,273 43. 21.10.2011 6,19,273 -- -- -- 350 6,18,923 44. 22.10.2011 6,18,923 -- -- 1,05,000 -- 5,13,923 45. 24.10.2011 to 21.11.2011 5,13,923 -- -- -- 31,267 4,82,656 46. 26.11.2011 4,82,656 -- -- 1,50,000 905 3,31,751 47. 28.11.2011 to 30.11.2011 3,31,751 -- -- -- 10,990 3,20,761 48. 05.12.2011 3,20,761 -- -- 1,50,000 950 1,69,811 49. 07.12.2011 to 22.12.2011 1,69,811 -- -- -- 19,385 1,50,426 50. 26.12.2011 to 30.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th and the increment of Rs. 1000/- per month has been made as per the agreement itself and instead of rent of Rs. 9,000/- the same was payable at Rs. 10,000/-. 14. On the other hand, ld. DR has strongly relied upon the observation and the finding given by the Assessing Officer and CIT(A) and submitted that the onus was heavily upon the assessee to prove the source of the cash deposits which has not been properly explained. 15. After considering the rival submissions and on perusal of the relevant finding given in the impugned orders as well as documents referred to before us, we find that the entire payment for purchase of property has been made by the assessee from his bank account and the details of cash deposits has been incorporated above. The source of cash deposits was from the business carried out by the assessee for which the assessee has given details of sales with the name of the parties which was to the tune of Rs. 2.13 crores. The summary of cash transactions along with date-wise detail of cash book which was produced before the authorities below has already been incorporated above. From the perusal of the same, it is seen that all the source of the cash deposits are ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
