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TMI Blog2021 (7) TMI 706X X X X Extracts X X X X X X X X Extracts X X X X ..... eof is not accordance with settled principle of law. Hence, the ground raised by the assessee is allowed. The reopening of the assessment is held to be bad in law on account of non-application of mind by the authorities below. Unexplained cash deposited in the bank account - gifts receipts - HELD THAT:- Assessing Officer drew his conclusion on the basis of the bank statement of the assessee and her father-in-law. It is correct that the assessee had deposited money at the different dates. This has caused suspicion, however, if the assessee had deposited in one go, the Assessing Officer would have not doubted. It is not the case where the donor was not a man of any means. Therefore, looking to totality of facts the action of the Assessing Officer cannot be upheld. Therefore, impugned addition is hereby deleted. - Decided in favour of assessee. - ITA No.6514/Del/2019 (Assessment Year : 2011-12) - - - Dated:- 14-6-2021 - SHRI KUL BHARAT, JUDICIAL MEMBER Appellant by Sh. P.C. Yadav, Advocate Respondent by Sh. R.K. Gupta, Sr. DR ORDER PER KUL BHARAT, JM : This appeal filed by the assessee for the assessment year 2011-12 is directed against the order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d unjustified under the facts and circumstances of the case. He drew my attention to the reasons recorded which is enclosed in the paper book at pages 1 and 2. The learned counsel for the assessee pointed out that the reopening was made on the basis of the bank information of cash deposits in the assessee s account held with Syndicate Bank of ₹ 25,49,500/-. However, the Assessing Officer himself records the fact that only ₹ 11,33,000/- was found to have been deposited in the bank account of the assessee. Therefore, the information so received was not correct and formation of belief was on the basis of incorrect information. He contended that the reopening is vitiated on the count that Firstly, there is no proper application of mind by the authorities in approving proposal for reassessment of the assessment. The reasons have been recorded in mechanical manner. Undisputedly, the information supplied to the Assessing Officer was incorrect. It was incumbent upon the Assessing Officer to verify the correctness of information before proceeding for reopening of the assessment. He submitted that the Assessing Officer ought to have appreciated the facts in right perspective. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot accordance with settled principle of law. Hence, the ground raised by the assessee is allowed. The reopening of the assessment is held to be bad in law on account of non-application of mind by the authorities below. 9. The ground no.4 is against sustaining the addition of ₹ 11,33,000/- on facts. 10. The learned counsel for the assessee submitted that the addition was made on the basis of conjecture and surmises such addition cannot be sustained. He submitted that during the assessment proceedings the assessee had duly explained the source of cash deposited in the bank account. He submitted that it was categorically stated before the Authorities that the amount was received as gift from her father-in-law. He submitted that the assessee had duly discharged his onus regarding cash deposits. He further contended that the Assessing Officer has not brought any material record suggesting that the assessee had earned income from any other undisclosed sources of income. 11. Per contra, learned DR relied on the order of authorities below. He took me through the assessment order. 12. I have heard the parties. I find that Assessing Officer made addition by observing as und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so enclosed death certificate of Shri Ajit Singh as per which he expired on 27.09.2012. However, no other documentary evidence i.e. bank account statement of Shri Ajit Singh, copy of ITR etc were furnished to prove the identity, genuineness and creditworthiness of her father-in-law. (iii) The assessee in her reply dated 14.12.2018 as referred above has mentioned that her father-in-law had sold his agriculture land on 19.07.2010 and received ₹ 40.00,000/- in cash. The assessee also enclosed a copy of Agreement executed on 19.07.2010 on a Stamp Paper of ₹ 10. On perusal of the impugned agreement, it is noticed that this agreement was executed between Sh. Vijay Kumar, Ajit Singh (First Party) and Premparkash, Chandraparkash Krishankumar, LaIsingh (Second Party). As per this agreement, the first party-received a sum of ₹ 40.00,000/- in advance from the second party for sale of 67 Kanal and 03 Marla land situated at Mauja Rajupur. Teh. Dist. Palwal, Haryana. If it is time being assumed that Sh. Ajit Singh would have received cash in the form of advance then it would he only ₹ 20,00,000/- since 50% share was of Sh. Vijay Kumar which is apparent from the im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2,500 Total 34,500 On perusal of the entries of cash flow in the account of Sh. Ajit Singh during F.FY. 2010-11, it is more than clear that there was no cash in the hand of Sh. Ajit Singh to gift ₹ 11,00,00/- to his daughter-inITA law. As per the replies of the assessee as well as copy of donation letter, her father-in-law donated her ₹ 11,00,000/- on 21.07.2010. However, if it is time being assumed that Sh. Ajit Singh would have received cash in the form of advance then it would be only ₹ 20,00,000/- which had been deposited by him in his bank account which is apparent from his saving bank account statement as referred above. 13. From the above, it is ardent that the Assessing Officer drew his conclusion on the basis of the bank statement of the assessee and her father-in-law. It is correct that the assessee had deposited money at the different dates. This has caused suspicion, however, if the assessee had deposited in one go, the Assessing Officer would have not doubted. It is not the case where the donor was not a man of any means. Therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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