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TMI Blog2021 (10) TMI 159X X X X Extracts X X X X X X X X Extracts X X X X ..... ther's house due to the fear of him contracting Covid. Copy of the medical certificate stating that the assessee's father was severally diabetic is also placed on record. It was submitted that if the appeal is not heard on merits, it will lead to irreparable hardship to the assessee and reliance was placed on the following case laws:- (i) Collector, Land Acquisition v. Mst. Katiji and Others (1987) 167 ITR 471 (SC) (ii) Concord of India Insurance Co. Ltd. v. Smt. Nirmal Devi and Others 118 ITR 507. (iii) Radha Krishna Rai v. Allahabad Bank & Others [2000] 9 Supreme Court Cases 733. 2.1. I have heard the learned AR and the learned Standing Counsel. I find that there is sufficient reason for belatedly filing of this appeal and no latches can be attributed to the assessee. Hence, I condone the delay in filing this appeal and proceed to dispose of the appeal on merits. 3. Two issues are raised in this appeal - (i) addition in respect of unexplained investment of Rs. 5,62,854; and (ii) addition in respect of unexplained credit of Rs. 4,46,086. We shall adjudicate the above issues as under: Addition of Rs. 5,62,854 (Unexplained investment) 4. The assessee had purchased ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uested to file sale deeds and rental agreements and submit reply as to how availability of money/cash explains Appellant's position. I had asked specifically to submit evidences for claim over and above already considered by the AO." 4.2. The assessee being aggrieved, has raised this issue before the Tribunal. The learned AR submitted a paper book comprising of 60 pages enclosing therein the written submissions filed before the AO/CIT(A). Copy of the sale deed of the site from BDA dated 09.03.2006, copy of sale deed for sale of agricultural land dated 22.06.2004 for a consideration of Rs. 15 lakh, copy of the rejoinder to the remand report of the A.O. etc. The learned AR reiterated the submissions made before the Income Tax Authorities. 4.3. The learned Standing Counsel supported the orders of the AO/CIT. 4.4. I have heard rival submissions and perused the material on record. The total cost including other incidental charges for purchase of a site through auction from BDA by the assessee is a sum of Rs. 41,89,654. During the course of assessment proceedings, the assessee explained the source of investment in the purchase of the said site in the following manner:- Particular ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s are for meeting the specific expenditure such as credit card payments and cheque payments to specified entities. The cash withdrawals in the Citi Bank account is not much. The few cash withdrawals, in all probabilities, would have been only for the purpose of meeting the personal expenses of the assessee. Therefore, I confirm the addition of Rs. 1,44,500 made by the A.O. As regards the sales proceeds of HUF property, I am of the view that a sum of Rs. 3,00,000 cannot be given credit because agricultural property was sold in June 2004 and the same in all likelihood would not have been available for making a purchase of the site much subsequently, i.e., on 09.03.2006. In this context, it is important to mention that the A.O. has already given a credit of Rs. 9,51,800 out of the sale proceeds of agricultural land of HUF towards the purchase of the site (since the initial installment towards payment for the purchase of site was made by the assessee in August 2004). Therefore, I confirm the addition of Rs. 3,00,000 made by the A.O. In view of the aforesaid reasoning the gift made by the father of the assessee amounting to Rs. 1,18,354 is regarded as explained and balance is treated as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eddy, is not correct, as it is evident from the statement furnished by the Chief Manager, Vijaya Bank, Koramangala branch, Bangalore that, the said account is only in the name of the assessee and there are not joint account holders. (b) The said account may be operated by the assessee's father, only on the assessee's behalf, as he is the Power of Attorney holder of the assessee. (c) The assessee has indeed obtained two Demand drafts, of Rs. 1,80,908 and Rs. 3,44,597 from his above account. The demand draft for Rs. 3,44,597 has been taken on 09-03-2006 after depositing cash, of Rs. 3,44,500 on the same day. (d) It is seen from the account statement, of Sri. Mohan. L, who happens to be the assessee's brother that, he has given a cheque for Rs. 8,00,000, to the assessee and the same has been credited to the assessee's account, on 02-04-2005. The explanation of the assessee, on this credit is accepted, since the same has been received from the Current account No. 761, of the assessee's brother and the same may be an advance. (e) As mentioned earlier, while working out the total credits in the assessee's account, the closure proceeds of fixed deposits hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he bank statement of Citi Bank and Vijaya Bank, copy of the certificate issued by Vijay Bank stating that the assessee's bank account is a joint account with assessee's father, reconciliation of credit in Vijaya Bank, copy of the loan application filed with employer, copy of bank statement depicting the cash in hand and credits are placed on record. The learned Counsel for the assessee reiterated the submissions made before the Income Tax Authorities. 5.5. The learned Standing Counsel supported the assessment and the CIT(A)'s order. 5.6. I have heard rival submissions and perused the material on record. With regard to the credits of Citi Bank, the A.O. has made an addition of Rs. 1,29,326. According to the A.O., the assessee was not able to prove the source of credits to the extent of Rs. 1,29,324. On perusal of the Citi Bank account, which is placed at pages 13 to 18 of the paper book filed by the assessee, I noticed that the total credits is to the tune of Rs. 7,73,779. By reducing the loan of Rs. 3,00,000, salary to the extent of Rs. 3,24,453 and interest on saving bank amounting to Rs. 1,525, totaling to Rs. 6,25,978, the balance of Rs. 1,47,801, is sought to be e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d instead of addition of Rs. 1,29,326 made by the A.O. 5.8. From the perusal of the Vijaya Bank statement of account, which is placed at pages 23 and 23 of the paper book, it is seen that the assessee's total credits was for a sum of Rs. 32,24,567. The assessee has sought to reconcile and explain the credits in Vijaya Bank as follows:- Total credits in Vijaya Bank 32,24,557 02.04.2005 Advance received 8,00,000 19.04.2005 Interest on FD 1,490 04.05.2005 Interest on FD 1,490 14.05.2005 Loan 50,000 20.05.2005 Interest on FD 1,490 20.05.2005 FD encashed 8,00,000 15.06.2005 Loan 1,20,363 09.07.2005 Loan 5,83,973 20.07.2005 DD cancelled 3,44,198 20.07.2005 DD cancelled 35,029 03.08.2005 Interest 12 01.02.2006 Interest 12 27,38,057 Balance of credits 4,86,500 13.04.2005 Cash deposited - rent 20,000 11.06.2005 Cash deposited - rent 5,000 25.06.2005 Cash deposited - rent 5,000 11.09.2005 Cash deposited - withdrawals from bank account and rent 1,00,000 05.11.2005 Cash deposited - ren ..... X X X X Extracts X X X X X X X X Extracts X X X X
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