9911796707
TMI Blog2024 (11) TMI 700X X X X Extracts X X X X X X X X Extracts X X X X ..... t estimated the quantum of deposit. However, it is also admitted that no enquiries were made, as directed by the learned ITAT in terms of the order dated 31.12.2007. Assessee also concedes that in the absence of the Assessee producing the relevant material, the AO was well within his right to make an estimate bearing in mind the income profile of the Assessee. We find it difficult to accept that any interference with the estimation of the deposit made in the bank account, are called for in the absence of Assessee producing his own bank account statement. As Assessee submits that the Assessee may be given one more opportunity to produce the relevant bank statement for the block period to establish the quantum of deposits. The learned counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the Assessee on 17.10.2000 and a debit card of the overseas bank Barclays Bank, PLC St.40, Birmingham, London, United Kingdom was found in the joint name of the Assessee and his wife (Smt. Jyoti Jaggi). 3. In the given circumstances, the assessing officer (hereafter the AO) raised a demand of Rs. 50,00,000/- on account of unexplained credit in respect of the Assessee. A protective assessment was also made in the case of Assessee s spouse (Smt Jyoti Jaggi). The Assessee appealed the said decision before the Commissioner of Income Tax (Appeal) [hereafter the CIT(A)] being appeal No.205/02-03, which was disposed of by an order dated 24.12.2004 confirming the abovesaid demand of Rs. 50,00,000/- made on account of the unexplained deposit. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e s case is set out below: - 12. The second ground of appeal is against confirmation of addition of Rs.25,00,000/- as undisclosed income of the assessee on account of unexplained deposit in foreign bank account. 13. During the course of search evidence of a joint bank account of the assessee and her husband was discovered, the assessee failed to give the details thereof and the Assessing Officer made an addition of Rs. 25,00,000/- on account of undisclosed deposits in the foreign bank account. The assessee submitted that no evidence was found regarding the deposits and the addition was entirely on surmises. The Ld. CIT (A) observed that (i) the foreign bank account No. 10216089 of the assessee in the joint name of the assessee and her husba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... details, copy of statement of bank account for the block period and other relevant details which were filed neither by the assessee nor by her husband. The Assessing Officer was, therefore, empowered to draw adverse inference. But since it has not been ascertained as to how much amount was deposited by the assessee in the aforestated bank account out of her. unexplained sources, there was no basis to consider the deposit of Rs.25 Lakh. It is, however, observed that the foreign bank account was accepted by the assessee but neither the assessee nor her husband has given any information regarding the bank account or deposits therein. In such a situation, it cannot also be accepted that only $4000 were deposited. The issue is, therefore, set a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o directed the AO to make reference to the authorities of Isle of Man through the FT TR Division of CBDT to verify the details of the said account, which would reveal unexplained deposits made in the said bank account. However, at the said stage, the learned CIT(A) reduced the addition from Rs. 50,00,000/- to Rs. 25,00,000/-. In addition, the learned CIT(A) also considered it apposite to make an addition of Rs. 2,80,000/- being equivalent to an amount of GBP 4000, which was admittedly received by the Assessee. 10. The assessee had appealed the said order before the learned ITAT, which was disposed of by the impugned order. 11. The learned ITAT noted that the Assessee had not produced any material to controvert the factual findings of the le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith the estimation of the deposit made in the bank account, are called for in the absence of Assessee producing his own bank account statement. 16. At this stage, the learned counsel appearing for the Assessee submits that the Assessee may be given one more opportunity to produce the relevant bank statement for the block period to establish the quantum of deposits. The learned counsel appearing for the Revenue fairly states that he has no objection in this regard. 17. In view of the above, the AO is directed to re-examine the question of quantum of the addition on account of the deposits made in the foreign bank account maintained by the Assessee during the relevant period (Barclays Bank, PLC St.40, Birmingham, London, United Kingdom). This ..... X X X X Extracts X X X X X X X X Extracts X X X X
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