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2015 (6) TMI 795 - AT - Income TaxUnexplained cash deposits in the bank account - CIT(A) restricted addition - Held that:- The financial year in question is 2007-08 and the affidavits have been sworn by the debtors during 27-07-11 to 25-07-2011 i.e. after the assessment order, the names of these debtors were not given to the AO. Thus the affidavits are nothing but a make believe evidence and an afterthought. The debtors nowhere specified when the loans were taken and when repaid so as to draw any view about availability of cash for the alleged gift. Thus entire edifice of the order is based on unverified, vague and specious pleas and the relief given by the ld. CIT(A) at ₹ 10.00 lacs is without proper reasonings & justification. Unaccounted gift - Based on the arguments made by the ld. DR, we find that neither the remand report is available on the record not it finds place in the order of the ld. CIT(A). Similarly, the cash flow statement do not appear to have been filed before lower authorities. Therefore, the cash flow statement become a new piece of evidence which is not verified by lower authorities. The gift was made the assessee’s father and surprisingly debtors affidavits are filed. Therefore, it was desirable that father himself was properly examined as to details of years of lending money and receiving back so as to explain the availability of amount at the time of gift. If the rate of interest was 15% to 18%, it is quite likely that father’s income could have been taxable income in earlier years. The assessee was very selective in giving effective explanation and evidence before the AO despite adequate opportunities. In the absence contents of application for additional evidence, the remand report and looking at the vagueness in the affidavits, we are of the view that proper assessment can be framed only by setting aside the appeals back to the file of the AO to decide the same afresh after giving a reasonable opportunity of being heard to the assessee. The assessee shall cooperate and produce all the materials which is asked for by the AO. With these observations, both the appeals are set aside to the file of the AO to decide the same afresh in accordance with law. - Decided in favour of assessee and the Revenue for statistical purposes.
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