TMI Blog2013 (5) TMI 531X X X X Extracts X X X X X X X X Extracts X X X X ..... essee that he has received the gift amountfrom his father in law, and the said fact has also been confirmed by his brother in law. The source for giving the said gift was explained to be the sale proceeds of a property & as has already submitted a copy of conveyance deed to the assessing officer during the course of assessment proceedings CIT(A) was justified in accepting the claim of receipt of gift. Assessment of investments found in the name of Sri Karunanidhi - Held that:- CIT(A) has given a finding that the investments in the name of Sri Karunanidhi have been made from 1995 onwards and further Sri Karunanidhi would have had income to make these investments. Since the present assessment is a block assessment and further since no other material was brought on record to show that the assessee herein has actually provided money to make investments in the name of Shri Karunanidhi, therefore no infirmity in the decision taken by CIT(A) on this issue. Assessment of cash seized during the course of search - Held that:- As submitted by D.R., CIT (A) has rendered his decision by following the decision of his predecessor & did carry out any verification on this issue. The submissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. TDR in Corporation Bank, Timmapuram 27.09.97 56,579/- 5. TDR in Corporation Bank, Timmapuram 23.09.97 50,000/- Before the assessing officer, the assessee claimed that these deposits belong to society, though the deposits stand in his name. It was further submitted that these deposits have also been duly reflected in the accounts of the society. However, the assessing officer did not agree with the said explanations, as he took the view that there was no need for the society to keep its funds in the name of the assessee and accordingly assessed them in the hands of the assessee. The Learned CIT(A), on verification of the financial statements of the Society, found that the society has accounted for these deposits in its accounts and further it was specifically recorded in the accounts that these deposits stand in the name of the assessee. The Learned CIT(A) felt that the said action of the society may not be proper,but it is not uncommon for the societies to keep the deposits in the name of the managing committee members. Accordingly, the Learned CIT(A) deleted the addition relating to the above said deposits. 5. The L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng to the society. It was further stated that, upon its maturity after 3 years, the proceeds were reinvested in another deposit of Rs.55,000/- made on 3.3.98 (item no.3 in the table extracted above). The assessing officer noticed that the time gap between 15.12.1995 and 3.3.1998 were less than 3 years. He further opined that there is no need for the society to make the deposits in the name of assessee. Accordingly, he assessed the deposit of Rs.45,000/- in the hands of the assessee. The Learned CIT(A) noticed that the Department did not found any deposit corresponding to the credit advice and accordingly accepted the explanation of the assessee that the said deposit of Rs.45,000/- was encashed and re-deposited as another deposit. Accordingly, he directed the A.O. to delete the addition of Rs.45,000/-. 8. The Ld. D.R. submitted that the assessee has given oral explanations with regard to the deposit of Rs.45,000/- and he could not furnish any material to substantiate the availability of any source for making the above said deposit. Further, the claim of the assessee that the maturity proceeds of the impugned deposit was utilized for making another deposit of Rs.55,000/- is also no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... right person only. Under these circumstances, in our view, this issue requires fresh examination at the end of the assessing officer, as the facts relating to the ownership of the deposit have not been properly brought out. Accordingly, we set aside the order of Learned. CIT(A) on this issue and restore this matter to the file of the assessing officer with a direction to examine it afresh and take appropriate decision in accordance with the law. 11. The next issue relates to the gift receipt of Rs.1,40,000/-. On verification of material found during the search operation, several investments made in the name of the assessee and also some other persons to the tune of Rs.4,47,852/- were found. While explaining the sources thereof, the assessee claimed that he has received a gift of Rs.1,40,000/- from his father-in-law during the financial year 1998-99. Since the father-in-law of the assessee had expired by the time assessments were taken up, the assessee filed a confirmation letter obtained from his brother-in-law. It was submitted that the father-in-law of the assessee had sold a terraced building on 26.9.1997 for a consideration of Rs.2,08,000/- and utilized the proceeds thereof f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at Sri Karunanidhi would have had income which is below taxable limit and hence did not file returns of income. Even otherwise the proper course of action for the AO would have been to issue notice under section 158BD to Sri Karunanidhi and examined the assessability of the said investment in his hands. Instead AO resorted to adding the investment standing in the name of Sri Karunanidhi in the hands of the assessee. This is not sustainable as Sri Karunanidhi is an independence assessable entity. In view of the above I direct the AO to delete the addition made with regard to the investment made in case of Sri Karunanidhi." 14. We have heard the rival contentions on this issue. We notice that the Learned CIT(A) has given a finding that the investments in the name of Sri Karunanidhi have been made from 1995 onwards and further Sri Karunanidhi would have had income to make these investments. Since the present assessment is a block assessment and further since no other material was brought on record to show that the assessee herein has actually provided money to make investments in the name of Shri Karunanidhi, we do not find any infirmity in the decision taken by Learned CIT(A) on th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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