TMI Blog2014 (11) TMI 764X X X X Extracts X X X X X X X X Extracts X X X X ..... by assessee does indicate that the transactions are undertaken to help his friend in getting temporary finance for his business and since Mr. Srinivas repaid the amounts to a large extent out of total transactions, deposits in the bank account cannot be considered as unexplained - As seen from the credit card statements as well as bank statements, there are payments to Airtel also which indicates that Mr. Srinivas had Airtel business transactions – the authorities were not justified in treating the cash deposits as income of assessee as unexplained - Since assessee has given bonafide explanation which is not disproved, the same should be accepted – there is no reason to assess the entire cash deposits made periodically into the bank account for repayment of credit card amounts cannot be considered as income of the assessee – the order of the CIT(A) is set aside – Decided in favour of assessee. - ITA. No. 1801/Hyd/2012 - - - Dated:- 5-11-2014 - Smt. P. Madhavi Devi And Shri B. Ramakotaiah,JJ. For the Petitioner : Mr. S. Rama Rao For the Respondent : Mr. Rajat Mitra ORDER Per B. Ramakotaiah, A. M. This is an assessee s appeal against the Order of Ld. CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmitted that: Mr. Srinivas put us in great trouble for long time with the skill of escapism. After so many phone calls, vigorous persuation, he finally gave us around ₹ 2.7 lakhs as against ₹ 6.00 lakhs, which too in piecemeal basis continued till March 2012, as final settlement besides given three undated cheques of ₹ 35,000/- each of Bank of Baroda, Malkajgiri Branch, copies enclosed. This is the evidence to show Mr Srinivas has availed finances arranged by my son to run the Airtel shop. At this stage your department issued a notice simultaneously with my son to. Mr Srinivas to his shop address but was returned un-delivered. I tried my best to obtain an affidavit from Mr Srinivas to the fact that he utilized the money arranged by my son on rotation basis and repaid by him in to. ING Vysya a/c. but he is not at all co-operating. Here I would like to invite your attention to a letter dated 6th Nov, 2011, addressed and submitted to. the then Income Tax Officer, Ward. 12(3), 2nd floor, Aayakar Bhavan, Basheerbagh, Hyderabad, wherein my son explained all the facts and requested far dropping the case on mercy grounds, in one of the hearings. (copy enclosed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of various banks were also placed in paper book at pages 136 to 157, the arrangement between Mr. Srinivas and assessee towards final payment of ₹ 2,72,000 in a stamp paper was also placed on record along with various payments of drafts towards settlement. Correspondence with various credit card issuers were also placed on record to explain that those credit card institutions waived the penalties and interest also considering the nature of transactions. It was the submission that assessee accommodated his friend who defaulted at the end and put the assessee to lot of inconvenience and assessee s father has to discharge the liabilities and in view of the strained relationship between assessee and his friend Mr. Srinivas, he could not be produced before the authorities. With reference to explanation that monies were obtained on 3% commission, he referred to the statements placed on record of the credit cards and most of the purchases are from M/s Gandhi gold jewelers and M/s Srikrishna Sarees shop. It was also submitted that Revenue did not consider that assessee was in the trading of either jewellery or sarees or invested in them. Therefore, the explanation given by assessee s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... B.O.B) Bank of Baroda, Malkajgiri Branch vide Cheque baring Nos.504740, 527432, 527433, 527434, 527435 and 527436 will be cancelled. The remaining documents if any and agreements and receipts it is related for any transactions previous entered shall get cancelled in lieu of the above cheque payment. In witness whereof the above said parties have signed in the presence of this the 13th day of March, 2011 at Secunderabad, in before the witnesses. WITNESSES : 01. Sd/-xxx Sd/- D. Ravi Shanker (D. RAVI SHANKER) First Party 02.Sd/-xxx Sd/- Srinivas (M. Srinivas) Second Party . 8. Coupled with the fact that assessee s father had settled his P.F. amount of ₹ 3.5 lakhs also, in settlement of credit card dues and his explanation before the Ld. CIT(A) also indicate that the transactions are genuine transactions. It is general practice in the market that some of the shops are accommodating credit card holders by providing cash on discount of 3% to 4% and as seen from the transactions of M/s. Gandhi Jewellers and Srikrishna Sarees and periodic purchases from them and repayments to the credit cards do indicate that funds are obtained in this manner for Mr. Srinivas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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