TMI Blog2013 (11) TMI 1769X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act for the AY 2003-04 ? 2) Whether on the facts and in the circumstances of the case and also considering the reasons set out in the Grounds above, the Tribunal was right in law and had material to hold that the accumulated cash as per the cash flow statement offered and assessed as undisclosed income of the assessment years 1997-98 to 2002-03 cannot be source for the amount of ₹ 65 Lakhs found by the police and requisitioned by the department under section 132 A of the Act ? 3) Whether on the facts and in the circumstances of the case and also considering the reasons set out in the Grounds above, the Tribunal was right in law and fact in not appreciating the evidentiary value of the spontaneous statement of Mr.K.K.Azeez, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntained with Manjeri Co-operative Urban Bank, during a short period between 12/12/2001 to 6/4/2002. So far as peak credit of deposits found in the bank account amounting to .50 Lakhs, he voluntarily offered the said cash as his income. 4. Proceedings were initiated with issuance of notice under Section 158 B C read with Section 158 B D of the Act. In response to the said notice the assessee filed block return declaring undisclosed income of .65 Lakhs for the above said block assessment period. During the assessment proceedings, the Assessing officer came across important material that there was a deposit of an amount of ₹ 2,62,15,000/- in his bank account on various dates, during short spell between 12/12/2001 to 6/4/2002. All the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y Director of Income Tax(Investigation Wing) and the Assessing Officer. The assessee was also not able to explain the time gap between last withdrawal made from the Bank and the cash seized. Therefore, according to CIT (Appeals) .65 Lakhs also be assessed as undisclosed income in the hands of the assessee, in addition to what was already assessed by the Assessing Officer. 6. Aggrieved by the same, the assessee approached the Tribunal contending that the transaction found in the bank accounts clearly indicate, there was rotation of funds, i.e, the amount received by way of Head Office Advice was immediately withdrawn and after the withdrawal there was another set of deposit and withdrawal which was carried on so. Therefore, according to a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were transferred from Mumbai to Kerala through bank accounts were to be believed, said amount cannot be his amount. But it is also surprising to see that he admitted income of .50 Lakhs in his bulk return as peak credit. This would only go to show, though he tried to establish the transfer of funds from Mumbai to Kerala it was not properly explained. Then coming to the stand of the assessee, the assessee failed to bring on record any material to substantiate his stand and the same cannot be believed according to the Tribunal for the following reasons which are extracted below. The claim of the assessee does not appear to be true. (a) If the assessee had really carried on trading in gold biscuits, he could have at least tried to reconcil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee in the cash flow statement. The Tribunal made this exercise in order to understand the claim of the assessee whether the income declared by the assessee in various years including peak credit amount can be taken as source for the cash of .65 Lakhs seized by the police at Chennai. The cash flow statement with reference to the financial year 2000-01 shows .3 Lakhs followed by .2 lakhs in the financial year 2002-03 indicating that .2 Lakhs was from brother Hussain in the business. There was no details with regard to the nature of business. On the other hand, in the first letter addressed to the Deputy Director of Income Tax this .65 Lakhs was given to Mr.Azeez to purchase gold biscuits for the purpose of starting business by his brot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion, the Tribunal was justified in confirming the opinion of the appellate authority that all the amounts shown in the bank accounts are entirely different from the amount of cash .65 Lakhs found in the hands of the assessee in December, 2012, because if he was really dealing with gold business, it is hard to believe that he was keeping .65 Lakhs idle with him for a period of more than nine months, that too, to start business for his brother in gold as explained in the letter. First letter immediately addressed after seizure of the gold becomes very relevant. If he was dealing in the gold business he would have declared so in the said letter. But his explanation regarding the bank account was that he acted only as an agent for transferring ..... X X X X Extracts X X X X X X X X Extracts X X X X
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