TMI Blog2021 (4) TMI 676X X X X Extracts X X X X X X X X Extracts X X X X ..... o the re-classification of the income. Since the assessee has not declared this business income/loss in the return of income therefore, the Assessing Officer has rightly invoked the provisions of section 44AF and estimated the income of the assessee - However, the re-classification of the income by applying the provisions of section 69 of the Act is contrary to the facts as well as law and action of the Assessing Officer is highly unjustified and unreasonable. Accordingly, the said addition is directed to be treated as business income of the assessee. This ground of the assessee is partly allowed. Unexplained investment in the immovable property - immovable property which was purchased by the assessee vide sale deed dated 27.04.2012 - The assessee has explained the source as cash withdrawal of ₹ 6,00,000/- from the Axis Bank account of the assessee on 23.04.2012 and availability of fund in the bank account is also explained by the assessee as withdrawal from the partnership firm M/s Soft Solutions of ₹ 9,00,000/- which is also reflected in the Axis Bank account of the assessee - HELD THAT:- As the entries in the bank account of the assesse are not in dispute and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces. Once the CIT(A) has directed the Assessing Officer to allow the deduction as per law no grievance is left against the impugned order of the CIT(A). Accordingly, the Assessing Officer is directed to consider the claim of deduction u/s 80TTA and allow the same if the assessee satisfy the requirements of eligibility of deduction. Appeal of the assessee is partly allowed. - I. T. A. No. 158/ALLD/2019 - - - Dated:- 7-4-2021 - SHRI VIJAY PAL RAO, JUDICIAL MEMBER Appellant by : Shri Ajay Kumar Yadav, Adv. Respondent by : Shri A.K. Singh, Sr. D.R. ORDER This appeal by the assessee is directed against the order dated 04.09.2019 of CIT(A) for the assessment year 2013-14. The assessee has raised the following grounds: 1. Because the proper opportunity of being heard not provided by the appellant authority during the appeal proceedings. 2. Because the order of the appellant authority against the natural justice. 3. Because the order of the appellant authority is arbitrary bad in eye of law. 4. Because the appellant authority failed to consider the facts and evidences as submitted by the appellant during the appeal proceedings. 5. Be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... He has further submitted that the assessee has not declared the income from business activity of M/s Ashu Marketing and it was detected by the Assessing Officer during the course of assessment proceedings, therefore, the Assessing Officer has rightly made the addition u/s 69 of the Act. 5. I have considered the rival submissions as well as relevant materials available on record. There is no dispute that in the return of income filed by the assessee on 30.09.2013, the assessee has not declared income from the business of M/s Ashu Marketing. The assessee has explained the reasons for not disclosing this income as there was a loss of ₹ 495.07 in the said business activity and hence it was not claimed by the assessee in the return of income due to smallness of the amount. The Assessing Officer has not disputed the transactions as recorded in the bank account of the assessee with HDFC Bank in the name of proprietorship concern as well as the gross sales shown by the assessee in the profit and loss account produced before the Assessing Officer. However, the Assessing Officer has rejected the said computation of the loss as per the profit and loss account and estimated the incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essing Officer is unjustified and liable to be deleted. On the other hand, the Ld. DR relied upon the order of authorities below and submitted that the Assessing Officer has categorically stated in the assessment order that the assessee has not explained the source of investment made for purchase of immovable property during the year under consideration of ₹ 5,30,120/-. Thus explanation of the assessee that the investment is made from the withdrawal of cash of ₹ 6,00,000/- from the bank is an afterthought. He has relied upon the order of the authorities below. 8. I have considered the rival submissions as well as relevant materials available on record. The Assessing Officer has made the addition of ₹ 5,30,120/- on account of unexplained investment in immovable property which was purchased by the assessee vide sale deed dated 27.04.2012. The assessee has explained the source as cash withdrawal of ₹ 6,00,000/- from the Axis Bank account of the assessee on 23.04.2012. The availability of fund in the bank account is also explained by the assessee as withdrawal from the partnership firm M/s Soft Solutions of ₹ 9,00,000/- which is also reflected in the Ax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see challenged the order of the action of the Assessing Officer. 10. Before the Tribunal, the Ld. AR of the assessee submitted that the amounts deposited in the assessee s own saving account with HDFC Bank and Axis Bank are transferred from the other bank accounts of the assessee. He has referred to the transactions in the bank account of the assessee at page No. 76 to 87 of the Paper Book and submitted that these transactions are from the other bank accounts of the assessee and therefore, cannot be added as unexplained deposits. As regards the deposits of ₹ 10,500/- in the bank account of Kumari Kavya Dwivedi the Ld. AR has referred to the cash flow statement placed at page No. 82 to 83 of the Paper Book and submitted that the source of the deposit has been explained as opening cash balance as shown in the cash flow statement. He has also relied upon the decision of the Mumbai Benches of the Tribunal in the case of Adishwar K. Jain v. CIT (2019) 201 TTJ 77 (Mumbai). Thus the Ld. AR submitted that when the deposit was made from the opening cash balance with the assessee the same cannot be treated as unexplained investment u/s 69 of the Act. 11. On the other hand, the Ld ..... X X X X Extracts X X X X X X X X Extracts X X X X
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