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2017 (5) TMI 64 - ITAT HYDERABADUnexplained deposits in bank account - Held that:- The assessee has filed the copies of the pattadar pass books of his parties during the assessment proceedings itself, but had not filed the confirmation letters due to which both the AO as well as the CIT (A) were not inclined to accept the assessee’s contention. We have also gone through the news paper report dated 28.8.2012 in which the news of the assessee’s arrest is published. The arrest of the assessee is also during the same period during which the appellate proceedings were taken up by the CIT (A). Therefore, we are convinced that the assessee was prevented by reasonable cause in producing the relevant material before the CIT (A). In view of the same, we are inclined to admit the additional evidence filed by the assessee and remand the same to the file of the AO for verification Unexplained cash deposit - Held that:- CIT (A) confirmed the order of the AO as the assessee did not submit any specific source for this deposit. Similarly with regard to the sources of deposits in the cash flow statement, the assessee had shown only ₹ 4,10,000 as deposit in the said Bank on 22.9.2008 as out of the flow of cash in the cash flow statement, but the assessee has not shown the source of cash deposited of ₹ 5.00 lakhs on 30.06.2008 and ₹ 2.00 lakhs on 26.08.2008 as outflow in the cash flow statement. AO, therefore, treated the sum of ₹ 7.00 lakhs as unexplained investment and brought it to tax u/s 69 of the Act which was confirmed by the CIT (A) and the assessee is in appeal before us by raising grounds of appeal Nos 3 & 4. Even before us also, the learned Counsel for the assessee reiterated the submissions made before the authorities below, but has not been able to substantiate his contention with any evidence. As the AO and the CIT (A) have verified the cash flow statement and found that the sources for the cash deposits shown as cash withdrawal are not correct, we do not see any reason to interfere with their orders. Income from other sources - contention of the assessee that a sum of ₹ 4.00 lakhs was received from his father who is the owner of vast agricultural land - Held that:- we are inclined to accept the assessee’s contention as the transaction is between a father and son and father is a person with resources and the probability of the payment cannot be doubted. The fact that the assessee’s father has sufficient source to give a loan to his son is sufficient to delete the addition. This ground of appeal is accordingly allowed. Addition made on account of low withdrawals - Held that:- We find that the assessee is stated to have withdrawn only a sum of ₹ 2,90,000 for the relevant A.Y, for his personal needs though he was the owner of a Scorpio Car and maintained the same. The AO has estimated the personal expenses of the assessee at ₹ 50,000 p.m. as reasonable expenditure and has accordingly made an addition of ₹ 3,10,000 on account of low withdrawals and the CIT (A) has confirmed the same. As the assessee has not furnished any proof or evidence before us to demonstrate that the sum of ₹ 2,90,000 is sufficient for his standard of living, we do not see any reason to interfere with the orders of the authorities below. This ground of appeal is accordingly rejected. Addition of sum received by the assessee from his wife - Held that:- The assessee has filed a copy of the return of her income wherein the assessee’s wife has returned business income of ₹ 1,94,714 and agricultural income of ₹ 7,25,000 i.e. nearly ₹ 9,15,000 from which the assessee has explained that ₹ 9.00 lakhs was received from his wife. Though the assessee’s wife is shown to have sufficient income, but it cannot be accepted that the entire income has been given to the husband which is shown as source of cash deposits. Therefore, we accept only a sum of ₹ 8.00 lakhs as a loan from her and the balance addition is confirmed. Addition on agricultural income - Held that:- Assessee filed certain bills reflecting the sale of agricultural produce. None of the authorities below have verified the assessee’s contention on this issue. In view of the same, we deem it fit and proper to remand the issue to the file of the AO with direction to look into the assessee’s land holdings, the nature of the crops grown and whether they coincide with the sale bills filed by the assessee and reconsider the issue in accordance with the law.
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