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2017 (12) TMI 1334 - AT - Income TaxAddition of FD seized from bank premises - Held that:- In view of the factum of FDRs being encashed and the amount being deposited on assessee’s behalf in the personal deposit account of the Commissioner of Income Tax on 05.11.2002, we find no merit in the stand of learned Authorized Representative for the assessee. The assessee had admitted that the said FDRs belonged to him and thereafter on maturity, the same were encashed and were deposited in Personal Deposit (PD) account on the request of assessee. In view thereof, we find no merit in the plea of assessee in this regard and uphold the addition of ₹ 2 lakhs being the amount of FDRs held in different names and the addition of interest thereon of ₹ 29,760/-. Addition made on account of FDRs in fictitious names in the bank register which was earmarked allegedly in the name of assessee - Held that:- This is a case of block assessment under section 158BC of the Act, wherein the said letter was found in the possession of the Co-operative Bank, in which, undoubtedly, the assessee was Director; but the documents cannot be passed on and the entries in the said documents be the basis for making addition in the hands of assessee from whose possession, no such document was found. Accordingly, we hold so. The learned Authorized Representative for the assessee had repeatedly stated that he was looking after Raviwar Peth branch and he was the Director of said branch and not of Yerwada branch, cannot be accepted as basis for deleting addition in the hands of assessee, since the assessee is Director of Co-operative Bank. However, in the absence of any physical FDRs being found from the possession of assessee or even from the bank which indicates that the same relate to the assessee, there is no merit in making the aforesaid addition in the hands of assessee and the same is directed to be deleted. Even in respect of the notings in FDR register, the statement recorded has not been provided to assessee nor cross-examination allowed. The Assessing Officer shall accordingly delete the addition.
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