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2019 (7) TMI 872 - ITAT COCHINUnexplained cash deposits - assessee claimed that partly deposit are from earlier withdrawal - AO alleged that withdrawal from the Bank for the purpose of construction of a bar hotel at Thodupuzha and no cash was available with assessee to deposit - HELD THAT:- Admittedly, the assessee had introduced ₹ 6,44,55,000/- into cash book for the assessment year 2012-13 as per the narration written on the back side of the cheque. Out of the above amount, ₹ 3,17,00,000/- was withdrawn by the assessee from the Bank account for the purpose of construction of bar/hotel in Thodupuzha. This was evidenced by copies of cheques obtained from the Bank by the AO. As such, AO observed that the sum of ₹ 3.17 crores which was introduced into the cash book was not at all available with the assessee as it was used for the construction of bar/hotel. To support this, the AO relied on the sworn statement recorded from Shri Rajendra Babu K.V. in whose name the bearer cheque was issued in most of the cases who admitted that the signature on the back side of the cheque belonged to him and money was withdrawn as per the instructions of the assessee, Shri Jayakrishnan. AO observed that construction of hotel was going at Hotel Vysali in Thodupuzha and construction was managed by one Shri Abhilash. However, contrary to this, the CIT(A) observed that there was no construction activity with regard to Hotel Vysali in Thodupuzha and the said hotel was owned by the assessee and two more partners and not by the assessee himself. The building was taken on rent and no construction work has been carried out at the said hotel. For this purpose, he relied on the certificate issued by Secretary, Thodupuzha Municipality. Each entry in the cash book for introduction of cash was not at all explained by the assessee. The assessee made a general statement that there was no construction activity at Hotel Vysali and the amount was available for introduction into the cash book. The assessee has to explain each entry in the cash book. AO has to prove that if there is construction activity, how much amount has been spent for construction activity at the said hotel after providing opportunity of cross-examination of the person whose statement was relied on by the AO for making such additions for these assessment years under consideration. With this observation, we remit the entire issue in dispute in all these appeals to the file of the AO for fresh consideration. This ground of appeals of the Revenue is partly allowed for statistical purposes.
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