TMI Blog2010 (1) TMI 879X X X X Extracts X X X X X X X X Extracts X X X X ..... ner of Income Tax (Appeals) raising the following grounds: "The order of the CIT(A)-II in dismissing the appeal is against law, facts of the case and weight of evidence. The learned CIT(A) has erred in confirming the addition of Rs.2 lakhs made under section 69 as 'cash credit treated as income' (Refer para 3 head note) and holding that deposit of Rs.2 lakhs made in the SB. Account 10875 of one Sri B.V. Ganapathy is 'the undisclosed income' of the appellant. The ld CIT(A) erred in concluding the cash amount of Rs.2 lakhs 'alleged to be deposited by the Bank Manager' in the SB. Account of Sri B. V. Ganapthy is the 'unexplained investment' of appellant. The grounds of appeal filed before the CIT(A) and the grounds of appeal filed earlier before the ITAT in ITA No.143/B/2002 be read as part and parcel hereof." 2. The brief facts as has been brought on record are that the appellant submitted a return for the year on 28.7.1993 declaring a loss of Rs.8784. The then Assessing Officer passed an order under section 143(3) dt.22.3.1996 computing the income at Rs.466166. The assessee preferred an appeal under section 246A. The CIT(A) vide order dt.28.9.1998, set aside the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . A/c.No.10875 with Karnataka Bank Ltd. by Sri B.V. Ganapathy was the investment made by the assessee and added it as income under section 69. 3. Aggrieved the assessee appealed before the first appellate authority who observed that on going through the assessment order dt.23.3.1996, the statement on oath dt.13.2.1995 his predecessor's appellate order dt.2.9.2002, the statement on oath dt.24.11.2008 of Sri Ramakrishna Bhat, the Bank Manager, statement on oath dt.24.12.2008 of Sri B.V. Ganapathy and the discussion made above in regard to the SB A/c. No.761 and 10875 of Sri B.V. Ganapathy, it was clear that the deposit of Rs.2 lakhs made in the SB A/c. No.10875 nothing but the undisclosed income of the assessee. The assessee with the help of the Bank Manager, has given colour that the money had been borrowed from Sri B.V. Ganapathy. Accordingly, the amount of deposit of Rs.2 lakhs in SB A/c. No.10875 of Sri B.V. Ganapathy rightly belongs to Sri Ramanatha Bhat, the assessee and was rightly assessed in his hands. The addition was therefore confirmed by the learned CIT(A). 4. The learned counsel for the assessee initiating his arguments by supporting the factual position as noted ab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a bank is in the same status as before an income tax authority not to repay an amount to justify a genuine loan. In the case of the assessee therefore both these authorities have clearly stated that the money did not belong to the bank as noted by the Branch Manager and the Tribunal in their wisdom had restored the matter to the file of the/Assessing Officer for verification. By noting that the Bank Manager had played a vital role in collusion with the assessee for laundering the unaccounted cash through Sri B.V. Ganapathy, the income tax authority has only compounded the issue when the facts are glaring on the face that the money never belonged to the assessee to explain either under section 68 or under section 69 and rather would to better understood from Sri B.V. Ganapathy in so far as the Manager deposed that he did not receive cash of Rs.2 lakhs from the assessee which was purportedly claimed to have been deposited by him in savings bank account No.10875 of Sri B.V. Ganapathy. It is a clear case of money not owned but routed through bank has been thrust upon the assessee for no fault of his. The money has been utilized by Sri B.V. Ganapathy therefore, it is he who has to expl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pported the orders of the authorities below and pointed out that the learned CIT(A) has considered the entire reassessment order and also the Tribunal direction which has been reproduced in the order and concludes to the finding that the deposit in the savings bank account No.761 and 10875 of Sri B.V. Ganapathy had a deposit of Rs.2 lakhs was the undisclosed income of the assessee. 6. I have heard the rival parties. I have carefully perused the bank statements and the various statements taken at the time of initial assessment noted under section 250 after giving an opportunity for rebuttal to Sri B.V. Ganapathy in the case of the assessee and after the Tribunal had considered the matter, requires consideration by taking into cognizance, the denial of Bank Manager who was the custodian for the deposit accounts in his bank and the various accounts operated by Sri B.V. Ganapathy. No depositor of a bank account can ever plead ignorance of the amounts lying deposited in the accounts and having utilized the same cannot be said to be in the knowledge of the Bank Manager, who in this case happens to be related to the assessee. The crux of the issue therefore comes out on the point of uti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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