9911796707
TMI Blog2010 (1) TMI 879X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 and directed the AO to redo the assessment as no opportunity was given to assessee to rebut the conclusion of AO to make additions of Rs.260000 under section 68 etc. By an order dt. 24.1.2001, the then AO computed the income at Rs.344090. The assessee filed an appeal against the said order. The CIT(A) vide order dt. 2.9.2002 gave part relief. An amount of Rs.2 lakhs added as unexplained credit under section 68 was held by CIT(A) as investment made outside the books of account and held to be an income under section 69 as against the said amount to be held as unexplained cash credit and earlier taxed under section 68. The assessee filed an appeal to ITAT against the addition now made under section 69 of Rs.2 lakhs. Meanwhile the Assessing Officer accepted the order of CIT(A). Neither an appeal nor a cross objection was filed by the department ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly, 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 above and the Hon'ble Tribunal. In the first instance, to facilitate the understanding of the fact he furnished a paper book which inter alia includes the copy of the Tribunal order along with copy of the confirmation letter given by Sri B.V. Ganapathy, copy of the statement account No.10875 with the Karnataka Bank in the name of Sri B.V. Ganapathy, copy of current account with Karnataka Bank Limited operated by Sri B.V. Ganapathy and copy of the loan account of Sri B.V. Ganapathy and B.V. Ratnavathy, copies of statement of affairs of Sri B.V. Ganapathy as on 31.3.1993 in a paper book. All these are along with the various statements taken on oath and subsequent developments when the earlier learned CIT(A) and the Tribunal had directed for cross examination and rebuttal has also been furnished in the paper book. The learned counsel vehemently arg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .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 explain either under section 68 or under section 69 which has not been carried out by the income tax authorities. At least they should have verified the statement of affairs as on 31.3.1993 when the cash in bank balance of Sri B.V. Ganapathy stood at less than Rs.10,000. The copies of accounts that have been furnished in the paper book indicate holding of balance of Rs.1,18,800 being the residual balance from cash deposited by him on 6.3.1993. Relationship between the Bank Manager and the assessee has been adversely held to money laundering in so far as the learned CIT(A) also noted that the money had been borrowed from Sri B.V. Ganapathy which actually belonged to the assessee. This indicates that the authorities below have struck to their own understanding of the facts in spite of glaring evidences before them that having established the identif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts 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 utilization of the funds and whether by withdrawal in cash could be considered as the repayment of loan when borrowed earlier through the bank account. I have carefully perused the bank accounts which indicate that a loan account has not been established even when the amounts stand accepted in the statement of affairs by the Assessing Officer. The period of utilization of the funds, the period of loan remaining alive and the period of statements which indicate that the loan had been repaid have all been accounted for by the bank therefore absolves the Bank Manager leaving the assessee in money laundering through Sri B.V. Ganapathy who may be ignorant but at the same time cannot be said to have not pointed out any mistakes in the deposits and withdrawals in the account. What the assessee proposes to explain is that the details available in these ban ..... X X X X Extracts X X X X X X X X Extracts X X X X
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