TMI Blog2012 (11) TMI 615X X X X Extracts X X X X X X X X Extracts X X X X ..... d in part. Unexplained Cash Deposit - Issue restored to the file of the AO who shall examine the cash deposits in the bank account of the assessee and make an enquiry to find out whether these represent towards LIC premiums paid by policy holders to the assessee for remitting the same to the LIC if he deposits in the saving account are reconciled then the assessee’s claim is to be accepted and, no addition can be made of the said amount u/s 68 of the Act. Levy of Interest- Being consequential to the final determination of income, the ground raised by the assessee has become infructuous and accordingly the same is dismissed as such - In the result, the appeal is treated as allowed in part for statistical purposes. - ITA No. 181/Hyd/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed an appeal before the CIT (A). The CIT (A) also sustained the addition made by the AO by observing that the assessee has failed to produce any evidence in support of its claim. It was further observed by the CIT (A) that the assessee has not given details of any staff member employed or of their GFPF registration, etc., to justify the welfare expenses and conveyance expenses. On the foresaid observation, the CIT (A) rejected the claim of the assessee. 4. The learned AR for the assessee submitted before us that the disallowance of an amount of Rs.2,50,000/- on ad hoc basis is not justified since there is no material before the AO not to allow the claim of the assessee. It was contended by the learned AR that for the subsequent assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nk. As alleged by the AO in his assessment order. In the absence of any explanation regarding source of such deposit, the amount was treated as unexplained deposits u/s 68 of the Act and added to the total income of the assessee. The assessee being aggrieved of the addition filed an appeal before the CIT (A). During the course of hearing before the CIT (A), the assessee contended that the amounts in cash were received from various policy holders towards their LIC premium for remittance to LIC on their behalf. In support of his contention, the assessee submitted the names of the policy holders and their respective LIC premium amounts. It was contended by the assessee that the LIC premiums belonged to these persons which were deposited in his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot made any addition on that account. 9. The learned DR, on the other hand, supported the orders passed by the CIT (A) and AO and contended that the addition u/s 68 of the Act has been rightly made in the absence of proper explanation by the assessee with regard to source of the said deposits. 10. We have heard rival submissions of the parties and perused the material on record. It is seen from the order passed by the CIT (A) that he has not at all considered the evidence submitted by the assessee with proper application of mind. When the assessee has submitted evidence before the CIT (A) and offered an explanation the same was required to be considered in a proper manner. The assessee s explanation cannot be out-rightly rejected on the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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