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TMI Blog2013 (12) TMI 952X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. The Ld. A.O. is not right in law in making addition in the hands of assessee for the deposits in the joint bank account of three brothers in which deposits represented mainly agricultural income and sale of agriculture produce. 4 That Authorities below have grossly erred in law and on facts in making and sustaining addition of Rs.6,50,000/- when the assessee has duly discharged his onus by explaining the source of deposits with documentary evidences, and identity of person concerned whereas The Ld. A.O. has completely failed to brought out any positive material to disbelieve the submissions and evidences but rejected the submissions and evidences merely on his surmises and conjectures 3. After hearing both the parties, we find that during assessment proceedings, Assessing Officer noticed that assessee had made certain deposits in a joint bank account No. 2707 with Oriental Bank of Commerce, Pehowa, the detail of deposits is as under : S.No. Amount Deposited Date of deposit i) Rs.5,00,000/- 5.5.2003 ii) Rs.5,00,000/- 5.6.2003 iii) Rs.2,50,000/- 19.1.2004 iv) Rs.4,00,000/- 11.3.2004 Total Rs.16,50,000/- 4. In response to the query regardin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an Kumar and Sh. Harish Kumar are cultivating our ancestral Lands measuring 275 acres at our village and look after the agricultural cultivation and they have mentioned one agricultural account in OBC Bank Pehowa A/c No. 2707. That the account No. 2707 is joint account but this is operated by both brothers. That all the deposits in that saving account are from agricultural income and the nature of deposits in that account is known to my both brothers who have deposited the amount from their agricultural income and not from the current account of my firm at all. That the following deposits asked by goodself belongs to A/c No. 2707 and not to M/s Jabbar Singh & Sons at all. 1. 5-5-2003 500000/- 2. 5-6-2003 500000/- 3. 3-11-2003 300000/- 4. 19-1-2004 250000/- 5. 11-3-2004 400000/- That the above given amount does not have any concern with my firm as the amounts were deposited by my brothers from the sales of their agricultural produce of wheat, Sugar cane, Paddy, Barsin, Vegetables etc. In account No. 2707. That the reply given by my firm on 24-11-2004 regarding amount of Rs. 500000/- dated 5-5-2003 and 500000/- da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agriculture land whereas, he looks after the business of the commission agent and his brothers look after the agriculture. Assessee has also claimed that the bank a/c No. 2707 is a joint a/c and operated by his brothers and deposits re on account of agriculture produce of family land and sale of combine etc. The assessee has neither produced nor filed any detail about the complete status of his family, therefore, it is clear that the assessee wants to hide the complete details. Is there any HUF in which the assessee and other two brothers are co-partners or there is no such HUF. Whether the land claimed belong to the HUF or individual brothers. Whether the a/c is that of the HUF or it is an AOP. Since assessee has not produced any evidence in this regard, therefore, it is clear that there is no HUF and all the brothers are separate and independent. And therefore, the assessee looks after his proprietary business and brothers are claimed to be doing agriculture. The bank a/c does not belong to the HUF or the family as claimed by the assessee, of course, it has been opened in the joint names of the three brothers and all the three are authorized signatories but that does not make the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e that the same was deposited in bank a/c No. 2707. Each and every argument and submission of the assessee has been dealt in detail by the AO in the assessment order and I fully agree with the findings of the AO. Similarly, the assessee has not been able to establish any other source of deposits from sale of combine or sugarcane etc. The same have been discussed by the AO in detail w.r.t each item/party and I fully agree with the findings of the AO, therefore, it is clear that the deposits of Rs. 10 lac and 6.5 lac made in a/c No. 2707 are from unexplained source, whereas, the account belongs to the assessee. Therefore, the unexplained income on account of these total deposits of Rs. 16.5 lac belongs to the assessee. The assessee has also claimed that the addition can not be made u/s 68 in case of bank deposits but as is clear from the assessment order, both the additions have been made u/s 68 and 69 and both sections have clearly been mentioned by the AO. Therefore, the addition made by the AO of Rs. 10 lac and 6.5 lac to the income of the assessee are confirmed and the ground of appeal of the assessee is rejected." 8. Before us, ld. counsel for the assessee submitted that it can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order of CIT(Appeals). 10. After hearing the rival submissions, we find force in the submissions of the ld. counsel for the assessee. First of all, page No.1 of the Paper Book which is copy of the account with Oriental Bank of Commerce in their Pehowa Branch, clearly mentions names of three brothers namely Shri Ram Pal, Shri Harish Kumar and Shri Gulshan Kumar. Further, ld. CIT(Appeals) had written a letter dated 7.12.2007, copy of the same is available at page 39 of the Paper Book, to the Income Tax Officer, wherein the submissions of the assessee have been forwarded for further investigation. During this investigation, Assessing Officer obtained information from the Oriental Bank of Commerce. The letter of Oriental Bank of Commerce dated 7.2.2008 is placed at page 50 of the Paper Book and reads as under: "The Income Tax Officer, Ward No. 1, Kurukshetra. Dear Sir, Sub : Information regarding Saving Bank Account No. 270: Shri Ram Pal. Please refer to your letter no. ITO/W-1/2007-08 dated 22.01.2008 we give below the desired information as under : 1. The account is opened in the names ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 250000 0 1114500 5.6.2003 Deposited in bank a/c No. 2707 0 500000 614500 13.6.2003 Withdrawal from a/c of Harish Kumar in M/s Jabbar Singh & Sons 30300 0 644800 14.6.2003 -do- 20000 0 664800 19.6.2003 -do- 36775 0 701575 23.6.2003 -do- 15000 0 716575 27.6.2003 Withdrawal from bank a/c No. 2707 50000 0 766575 5/7/2003 Withdrawal from A/c of Harish Kumar in M/s Jabbar Singh & Sons 25000 0 791575 10.7.2003 -do- 20000 0 811575 14.7.2003 Withdrawal from bank a/c No. 5583 300000 0 1111575 16.7.2003 Withdrawal from A/c of Harish Kumar in M/s Jabbar Singh & Sons 15000 0 1126575 21.7.2003 -do- 5000 0 1131575 23.7.2003 Withdrawal from bank a/c No. 5583 200000 0 1331575 30.7.2003 -do- 150000 0 1481575 11.8.2003 -do- 200000 0 1681575 17.8.2003 -do- 100000 0 1781575 1.9.2003 Withdrawal from bank a/c No.2707 100000 0 1881575 11/9/2003 -do- 80000 0 1961575 27.9.2003 -do- 100000 0 2061575 3.10.2003 -do- 100000 0 2161575 7.10.2003 -do- 50000 0 2211575 9.10.2003 -do- 50000 0 2261575 3.11.2003 Deposited in bank a/c No. 2707 0 300000 1961575 10.11.2003 Withdrawal from bank a/c No. 5583 6 ..... 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