TMI Blog2013 (12) TMI 952X X X X Extracts X X X X X X X X Extracts X X X X ..... lowing grounds of appeal : "1. That Ld. CIT(A) has grossly erred in law and on facts in concluding that the assessee is sole beneficiary of the joint bank account of three brothers maintained for agricultural operations. 2. That Authorities below have grossly erred in law and on facts in making and sustaining addition of Rs.10,00,000/- u/s 68 and 69 of the I. Tax Act, when the source of deposits are already on record and were fully explained with documentary evidences. The Ld. A.O. has completely failed to brought out any positive material to controvert the submissions and evidences produced during assessment proceedings. 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agricultural income/sales by my brothers who are looking after the agricultural cultivation. Your goodselfis humbly requested not to correlate the saving account No. 2707 with the firm M/s Jabbar Singh Sons, Pehowa. " Alongwith his reply, the assessee also filed an affidavit of Shri Ram Pal, which is reproduced below in verbatim: "I Ram Pal S/o Sh. Jabbar Singh r/o Village Chanalheri, Distt. Kurukshetra do hereby solemnly affirm and declare as under: That we are three brothers. 1 look after the business as 1 have my own firm M/s Jabbar Sigh Sons at pehowa and all the transactions in this firm are looked after by me. That my two brothers Sh. Gulshan 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 inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the income of the assessee. 7. On appeal, the ld. CIT(Appeals) decided the issue vide para 5, which is as under: "5. I have considered the facts of the case and the submissions of the assessee. There are two issues as to who is the beneficiary of bank a/c No. 2707 in OBC and what is the source of deposits in this bank a/c. First, the issue of beneficiary of the bank a/c is taken up for decision. The assessee is the proprietor of M/s Jabbar Singh Sons, where he runs the business of Commission Agent/ Aarhti in New Grain Market, Pehowa. The assessee claims that he has two brothers and the bank a/c is the joint bank a/c with his two brothers as M/s Jabbar Singh . Sons. The assessee also claimed that his family has 275 acres of 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... merely the claim of the assessee that there is a family and it has 275 acres of land and it is a joint family and the agriculture income from family land is deposited in the bank a/c but this entire story has no basis and no documentary evidence, therefore, the claim of a family, family land and agriculture income are bogus. The land might be belonging to his brothers but their agriculture income is I separately credited in the books of accounts of the assessee himself, as found by the AO and mentioned in the assessment order and about any other income the assessee has not produced any evidence which can prove such a claim. Even if it is presumed that two brothers of the assessee had any other income then there is no evidence 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, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , which is not correct because this joint account was mainly used for the purpose of income from agricultural operations and was operated by three brothers. Even the bank certificate confirms this position. In any case, no enquiry was made to prove that there was existence or non-existence of an HUF during the assessment proceedings. 9. On the other hand, ld. DR submitted that assessee has tried to mislead the investigations because initially it was stated that money has come from CC account. Later on it was stated that money has come from Kurukshetra Central Cooperative Bank. Further, the theory of sale of combine could not be proved because combine continued to be in the name of assessee. He, however strongly supported the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ithdrawal Cash Receipts Cash Paid/Deposited Balance 21.3.2003 Withdrawal from bank a/c No. 5583 500000 0 500000 7.4.2003 -do- 200000 0 700000 5.5.2003 Part payment against sale of combine 500000 0 1200000 5.5.2003 Deposited in bank a/c 2707 0 500000 700000 20.5.2003 Withdrawal from a/c of Harish Kumar in M/s Jabbar Singh Sons 46500 0 746500 24.5.2003 -do- 30000 0 776500 26.5.2003 -do- 40000 0 816500 30.5.2003 -do- 13000 0 829500 2.6.2003 Withdrawal from a/c of Harish Kumar in M/s Jabbar Singh Sons 35000 0 864500 5.6.2003 Part payment against Sale of combine 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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