TMI Blog2014 (1) TMI 1234X X X X Extracts X X X X X X X X Extracts X X X X ..... d Sri H R Kambiyavar, Adv For the Respondent : Sri Y V Raviraj, Adv' JUDGEMENT:- PER : Dilip B Bhosale This appeal is directed against the order passed by Income Tax Appellate Tribunal (for short, the Tribunal ) in I.T.A. NO.538/BANG/2009, for the assessment year 2005-06, whereby orders passed by the Appellate Authority and the Assessing Officer have been confirmed by the Tribunal. The Tribunal had framed the following questions for consideration: i) Whether the CIT (Appeals) is justified in directing the AO to assess the income in the individual capacity as against HUF status? ii) Whether the CIT (Appeals) is justified in upholding the impugned addition of Rs.4,25,000/- by applying the provisions of section 69 of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Return of Income, it was revealed that the assessee had maintained Savings Account in Canara Bank, Traffic Island, Hubli, wherein a cash deposit of Rs.10,20,800/- was found during the relevant financial year. In view thereof, the assessment was taken up for scrutiny and the assessee was asked to explain the deposits made in the account in Canara Bank (S.B. A/c. No.21842). 4. The assessee explained that his family was having money lending business and after the death of his father, he continued the said business of money lending under HUF status. It was further explained that the transactions in the savings bank account were in respect of the money lending business of HUF. The Assessing Officer, after scrutiny of the assessment, held that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e having money lending license and they were carrying on the business of money lending and that the assessee had filed return in Form 2-C pertaining to his HUF status. It was further submitted that the assessee continued the ancestral money lending business in his HUF status and since there was no taxable income from the said business, no return was filed. It was also claimed that the assessee filed returns in HUF status in Form 2-C for the assessment years 2001-2002 and 2000-2001. 6. On the other hand, learned counsel appearing for the Revenue invited our attention to paragraph 5 of the said order to contend that on 27.12.2007, the assessee filed an application before the Additional Commissioner seeking direction under Section 144-A of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 It is proved by AO that all books of accounts are fabricated. There is no valid HUF in existence. There is no money lending business proved either by books of accounts or by any primary documents as verified by AO in order dated 31.12.2007. Money lending business was said to be in name of father of appellant either in HUF or in individual capacity assessee is not having any money lending business and no returns are filed with Registrar. Further, appellant could not prove with help of primary documents transactions of money lending business as in case of Sri Bedsur discussed above. Affidavit without having any support of evidences is not acceptable thus in individual capacity though money lending business is done but it is without knowledg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e been furnished to the bank and the bank account would be in the name of HUF represented by a member of HUF. Here the bank account is operated by the assessee-individual and there is nothing on record to suggest the impugned bank account belongs to HUF. 14. As regards the denial of status of HUF by the CIT (Appeals), we notice that the HUF had filed an appeal before the CIT (Appeals) and in the said appeal, the CIT (Appeals) had categorically held in para 5.1 as follows: "5.1 In the absence of the valid HUF in existence and in absence of specific finding by AO, assessing income in hands of HUF is not held as legal, information received in respect of cash transaction also does not mention specifically in case of HUF, therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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