TMI Blog2014 (5) TMI 519X X X X Extracts X X X X X X X X Extracts X X X X ..... evidences were found satisfactory to AO and no adverse finding or comment is offered by him in his remand report - It is after admission of additional evidence, there remains no ground for any such addition either u/s 68 or 69 of the Act - The AO is directed to delete the addition – there was no reason to interfere in the order of the CIT(A) – Decided against Revenue. - ITA No. 57/Ahd/2013 - - - Dated:- 17-4-2014 - Shri Mukul Kr. Shrawat And Shri N. S. Saini,JJ. For the Appellant : Shri O. P. Batheja, Sr. D. R. For the Respondent : Shri A. C. Shah, A. R. ORDER Per : Shri N. S. Saini, Accountant Member This is an appeal filed by the Revenue against the order of ld. CIT(A)- XV, Ahmedabad, dated 1st October, 2012 by taking the following grounds: 1). The Ld. commissioner of Income-Tax (Appeals)-XV, Ahmedabad has erred in law and on facts in deleting the addition of Rs.60,04,995/- made on account of unexplained cash credit u/s. 68 of the Act, without a speaking order discussing the basis for accepting Assessed s submissions additional evidence. 2). The Ld. commissioner of Income-Tax (Appeals)-XV, Ahmedabad has erred in law and on facts in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sa consulting business. He collect cash from his customer towards ticket fare, visa fees, etc. and the same cash has been deposited into bank. As and when require the assessee drawn cash from bank and given to relevant agencies towards ticket fare and visa fees etc. The assessee has also submitted cash book for the period from 01-04-2007 to 31-03-2008 which is seen and copy of the same is hereby forwarded to you. However, as the assessee has failed to submit the above details at the time of assessment proceedings hence cannot be acceptable at this stage. The then AO has correctly made the addition. The above facts are submitted to your honor for kind consideration and final view in the matter. 2. Unsecured Loan Received during the year of Rs.12,66,000/- The assesses has submitted that during the year the assessee had received unsecured loan from his friends and relatives of Rs.12,66,000/- which details are mentioned below: Sr.No. Name Amount 1 Dasratbhai M. Nayee 3,00,000.00 2 Kaushikbhai B. Patel 3,57,000.00 3 Ketan R. Pandya 40 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Name Amount 1 Bharat M. Patel 47,000.00 2 Bipinbhai G. Patel 1,30,000.00 3 J. M. Pathan 3,66,500.00 4 Naranbhai Keshavbhai Patel 40,000.00 5 Rameshchandra D. Bhavsar 70,000.00 Total.... 6,53,500.00 The assessee has submitted copies of Ledger Account with complete address which are seen and copies of the same are hereby forwarded to you. Assessee is asked to submit confirmation of above parties and Assessee stated that these are the customers for ticket and visa and all payments were received in cheque only which has been duly entered in books of accounts. However, as the assessee has failed to submit the above details at the time of assessment proceedings hence cannot be acceptable at this stage. The then AO has correctly made the addition. The above facts are submitted to your honour for kind consideration and final view in the matter. 5. Cheques Returned (Deposited cheques) of Rs.7,31,500/- The assessee has submitted that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... XIS bank Ltd. The same FD was matured and an amount of Rs.1,41,319/-was credited by the bank. Copy of certificate from AXIS bank Ltd is submitted by the assessee which is seen and copy of the same is hereby forwarded to you. However, as the assessee has failed to submit the above details at the time of assessment proceedings hence cannot be acceptable at this stage. The then AO has correctly made the addition. The above facts are submitted to your honor for kind consideration and final view in the matter. 8. Consulting Income Received bv Cheque of Rs. 1,72,595/- During the year assessee has received consulting fees of Rs.172595/- from various customers. The assessee has submitted Copy of Ledger account and also stated that the above receipts are included in the total receipts shown in the P L a/c. and all entries are reflected in the Bank Statement. Copy of the same is seen and hereby forwarded to you. However, as the assessee has failed to submit the above details at the time of assessment proceedings hence cannot be acceptable at this stage. The then AO has correctly made the addition. The above facts are submitted to your honor for kind consideration and final view in the m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmation received in the office. As assessee has not able to reconcile the sources of deposits made in the above bank account and also not submitted any books of accounts hence then AO has made addition of total bank receipts of Rs.60,04,945/- to the total income of the assessee after providing sufficient opportunities to the assessee. 5. The assessee was given copy of this remand report by the ld. CIT(A) on 27.04.2012 and the submission of the assessee in the rejoinder are as quoted in the order of the CIT(A) reads as under: (1) During the appellate proceedings submissions dated 25th July, 2011 were filed before your honour along-with Annexure- A i.e. Affidavit of Shri Haresh B. Patel, the appellant and Annexure- B i.e. a chart explaining all the deposits made with the Axis Bank. Besides above, necessary evidences regarding unsecured loan creditors viz. confirmations with PAN, contra ledger accounts and copies of returns of income of creditors etc. were filed along-with a copy of account of India info line and supporting contract notes etc. (2) Pursuant to the directions of your honour, the Id. A.O. has called the appellant during the remand proceedings and asked him to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant, by way of ticketing fee or visa fee, loans, return of advances and loans, return of cheques etc. It is also important to note that the Id. A.O. did not find any explanation or submission of the appellant inaccurate or incorrect. As the Id. A.O. has failed to contradict the explanations/submissions/details/evidences placed before him, it is presumed that the Department do not have any objection in respect of explanations and submissions made and evidences placed before the first appellate authority in respect of deposits of total sum of Rs.60,04,946/- with Axis Bank during the year. (5) The addition of Rs.60,04,946/- was made by the Id. A.O; in respect of amount deposited with Axis Bank by the appellant either through cash or cheques during the financial year 2007-08. All the credit entries in the bank account of the appellant were categorized under nine heads as per the table given on page No.2 of the remand report. The Id. A.O. has also evaluated the explanations and evidences placed before him 'head-wise' in his remand report on page No. 2 to 6. Our comments on the observation and conclusion of the Id A.O. are as under : (a) CASH DEPOSITED IN BANK Rs.14,87,80 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting to Rs.6,53,500/-. Complete addresses were also submitted. The only objection on the part of the ld. A.O. is that the appellant had failed to submit the above details at the time of assessment proceedings hence could not be accepted at this stage. (e) CHEQUES RETURNED AMOUNTING TO Rs, 7,31,500/-: The appellant has submitted that cheques amounting to Rs. 7,31,500/- received from a few customers could not be credited in his bank account because his banker had returned those cheques for mainly two reasons viz, insufficient funds or stop payment etc. In this connection an affidavit duly affirmed by the appellant dated 21st March, 2012 was filed before the Id, A.O. besides a certificate issued by Axis Bank dated 21st April, 2012. The Id. A.O. ought to have accepted these evidences, which were filed at his instance only. Despite the above, he has simply mentioned in the remand report that the appellant had failed to submit the above details at the time of assessment proceedings hence could not be accepted at this stage. (f) SALE PROCEEDS OF SHARES AMOUNTING TO Rs.6,27,657/-: The appellant has been maintaining an account with India Info line in connection with purchase and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant, despite the detailed and thorough examination during the remand proceedings. The above evidences clearly explains the various totaling to Rs.60,04,946/- deposited in the bank account of the appellant by way of cash or cheques during the year under consideration. We expect that your honour would find the above submission in order to allow the appeal of the appellant. Thereafter, the ld. CIT(A) deleted the addition of Rs.60,04,945/- u/s. 68 of the IT Act by observing as under: Ground No.2 3 are related to addition of Rs.60,04,945 u/s.68 of the Act. In fact at para 10 of asstt. order the A.O. mentioned about addition u/s.69 of the Act while in computing total income at para 11 the section is mentioned as 68 of the Act. Without prejudice to this typographic error, the major contention of the appellant in this regard is twofold. Firstly, his bonafide belief in Shri Bhavesh H Vyas, Advocate for proper representation of his case which ultimately culminated in such addition being Shri Bhavesh H Vyas not only failed to represent his case but also not informed the appellant about the same and by the time appellant become aware through the penalty order for non-compliance a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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