9911796707
TMI Blog2014 (8) TMI 725X X X X Extracts X X X X X X X X Extracts X X X X ..... the petition filed by the assessee, did not raise any objection. Hence, we condone the delay and admit the appeal. 2. The assessee is aggrieved by the decision of Ld CIT(A) in confirming the addition of Rs. 28,18,300/- made by the assessing officer u/s 68 of the Act. 3. The facts relating to the issue under consideration are stated in brief. The assessee is engaged in the business of dealing in DEPB licenses, commission agency and trading. He is having two proprietary concerns named M/s Hallmark Systems and M/s HMV Consultancy. He filed his return of income for the year under consideration declaring a total income of Rs. 3,09,430/-. The AO completed the assessment by determining the total income at Rs. 37,72,120/-. The additions made by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Ld CIT(A) called for a remand report from the AO. The ld CIT(A) has extracted the following portion of the remand report in paragraph 5.2 of his order:- "5.2. As discussed above, the matter was remanded to the AO keeping in view the additional evidences filed by the AR. The AO vide para-4 of his letter dated 17.03.2011 has submitted in this regard as under: "As regards the addition of Rs. 28,18,300/- towards cash deposit u/s.68, the AO has made this addition treating the same being unexplained cash credit. The assessee has submitted that the cash deposits in a bank account cannot be termed as unexplained cash credit. The deposit in the bank account is a debit entry and hence if at all addition is to be made it can only be made u/s.69 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deration was also received in cash. All these persons have claimed that the share certificates are not in their possession and they have send the share certificates to the Company for transfer. Under these set of facts, the Ld CIT(A) examined this issue and decided the same against the assessee with the following observations:- "5. I have carefully considered the assessment order, submissions of the AR and the contents of the remand report of the AO as discussed above. The AO on verification of the details filed by the appellant as categorically stated in the remand report discussed above that the parties from whom the cash sales were realized by the appellant for depositing the same in his bank account have confirmed having made the payme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ales are claimed to have been made in cash. The appellant in process has no documentary evidences in its possession. Neither the details of the company of which these shares pertain, nor the name of the broker through whom the shares are transacted as the AR has contested that he is dealing in these shares as a sub broker. Moreover, no details of purchase bills and sales bill or the details of transfer of share and related evidences are placed on record. Therefore, on account of these facts, I find that the contention of the AR that the cash deposited in the bank account of the appellant on various dates as discussed in the assessment order are out of the cash sale of the shares taken place during the relevant accounting year. In the absenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the fact of purchase of shares. He further submitted that the fact of sale of shares also stands provided, since the buyers of the shares have confirmed the transaction of sale. He further submitted that the assessee had received the sale consideration in cash, since they were off-market transactions, which has been used to make the impugned deposits. Accordingly he submitted that the assessee has substantiated his explanation that the sale proceeds realized on sale of shares were used to make the impugned bank deposits. Accordingly, the Ld A.R contended that the Ld CIT(A) was not justified in rejecting the sources claimed by the assessee. 9. On the contrary, the Ld D.R submitted that the claim of sale of shares has not been proved with th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be the sale proceeds realized on sale of shares. From the table extracted by the Ld CIT(A) from the remand report, we notice that the assessee has sold 76850 shares to 15 persons and received cash of Rs. 7,76,220/-. Thus, it is seen that the assessee himself has furnished the sources only to the extent of Rs. 7,76,220/- and he did not explain the sources for the remaining amount of Rs. 20.42 lakhs. 12. Even with regard to the amount of Rs. 7,76,220/-, it is seen that the assessee has claimed to have sold the shares off-market by receiving cash. However, when the AO conducted enquiries with the alleged purchasers, most of them have given a uniform reply to the effect that the share certificates have been sent to the concerned company for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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