Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

2015 (5) TMI 505

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... espect of cash found or the investment in KVP, NSC and SBI Bond. The only explanation for cash in hand was that it belongs to various family members and the savings is out of the withdrawal for household expenditure in the preceding year. We have seen that the withdrawal by the assessee in the preceding year is meager with which the assessee would be able to manage the household expenses only and would not be able to save much. No evidence has been given that the part of the cash belongs to the family members. The Assessing Officer has already given the credit on estimated basis in respect of some cash in hand. In view of above, we are of the opinion that in respect of cash in hand which is treated as unexplained and also the investments in KVP, NSC and SBI Bond, it cannot be said that the assessee was able to substantiate his explanation. The explanation given was general, without any supporting evidences. In view of above, we are of the opinion that the levy of penalty u/s 271(1)(c) in respect of unexplained jewelry was not justified while the levy of penalty in respect of unexplained cash and investments in KVP, NSC, SBI Bond was justified. - Decided partly in favour of assessee .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... lry as well as the cash found at the time of search. That merely because the explanations of the assessee have been partly accepted, it does not mean that the assessee had any concealed income. He further submitted that the assessee discharged the onus by giving proper explanation with regard to jewelry, cash and other valuables found at the time of search. He, therefore, submitted that the penalty levied u/s 271(1)(c) in the case of all the assessees should be cancelled. 4. The ld. Departmental Representative, on the other hand, relied upon the orders of the authorities below. 5. We have carefully considered the arguments of both the sides and perused the material placed before us. So far as the gold ornaments are concerned, we find that significant part of the gold ornaments have been accepted by the Assessing Officer as explained in the case of all the assessees and only a very small portion is treated as unexplained. For example, in the case of Atulbhai D. Patel, out of 1453 gms of the gold ornaments only 107 gms are treated as unexplained. In the case of Sejalben A. Patel, out of 1919 gms, 188 gms is treated as unexplained. Thus, approximately 90% of the gold ornaments h .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 155000 2003-04 128862 105000 2002-03 94449 75000 2001-02 98773 90000 Total 1229204 880000 From the above, it is evident that his cash withdrawal during the accounting year relevant to assessment year 2001-02 to 2003-04 was less than ₹ 10,000/- per month and in other years also it is less than ₹ 20,000/- per month. While the total cash found from Shri Onilbhai N. Patel was ₹ 4,72,900/-, out of which ₹ 3,52,900/- have been treated as unexplained; in addition to which, the investment made by Shri Onilbhai N. Patel in the preceding year, without recording in the books of accounts was ₹ 60,000/- in Kisan Vikas Patrika, ₹ 10,000/- in NSC and ₹ 3,20,000/- in SBI bond. No satisfactory explanation has been given for source of investment in KVP, NSC and SBI Bond. Therefore, in our opinion, these investments as well as ₹ 3,52,900/- out of cash found from the assessee are clearly the undisclosed incom .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... n ₹ 5,000/- per month in 5 years, and in only one year it is around ₹ 12,000/- per month. In the above circumstances, in our opinion, the Assessing Officer was fair enough in accepting the cash of ₹ 1,00,000/- to be explained. 9. In the case Shri Dahyabhai S. Patel, total cash found was ₹ 2,73,800/, out of which ₹ 1,61,000/- was treated as unexplained. His position of withdrawal for household expenses is as under:- Ass Year Total withdrawals during the year Cash withdrawals during the year 2007-08 40873 110000 2006-07 43870 55000 2005-06 156713 60000 2004-05 39285 65000 2003-04 252104 100000 2002-03 19653 60000 Total 552493 450000 From the above, it is evident that out of six years, in four years his cash withdrawa .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates