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2015 (5) TMI 576 - ITAT MUMBAI

2015 (5) TMI 576 - ITAT MUMBAI - TMI - Unaccounted cash deposit in the bank account - CIT(A) deleted the addition - Held that:- The dates of withdrawal from the companies cash book matches with the dates of equivalent deposited in ICICI bank account of the assessee. A finding has also been recorded to the effect that the amount withdrawn in the company’s cash books has been duly considered in the ledger account of the assessee in the books of company. The CIT(A) has also recorded a finding to th .....

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nd the same has not been controverted by the ld. DR by bringing any positive material on record - Decided against revenue.

Unexplained investment in shares of the company M/s Sona Transport - CIT(A) deleted the addition - Held that:- From the record, we found that the company M/s Sona Transport Pvt. Ltd was promoted by his father Shri Pal Singh Saini and after the death of his father in the year 2000, all the 26,113 shares of the company held by father and father's HUF were transf .....

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assessee filed during the course of assessment proceedings. Since there was no investment by the assessee in the shares of the company either during the year or in earlier year, there is no infirmity in the order of CIT(A) for deleting the addition - Decided against revenue. - ITA No.4374/Mum/2013 - Dated:- 10-4-2015 - Shri R.C.Sharma And Shri Sanjay Garg JJ. For the Appellant : Shri Neil Philip For the Respondent : Shri Nilesh Joshi ORDER Per R.C.Sharma (A.M): This is an appeal filed by the Rev .....

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facts leading to addition are that on the basis of AIR information, the AO found that the assessee had deposited cash in the bank account as under :- (i) HDFC Bank Rs.15,00,000/ (ii) ICICI Bank Rs.20,60,300/ (iii)State Bank of Patiala Rs.22,10,000/- Total Rs.57,70,300/- During the course of the assessment proceedings the assessee offered the cash deposit of ₹ 15,00,000/- in HDFC and ₹ 22,10,000/- in State Bank of Patiala as his income from unexplained sources vide letter dated 20.12. .....

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assessee has already admitted the cash deposits in HDFC Bank & State Bank of Patiala as income from unexplained sources, which shows that the assessee is generating cash from undisclosed sources. The AO also observed that the assessee had not shown the ICICI Bank account as well as HDFC and State Bank of Patiala account in the return of income. Accordingly the cash deposit of ₹ 20,60,300/- in the ICICI Bank account was treated by AO as income from undisclosed sources. 3. By the impugn .....

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gh debit cards issued to them from ICICI bank a/c in the name of appellant. The contention of appellant was that it merely acted as an escrow or agent for making payment to drivers on behalf of the company. But the AO in spite of verifying this contention of the assessee form the bank account of the company and bank account of the appellant, based his conclusion on the mere suspicion just because the assessee has surrendered cash deposits in other two bank accounts as undisclosed income and that .....

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om the said Annexure, it is very clear that the dates of withdrawal from the company's cash book matches with dates of equivalent' deposit or cash in the ICICl Bank account of the assessee. The contention of the AO that there is a negative cash balance in the cash book of the company is not correct. He presumed the narration in the Bank statement as "chq paid- Mumbai-Sion T" was by cheque whereas the bank has given certificate that same was withdrawal by cash. 'Hence there .....

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d to give the ledger a/c wherein the expenses incurred through debit cards by the assessee has been incorporated in the books of company STPL. From the details given, it is verified that the expenditure incurred by the assessee on various trip expenses and diesel and oil of the trucks have been duly considered in the ledger account of the assessee in the books of the company also and such expenses have been claimed by the company as a deduction in P&L A/c. Thus there is a clear nexus between .....

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ll not by itself prove that the cash deposits in lCICl bank account too are unexplained. It is well settled principle that no addition can be made on mere presumption. The AO brought nothing on record to exclusively rebut the contention of the assessee as far as cash deposits of ₹ 20,60,300 in ICICI Bank account are concerned. As regards the non appearance of ICICI Bank account in the return of the assessee, it is the contention of the appellant that no balance sheet was being drawn by the .....

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the same is directed to be deleted. Against the above order of CIT(A), the revenue is in appeal before us. 4. We have considered rival contentions and carefully gone through the orders of the authorities below. From the record we found that the assessee is a Director in M/s Sona Transport Pvt. Ltd.. In order to effect payment of driver salary and diesel etc., the assessee has given debit card to truck operators. The money was withdrawn from the account of M/s Sona Transport Pvt. Ltd. and was de .....

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ard issued to them from ICICI bank account in the name of assessee. The CIT(A) deleted the addition. The CIT(A) has verified the cash book of M/s Sona Transport Ltd. as well as copy of the bank statement of ICICI bank, which were also filed before the AO and found that assessee has given datewise withdrawal of amount from the companies cash book and the amount deposited in the ICICI bank account. From these details it was very clear that the dates of withdrawal from the companies cash book match .....

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the company and also such expenses has been claimed by the company by the deduction in its P & L account. Thus, there was a clear nexus between withdrawal made from cash book of the company and its deposit in the ICICI bank account of the assessee. The finding recorded by the CIT(A) is as per material on record and the same has not been controverted by the ld. DR by bringing any positive material on record. Accordingly, we do not find any reason to interfere in the order of CIT(A) deleted th .....

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77; 26,11,350/-. However in the balance sheet of the assessee filed during the course of the assessment proceedings, no such investment in the shares of the company was reflected. Vide letter dated 14.12.2011, it was explained by the assessee that the company M/s Sona Transport Pvt. Ltd. was promoted originally by his rather Shri Pal Singh Saini and after the death of his father all the 26,113 shares of the company held by father and father's HUF were transferred in the name of the assessee. .....

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e Ld.AR and perused the assessment order. It is 'noted that when the appellant vide letter dated 14.12.2011 explained before the AO that the said shares have been received on inheritance after the 'death of the father and no fresh investment has been made by the assessee, the AO did not ask any other details to cross check the contention of the appellant. During the course of the appellate proceedings the Ld.AR has produced copy of the share certificates which reveal that shares were ori .....

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evident from the annual return filed by the company under the Companies Act. Since no fresh shares have been issued by the company and the number and paid up value of shares prior to death of the father of the appellant and after remains the same, it proves that it is the same shares which were held by the father, which have now been transferred in the name of the appellant and no further payment to acquire these shares have been made by the appellant. In fact the AO also in the assessment order .....

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prepared without such shares cannot be said to be faulty, as suspected' by the AO. Even otherwise since the shares have been allotted in the name of the appellant on 1.4.2000, there can be no case for making addition of unexplained investment in A.Y. 2009-10. Considering totality of facts and circumstances of the case, the contention of the appellant that the shares were received through inheritance after the death of the father without making any investment by the appellant is correct and h .....

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