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2015 (7) TMI 638 - ITAT PUNE

2015 (7) TMI 638 - ITAT PUNE - TMI - Unexplained cash credit - CIT(Appeals) sustained the addition, however, the addition was made as unexplained investment u/s. 69 - Held that:- The assessee has furnished confirmation letters from all the creditors. All the creditors have supported the case of assessee. A perusal of the impugned order show that there is no discussion about the loans and advances taken by the assessee and the repayment of same. Therefore, it would not be fair to treat the entire .....

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fuse confidence to accept the assessee’s proposition. Therefore, we reject the contention of the assessee with regard to deposit of agriculture sale proceeds in the bank.

CIT(A) has made addition u/s. 69 of the Act as unexplained investment. We do not concur with such findings of CIT(A). The Revenue has not been able to show any investment made by the assessee. The term ‘investment’ is not defined in the Act, the expression has to be understood in the ordinary popular sense used in c .....

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in the bank accounts. Accordingly, we accept the alternate plea of the assessee. The file is remitted back to the Assessing Officer to decide this issue denovo. Decided partly in favour of assessee for statistical purpose. - ITA No. 2159/PN/2013 - Dated:- 10-7-2015 - Shri R.K. Panda and Shri Vikas Awasthy, JJ. For the Petitioner : Shri B.B. Mane For the Respondent : Shri B.C. Malakar ORDER PER VIKAS AWASTHY, JM: The appeal has been filed by the assessee against the order of Commissioner of Incom .....

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referred to as the Act ). 2. The brief facts of the case as emanating from records are : The assessee is a Principal of Vamanrao Ithape Engineering and Technology College under Sangamner Medical Foundation and Research Institute. The assessee filed his return of income for the assessment year 2008-09 on 28-07-2008 declaring total income of ₹ 98,870/-. The source of income declared by the assessee in his return of income is salary and income from Short Term Capital Gain. During the course o .....

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#8377; 30,17,000/- u/s. 68 of the Act as unexplained cash credit. Against the assessment order dated 30-12-2010, the assessee filed appeal before the Commissioner of Income Tax (Appeals). In first appeal, apart from impugning the addition on merits, the assessee questioned the addition made u/s. 68 of the Act. The contention of the assessee is that being salaried employee, the assessee is not maintaining any books of account. The Commissioner of Income Tax (Appeals) sustained the addition of  .....

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Tax (Appeals) in appeal held the amount as unexplained investment u/s. 69. The assessee apart from salary is having income from agriculture. The assessee is having agricultural land measuring 1 Hectare 82 Ares. The assessee has deposited sale proceeds from agriculture in his saving bank accounts. During the period relevant to the impugned assessment year, the assessee had gross receipts of ₹ 6,34,093/- from agriculture operations which includes sale proceeds on behalf of HUF as well. The .....

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d Bank of Maharashtra. The loan amounts and amounts from agriculture proceeds were deposited in the aforesaid accounts. The money was withdrawn from the aforesaid bank accounts for the purchase of property. Since, the transaction could not be finalized, the amounts were deposited back in the said bank accounts. The Commissioner of Income Tax (Appeals) has erred in holding that the assessee is indulging in real estate transaction without any basis or evidence. The ld. AR contended that in the fir .....

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y Commissioner of Income Tax (Appeals). The ld. AR contended that bank statement cannot be considered as regular books of account in the light of judgment of Hon'ble Bombay High Court in the case of CIT Vs. Bhaichand H. Gandhi reported as 141 ITR 67 (Bom). The ld. AR further submitted that the authorities below have failed to take into consideration the fact that the persons who had advanced loans have given confirmation letters in support of assessee s claim. Furhter, the assessee has repai .....

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ssioner of Income Tax (Appeals) after recording and considering all the contentions of the assessee, which have been reiterated before the Bench has passed a well reasoned and detailed order. The assessee in his return of income has admitted agricultural income of ₹ 1,00,000/- only. Now, the assessee cannot be allowed to increase the same to more than ₹ 6,00,000/- without any basis. The ld. DR further submitted that the contention of the assessee that the amount has been withdrawn fr .....

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of the section. The ld. DR prayed for dismissing the appeal of the assessee. 5. We have heard the submissions made by the representatives of rival sides and have perused the orders of the authorities below. Undisputedly, the assessee is maintaining four bank accounts wherein the Assessing Officer observed that amounts to the tune of ₹ 31,17,000/- were deposited during the period relevant to the assessment year 2008-09. Since, the Assessing Officer was not satisfied with the explanation fu .....

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0/- Total Rs.31,17,000/- 6. The contentions of the assessee is that aforesaid amounts were from the agriculture sale proceeds and loans and advances taken from friends and colleagues for purchase of property. The details of loans and advances taken by assessee are as under: Name of Lender Amount Mode Deposited in Mr. D.S. Desai Rs.10,00,000/- Demand Draft State Bank of Hyderabad Mrs. Anita D. Pawar Rs.8,00,000/- Demand Draft Jayant Shikshan Prasarak Mandal (JSPM) Rs.5,00,000/- Crossed Account Pa .....

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₹ 10,00,000/- to Mr. Sunil D. Mohite by cheque drawn on HDFC Bank. However, the said transaction could not be materialized and the amount was received back through cheques which were deposited by the assessee in Axis Bank ₹ 50,000/- and Bank of Maharashtra ₹ 4,00,000/- on 19-11-2007 and ₹ 5,50,000/- on 24-12-2007. The assessee has further given the details of cash withdrawals amounting to ₹ 13,98,000/- during the period 16-10-2007 to 01-11-2007 and re-deposited cas .....

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furnished confirmation letters from all the creditors. All the creditors have supported the case of assessee. A perusal of the impugned order show that there is no discussion about the loans and advances taken by the assessee and the repayment of same. Therefore, it would not be fair to treat the entire deposits in various bank accounts of the assessee as unexplained. 8. However, we do not find any merit in the contentions of the assessee with regard to agricultural income. It is an undisputed f .....

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