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2015 (8) TMI 320 - ITAT DELHI

2015 (8) TMI 320 - ITAT DELHI - TMI - Unexplained cash deposits - CIT(A) deleted the addition - Held that:- On perusal of the assessee's ICICI Bank statement of the relevant period reveals that he has made all payments to the contractor by account payee cheques by utilizing the funds deposited in his account by his brother. Thus, there is a complete and clear nexus between the payments made by the assessee to the contractor on the one hand; and the payments received by the assessee from his brot .....

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the funds were needed for a genuine purpose, so according to him it cannot be reasonably questioned.

We find that Ld. CTI(A) relied on the ratio of cases Anand Ram Raitani Vs.CIT (1996 (8) TMI 95 - GAUHATI High Court) and CIT, Poona Vs. Bhai Chand H. Gandhi (Born) [1982 (2) TMI 28 - BOMBAY High Court] for concluding that since books of accounts are not maintained by the assessee, there is no legal scope to invoke provisions of Section 68 and as such, addition made on such premise was .....

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enue is directed against the Order dated 18.4.2012 passed by the Ld. CIT(A)-XXX, New Delhi pertaining to assessment year 2009-10. 2. The Revenue has raised the following grounds in its Appeal:- On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in; Deleting the addition of ₹ 21,52,800/- on account of unexplained cash deposits by holding that the same represents the cash received by the assessee from his brother for plying of trucks owned by the assessee .....

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g to ₹ 21,52,800/- with his ICICI Bank Ltd., ICICI Bank Towers, CIBD, Level-1, West Wing, 1-11-25, Street No.1, Begumpet, Hyderabad 50016. During the assessment proceedings, the assessee was asked to furnish details and sources of all cash deposits. The AO takes note that in the income-tax return for the assessment year 2009-10, the assessee has not declared any income from any transport business, so the assessee was asked to explain cash amounting to ₹ 21,52,8001- deposited in his a .....

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order dated 29.11.2011 passed u/s. 144 of the Act. 4. Against the aforesaid order of the Assessing Officer, assessee appealed before the Ld. CIT(A), who vide his order dated 29.11.2011 has partly allowed the appeal of the assessee and deleted the addition of ₹ 21,52,800/-. 5. Aggrieved by the order of the Ld. CIT(A), now the Revenue is in appeal before the Tribunal. 6. Ld. DR relied upon the order of the AO and reiterated the contention raised in the grounds of appeal raised by the Revenu .....

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r any income from a truck. Vide show cause notice dated 14.10.2011, the assessee was asked to explain cash amounting to ₹ 21,52,800/- deposited with his bank account maintained with ICICI Bank Ltd, Hyderabad with supporting documentary evidences and also to show cause as to the unexplained portion of cash deposits, could not be treated as unexplained cash credit u/s.68 of the Act. However the assessee did not care to adduce any evidence to substantiated his claim to explain the source of h .....

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ontrary, Ld. Counsel of the assessee has relied upon the order of the Ld. CIT(A) and defended that the same and does not want us to interfere in the same. 8. We have heard both the parties and perused the records. Before the Ld. CIT((A) assessee has conceded that the addition of ₹ 21,52,800/- was made by the AO on account of unexplained cash credit u/s 68 of the Act, because he could not furnish the documents before the AO despite receipt of notice from him (AO). We take note that the asse .....

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nd time for managing, his own trucks. Moreover, during the relevant period, he was posted at Hyderabad. In view of these circumstances, he entrusted his elder brother Shri Hari Om Singhal, who also is in transport business, with the management of his trucks. This arrangement continued during the assessment year 2009-10, which is under consideration before us. 8.1 He has further submitted that he owns a plot measuring 450 sq. meters at KWC Kalamboli, Navi Mumbai. With a view to augment his income .....

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his trucks are operated by Shri Hari Om Singhal, his elder brother, the assessee requested him to help him out by providing him the required funds out of his truck receipts, and since the profit from his trucks was very low, he promised that he will repay the amount out of the rental income of the godown (after the godown was constructed, and once the godown starts getting rent). Since the assessee's financial hardships were known to his brother, and as the elder brother, he wanted to lend .....

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in cash, as the parties are often unknown, and the operator has to defray heavy cash expenses towards costs of diesel, toll tax, truck maintenance expenses and other cash expenses of drivers, cleaners etc. in transit. Also, the net margin of the truck owner is very small. It was submitted before the Ld CIT(A) that precisely due to this peculiarity of truck business, the provisions of section 44AE of the Act have been enacted to provide for computation of truck income on a presumptive basis (@ 3, .....

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tration Certificate (RC) of his trucks, Insurance premium receipts, national permits etc. of these trucks in order to further corroborate his submissions. 8.5 We find that the Ld. CIT(A) has carefully analyzed the assessee's submissions and also carefully examined the AO's comments in his remand report dated 6/3/2012. We find that before the Ld CIT(A) the assessee could justify his absence before the AO during assessment proceeding which resulted in best judgment assessment U/s 144 of th .....

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