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Shri Lalit Gupta Versus DCIT, Central Circle-1 (3) , Ahmedabad

2015 (9) TMI 1007 - ITAT AHMEDABAD

Addition on account of unexplained cash deposits in bank account - Held that:- AR has placed on record copy of the bank statement of account maintained with State Bank of India and Oriental Bank of Commerce and from he has also worked out the date-wise working of the peak credit of the cash deposited in his bank accounts. We also find that while deciding the appeal of the assessee for AY 2006-07, Ld CIT(A) has in principle partially accepted the addition based on the peak theory as he has direct .....

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come but the addition be made only to the extent of peak credit. We therefore restore the issue to the file of AO to restrict the addition on the basis of peak credit. - Decided in favour of assessee for statistical purposes.

Addition of jewellery - Held that:- We find that Ld CIT(A) after considering the entire facts and the CBDT circular (supra) and by a well reasoned order had granted substantial relief to the assessee. Before us, ld. A.R. has not controverted the findings of ld. C .....

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he hands of his mother has not been explained by the appellant. Similarly, the appellant has not given the details of withdrawals from his salary. Rather the appellant has tried to improve the cash deposits in his bank account out of the cash withdrawals. Therefore, no hesitation in holding that the appellant has failed to prove the acquisition of cash found from his residence. The addition made on this account is therefore, upheld. - Decided against assessee - I.T(SS) A. No. 214 to 220/AHD/2012 .....

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he appeals are identical except for the amount and the assessment years and that in AY 2009-10 in addition to the ground which is common in all the years, there are 2 other grounds and that the ld. CIT(A) has also passed a common order for all the years and he has common submission to make and therefore all the appeals can be disposed of together. Ld DR did not object to the aforesaid submission of Ld AR and therefore we proceed to dispose of all the appeals together for the sake of convenience .....

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7; 6,46,500/- Aggrieved by the order of AO, the matter was carried before CIT(A) who vide order dated 31.01.2012 granted partial relief to the assessee. Aggrieved by the order of CIT(A), Assessee is now in appeal before us and has raised the following ground:- 1. On the facts and in the circumstances of the case, the ld. CIT(A) has erred in confirming addition of ₹ 3,61,500/- on account of unexplained cash deposit in bank account, when no such addition is called for. The same may be delete .....

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proceeds of house etc. The submission of the assessee was not found acceptable to the AO because according to AO no evidence of the source was furnished by the Assessee. He accordingly treated the cash deposits as unexplained and made addition of ₹ 6,06,500/-. Aggrieved by the order of AO, the matter was carried before CIT(A) who decided the issue by holding as under:- 4.1 I have considered the submissions of the appellant. It may be mentioned that at the time of assessment proceedings th .....

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the appellant was sick. Therefore, for her medical expenses and treatment the appellant was keeping cash to the tune of ₹ 3.50 lakhs to ₹ 4 lakhs for meeting any emergency medical need. After the death of his mother, cash of ₹ 3.40 lakhs was stated to have been received in 2006. Cash of ₹ 5.95 lakhs was stated to have been received on account of the sale of a flat belonging to his father s HUF and the sale of household items at Rohtak. Further it was stated that the appel .....

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351 and 352 for ₹ 2.45 lakhs was produced. The appellant tried .to prove that on 24/6/2002 the cash deposit of ₹ 2.45 lakhs in SBI represents the sale proceed of ₹ 2.45 lakhs received by the appellant on account of sale of his flat at Rohtak. Prima-facie the explanation of the appellant regarding the deposit of cash of ₹ 2.45 lakhs on 24/6/2002 appears to be correct. On the perusal of the sale deed, it is seen that the sale deed is executed on 10/6/2002 and the cash of &# .....

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at during the Asst. Year 2003-04 the appellant has sold household items for ₹ 3.,40 lakhs is not again acceptable to me in the absence of any supporting evidence. Similarly, the contention of the appellant that during the A.Y. 2007-08 the appellant received ₹ 3.40 lakhs after the death of his mother is again not acceptable in the absence of any supporting evidence. The appellant has not given the source of cash of ₹ 3.40 lakhs with his mother. Rather the appellant has accepted .....

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tems. In the absence of any evidence in support of the contention of the appellant, I hold that only the amount of ₹ 2.45,000/- is explained and all other cash deposits are unexplained. The AR has taken a plea that during the assessment year 2006-07 cash of ₹ 3,50,000/- has been withdrawn from the bank and the source of the deposit of ₹ 3,37,000/- in A.Y. 2007-08 is out of these cash withdrawals. The appellant has not given the details of date-wise deposits and withdrawals in t .....

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ent of such deposits, the addition made by the AO would be directed to be deleted, otherwise the additions made would stand confirmed. Subject to this direction the additions made on account of cash deposits in the bank account stand confirmed for A.Y. 2004-05 to A.Y. 2009-10. 5. Aggrieved by the order of ld. CIT(A), Assessee is now in appeal before us. Before us Ld AR reiterated the submissions made before AO and ld. CIT(A) and further tried to explain the cash deposited in the banks in the for .....

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ther submitted that the additions of peak amount has also been accepted by the ld. CIT(A) and for which he pointed to the relevant finding of ld. CIT(A) for AY 2006-07 at page 15 of his order. He therefore submitted that the addition be deleted or at the most be restricted to the peak amount The Ld DR on the other hand supported the order of AO. 6. We have heard the rival submissions and perused the material on record. The issue in the present ground is with respect to additions of unexplained c .....

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principle partially accepted the addition based on the peak theory as he has directed the AO to accept the amounts which are re-deposited within 15 days of withdrawal. We also find that the decision of the CIT(A) for AY 2006-07 has been accepted by the Department and has not preferred appeal before the Tribunal though the facts of that year are similar to that of other years. Before us, Revenue has not controverted the working of peak credit furnished by the ld. A.R. In such a situation, we are .....

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milar reasons given while deciding issue for A.Y. 03-04, the ground with respect to cash deposits in A.Y. 04-05 to A.Y. 09-10 are also restored to AO. Thus the appeal of Assessee for A.Y. 03-04 to 2008-09 are allowed for statistical purposes. Now we take up AY 2009-10 (ITA(SS) No 220/Ahd/2012) 7. The grounds raised by Assessee reads as under:- 1. On the facts and in the circumstances of the case, the learned Commissioner of Income-tax (Appeals) has erred in confirming addition of ₹ 1,82,00 .....

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rming addition of ₹ 1,10,000/- on account of cash found, when no such addition is called for. The same may be deleted. 8. In the year under appeal apart from one ground with respect to cash deposits in bank, there are 2 additional grounds. Since the ground with respect to cash deposits in bank in the year under appeal is common and is identical to that of other assessment years, and which has already been adjudicated by us hereinabove, we now take up remaining 2 grounds. 2nd ground is with .....

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sessee by holding as under:- 6. I have considered the submissions of the appellant. As contended by the AR that the appellant is staying with his wife Charu and son Garv. As per the Instructions No. 1916 of CBDT the credit of 500 gms. of jewellery should be allowed to a married lady and 100 gms. each in respect of male members in the family. Accordingly, 700 gms. of gold jewellery i.e. 500 gms. belonging to the wife of the appellant and 100 gms. each in respect of appellant and his son gets expl .....

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ker No. 117 with Union Bank of India, Bodakdev Branch represent 500 gms. given to the wife of the appellant by her mother in law and father in law and the remaining 250 gms. jewellery was received by her from her parents at the time of marriage. This fact was also stated by Smt. Charuben L Gupta at the time of operation of locker on 4/11/2008 in which she stated that the locker No.117 with Union Bank of India was originally in joint names of herself and her mother in law. After the death of her .....

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age. Further approximately 400 gms. of jewellery kept in locker has been received by her at the time of marriage, on the birth day of children, etc, from his in laws and from his mother as gift. He also stated that some gold has been left by her mother for which no details were available with him at the time of search. In other words, according to the appellant and his wife total 750 gms. of jewellery represent 250 gms. jewellery approximately given-by the parents of his wife and 500 gms. by his .....

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e rate of 1143.61) valuing at ₹ 1,86,981/- remains unexplained. The AO is therefore, directed to reduce the addition on account of unexplained jewellery to ₹ 1,86,981/- against ₹ 10,44,692/-. 10. Aggrieved by the order of ld. CIT(A), Assessee is now in appeal before us. Before us, Id AR reiterated the submissions made before AO and ld. CIT(A) and further submitted that in view of the CBDT instruction no 1916 dated 11.5.1994 since the 1113.50 gms of jewellery found was less than .....

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not controverted the findings of ld. CIT(A) nor pointed any fallacy in the findings of ld. CIT(A) and therefore we find no reason to interfere with the order of ld. CIT(A) and thus dismiss the ground of Assessee. 3rd ground is with respect to unexplained cash found at the time of search. 12. During the course of search, cash of ₹ 1,17,000/- was found of which cash of ₹ 7000 was treated as explained and the balance cash of ₹ 1,11,000/- was considered as unexplained and added to .....

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