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2015 (10) TMI 2007 - ITAT DELHI

2015 (10) TMI 2007 - ITAT DELHI - TMI - Addition as peak deposit - Held that:- During the assessment proceedings enquiries were made from the bank and it was found that the introduction to the said account had been made by Smt. Prem Kumari wife of the assessee and the withdrawals and the deposits have been made by Shri Kapoor Singh and his sons Vikas and Rajiv from time to time. The Bank Manager has given in writing that accounts statement shows that most of the payments have been made to Shri K .....

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e Assessment Year 2000-2001 and 2002- 2003. - Decided against assessee.

Addition on “Kanyadan” given - piece of evidence found and seized during search that the appellant has made noting of its undisclosed income on this paper - Held that:- The assessee stated before the Investigation Officer that these entries pertain to some “Kanyadan” given by him. But during the statement at the time of search the assessee clearly stated that the expenses incurred for the marriage of his daughter .....

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eceived by it per account payee cheques. The Assessing Officer as well as the CIT(A) has not given any reasons or justification as to how the figures mentioned in the loose paper pertains to denomination of thousand. Thus, no case for addition on this account is made out by the Revenue. - Decided against revenue. - I.T.A. No.-5044/Del/2011, I.T.A. No.-5045/Del/2011, I.T.A. No.-5046/Del/2011, I.T.A. No.-5047/Del/2011 - Dated:- 15-9-2015 - SHRI S.V. MEHROTRA, ACCOUNTANT MEMBER AND MS. SUCHITRA KAM .....

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as peak deposit on 3.1.2000 as per entries in the pass book seized from residence of the appellant pertaining to A/c No. 16860 of Shri Sube Singh treating it as be-nami A/c of the appellant without there being any material for so treating. 2. That the Ld. CIT(A) has erred in law in upholding the action of charging the interest u/s 234A, 234B, 234C. The grounds of appeal for A.Y. 2002-03 are as follows: 1. That the Ld. CIT(A) in the facts & circumstances of the case has erred in law is confir .....

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the addition of ₹ 297000/- on the basis of some figures recorded without any narration on a paper found in the course of search without any material to treat it as income. 2. That the Ld. CIT(A) has erred in law in upholding the action of charging the interest u/s 234A, 234B, 234C. The grounds of appeal for A.Y. 2004-05 are as follows: 1. That the Ld. CIT(A) has erred in law in confirming the addition of ₹ 118000/- on the basis of some figures recorded without any narration on a pap .....

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A/143(3) of the Income Tax Act, 1961 vide order dated 9.12.2006. The CIT(A) dismissed the appeals of the assessee for non-prosecution on 22.08.2008 which were restored by the ITAT, Delhi Benches vide order dated 31.07.2009. The CIT(A) vide order dated 16.03.2010 disposed of the said appeals by granting certain reliefs. Against the said order, the assessee approached ITAT, Delhi and the ITAT restored the appeals to CIT(A) for re-adjudication vide order dated 25.06.2010. The CIT(A) dismissed the a .....

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account in OBC, Ch. Dadri pertaining to his salary deposits. The assessee at the time of search stated that neither he nor his family members have any connection with the said bank account No. 16860. The assesses also stated that he or his sons has never taken any gift or loan from the said Mr. Sube Singh. The assessee was confronted during the search that there were withdrawals in his and his sons names from the said account but he stated that he could not explain the same and only his advocat .....

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from which the assessee and his two sons have taken some amounts as loan for investment in properties which were subsequently repaid to Sh. Sube Singh on demand by disposing the properties so acquired. 6. As relates to Ground No. 1 of the assessee s appeal for A.Y. 2000-2001 and A.Y. 2002-2003, the assessee is aggrieved by the finding of the CIT(A) more specifically mentioned in Para 5.6 and 5.7. The CIT(A) held that the assessee could not produce evidence regarding the repayment of alleged loan .....

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ee was that the funds in the bank account belong to Shri Sube Singh from which the assessee and his two sons have taken some amounts as loan for investment in properties which were subsequently repaid to Shri Sube Singh on demand by disposing the property so acquired. The details of cheques issued to the assessee and his two sons from the bank account of Shri Sube Singh was furnished by assessee before CIT(A) as well as the investment made there from which are reproduced hereunder:- Sh. Kapoor S .....

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; 304000/ ₹ 4235000/ 16,88,750/ 7. The CIT(A) held that the assessee could not produce any evidence regarding the repayment of alleged loans to Shri Sube Singh. The contention of the assessee that the funds belonged to Shri Sube Singh was rejected by the CIT(A). During the assessment proceedings the assessee changed the version that he and his sons have taken loans from Shri Sube Singh. 8. The AR submitted that the assessee has clearly stated that there was no gift given by Shri Sube Singh .....

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gned by the account holder/photo copy of account statement attached. In Shri Sube Singh s letter dated 26/12/2007 it was mentioned that the amount deposited in bank was his personal amount. There was assessment order in case of Shri Sube Singh which was dropped because the same was time barred. The AR further submitted that there was no record before the Assessing Officer that the account belongs to the assessee and therefore, the amount shown in that account cannot be held as income of the asse .....

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d person and was living far away from Bank as well as assessee s residence, therefore kept the Pass Book with the assessee. The AR submitted that there is nothing shown in the bank information that the amount pertains to the assessee and thus the cause of action should have been taken against Shri Sube Singh and not against assesses. The cheques were withdrawn by the said Shri Sube Singh and not by the assessee. The assessing officer should have been vigilant to start assessment proceedings agai .....

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ction, such pass book cannot be regarded as books of the assessee. (CIT vs. Bhai Chand H Gandhi, Bombay (1983) 141 ITR 67). The second case referred was on the issue of peak credit in the bank account cannot be treated as undisclosed income of the assessee (CIT vs. Ranjeet Kumar Sethia (2005) 198 CTR 550 (Raj.)). The third case law submitted was ACIT vs. Ashok Kumar Chhugani (2006) 104 TTJ (Jod.) 134 wherein it was stated that deposit in the bank account of the assessee s relative could not be t .....

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d that the Assessment order and the CIT(A) s order are just and proper. The DR also relied upon the Bank information given at the time of the hearing before the ITAT wherein it was stated that account statement shows that most of the payments were made/take by Kapoor Singh and his sons. The DR further submitted that there were deposits in bank account which were withdrawn in the name of assessee and his two sons. The assessee has not revealed at any stage that these are loans taken by him for pu .....

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assessee. 10. We have gone through the records and proceedings as well as heard the submissions made by both the sides. It is pertinent to note that the bank pass book was found in the custody of assessee. The assessee at no point of time stated that he has not received the amounts from Shri Sube Singh. It can be seen from the entries in the bank account that Shri Sube Singh has issued various cheques to the assessee as well to the assessee s sons and this fact has not been denied by the assess .....

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amount from the said Shri Sube Singh. The proceedings against Shri Sube Singh was time barred and though the assessee s sons were assessed separately, there was no addition made in their income. The fact that the pass book was found in the custody of the assessee and from the above discussion it can be found that the bank a/c of Sh. Sube Singh was operated by assessee and on regular basis as Shri Sube Singh was not staying nearby either to the Bank or to the residence of the assessee which shows .....

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neither has he challenged/controverted the AO s finding to the statement of the Bank Manager given in writing that most of the payments have been made/taken by Shri Kapoor Singh and his sons. The assessee has also not disputed the AO s noting that the account was closed on 5/3/2005 that is immediately after the search on 4/3/2005. This shows that the account was fully operated by the assessee. The copy of the details of the said bank account from 18/11/1999 to 13/07/2004 has been submitted befo .....

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osits have been made by Shri Kapoor Singh and his sons Vikas and Rajiv from time to time. The Bank Manager has given in writing that accounts statement shows that most of the payments have been made to Shri Kapoor Singh and his sons. Thus Section 132 (4A) of the Act is very much attracted in the present case as the pass book was in the custody of the assessee and not that of in the custody of assessee s sons. Thus, it is clearly established that the account of Shri Sube Singh was operated by the .....

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k pass book was not maintained by the assessee or under his instruction, such pass book cannot be regarded as books of the assessee. But in the present case the Bank Pass Book was found in the custody of the assessee and the facts narrated hereinabove and before the AO as well as CIT(A) reveals that the Bank Account of Shri Sube Singh was operated by the assessee. Thus, this case law will not be applicable. As regards the case of Ranjeet Kumar Sethia (Supra) is concerned the issue of the peak cr .....

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or A.Y. 2000-2001 and 2002-2003 is dismissed. 14. Coming to the Ground No. 1 for the A. Y. 2003-2004 and 2004-2005, the factual matrix is that during the search, a paper was found which contained some figures as under:- 1. 70 dated 29.01.2003 2. 71 dated 07.02.2003 3. 50 dated 20.02.2003 4. 50 dated 15.03.2003 2-41 1. 50 dated 20.06.2003 2. 50 dated 25.06.2003 3. 55965 56 dated 26.03.2003 4. 18000 dated 07.07.2003 1-74 The assessee stated before the ADIT (Inv) that these entries pertain to some .....

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o what transactions are represented by these amounts written in codes. The CIT(A) further held that it clearly established that the appellant has no explanation for the same. It is a piece of evidence found and seized during search that the appellant has made noting of its undisclosed income on this paper. Thus CIT(A) allowed the additions made by the AO. 16. The AR submitted that the paper found during the search was not supplied to assessee and the same is dumb document and does not show any s .....

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2004) 91 TTJ (Mumbai) 348 wherein it was held that it is well settled law that vague noting on loose paper found in the course of search proceedings contained some entries showing no business connection and having no heading whether the amount were receipts or payments or in lakhs or in thousands, making of addition in the hands of the assessee not justified. 17. The DR submitted that these papers at any stage were not denied by the assessee. There was no explanation about the name which was men .....

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