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Shri. Abhay Ashwinkumar Jain, Smt. Lalitaben Ashwin-Kumar Jain Versus The Income Tax- Officer, Ward-2 (1) , Ahmedabad

2015 (10) TMI 2118 - ITAT AHMEDABAD

Addition on account of the share investment - It is the contention of the assessee is that if an opportunity is granted, the assessee would be able to satisfy the AO with regard to the source of the money - Held that:- After considering the totality of the facts and material placed before us, we are of the considered view that the assessee should be granted opportunity to prove the source of funds utilized for the purpose of making investments into the share transactions. To meet the ends of jus .....

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mmissioner of Income Tax(Appeals)-10, Ahmedabad [ CIT(A) in short] identically dated 10/02/2015 pertaining to Assessment Year (AY) 2006-07. Since common issues are involved in both these appeals, these were heard together and are being disposed of by this consolidated order for the sake of convenience. 2. First, we take up the Assessee s appeal in ITA No.772/Ahd/2015 for AY 2006-07 (in the case of Shri Abhay Ashwinkumar Jain). The Assessee has raised the following grounds of appeal:- 1. That the .....

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facts are that the case of the assessee was picked up for scrutiny assessment and the assessment u/s.143(3) of the Income Tax Act,1961 (hereinafter referred to as the Act ) was framed vide order dated 28/03/2014, thereby the Assessing Officer (AO in short) made an addition of ₹ 35,10,838/- on account of investment made in shares. Against the said assessment order, the assessee preferred an appeal before the ld.CIT(A), who after considering the submissions dismissed the appeal. Aggrieved by .....

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that the assessee has nothing to do with the share investment. In fact, the account of the assessee was used by the father of the assessee. 3.1. On the contrary, ld.Sr.DR opposed the submissions made by the ld.counsel for the assessee and submitted that the assessee was given sufficient opportunity. 4. We have heard the rival submissions, perused the material available on record and gone through the orders of the authorities below. The assessee has made written submissions which are reproduced h .....

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ants would like to submit the following submission:- Ground No 1: Addition on account of Unexplained Investment in shares though Public Issue (1) The payment for the share applications have been made from the Joint Bank Accounts of the Appellants with Nutan Nagrik Sahakari Bank Limited-A/c.No.3260 (hereinafter referred as Nutan Bank) and Bank of Rajasthan Limited- A/c.No.0570301029751 (Now Known as ICICI Bank) (Refer Page No.16 to 21 of the paper book)) (2) Further, the details of the deposits i .....

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(4) It is further submitted that the shares applied in the name of the appellants have been credited in the respective Demat Accounts (ID 10029352 of Abhay and ID of 10029336 Smt. Lalita with Nutan Bank) and from where on sales, these shares have been transferred to the brokers Accounts's Demat of A.C. Jain & Co (Refer pg 27-35 of the Paper Book) (5) With regard to the observation of the Id.CIT(A) in para 6.2, our point wise submission is as under:; A. In case of Smt. Lalita A Jain (i) ( .....

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extent of funding for the share application. Without prejudice to same, the relationship with the said concern is not relevant ,when the sources of fund is from the appellants Joint bank accounts stated in above Para 1, itself and therefore further, there is no question of payment of interest also for the same. (iii) The complete details of receipt and payments in the Joint Bank account with Nutan Bank, have been submitted.(Refer Page No.22 to 25 of our paper Book).Proof of having applied for sh .....

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by the drawer and therefore the said carbon copy does not bear the signature. These carbon copy of the cheques bear Pre-Printed cheque number and said cheque number are reflected in the bank statement. (v) It is true that Copy of the Bank Statement of account with Bank of Rajasthan Limited (Now known as ICICI bank) bears the name of A C Jain & Co. (vi) It is true that sales invoices for selling the shares and Broker Ledger account are in the name of A C Jain & Co (bearing PAN Number ABD .....

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gard to Point No. (i),(ii),(iv) to (vi)-please refer Submission stated in para 4(i),(ii),(v),(vi) and (vii) respectively, in the case of Lalita A Jain. (ii) Point No.(iii )- The Account Number 3260 with Nutan Bank does not bears the name of the Appellant (Abhay) and only one page of bank statement shows account no.1540/3260 bears the name of the bank Account. It is submitted that the said both said accounts are same and it is clear from the amount of balance as on 6/1/2006 of ₹ 17,77,766.4 .....

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sfy the AO with regard to the source of the money. After considering the totality of the facts and material placed before us, we are of the considered view that the assessee should be granted opportunity to prove the source of funds utilized for the purpose of making investments into the share transactions. To meet the ends of justice, we restore this issue back to the file of AO decision afresh. The assessee is hereby directed to co-operate with the AO during assessment proceedings and furnish .....

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