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TMI Blog2015 (11) TMI 481X X X X Extracts X X X X X X X X Extracts X X X X ..... g income of Rs. 17,14,510/-. AO had AIR information regarding purchase of an immovable property for Rs. 70,75,000/- by the assessee. On verification of the records, AO found that the above investment was jointly made by assessee along with her husband Shri. L. Srinivas. AO was of the opinion that assessee's share in the investment came to Rs. 41,41,712/-. Source of this investment was explained by assessee as her own business income and gift of Rs. 39,01,712/- given by her mother-in-law through her husband. As per the assessee, her mother-in-law had sold agricultural land belonging to her which money was routed through her husband to her. AO verified the sale deed and found that her husband, Shri. L. Srinivas was also having a share in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the above additions assessee moved in appeal before the CIT (A). In so far as the first addition for the investment in immovable property, submission of the assessee was that out of the total investment of Rs. 82,72,593/- in the said property, what was borne by the assessee was only Rs. 16,12,593/- and the balance sum of Rs. 66,60,000/- was paid by her husband, L. Srinivas. Assessee also gave the details of the cheque numbers issued by L. Srinivas to the seller of the property. As per the assessee, the sum of Rs. 16,12,593/- contributed by her comprised of three payments of Rs. 9 lakhs, Rs. 3,78,645/- and Rs. 3,33,948/-. Deposits in Karnataka Bank account from where the cheques were issued, as per the assessee, came out of sale proceeds o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l sundry debtors were much less. Assessee also produced the work bills issued by it for the work done by it for BBMP. As per the assessee, therefore, treating the closing balance as income was neither justified nor correct. 07. CIT (A) after going through the submissions and arguments of the assessee held that in so far as the investment in immovable property was concerned, assessee could show through evidence that her husband had sufficient balance in his bank account for the sum of Rs. 66,60,000/- paid by him. Further according to the CIT (A) assessee could also show that source for the funds in her bank account with M/s. Karnataka Bank from where the cheques issued by her stood explained. He therefore deleted the addition of Rs. 41,41,7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y her. According to Ld. DR, sale deeds for sale of property to M/s. Vanitha Family Trust and sale of property to Shri. M. Jayagopal Gowda, which were produced by the assessee before the CIT (A) for explaining the source of deposits and cheques issued therefrom were never produced before the AO. CIT (A) had accepted the evidence furnished by the assessee and gave relief to her violating Rule 46A of IT Rules. In so far as deletion of addition for unexplained closing balance in UCO Bank was concerned, Ld. DR submitted that CIT (A) had given relief to the assessee without verifying whether the balances shown as due from BBMP in the books of account were correctly reconciled. 12. Opposing the above submissions of the Ld. DR, Ld. AR submitted th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Gowda, as evidence for source of L. Srinivas. No doubt it is true that AO had verified the assessment records relating to L. Srinivas. However, the AO has also given a specific finding that source of funds available with L. Srinivas was used for addition to fixed assets. We are of the opinion that the issue requires a fresh look by the AO. Documents produced by the assessee before the CIT (A) appears have been not readily available with the AO. In so far as unexplained deposit in Karnataka Bank is concerned, assessee's argument is that it came out of the sale of a property acquired by her in 2007. In the submission made by the assessee before the CIT (A), assessee itself had requested the CIT (A) to call for a remand report from the AO w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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