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2015 (11) TMI 1201 - ITAT KOLKATA

2015 (11) TMI 1201 - ITAT KOLKATA - TMI - Unexplained investment - Held that:- As now the Ld. AR has produced the statement of the FD A/c for our consideration and request to delete the addition confirmed by the A.O. Therefore, in the interest of justice and fair play, we are inclined to give one more opportunity to the assessee for justification of the source of investment in KVPs to the AO. We also disregard the contention of the assessee to limit the finding of investment in KVPs to extent of .....

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e time the AO treats the entire cash deposit as income without considering any further expenses whatsoever. Here we are of the view that the business receipt can be treated income only after deducting the relevant expenses in relation to business receipt. Besides it is important to note that all the cash was deposited in the business bank of the assessee and the same was duly disclosed in the balance sheet. On this basis we are inclined to apply the effective rate of income on the undisclosed re .....

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in the bank. It was also found that the same bank account was also not disclosed in the income of return. Therefore, in the absence of any documentary evidence from the side of assessee we are of the view that the addition made by AO and confirmed by Ld. CIT(A) has been correctly done. Therefore we do not interfere into the orders of Authorities below - Decided against assessee.

Disallowance of agricultural income - Held that:- A careful analysis of the Ld. AR submission clearly show .....

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re inclined to give one more opportunity to the assessee to justify his claim before the lower authorities. Hence, this ground of appeal is restored to the file of the AO for fresh adjudication as per law - Decided in favour of assessee for the statistical purpose. - ITA No.1123/Kol /2010 - Dated:- 7-10-2015 - Shri N.V.Vasudevan, Judicial Member and Shri Waseem Ahmed, Accountant Member For The Assessee : Shri S.Chatterjee, CA For The Respondent : Shri Pinaki Mukherjee, JCIT, SR-DR ORDER PER Wase .....

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se, Ld. CIT(A) having admitted that assessee s recurring deposit A/.c Bi, 410299 with Tentulia, Sub-Post Office showed maturity proceed of ₹ 81,115/- on 31.07.2004 is wrong in holding that purchase of K.V.P. of ₹ 80,000/- from the same Post Office out of such maturity proceed does not amount to cogent evidence. (b) That the appellant now claims that K.V.P. of ₹ 35,000/- was purchased from Tentulia, sub-Post Office in May 2004 out of maturity proceed of another recurring deposit .....

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sh Sales as represented by cash deposits in OD A/c No. 32 are not included in disclosed turnover, Ld. CIT(A) is wrong and unjustified in confirming the total deposit of ₹ 19,58,770/- as undisclosed income instead of the profit element embedded in the such undisclosed sales. 3. That on the facts and in the circumstances of the case, and keeping in view similar logic as stated in ground No. 2 (c) Ld. CIT(A) is wrong in confirming addition of ₹ 2,98,520/- as deposits in C.C A/c No. 345 .....

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way of making an addition of ₹ 1,15,000/- on account of unexplained investment. 3. Briefly stated facts are that assessee is an individual and dealing in the business of broiler meat. During the year assessee has availed overdraft facility from Swarupngar Branch of Allahabad Bank by pledging the KVP. On examination of the details of KVPs, it was found that the 12 Nos. of KVPs valued at ₹ 115000.00 were purchased during the financial year 2004-05 but this transaction was not recorded .....

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f KVPs worth of ₹ 1,15,000/- were explained in the following manner : 1) ₹ 25,000/- was received on money back policy from LIC on dated 21-4-2004 in the saving bank account maintained with UBI. 2) Rs.10,000/- on cash available with the assessee. 3) Rs.80,000/- was out of the maturity recurring deposit with Post Office. The CIT(A) sought the remand report from the AO on the above said source of investment and the AO has submitted in his remand report that the assessee did not produce .....

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epresentative appearing on behalf of assessee and Mr. Pinaki Mukherjee, Ld. Departmental Representative appearing on behalf of Revenue. 6. We have heard the rival parties and perused the material available on record. Ld. AR has submitted a paper book running from page nos. 1 to 41. Before us the Ld. AR of assessee submitted the pass-book issued by post office in support of recurring deposit account no. 410299 wherein withdrawal of ₹ 81,115/- was clearly recorded on dated 31-07- 2004. Out o .....

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. 410273 is placed at pages 26 to 35 of the paper book.In respect of this additional FD account no. 410273 the Ld. AR submitted that this FD statement amounts to additional evidence not submitted before authorities below so the Hon ble Tribunal may confine the findings only in respect of disputed addition of ₹ 80,000/-. The Ld. DR supported the orders of lower authorities. A careful analysis reveals that the AO and Ld. CIT(A) rejected the claim of the assessee for the want of source of inv .....

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ng of investment in KVPs to extent of ₹ 80,000/-. In our opinion, the assessee should not be deprived from the benefit given in the law and should not unnecessary be penalized. Hence we restore this ground of appeal to the AO to adjudicate afresh as per law. The ground of appeal of the assessee is allowed for the statistical purpose. 7. Coming to assessee s second issue is that the CIT(A) has erred in confirming the order of AO by treating the deposit of ₹ 19,58,770/- as income from .....

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ted that assessee is holding a joint account with his daughter. But assessee could not produce the supporting documents in support of his claim and the documents produced before AO were not relevant. Therefore, AO disallowed the claim of assessee and added to the income of assessee a sum of ₹ 19,58,770/-. Aggrieved, assessee preferred appeal before Ld. CIT(A). 8. Before Ld. CIT(A), assessee pleaded that an amount of ₹ 19,58,770/- deposited in his bank account shows the turnover of th .....

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is against the principal natural justice. The bank account where cash was deposited was a bank current account and used only for the business purpose. This account was duly reflected in the balance sheet of the assessee. So all the transactions should be treated business transactions. The Ld. AR prayed to tax the business receipt by applying GP ratio. The assessee also suggested some alternate method for applying the tax on the receipt of money in bank which was presented in the form of cash flo .....

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ily failed to establish his claim. However for the sake of more clarity we are reproducing the relevant portion of AO order from page no. 4 middle para as under : the credit in his OD a/c No. 32 to the tune of ₹ 19,58,770/-, as claimed by the assessee to be the business receipt of his daughter Smt Rama Sarkar and submitted through his letter on 16.11.2007, is considered to be nothing but his own business receipt in the guise of Rama Broiler Traders for the year under consideration. Hence, .....

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business receipt. Besides it is important to note that all the cash was deposited in the business bank of the assessee and the same was duly disclosed in the balance sheet. On this basis we are inclined to apply the effective rate of income on the undisclosed receipts of the assessee. Hence we allow this ground of appeal to the file of AO with the direction to adjudicate this ground afresh as per law. Hence this ground of appeal is allowed for statistical purpose. 11. Next ground of assessee s .....

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IT(A) who has upheld the order of AO. Now, assessee preferred second appeal before the Tribunal. 12. Before us Ld. AR of assessee prayed not to treat the entire sum of ₹ 2,98,520/- to the income of assessee and offered to apply the gross profit rate on the sum deposited with the banks. However, the assessee could not explain the source of money deposited in the bank. It was also found that the same bank account was also not disclosed in the income of return. Therefore, in the absence of an .....

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