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2016 (1) TMI 112 - ITAT DELHI

2016 (1) TMI 112 - ITAT DELHI - TMI - Unexplained credit entries - Undisclosed income - CIT(A) deleted the addition - Held that:- AO has added the unexplained credit entries with the Dena Bank to the tune of ₹ 88,94,266/- as addition to the total income of the assessee. The first appellate authority has observed that AO’s inference regarding the assessee filing fabricated bank statement is correct. On merits, the AO took note that all the credits from 25.08.2004 to 07.03.2005 are through c .....

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8377; 49,226/-.

In respect to the credit of ₹ 50,50,000/-, we find that the CIT (A) has called for the remand report which has been reproduced (supra in para 5.6 of the CIT (A)’s order) wherein, the AO had stated that the said Smt. Padma Bhandari has passed away on 18.04.2008 and the legal heirs of the assessee are not aware of this particular specific information. The AO’s suspicion is only based on the fact that on the day the lady has given cheques to the assessee, similar am .....

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e, just because confirmation was not given in respect to lending of this amount which has been repaid during the year, cannot be said to be undisclosed income of the assessee and, therefore, rightly deleted by the ld. CIT (A) which does not require any interference from our side. - Decided in favour of assessee

Addition on account of undisclosed credit entry from saving bank account of Dena Bank - CIT(A) deleted the addition - Held that:- AO has not made any adverse observation agains .....

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(A) - Decided in favour of assessee

Addition being credit entry in the name of Shri S.S.H. Naqwi and Shri Sheel Mehta - CIT(A) deleted the addition - Held that:- CIT (A) has found that the said amount has been an interest free loan by Shri S.S.H. Naqwi to the assessee and the said amount borrowed has been repaid by the assessee also during the year under consideration, therefore, the transactions are genuine and so he directed to delete the same. Likewise, in the case of Shri Sheel .....

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ad expressed his satisfaction about the repayment of the said advance taken from Shri Sheel Mehta. In the light of the said facts, the CIT (A) has held that the transactions of both the persons were genuine and, therefore, the amount which was credited in assessee’s account cannot be termed as income from undisclosed sources and therefore, rightly deleted the said addition. Accordingly, we confirm the action of the ld. CIT (A) - Decided against revenue

Addition of an amount credited t .....

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the assessee, so the addition was made. We have heard both the parties and we find that this issue of gift, which is being contended by the assessee, as obtained as a gift to grand-daughters from grand-parents, who in turn has transferred the same to the father (assessee) needs to be de novo considered by the AO. Therefore, we set aside the order of the CIT (A) on this issue and remand the matter back to the file of the AO for de novo consideration of this issue. - Decided in favour of assessee .....

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sales and mode of receipt as claimed by the assessee and so he held that there was no justification to hold that the said entries in the account are unexplained and he believed that by the said transaction, an amount of ₹ 20 lakhs of cash was deposited in assessee’s account. Ld. DR could not furnish any material before us to controvert the said finding of the ld. CIT (A). In the absence of any other material to contradict the said transactions made by the assessee, we are inclined to uphol .....

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rights of G-176, Hari Nagar was not accepted by the AO. The assessee brought before the notice of the first appellate authority that the assessee had received ₹ 2,50,000/- in assessment year 2006-07 which has been accepted by the AO in the assessment order passed u/s 143 (3) of the Act. The ld. CIT (A) taking note of the fact that when the AO has accepted the source of ₹ 2,50,000/- in the subsequent year as advance for the roof rights of the property at Jail Road, New Delhi and there .....

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BR> Incoming cash as explained in the cash flow statement - Held that:- CIT (A) of sustenance of ₹ 10 lacs, we find that he has given a relief of ₹ 26,77,000/- out of ₹ 36,77,000/- of peak credit added from bank accounts of Dena Bank, HSBC and PNB. However, we find that the ld. CIT (A) has accepted the claim of the assessee that he had received ₹ 20 lakhs from the sale of DG set and air-conditioners, ₹ 8 lakhs from sale of property and rent of ₹ 1,44,490/-, s .....

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, according to us, is also abysmal low figure when considering the assessee’s income, status and business which he undertakes. Therefore, the amount of ₹ 4,82,510/- would be a reasonable amount to be sustained - Decided in favour of assessee in part

Addition u/s 68 - Held that:- if the assessee has not made any entry in his cash book does not mean that the amount deposited in the bank account can be termed as unexplained income of the assessee. Since the matter is being set asid .....

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00/Del./2010, CO No.347/Del/2010 - Dated:- 14-8-2015 - SHRI J.S. REDDY, ACCOUNTANT MEMBER AND SHRI A.T. VARKEY, JUDICIAL MEMBER For The Assessee : Shri Salil Aggarwal and Shailesh Gupta, Advocates For The Revenue : Shri K.K. Jaiswal, Senior DR ORDER PER A.T. VARKEY, JUDICIAL MEMBER : These appeals filed by the revenue are directed against the order of the Commissioner of Income-tax (Appeals)-XXIV, New Delhi dated 26.05.2010 & 16.04.2010 for the assessment years 2005-06 & 2006-07 respecti .....

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k; 2. deleting the addition of ₹ 13,00,000/- on account of undisclosed credit entry with saving bank account of Dena Bank; 3. deleting the addition of ₹ 9,00,000/- being credit in the name of Shri S.S.H. Naqvi and ₹ 5.90 lacs being credit entry in the name of Sheel Mehta on account of undisclosed credit entry with savings bank account of Dena Bank; 4. deleting the addition of ₹ 12,42,000/- on account of addition of unexplained cash peak credit, ₹ 12,42,000/- cash de .....

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payee cheques from assessee s daughters. 2. That the Ld. CIT (A)-XXIV, New Delhi, erred on facts and in law in not accepting cash deposit of ₹ 10,00,000/- in Bank Account of the assessee from Cash available as per Cash Flow Statement being allegedly taken as marriage expenses incurred on assessee s daughter marriage purely on estimated basis over and above the amount of ₹ 1,94,765/- shown by assessee as actually spent on marriage expenses. 4. Brief facts of the case are as follows : .....

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erty at Rear portion of Ground Floor Flat of left side Building E - 23, Poorvi Marg, Vasant Vihar, New Delhi from Shri Raj Saraogi and Manu Saroagi, R/o E-5, IInd Floor, Maharani Bagh, New Delhi for consideration of ₹ 40 lakhs each and stamp duty of ₹ 3,20,000/- each was paid. The AO observed that the assessee had no details regarding particulars of payment made by him; and regarding the source to purchase these properties other than what the assessee informed about a home loan from .....

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the Dena Bank was ₹ 1,58,52,816/- whereas, in the bank statement submitted by the assessee, the total credits/deposits were of ₹ 37,10,872.12. A comparison of the two statements showed a substantial difference and accordingly, the AO issued a show cause notice vide letter dated 06.12.2007 to explain the difference in total deposit/credit in the said bank account during the financial year ( 01.04.2004 to 31.03.2005) as per the statement submitted by the assessee and obtained from the .....

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e had made cash deposits of ₹ 9,15,000/- (on different dates) in the HSBC saving bank account and the AO show-caused the assessee to explain the said cash deposits and as to why the same should not be added back to the income u/s 68 of the Act, but the said notice also remained uncomplied with. The AO also observed from the information of HSBC that the assessee and his wife, Ms/ Manjusha were maintaining Punjab National Bank loan account to which an amount of ₹ 27 lakhs and ₹ 2 .....

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2,42,000/- (as per cash flow statement given in AO s order) was found unexplained and added to the income of the assessee; (ii) Further, the AO added the unexplained credit entries with Dena Bank of ₹ 88,94,226/- and the details of the same were given vide a chart in his order; (iii) The AO also asked the assessee to submit source of cash deposit of ₹ 9,15,000/- on different intervals in HSBC account but the assessee had not filed any explanation in this regard and accordingly, made .....

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lakhs + ₹ 1,20,000); (v) The AO observed, during the course of assessment proceedings, that assessee had filed only cash receipt in respect of sale of property bearing No.CB-133, Ring Road, Narain, New Delhi for ₹ 8 lakhs from Shri Mangtu Ram Gujjar. The AO asked the assessee to furnish copy of sale deed vide questionnaire dated 16.11.2007 and assessee was also asked to produce confirmation from Shri Mangtu Ram for the purchase of the said property. The AO also issued summon u/s 131 .....

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rity. The CIT (A), after reproducing the order of the AO in his order, going through the written submissions filed by the assessee and the remand report of the AO, partly allowed the appeal as under :- Findings/ Decisions 5. The assessee moved application for admittance of additional evidence contending that the assessee was prevented by sufficient cause in not filing the same before the AO and the evidence go to the very root of the matter and have a direct and substantial bearing in determinin .....

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(Cal)], 2. the facts of CIT vs. Babu Lal Jain [1989) 176 ITR 411, 413(MP)], 3. ITO vs. Sahebjadi Devi 205 Taxation 184 (Cal ITAT) (2007), 4. Shahrukh Khan vs DCIT 2007 13 SOT 61 (Mumbai ITAT), 5. CIT vs Poddar Swadesh Udyog (P) Ltd 295 ITR 252, 6. Badri Krishnamurthy and ACIT 208 Taxation 64 (Delhi ITAT), 7. Smt. Prabhavati S. Shah v. CIT, [(1998) 231 ITR 1, 9 (BOM)]. 5.1 I have carefully considered the submissions made by the AR and the objections of the AO regarding admission of the additional .....

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as evident from the case records. For an appellate authority, it is implicit in coming to a proper conclusion. It is for this reason that though the rules require new evidence to be admitted only where there is reason for the assessee for not being able to present such evidence before the AO. Here, on the facts and circumstances, I am convinced that the appellant has genuine reasons for noncompliance. Further, it is considered not only fair but justified, where the appellate authority itself con .....

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se, additional evidence submitted by the assessee is admitted. 5.2 Later on the AO was also directed to make certain enquiries u/s 250(4) of the Act. The AO submitted the remand report vide letter dt. 08.02.2010, which is reproduced as under: "At the outset, I strongly object for the admission of additional evidence as the assessee had been granted several opportunities to explain the credit entries in the bank account No. 1546 of Dena Bank. The assessee never at any stage submitted that he .....

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ee loan of ₹ 7 Lacs from her bank account through transfer entry on 08.02.2005. On perusal of bank of said lady there was cash deposit of ₹ 10 Lacs on 02.02.2005 and ₹ 2 Lacs on 08.02.2005 for which no satisfactory explanation tendered. 3. S.S.H. NAQWI Only the confirmed copy of account in the books of assessee was filed, no bank statement has been filed. Sh. S.S.H. Naqwi has stated that the transaction amounting to ₹ 10,51,000/- carried with Sh. Sukhnandan Premi were tot .....

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ty No. B- 2, LSC, DDA Market, 1st Floor, Ring Road, Naraina Vihar, New Delhi belonging to S. N. Premi. The tenant Sh. Sheel Mehta had given advance of ₹ 90 Lacs only to Sh. S.N. Pretni. However on enquiry Sh. S.N. Premi did not find the tenant suitable and therefore the amount of ₹ 5.50 Lacs was refunded to the tenant. I have charged ₹ 40,000/- by cash as my commission as per details given below:- 1. ₹ 15,000/- on 07.03.2005 2. ₹ 15,000/- on 10.03.2005 3. ₹ 10 .....

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verified from the bank e/c of Ms. Manjusha. 6. PADMA BHANDARI The counsel of Padma Bhandari vide his reply dated 09.01.2010 stated that the assessee Mrs. Padma Bhandari passed away on 18.04.2008. The legal heir of the assessee is not much aware of specific information. The lady was assessed at PAN AARPBl131G with Circle 24(1), New Delhi. Copy of assessment order u/s 143(3) of the I. T. Act for A.Y. 2005-06 is enclosed. However a notice u/s 133(6) issued to HDFC Bank for calling Bank statement o .....

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to 43 of the record). This bank statement contains the stamp of the concerned branch. It is an undisputed fact that this bank statement does not contain the true affairs of the transactions. When it was specifically asked for the purpose behind submission of such bank statement by the appellant; the appellant, in person has admitted before me that he has not given the bank statement referred by the AO as fabricated bank statement in the assessment order. But this admission has never been brought .....

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8/2004 1589 TRF 250000 13/11/2004 123248 cheque 900000 13/11/2004 537873 cheque 5000 17/11/2004 1589 TRF 50000 04/12/2004 28470 cheque 2550000 16/12/2004 371127 cheque 2550000 08/02/2005 12188 TRF 300000 08/02/2005 1589 TRF 600000 08/02/2005 9980 TRF 700000 05/03/2005 493120 cheque 590000 07/03/2005 127223 cheque 49226 88,94,226 5.5 Total deposits through cheques and bank transfer in Dena Bank, Hari Nagar, account treated as unexplained deposits and thus income during the relevant: assessment ye .....

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000/-, Shri S.S.H. NAQWI : ₹ 9.00 lakhs, Rent of the property : ₹ 5,000/-, Shri Sheel Mehta: ₹ 5,90,000/- and Income Tax Refund : ₹ 49,226/-. 5.6 The credit of ₹ 50,50,000/- in the appellant's bank account has been explained as loan received through cheques by Smt. Padma Bhandari, now deceased. The AR submitted the details of assessment, PAN, etc to prove the existence and credit worthiness of Late Smt. Padma Bhandari and genuineness of the transactions. Even th .....

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143(3) of the LT. Act for A. Y. 2005-06 is enclosed. However a notice u/s 133(6) issued to HDFC Bank for calling Bank statement of Mrs. Padma Bhandari. On perusal of bank statement it is found that on the same very day when the lady had given cheques to the assessee, similar amount was received by the lady through cheques for which no possible explanation filed. 5.6.1 At most, the AO has doubted the creditworthiness of Late Smt. Padma Bhandari in the remand report. The AR filed the confirmation .....

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completed u/s 143(3) of the Act. Therefore, it can not be ruled out that the bank accounts have not been examined the loan has been squared up/repaid during the year. Considering all facts and circumstances and various judicial pronouncements, I am of the considered view that this credit treated unexplained by the AO is not justified as all conditions of the section 68 get fulfilled. The addition on this score is therefore, deleted. Accordingly, the appellant gets relief of ₹ 50,50,000/-. .....

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t to him. In general all transactions in the accounts are related to housing loan. This fact has been verified from the bank a/c of Ms. Manjusha. 5.7.1 The page numbered 205-209 and 222 of the.9ssessment record show that the appellant has submitted the details in this regard during the assessment proceeding, but failed to file the confirmation from his wife, the lender. The lender is admitting the transactions, Considering all facts and circumstances and various judicial pronouncements, I am of .....

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#39;s submission, the AO's remand report and the fact that the rent of ₹ 5,000/- has already been taxed and income tax refund can not be treated as income; Further, the cheque of I.T. refund was debited as the cheque is barred by limitation. The credits relating to Shri S.S.H. NAQWI: ₹ 9,00 Lakhs and Shri Sheel Mehta: ₹ 5,90,000/- have been squared up/repaid during the year. These repayments also establish the fact that these are genuine. Considering all facts and circumsta .....

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re daughters of the appellant, who have given the sum out of the gifts received by them. The credit worthiness of these two persons was explained by submitting the salary certificates and FDRs maturity details, etc. But the fact is that the bank accounts through which these transfers came reveal that these two persons have issued cheques in favour of the appellant by depositing cash to the equal sum in their accounts. Thus the loans were not out of any earlier savings and or deposits. Hence, the .....

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ts but attested by the notary. These are not on stamp papers. The gifts are in cash. It is surprising to note that why the appellant has not submitted the copy of gift deeds before the AO when the AO has specifically asked to explain these credits. This raises doubts. Theses gift deeds show no acceptance of gifts by donees. The credit worthiness of donees was not filed to substantiate the genuineness of transactions as these two donors are not assessed to income tax and wealth tax. In case they .....

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re found to be a credible person having established source of income, known capacity of making a gift; and further in the light of decision of Hon'ble Supreme Court in the case of P. Mohan Kala and observations to decide the issue in light of decision in the case of Sumati Dayal, it emerges that the lenders have no credit worthiness to advance loan to the assessee. The addition of ₹ 10/00 lakhs made by the A.O. is thereby sustained. 6. The next issue is related with the cash deposits i .....

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Sharma : Rs.2,50,000/- v. Opening cash in hand : Rs.31,500/- vi. Cash received from Smt. Manjusha w/o the appellant: Rs.4,87,500/- vii. Cash received from Shri S H H Naqvi : ₹ 50,000/- viii. Bank withdrawals from various bank accounts: Rs.38,43,500/- 6.1 The AR submitted the cash book/cash flow statement prepared on the basis of various cash transaction, which is on the record. The opening cash in hand and cash receipts during the year as specified above have been claimed to explain the c .....

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Furnishers on 01.02.2005. The cash receipt of the same duly confirmed by the buyer was filed at PB 57 with PAN of Sat yam Furnishers, proprietor: Shri Narander : ADRPN8017E. The DG set was sold for ₹ 13.00 lakhs in cash to Shivam Enterprises on 31st January 2005. The cash receipt of the same was filed at PB 58 duly confirmed by the Shivam Enterprises: proprietor: Shri Mahender Kumar with his PAN: ADZPK0960B. The purchase of generator set and air conditioners are through cheques where as s .....

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unless proved other wise. The cash, received from the sale of the DG set and air conditioners, therefore, is held justified and explained. However, the AO may pass on this information to the concerned AOs of Shri Mahender Kumar PAN: ADZPK0960B and Shri Narander PAN: ADRPN8017E for taking remedial action in their hands in accordance with the provisions of section 40A(3)/69C/69/69B of the Act as the case may be. 6.3 The cash received from the sale of the property at Naraina is not questionable as .....

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agreement for sale of roof rights in respect of Property at Jail Road, New Delhi. The AR filed the copy of PAN: ANXPS9651H and address of Vendee Mr. Ganpat Sharma. The cash receipt of ₹ 2,50,000/- is an advance (PB 83-86) for Sale of Roof Rights G- 176 Hari Nagar. Further, the appellant received ₹ 2,00,000/- in AY 2006-2007. This sum of ₹ 2.00 lakhs has been accepted by the AO in the assessment order passed u/s 143(3) of the Act. Therefore, the cash receipt of ₹ 2.50 lak .....

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t the incoming cash is not questionable in respect of followings: i. Opening cash in hand: Rs.31,500/- ii. Cash received from Smt. Manjusha w/o the appellant: Rs.4,87,500/- iii. Cash received from Shri S H H Naqvi: ₹ 50,000/- iv. Bank withdrawals from various bank accounts: Rs.38,43,500/- 6.6.1 The appropriation of these incoming cash as explained in the cash flow statement is purely mechanical when the house holds expenses and marriage expenses of the daughter of the appellant are conside .....

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s, miscellaneous not grouped above, etc, etc. After analyzing the house hold expenses in entirety and the cash savings/cash in hand with each individual, non uniformity of withdrawals and marriage expenses: engagement, ring ceremony, jewellery, cloth, food ing, reception, photography, videography, music, mehandi rasm, vehicle/conveyance, marriage venue place expenses, decoration and lights, barat accommodation, gifts, etc, etc, I am of the considered view that the total expenditure on this accou .....

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lant gets relief of ₹ 26,77,000/-. 7. Vide ground no. 7 the assessee has challenged addition of ₹ 8,00,000/- made by the AO on account of sale of property. The AO noted that the assessee was not able to establish the factum of sale of property. Relevant text of the AO's order is reproduced hereunder :- 10. During the course of assessment proceedings assessee has filed receipt in respect of sale of property bearing No.CB - 133, Ring Road, Naraina, New Delhi sold for a consideratio .....

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as also asked to produce confirmation from Sh Mangtu Ram for the purchase of the said property. Summon u/s 131 was also issued to Sh Mangtu Ram on 16/10/2007 which received back unserved with postal authority remarks that receiptant is not there. The assessee has not filed any documentary evidence of his ownership prior to alleged sale for ₹ 8,00,000/-, the cash proceeds has been utilised by the assessee for cash deposit- in bank ₹ 5,00,000/- 22/01/2005 and ₹ 3,00,000/- spent o .....

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provide documentary evidence of his ownership prior to alleged sale ignoring the fact that the said property was duly been disclosed by the assessee in his statement of affairs of the last year i. e. A Y 2003-2004 & AY 2004-2005, copies of the same are at PB 72 & 73 showing the cost of the Property at ₹ 7,86,600/-. • The other documentary evidences could not be produced during the course of assessment as the assessee was not able to locate the same. These evidences of Purchas .....

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urchase of said property is at PB 63-69. Copy of sale documents regarding the sale of said Property are at PB 76- 82. Computation of Long Term Capital Loss on sale of said Property is at PB 115. The said Property is sold to Mr. Mangtu Ram Gujjar at ₹ 8,00,000/- in cash. 7.2 I have carefully considered the facts of the case and the submission of the appellant in this regard. The property under reference has been shown transferred out in the details annexed with the return. This property fou .....

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the investment in the property, if unexplained, should be taxed in the year of purchase, which is not the relevant year. It is also surprise to note that the sale consideration in cash claimed to have been deposited in the bank has been taxed as such as unexplained cash deposit in bank and again as sale consideration. This double addition, even in extreme circumstances, can not be called for. The addition is therefore, deleted. The appellant therefore, gets consequential relief of ₹ 8.00 l .....

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bank statement from the concerned branch of the Dena Bank and he found that there was discrepancy in the bank statement filed by the assessee and which was provided by the bank authorities. We find that the AO has added the unexplained credit entries with the Dena Bank to the tune of ₹ 88,94,266/- as addition to the total income of the assessee. The first appellate authority has observed that AO s inference regarding the assessee filing fabricated bank statement is correct. On merits, the .....

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; 5,000/-, Shri Sheel Mehta of ₹ 5,90,000/- and income-tax refund of ₹ 49,226/-. 7.1 In respect to the credit of ₹ 50,50,000/-, we find that the CIT (A) has called for the remand report which has been reproduced (supra in para 5.6 of the CIT (A) s order) wherein, the AO had stated that the said Smt. Padma Bhandari has passed away on 18.04.2008 and the legal heirs of the assessee are not aware of this particular specific information. The AO s suspicion is only based on the fact .....

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ri were from the sale consideration of an immovable property, therefore, just because confirmation was not given in respect to lending of this amount which has been repaid during the year, cannot be said to be undisclosed income of the assessee and, therefore, rightly deleted by the ld. CIT (A) which does not require any interference from our side. Therefore, the revenue s ground no.1 stands dismissed. 7.2 Ground No.2 deals with the addition of ₹ 13 lakhs on account of undisclosed credit e .....

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the ground to make the addition as income from undisclosed sources when the fact is that Smt. Manjusha (assessee s wife) herself has admitted about the transaction. In the said facts and circumstances of the case, we do not find any merit in the appeal of the revenue on this ground and we uphold the decision of the ld. CIT (A) on this issue and dismiss ground no.2 of revenue s appeal. 7.3 Ground No.3 of revenue s appeal is against deleting addition of ₹ 9 lacs being credit entry in the nam .....

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had no other adverse comments about the said issue. In the light of the said remand report, the ld. CIT (A) has found that the said amount has been an interest free loan by Shri S.S.H. Naqwi to the assessee and the said amount borrowed has been repaid by the assessee also during the year under consideration, therefore, the transactions are genuine and so he directed to delete the same. Likewise, in the case of Shri Sheel Mehta too, an amount of ₹ 5,90,000/- was said to have been given as .....

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n from Shri Sheel Mehta. In the light of the said facts, the CIT (A) has held that the transactions of both the persons were genuine and, therefore, the amount which was credited in assessee s account cannot be termed as income from undisclosed sources and therefore, rightly deleted the said addition. Accordingly, we confirm the action of the ld. CIT (A) and dismiss the ground no.3 of the revenue s appeal. 7.4 Ground No.1 of the assessee s appeal is relating to sustenance of addition of an amoun .....

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er, he takes note that there was a cash deposit of ₹ 3 lakhs on the same very date i.e. 08.02.2005 for which no satisfactory explanation was tendered by Ms. Silky or assessee. Before the ld. CIT (A), it was contended by the assessee that the amount of ₹ 3 lakhs and ₹ 7 lakhs were given as gift. The said gift deeds dated 21.01.2005 were not believed by the CIT (A) because they were neither notarized nor it were on the stamp paper and the CIT (A) wondered why the assessee could n .....

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fact. On the other hand, the ld. DR questioned the creditworthiness of the donors, which according to him, has not been proved by the assessee, so the addition was made. We have heard both the parties and we find that this issue of gift, which is being contended by the assessee, as obtained as a gift to grand-daughters from grand-parents, who in turn has transferred the same to the father (assessee) needs to be de novo considered by the AO. Therefore, we set aside the order of the CIT (A) on th .....

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t of sale of property and ground no.2 of assessee s appeal is against the sustenance of addition of ₹ 10 lacs. 9. The ld. CIT (A) has taken note that the AO has taken the peak of deposits in Dena Bank and cash deposits in PNB & HSBC Bank as unexplained and added to the income of the assessee. Before the ld. CIT (A), in order to substantiate the source of the cash which was deposited in assessee s various accounts, the following was furnished before him :- i. Sale of generator set and a .....

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ash book and cash flow statement which has been prepared on the basis of various cash transactions and was placed on record. Before the CIT (A), the assessee had contended that opening cash in hand and cash receipts during the year have been claimed to explain the cash deposits in the bank account. The ld. CIT (A) has taken note of the fact that the assessee had purchased a generator and seven air conditioners from M/s. Sukhbir Properties Private Limited on 19.01.2005 (purchase receipts placed a .....

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of the same was confirmed by the buyer which was placed at PB 57 with PAN of M/s. Satyam Furnishers, Proprietor, Shri Narander. The CIT (A) took note of the fact that DG set was sold by the assessee for ₹ 13 lakhs in cash to Shivam Enterprises on 31.01.2005 and the cash receipt for the same was filed at PB pg. 58 which was also confirmed by Shivam Enterprises whose PAN has also been furnished. The CIT (A) took note that the purchases of DG set and air-conditioners were through cheques whe .....

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0 lakhs of cash was deposited in assessee s account. Ld. DR could not furnish any material before us to controvert the said finding of the ld. CIT (A). In the absence of any other material to contradict the said transactions made by the assessee, we are inclined to uphold the finding of the CIT (A) that ₹ 20 lakhs cash deposited in the assessee s account stands explained and cannot be termed as undisclosed income from unknown sources. 9.1 The AO has not accepted the source of ₹ 8 lak .....

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le ground that the sale deed copy was not produced and the summons sent to Shri Mangtu Ram Gujjar (purchaser) had come with postal remark that the recipient is not there and also on the ground that the assessee had failed to produce any documentary evidence of his ownership prior to the alleged sale of the said property for the cash receipt of ₹ 8 lakhs. During the appellate proceedings before the CIT (A), the assessee brought to the notice of the ld. CIT (A) that this property was purchas .....

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rty cannot be taxed at the hands of the assessee in the relevant assessment year and in case, investment in the property is unexplained should be taxed in the year of purchase which is not the relevant assessment year. The ld. CIT (A) wondered as to how the sale consideration in cash, claimed to have been deposited in the bank has been taxed as such as unexplained cash-deposit in bank and again as sale consideration, which amounts to double addition and he frowned upon this practice and thus ord .....

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d the source of ₹ 2,50,000/- which the assessee claimed to have earned by sale of roof rights in respect of property at Jail Road, New Delhi. Though the copy of the agreement of sale was furnished along with the PAN of the vendee, Shri Ganpat Sharma and the cash receipt of ₹ 2,50,000/- which was made in advance for sale of the roof rights of G-176, Hari Nagar was not accepted by the AO. The assessee brought before the notice of the first appellate authority that the assessee had rece .....

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in the relevant A.Y. Taking this fact into consideration, the ld. CIT (A) had deleted the said addition. We find that the ld. DR could not controvert this factual aspect that has been brought out in the impugned order. In such a scenario, we have no other option but to uphold the order of the ld. CIT (A). Thus, we confirm the deletion of addition of ₹ 2,50,000/-. 9.3 The source of income from the rent has also been brought to the notice of the ld. CIT (A) that ₹ 1,44,490/- has also b .....

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taken note of the statement of affairs as on 31.03.2004 of the assessee, the AO s remand report, bank withdrawals and other evidences brought to his notice and accepted the incoming cash as not questionable in respect of the following :- (i) Opening cash in hand : Rs.31,500/- (ii) Cash received from Smt. Manjusha w/o the appellant: Rs.4,87,500/- (iii) Cash received from Shri S H H Naqvi : Rs.50,000/- (iv) Bank withdrawals from various bank accounts : Rs.38,43,500/- The ld. CIT (A) was not satisf .....

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ociety security guard and sweeper, clothes, medical, charity, conveyance, entertainment including cable charges, news papers and magazines, miscellaneous not grouped above, etc, etc., for proper estimation per annum in the case of the assessee. Ld. CIT (A), after analyzing the house hold expenses in entirety and the cash savings/cash in hand with each individual, non uniformity of withdrawals and marriage expenses/engagement, ring ceremony, jewellery, cloth, fooding, reception, photography, vide .....

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ld. CIT (A) made the bank deposit of ₹ 10 lakhs in aggregate out of the total addition under the head peak of deposits in Dena bank, cash deposits in PNB and HSBC bank accounts and the assessee got a relief of ₹ 26,77,000/- from the impugned order. 9.5 From the aforesaid order of the ld. CIT (A) of sustenance of ₹ 10 lacs, we find that he has given a relief of ₹ 26,77,000/- out of ₹ 36,77,000/- of peak credit added from bank accounts of Dena Bank, HSBC and PNB. Howe .....

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,77,000/- minus ₹ 31,94,490 i.e. ₹ 4,82,510/-. The total expenses/ withdrawals of March as per the cash flow statement submitted by the assessee is only ₹ 1,94,765/- for marriage expenses of his daughter, which, according to us, is also abysmal low figure when considering the assessee s income, status and business which he undertakes. Therefore, the amount of ₹ 4,82,510/- would be a reasonable amount to be sustained. Thus, the assessee s ground no.2 is partly allowed. 10. .....

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Rules, 1962 (hereinafter the Act ) and the assessee in the cross appeal has challenged the sustenance of addition of ₹ 1 lakh. 13. Brief facts of the case are that the assessee returned the income of ₹ 3,04,172/-. The matter was taken up in scrutiny. The AO found that the assessee derived income mainly from house property. During the relevant assessment year, the AO found that some credits/debits in his bank accounts and the AO was not satisfied with the explanation given by the ass .....

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sessee by deleting the addition to the tune of ₹ 72,50,000/-. Against the same, the revenue is in appeal before us. 14. The ld. CIT (A) has sustained the addition of ₹ 1 lakh as unexplained cash deposit and against the same, the assessee is in cross appeal before us. 15. The revenue is aggrieved by the order of the ld. CIT (A) because he has admitted certain documents for the first time before the appellate authority and the ld. CIT (A) has not followed the Rules prescribed under Rul .....

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sale of above noted property. (iii) Copy of PAN of Mr. Vivek Titus (iv) Copy of cash flow HSBC Bank Account in assessee s books (v) Copy of the bank statement reflecting the amount deposited of ₹ 1,00,000/- dated 15th June, 2005 (vi) Copy of cash flow statement filed before the AO to demonstrate than ₹ 1 lakh of cash was available with the assessee during the year. Taking these evidences into consideration, we find that the CIT(A) has believed the claim of assessee that the property .....

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before him as stated above. So we find force in the submission of the ld. DR that these documents should have been sent to the AO for seeking the remand report as prescribed under Rule 46A of the Rules. The ld. AR does not have any objection if we send the matter back to the file of the AO for verification. In the light of the above, we are inclined to set aside the order of the CIT (A) and remit the matter back to the AO for fresh consideration taking the evidences which had been submitted befo .....

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