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Income Tax Officer Versus Shri S.P. Natarajan

2016 (2) TMI 693 - ITAT CHENNAI

Undisclosed deposits in bank account - Held that:- From the order of the CIT(A) it appears that a sum of ₹ 10 lakhs was deposited in bank by Shri Subramanian and not by the assessee. When Shri Subramanian deposited the money and the bank account relates to all the family members, this Tribunal is unable to accept the contention of the ld. DR. Therefore, the CIT(A) has rightly deleted the addition made by the Assessing Officer. When the deposit of ₹ 10 lakhs cannot be added in the han .....

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is appeal of the Revenue and cross objection of the assessee are directed against the order of the Commissioner of Income-tax (Appeals)-2, Tiruchirapalli, dated 17.12.2014 for assessment year 2006-07. 2. The first ground of appeal is with regard to addition of ₹ 10 lakhs. 3. Shri A B Koli, ld. Departmental Representative submitted that the assessee claimed before the Assessing Officer that he received a loan of ₹ 10 lakhs from Shri N Krishnamurthy alias N Vaidyalingam. According to t .....

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of ₹ 10 lakhs was received as loan, the Assessing Officer doubted the explanation of the assessee and made addition of ₹ 10 lakhs u/s 69 of the Act. On appeal by the assessee, the CIT(A) however, found that there was no bank account in the assessee's name and the money deposited in the bank account represent the transaction of all the family members and not the assessee alone. According to the ld. DR, when the assessee claims that he has not taken any loan from any one during the .....

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matured amount of ₹ 1,51,35,594/-. According to the ld. DR, since the addition of ₹ 10 lakhs was added in the hands of the assessee, the interest accrued has also to be added in the hands of the assessee. 5. On the contrary, Shri Philip George, ld. Counsel for the assessee submitted that the assessee maintains only one bank account for all transactions of the entire family members. Therefore, the deposits and withdrawals made in the bank do not represent the transaction of the asses .....

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round of litigation, this Tribunal remanded the matter back to the file of the Assessing Officer. In the meantime, the Assessing Officer reopened the assessment u/s 147 of the Act. According to the ld. Counsel, once the assessment was reopened, the earlier assessment would abate, therefore, the assessment made in the earlier assessment cannot continue. Hence, the assessee has filed cross objection. Since the Department has not claimed that the transaction in the bank account represents the asse .....

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t has to be made in the hands of Shri Subramanian and not in the hands of the assessee. 6. We have considered the rival submissions on either side and also perused the material available on record. The assessee claims that only one bank account was maintained which reflects the transaction of all the family members. This fact is not disputed by the Revenue. The only contention of the ld. DR is that in the earlier proceedings the assessee claimed that no loan was borrowed from any one during the .....

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