TMI Blog2016 (3) TMI 1072X X X X Extracts X X X X X X X X Extracts X X X X ..... rmity in the details given by the assessee company. The objection of the revenue that the reliance should solely be placed on the statement of Sh. M. Narayana Kumar is misplaced. The assessing officer went on a wrong premise and added the entire deposits appearing in the bank accounts without deducting the withdrawals made. It is a settled principle of law that only the real income of the assessee has to be taxed and not notional income. In any case, the assessee could not have been subjected to tax only on the deposits in the bank accounts. - Decided in favour of assessee - ITA No.448, 449, 450 AND 451/Cochin/2014, ITA No.427, 428 and 429/Cochin/2014 - - - Dated:- 1-3-2016 - SHRI B.P. JAIN, ACCOUNTANT MEMBER AND SHRI GEORGE GEORGE K., JUDICIAL MEMBER Appellant by : Shri CBM Warrier, CA Respondent by : Shri Shantom Bose, CIT-DR ORDER PER BENCH: These four appeals of the Revenue arise from the different orders the ld.CIT(A)-I, Kochi for the Asstt.Years 2008-09 to 2011-12. The assessee has also filed appeal for the Asstt.Years 2009-10 to 2011-12. Since issues in all the appeals are identical, therefore, all the appeals are being decided by this consol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9,92,16,310 75,17,38,209 94,96,37,990 4. The assessing officer held that these three accounts did not appear in the final accounts of the assessee as per the returns of income filed. Accordingly, the assessing officer treated the entire bank deposits amounting to ₹ 94,96,37,990/- as undisclosed income of the assessee. For the relevant A.Y. 2009-10 a sum of ₹ 20,86,17,005/- out of the aforesaid amount was added to the income of the assessee vide assessment order dated 30.03.2013. 5. During the course of search, it was noticed that the assessee company had floated four firms namely Kerala Islam Hajj Umrah Service, Ahlan Hajj Umrah Services, Salamat Hajj Group and Vazco Hajj Group for carrying out Hajj and Umrah Services on behalf of the assessee company. The said firms were incorporated with a view to circumvent the restrictions imposed by the Government of Saudi Arabia on the number of pilgrims each agency could send from India. The said firms had no bank accounts of their own and though the receipts of these firms ran into several crores. Considering the aforesaid facts and also the fact that these c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nk accounts was deleted. For the relevant A.Y. 2009-10 a sum of ₹ 20,86,17,005/- was deleted. 9. As regards the addition pertaining to the food and accommodation expense, the Ld.CIT(A) estimated the average profit per person at ₹ 22,565/- and calculated the total profit for 600 pilgrims at ₹ 1,35,39,595/-. 10. The Revenue is in appeal before us and has raised the following grounds of appeal: 1. The order of the learned Commissioner of Income Tax (Appeals) - 1, Kochi is opposed to law, weight of evidence and facts of the case. 2. The CIT (A) has not taken in to consideration the fact that the assessee has not disclosed the deposit in 3 bank accounts with Federal Bank which are the unaccounted deposits in the balance sheet for the relevant financial year. Hence the CIT (A) has erred in disallowing the addition made by the assessing officer to the tune of ₹ 20,86,17,005/- on account of unaccounted deposits. The then authorized representative of the assessee who has audited the accounts of the assessee has clearly admitted that the deposits appearing in the said accounts are neither accounted for nor appear in the books of accounts of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the four hajj firms floated by the assessee company had no infrastructure of their own and they did not even had their own bank accounts, the income of the Hajj firms is to be assessed in the hands of the assessee company only. 14. As regards the merits of the addition is concerned, the assessee 'company had produced the details of all the transactions pertaining to the three accounts maintained in Federal Bank Calicut along with the copy of cash book, Profit and Loss account and Balance sheet of the company. The assessee has further filed the detailed analysis of the transactions carried out in the aforesaid bank. 15. The cash deposits of ₹ 1,19,10,141/- made in the accounts of Federal Bank have been linked to the withdrawal made from the cash book maintained by the assessee. As regards the other deposits of ₹ 19,77,91,201/- and ₹ 1,84,05,701/- in account nos. 4454 and 4967 respectively, the assessee submits that they relate to the receipts from Hajj and Umrah pilgrimage. The assessee has established the link between the deposits pertaining to the four Hajj groups. The credits in the three bank accounts which is sought to be treated as undisclosed inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A No. 449/C/2014. As we have dismissed the appeal of the Revenue in ITA No. 449/C/2014 for the reasons recorded therein, accordingly, our order therein is identically applicable in these appeals, and therefore, the appeal of the Revenue being ITA No.448, 450 and 451/C/2014 are dismissed. 21. Now we take up the appeals of the Assessee in ITA Nos.427, 428 and 429/C/2014. 22. First we take up the appeal of the assessee in ITA No.427/C/2014 for the Asstt.Year 2009-10. 23. Brief facts of the case are that the assessee is engaged in the business of tours and travels and is conducting Hajj and Umrah Services. The relevant assessment year is A.Y.2009-10. The facts of the present case are similar to the facts stated in the case of the Revenue in ITA No. 449/C/14 wherein the Revenue had filed the appeal against the order of ld.CIT(A). 24. The assessee has raised the following grounds of appeal before us. 1. The appellant is M/s.AI Hind Tours Travels (P) Ltd., Market Complex, Mavoor Road, Calicut and in regard to the assessment year 2009-10, the Deputy Commissioner of Income Tax, Central Circle-1, Kozhikode has completed the assessment with an income of ₹ 33,53,44,91 0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 35,39,595/-. 27. In ITA No. 421/C/14, M/s Kerala Islam Hajj Umrah Services Vs. DCIT, we have estimated the profit per person at ₹ 6,500/-. In view of the similarity of facts, the same is applied in the present case also. Grounds no.3 is partly allowed. 28. The appeal is partly allowed for statistical purpose. 29. Now, we take up the appeal the assessee in ITA No.428/C/2014 for the Asstt.Year 2010-2011. 30. Brief facts of the case are that the assessee is engaged in the business of tours and travels and is conducting Hajj and Umrah Services. The relevant assessment year is 2010-11. The facts of the present case are already stated in the case of the assessee in ITA No. 449/C/14 wherein the revenue had filed the appeal against the order of CIT(A). 31. The ground no.1 2 raised by the assessee area already adjudicated by us in the appeal filed by Revenue in ITA No.449/C/2014 wherein, we have held that substantive assessment in respect of four firms floated by the assessee, viz. Kerala Islam Hajj and Umrah Service, Ahlan Hajj and Umrah Services, Salamat Hajj Group and Vazco Hajj Group, is to be made in the hands of the present assessee only. In view, therefore, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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