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Sumit Kumar Sanei Versus I.T.O Ward 32 (2) , Kolkata

2016 (4) TMI 862 - ITAT KOLKATA

Addition representing cash/cheque deposits in undisclosed bank account maintained with ICICI Bank - Held that:- The transactions in the undisclosed bank account maintained with ICICI Bank has to be brought to tax by adopting the peak credit method. Thus, the assessee is hereby directed to furnish the workings of the peak credit, which needs to be verified by the ld.AO about its veracity. Hence, we deem it fit and appropriate, in the interest of justice and fair play, to set aside this issue to t .....

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e lower authorities have not examined the aspect of availability of accumulated profits of the lending company. In these circumstances, we deem it fit and appropriate, in the interest of justice and fair play, to set aside this issue to the file of the ld.AO to verify the register of the shareholders of the lending company and other relevant documents in order to ascertain the true shareholding pattern of the said company during the financial years 2007-08 and 2008-09 and to give a definite find .....

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ined by the ld.AO. Accordingly, we deem it fit and appropriate, in the interest of justice and fair play, to set aside this issue to the file of the ld.AO to verify the same. - Decided in favour of assessee for statistical purpose.

Addition on reimbursement of taxes - Held that:- The assessee indeed had received the monies from the said companies, which were duly credited in the bank account of the assessee maintained with State Bank of Hyderabad and immediately the same were indeed p .....

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e bank - Held that:- There is cash withdrawal of ₹ 34,000/- on 13-10-2008. The revenue had not not brought any contrary material/evidence to prove that this sum of ₹ 34,000/- was spent by the assessee for some other purpose. Accordingly, this would definitely remain as source for the assessee to explain the cash deposit in part. Hence, we deem it fit, appropriate and in the interest of justice, to grant relief to the extent of ₹ 34,000/- and confirm the balance of addition of & .....

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he assessment year 2009-10 against the order of assessment framed by the Learned AO u/s. 143(3) of the Income Tax Act 1961 (hereinafter referred to as the Act ). 2. None appeared on behalf of the revenue. So we have proceeded to dispose off the appeal after hearing the ld.AR and perusing the material available on record on merits. 3. The first issue to be decided in this appeal of the assessee is as to whether an addition of ₹ 28,53,113/- representing cash/cheque deposits in undisclosed ba .....

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hutosh Choudhury Avenue, Ballygunge Branch, Kolkata, which is undisclosed bank account in the return of income of the assessee. In the said undisclosed bank account, there were cash deposits of ₹ 18,94,400/- and cheque deposits of ₹ 9,58,713/-. The ld.AO treated the entire credits of the said bank accounts as unexplained cash credit u/s. 68 of the Act by disbelieving the contentions of the assessee. On 1st appeal, before the ld. CIT(A) it was pleaded by the assessee that the said ban .....

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ccount was opened on 7-6-2009 when the assessee was just 20 years old. Accordingly, he held that gifts received from his grand mother for creation of corpus fund of HUF is a cooked up story by the assessee. It was also found that the grand mother (donor of the gift) passed away on 14-04-2009. Summons were issued to the legal heirs of Smt. Gita Devi Sanei to verify the veracity of the said gift. It was found that none of the legal heirs were able to explain the occasion for which the alleged gift .....

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ed in confirming the addition of ₹ 1,595/- made by the A.O. in the hands of the assessee on account of Bank Interest from the ICICI Bank Account. 3. Without prejudice to the above, the peak credit theory ought to have been applied in respect of the alleged undisclosed bank account with ICICI Bank. 5. The ld.AR argued that it is an admitted fact that the said bank account maintained with ICICI Bank was undisclosed by the assessee in the return of income and the said bank account contained c .....

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dopting the peak credit method. Thus, the assessee is hereby directed to furnish the workings of the peak credit, which needs to be verified by the ld.AO about its veracity. Hence, we deem it fit and appropriate, in the interest of justice and fair play, to set aside this issue to the file of the ld.AO, to frame this addition based on the workings of peak credit as would be given by the assessee and of course, after verification by the ld.AO. Therefore, the ground nos. 1 to 3 of assessee s appea .....

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bserved that M/s. Gopal & Sons (HUF) held 8000 shares of this company, which was close to 80% shareholding of the said company. The ld. AO found that the assessee is one of the members of the said HUF. When this issue was confronted by the ld.AO as to why the provisions of section 2(22)(e) of the Act should not be invoked in the case of assessee, the assessee submitted that he is not a shareholder of the said company. Accordingly, he submitted that the provisions of section 2(22)(e) cannot b .....

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t the same were transferred to individual on 31-3-09. Thus, he invoked the provisions of section 2(22)(e) of the Act on the assessee and brought to tax ₹ 2,20,000/-. On 1st appeal before the ld.CIT(A), the assessee pleaded that 8000 shares were held by Shri Gopal Kumar Sanei in his individual capacity during the financial year 2008-09 and no shares were held by M/s. Gopal & Sons HUF. In this regard, he also filed a certificate from M/s.G.S Laminators Pvt. Ltd that the word Gopal & .....

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financial statements of M/s. G.S Laminators Pvt. Ltd together with return acknowledgement and list of shareholders of the said company. We find from the said documents that the lending company at the outset does not possess any accumulative profit. We also find that there are some discrepancies with regard to the names of the shareholders. We also find that the lower authorities have not examined the aspect of availability of accumulated profits of the lending company. In these circumstances, w .....

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raised by the assessee is allowed for statistical purpose. 10. The third issue to be decided in this appeal of the assessee is as to whether an addition of ₹ 1,35,000/- on account of alleged director s remuneration could be brought to tax in the facts and circumstances of the case. 11. The brief facts of this issue are that there are certain credits in the same bank account maintained with State Bank of Hyderabad, which the assessee explained to be salary received from M/s.G.S Fertilisers .....

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ly a complete change of stand by the assessee, which was not accepted by the ld. CIT(A) as he held the same to be an afterthought. Accordingly, he upheld the impugned addition made by the ld.AO on this issue. Aggrieved, the assessee is in appeal before us on the following ground:- 5. For that on the facts and in the circumstances of the case, the Ld. CIT(A) erred in confirming the addition of ₹ 1,35,0001- made by the A.O. on account of alleged Director's remuneration. 12. We have heard .....

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iate, in the interest of justice and fair play, to set aside this issue to the file of the ld.AO to verify the same. This ground of assessee s appeal is allowed for statistical purpose. 13. The fourth issue to be decided in this appeal of the assessee is as to whether a sum of ₹ 51,368/- could be added in the hands of the assessee representing reimbursement of taxes in the facts and circumstances of the case. 14. The brie facts of this issue are that there were certain credits in the bank .....

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ccount of the assessee and immediately the same were utilized for online payment of taxes for and on behalf of the said companies. However, the ld.AO observed that the assessee did not have sufficient cash balance to make such payment of taxes initially in order to enable him to seek reimbursement from the said companies. Hence, such credits were brought to tax as unexplained cash credit u/s. 68 by the ld.AO. On 1st appeal before the ld.CIT(A) the assessee produced bank statement, which clearly .....

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ances of the case, the Ld. CIT(A) was not justified in confirming the addition of ₹ 51,368/- made by the A.O. on account of reimbursement of tax. 16. We have heard the ld.AR and perused the material available on record including the paper book filed by the assessee containing the relevant pages of bank statement/bank account maintained with the State Bank of Hyderabad and copy of tax remittance challan vide pages 30-36 of the paper book. On perusal of the same, we find that the assessee in .....

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the assessee in the return of income. While this is so, there is no need to make any addition on this issue. Ground no.6 as raised by the assessee before us is allowed. 17. The last issue to be decided in this appeal of the assessee is as to whether an addition of ₹ 50,000/- representing cash deposits in the bank could be made in the hands of the assessee in the facts and circumstances of the case. 18. The brief facts of this issue are that the assessee has made cash deposits of ₹ 50 .....

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