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2016 (5) TMI 756 - ITAT KOLKATA

2016 (5) TMI 756 - ITAT KOLKATA - TMI - Unexplained cash deposits in bank account - receipt of sale of gold and various withdrawals of the bank accounts - Held that:- To meet the medical expenditure cash used to be withdrawn and kept with the assessee and re-deposited in the bank account. As far as sale of gold by the assessee to Maxpro India is concerned the evidence on record shows that Maxpro India had issued purchase vouchers for having purchased gold from the assessee and having made paymen .....

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ed by Kolkata Municipal Corporation which shows that Maxpro India having address at 89., Burtolla Street, Kolkata-700007 was licenced to use the aforesaid terms for office as well as retail sale of non food items. In the light of the above documentary evidence the failure of the department to procure the presence of Maxpro India for verification of the claim made by the assessee remains unexplained. We are of the view that in the light of the documentary evidence on record the assessee has succe .....

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49,000/- is made in ICICI bank at Bikaner. As already stated it can be seen from the cash book of the assessee that as on 19.04.2010 there was the availability of cash as on 19.04.2010 even after withdrawal of ₹ 3,00,000/- to the extent of ₹ 73,000/-. In such circumstances we are of the view that there cannot be any adverse inference drawn from these circumstances. Taking into consideration the facts and circumstances of the case we are of the view that the addition made by the AO a .....

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interest received from advancing of loans and on deposits from bank. For A.Y.2011-12 the assessee filed return of income declaring total income of ₹ 1,58,969/-.The Assessee had one bank account in his name with ICICI Bank Ltd., wherein cash deposit totaling ₹ 22,53,262/- were made during the previous year. There was another account with ICICI Bank Ltd in the name of the assessee and name of his minor son Aswin Baheti, wherein cash deposit totaling ₹ 12,26,500/- had been made d .....

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,000/- on such sale. Similarly, gold was sold on 31.01.2011 to Maxpro India and cash of ₹ 1,50,000/- was received on such sale. After taking into account the cash deposit of ₹ 3,00,000/- on sale of gold on 02.04.2010 and cash deposit of ₹ 1,50,000/- on sale of gold on 31.01.2011, the assessee had sufficient cash as per the cash book. After taking into consideration the withdrawals and deposit of money in the very same account and sale proceeds of gold, the source of deposit of .....

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4. The AO did not believe the plea of the assessee that on sale of gold cash of ₹ 3,00,000/- and ₹ 1,50,000/- was received by assessee on 02.04.2010 and 31.01.2011 respectively. In this regard AO referred to the fact that an inspector was deputed to verify whether the concern Maxpro India was existing at the address given in the purchase bill by the assessee as evidence for sale of gold. The Inspector reported to the AO that such a concern was not available at the given address. This .....

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gold and receipt of cash on such sale could not be verified. The assessee submitted before AO that it had sold gold to Maxpro India and was unable to explain as to why notice could not be served on them. The AO however concluded that sale of gold by the assessee remained unexplained and the source of cash to the extent remained unexplained. 5. Another anomaly which was noted by the AO was that cash was withdrawn at Kolkata and on the very same day cash was deposited in the assessee s bank accoun .....

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3.2014 the assessee has also stated, " ..... 1) As I told you that I am facing financial problem from last three years and in a big tension for the treatment of my mother Shanti Devi Baheti, Kamala Devi Harsh(sister), and Radha Kishan Damani(Father in Law) . ……………………………………………………………………………&hel .....

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of January 2014 " Assessee's above submission is perused carefully. At this stage the same cannot be verified since as per assessee's statement the person Sri Mohanlal Dujari has expired in January 2014. Moreover, during the course of the proceeding never he had given such statement before the expiry of Mohanlal Dujari. So, the statement of the assessee clearly seems to be an afterthought. Hence, the contention of the assessee cannot be sustained. As such the nature and source of a .....

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2/- (Rs.22,53,262 + ₹ 12,26,500/-) was added to the total income of the assessee. 8. On appeal by the asssessee CIT(A) confirmed the order of AO. Aggrieved by the order of CIT(A) assessee has preferred the present appeal before the Tribunal. 9. We have heard the submissions of the learned counsel for the assessee, who submitted that the AO should have accepted the sale of the gold jewellery for which the assessee duly filed two purchase bills issued by Maxpro India. According to the AO the .....

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also filed before CIT(A). He further submitted that the assessee has also been able to get the copy of the bank statement of the said party for the bank account maintained by them with ICICI Bank and copy of the said bank account was also filed before us. The same had also been filed before CIT(A). It was submitted that it would be evident from the said bank account that even at the time when the AO made the enquiry, the said party was in existence and doing business from the same address as me .....

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re was no basis to reject the cash book nor such cash book have been rejected. The credits in the said book have not been disputed except the sale of gold ornaments. It was submitted that out of total deposits of ₹ 34,79,762/- in the name of the assessee and his minor son being the cash deposits on various dates were explained from the cash withdrawals from the same bank except that the sum of ₹ 4,50,000/ - received by way of sale of gold ornaments. It was pointed out that the said c .....

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ring the year, therefore it should be reduced from the total amount of deposits which has been treated as income of the assessee as they were reused for making further deposits on later dates and therefore should be netted off from total deposits made. 11. For the proposition only consolidated peak of the bank accounts could be considered for making addition of undisclosed income. The learned counsel for the assessee placed reliance on the following decisions of ITAT, Kolkata :- i) ITA No.141/Ko .....

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ts. It has been the plea of the assessee that he had financial problem and was in need of funds for treatment of his mother Shanti Devi Baheti and his sister Kamala Devi Harsh and his father in law Radha Kishan Damani. It was also the plea of the assessee that Shri Radha Kishan Damani died of cancer on 10.02.2013 and he was a person, who was taking care of the affairs of the assessee. The Assessee also pleaded that he was a handicapped person and could not move about freely. To meet the medical .....

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2011 is assessed to tax having PAN NO.ABCPA 3898 M. Before CIT(A) assessee also filed a copy of the bank statement of Maxpro India with ICICIC bank from the period 10.12.2011 to 05.12.2013. The address in the bank statement is 89, Burtolla Street, Kolkata-700007. The assessee has filed a copy of the licence issued by Kolkata Municipal Corporation which shows that Maxpro India having address at 89., Burtolla Street, Kolkata-700007 was licenced to use the aforesaid terms for office as well as reta .....

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