TMI Blog2016 (5) TMI 1148X X X X Extracts X X X X X X X X Extracts X X X X ..... l has noted that in the absence of any details with regard to earning of income and the persons from whom the money was received, the Assessing Officer has rightly treated the entire amount as income. Insofar as the unexplained credit to the extent of ₹ 10,77,219/- is concerned, the Tribunal has taken note of the fact that the assessee has shown the same as loan from others in the cash flow statement. However, having regard to the fact that the assessee had not explained the identity of the persons from whom the loan was allegedly availed of, the creditworthiness of his creditors and the genuineness of the transaction, the Tribunal confirmed the order of the Assessing Officer, taking the aforesaid amount as income of the assessee. Tribunal has also confirmed the repayment made to the HDFC Bank, as income of the assessee, for the reason that even such payment could not be explained by the assessee before the lower authorities. Insofar as ₹ 2,91,600/- is concerned, the Tribunal agreed with the assessee that the same cannot be added to his income. With respect to ₹ 5,00,000/- incurred by the assessee towards foreign travel expenses is concerned, the Tribunal has h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A of the Income Tax Act was illegal. The Tribunal's order itself shows that after verifying the files of the department, the learned representative of the assessee very fairly conceded before it that he was satisfied that there was search in the case of appellant also and, therefore, he withdrew the said contention. 5. The second issue was with respect to the addition of ₹ 3,33,815/- as unexplained credit in the bank account. The contention raised on behalf of the appellant was that the said deposit was made out of the trading receipts from garment business. However, it has been specifically found that the net income returned by the assessee from her garment business was only ₹ 58,250/- and that even after availing of sufficient opportunities, the appellant could not explain the source of investment to the extent of ₹ 3,33,815/-. It was therefore that, in the absence of any material or explanation about the source and means, the Tribunal confirmed the addition made by the Assessing Officer treating the deposit in the bank as unexplained investment. 6. The next addition in the assessment order is with regard to the investment in property. According to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the manner in which the money was transferred from Singapore to the assessee's father's account in India, could not be explained either before the Tribunal or this Court. Similarly, the role played by Tandon Investment Company, Singapore in this transaction is also a mystery and could not be explained even before us. In fact the evasive submission made was that the assessee's father might have transferred his salary from Singapore. 9. In substance, the contention raised before us was that if at all any addition could be made, it should be only in the hands of the assessee's father and not in the hands of the assessee. Before us, the learned counsel for the appellant also placed reliance on Section 56(2) of the Income Tax Act,1961 (in short, the Act ), in as much as, the money was received from the father, a lineal ascendant of the assessee. However, the genuineness of the transaction was considered by the Tribunal and on facts, the Tribunal has concluded thus in paragraphs 19 and 20 of its order, which read as follows: 19. We have considered the rival submissions on either side and also perused the material available on record. The assessee's account w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ain how the assessee's father got the funds. The assessing officer has taken pain in examining assessee's father. However, he could not give any satisfactory explanation except by saying that it was his savings and salary. In the absence of any material to show that the assessee's father has saved so much of money, this Tribunal is of the considered opinion that the claim of the assessee/her father that the transfer was from savings of her father cannot be accepted. To accept the gift, the assessee has to definitely establish the creditworthiness of her father. The contention of the ld. counsel for the assessee is that if the assessee could not explain the creditworthiness, the addition could be made only in the hands of the assessee's father. The case of the department as it appears from the assessment order clearly shows that Shri George Philip acted as an agent for transfer of funds from unknown person to Smt.Asha Sunil. The assessing officer has also found that the assessee's father's bank account is only a conduit for transfer of funds from unidentified person. In the absence of any material to suggest that the assessee's father has sufficient credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esentative very fairly submitted that the assessee could not explain the source for making these deposits . Despite that, it is seen argued before the Tribunal that the income was from real estate business and, therefore, only the net amount should be taken and not the gross amount. 11. Insofar as the unexplained credits to the extent of ₹ 10,77,219/- is concerned, the evasive contention raised was that the unexplained credit might have been used for making deposit in the bank account and, therefore, it should not have been taken as income of the assessee. Similarly, with reference to the cash withdrawal from the bank to the extent of ₹ 2,91,600/-, the contention raised was that once the deposit was taken as income, withdrawal should not be taken as income once again. With reference to the foreign travel expenses, the Assessing Officer has made addition of ₹ 5,00,000/- and the contention raised was that this expense was incurred from the withdrawals made from the bank. 12. These factual contentions were considered by the Tribunal, and the Tribunal has made reference to the admitted fact that the assessee was not maintaining any books of account and that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Tribunal has ordered deletion of addition to the extent of amounts withdrawn from the bank. These issues were dealt with in paragraphs 30 and 31, which read as under: 30. The only issue involved in the remaining appeals in ITA Nos 46 to 51/Coch/2014 in the case of Shri O.G.Sunil is addition on account of unexplained investments. The issue is identical to the issues discussed in ITA No.45/Coch/2014 for the assessment year 2002-03. While dealing with the appeal for assessment year 2002-03 we have found that out of the total addition made on account of unexplained investments of ₹ 36,67,010 an amount of ₹ 2,91,600 has to be deleted as the same represents withdrawal from bank out of the deposits in the bank account and the addition of the withdrawal would amount to double addition. The facts and circumstances are identical for the assessment years 2003-04 to 2008-09 also. Admittedly, there are deposits in bank account of the assessee. The assessee could not file any explanation regarding the source of receipt of money except saying that it is from real estate business. In the absence of any details/material this Tribunal is of the considered opinion that the entire ..... X X X X Extracts X X X X X X X X Extracts X X X X
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