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2016 (7) TMI 14 - ITAT BANGALORE

2016 (7) TMI 14 - ITAT BANGALORE - TMI - Addition u/s 68 - amount claimed by the assessee as received from his mother-in-law - Held that:- Source of cash deposit has been explained by the assessee as business receipt, but it was not accepted by the AO. It is pertinent to note that the AO considered only deposit side of the bank account without considering the withdrawal. Further when the AO accepted the gross receipt from the business of studio, then to that extent the deposit in bank account ca .....

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the gift received from the mother-in-law, it is found that the source was explained as sale of agricultural land for a consideration of ₹ 10 lakhs. However, in the sale deed the consideration is stated to be only ₹ 2,20,000/-. Though the assessee produced confirmation of the purchaser of the agricultural land regarding the consideration of ₹ 10 lakhs vide agreement dt.21.01.2008, the said confirmation was not accepted by the CIT (A) on the ground that it was not produced before .....

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case, this issue is set aside to the record of the AO to conduct a proper enquiry and verification by examining the concerned parties to the transaction and then decide the issue after giving an opportunity of hearing to the assessee. - Decided in favour of assessee for statistical purpose. - I.T.A No.612/Bang/2014 - Dated:- 29-4-2016 - SHRI. VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI. INTURI RAMA RAO, ACCOUNTANT MEMBER For The Assessee : Shri. R. Krishna Murthy, Advocate For The Revenue : Dr. P. K .....

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ntitled by the Appellant. 13. The AO and the First Appellant Authority have failed to appreciate the confirmation given by the mother-in-law who has given that amount which amount is arrived from the sale proceedings of the agriculture land. The mother-in-law received the said amount through the agreement to sell as well as the execution of sale deed from the purchaser. 14. The First Appellant Authority has failed to appreciate transaction of the agricultural land belonged the family of the moth .....

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inable in law. 16. The First Appellate Authority and Assessing Authority have failed appreciate and gave a finding based on the accounts of the Assessee which was not audited balance sheet. By oversight, in the balance sheet as well as in the written submissions, the amount of ₹ 7 lakhs was mentioned as loan taken from the mother-in-law of the Assessee. Therefore there no contradictory statement or fact given by the Assessee. The amount of ₹ 7 lakhs was gifted by Smt. Rajamma, the mo .....

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ount being loan from Dewan Housing Finance Ltd ( DHFL in short) of ₹ 14,76,360/- and a sum of ₹ 7,11,915/- as cash gift from his mother-inlaw. During the course of assessment proceedings, the AO noted that there was a cash deposit in the bank account of the assessee with Axis Bank to the tune of ₹ 18,28,200/-. AO treated the said cash transaction has unexplained the cash credit u/s.68 of the Act and further the amount of ₹ 7,11,950/- claimed to be cash / gift from mother- .....

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ut of which assessee has declared a net income of ₹ 3,02,400/-. Ld. AR has submitted that the AO as well as the CIT (A) has ignored this aspect that the deposits in the bank are made from the business receipts of the assessee. As regards the amount claimed to have been received as a gift from mother-in-law, Ld. AR has submitted that due to over sight the assessee has mentioned the said amount of ₹ 7,11,950/- as loan taken from his mother-in-law. However the said amount is in fact a g .....

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ation / declaration by the mother-in-law, whereby the source of the said amount of ₹ 7 lakhs has been explained. He has further contended that when the AO has accepted the business income of the assessee and the gross receipt, then the addition made on account of the cash deposit in the bank account is not justified without considering the gross receipts available with the assessee. Thus he has pleaded that the addition made by the authorities below may be deleted. 5. On the other hand, Ld .....

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nt record and given a finding that the assessee failed to establish the source of the cash deposit in the bank as well as the purchase consideration to the extent of ₹ 7,11,000/-. 6. We have considered the rival submissions and relevant material on record. There is no dispute as far as the cost of acquisition of the site no.6 at Basavanapura, amounting to ₹ 21,88,310/- the assessee explained the source of the purchase consideration partly by availing loan of ₹ 17,46,360/- from .....

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ot accepted by the AO. It is pertinent to note that the AO considered only deposit side of the bank account without considering the withdrawal. Further when the AO accepted the gross receipt from the business of studio, then to that extent the deposit in bank account can be considered as explained source if the expenditure incurred by the assessee from the corresponding withdrawal from the bank. Therefore this aspect of deposit and withdrawal in the bank account has not been examined by the auth .....

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