TMI Blog2016 (7) TMI 134X X X X Extracts X X X X X X X X Extracts X X X X ..... re. Cash deposit in the bank account - Held that:- We find that the assessee had claimed that no such cash deposits to that extent was made in her bank accounts. We also find that this claim of the assessee was never verified by the Learned AO for want of time which is not disputed by the revenue before us. We find that the Learned AR had fairly agreed for setting aside of this issue to the file of the Learned AO to enable him to make a detailed verification of this factual aspect for which the Learned DR before us agreed for the same. We direct accordingly. - I.T.A No.142/Kol/2014, C. O. No.16/Kol/2016 - - - Dated:- 8-6-2016 - Shri N. V. Vasudevan, JM Shri M. Balaganesh, AM For The Revenue : Shri G. Mallikarjuna, CIT, DR For The Assessee/Cross Objector : Shri K. M. Roy, CA ORDER Per Shri M. Balaganesh, AM: This appeal by revenue and Cross Objection by assessee are arising out of order of CIT(A), Central-1, Kolkata vide Appeal No. 323/CC-VI/CIT(A)C-1/11-12 dated 01.11.2013. Assessment was framed by DCIT, C.C-VI, Kolkata u/s. 143(3) of the Income tax Act, 1961 (hereinafter referred to as the Act ) for AY 2010-11 vide his order dated 31.12.2011. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... introduction of unaccounted money in the guise of loan or gift or capital gain was also detected in the cases of the assessee group. The AO concluded that the disclosure of ₹ 1 crore had to be considered as the undisclosed income of the assessee fur the relevant year; and accordingly, made addition of Rs. l crore. 4. Before the Learned CITA, it was argued that the AO has erred in law in relying solely on the confessional statement made by third party for drawing adverse inference in the case of the assessee when there was no corroborative material on record to support such statement. The Ld AR has further submitted that Sri Sambhunath Agrawal was not legally competent to make statement on behalf of the assessee; and, that such unlawful statement made without any authority was not binding on the assessee, But, even otherwise, the declaration made by Sri Sambhunath Agrawal in his statement recorded at the time of the search or subsequently in his disclosure petition was unsubstantiated as it was not based on or corroborated by any material on record. And, above all, no incriminating material representing undisclosed income or undisclosed asset of the assessee was found in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the material gathered in search should form the basis for framing the assessment. He further held that specific issues relating to cash deposit in bank account or introduction of undisclosed money in the guise of loan or gift or capital gain, if any , has to be considered separately in the case of the concerned assessees and that it cannot be made the basis for making ad hoc addition of ₹ 1 crore in the hands of the assessee. Accordingly he held that the addition of ₹ 1 corre made solely on the basis of the disclosure made at the time of search is neither sustainable in law nor on facts. 5.1. With regard to the information obtained in ITS data towards cash deposit in bank to the tune of ₹ 51 lacs, he held that though the assessee had denied the same at the assessment stage and had stated that only ₹ 6.50 lacs was deposited in the bank account which is already disclosed in the returns , no separate ground was raised by the assessee contesting such addition. He finally held that the Learned AO had held that cash deposit of ₹ 51 lacs in bank account of the assessee has to be treated as unexplained income, however, no separate addition was being made in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iling her return of income for the Asst Year 2010-11. We draw support from the following case laws in this regard:- (i) Pullangode Rubber Produce Co. vs State of Kerala and Anr (1973) 91 ITR 18 (SC) The Hon ble SC has observed that an admission is an extremely important piece of evidence but it cannot be said that it is conclusive. It is open to the person who made the admission to show that it is incorrect. (ii) CIT vs Ravindar Kumar Jain (2011) 201 taxman 95 (Jharkhand HC) 6. We have considered the submissions made by the learned counsel for the appellant and perused the reasons given in the orders passed by the CIT(A). 7. It is not in dispute that during the course of search, the assessee first submitted that he has nothing to disclose and therefore first stand of the assessee was that he had no undisclosed income and then the assessee alleged to had stated that he had also undisclosed income of ₹ 7 lakhs. However, the Assessing Officer himself found that out of said amount of ₹ 7 lakhs, the amount which the assessee stated has been deposited in the Bank, was not found in any Bank and amount of ₹ 3 lakhs had already been deleted by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion in 1974 when only one ground floor was constructed. He had been living there and during 1986 to 1988 he had constructed the first floor and had incurred expenses of ₹ 2,03,185.65 and this amount had been withdrawn from the account of the firm which he was a partner. The Departmental Valuer had accepted the cost of construction and there was no reason to make addition of ₹ 4 lakhs on the basis of the disclosure made by the assessee. The Revenue had not brought any evidence to establish that the assessee had in fact incurred ₹ 4 lakhs and that amount was invested out of undisclosed income. The addition on account of gold ornaments could not be sustained since looking into the quantum of holding and the assessee s explanation this was a normal holding which could be found in any middle class Indian family. The furniture on the ground floor was 15 years old and the assessee had spent ₹ 25,000 for renovation after making withdrawal from the firm s account. With respect to furniture in the first floor a detailed source of investment of furniture purchased with due confirmation from the party concerned had been filed by the assessee before the Assessing Office ..... X X X X Extracts X X X X X X X X Extracts X X X X
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