TMI Blog2017 (1) TMI 175X X X X Extracts X X X X X X X X Extracts X X X X ..... lacs and ₹ 2.50 lacs, the same were explained by the assessee to be received towards sale of cars. This fact has not been disputed by the revenue before us. In fact, the same AO had accepted this fact while framing a separate addition towards capital gains on sale of the said cars. Hence we hold that there is no case made out by the revenue for making an addition in the facts and circumstances of the case. - Decided against revenue Unexplained investment in Max Life Insurance - Held that:- We find that the ld CITA had categorically observed that the investment in Max Life Insurance is duly reflected in the cash book of the assessee. This finding has not been controverted by the revenue before us. Hence we find no infirmity in the order of the ld CITA in deleting addition - Decided against revenue Unexplained advance receipt and payment made to two different parties - Held that:- We find that the sums of ₹ 15,00,000/- has been received as advance from Suresh Kumar Gourisaria which fact was also accepted by the ld AO pursuant to the physical verification by the Inspector of Income Tax. However, he only observed that the nature of the transaction has not been proved ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee. The assessee replied that the transactions in Axis Bank account were reflected in his personal balance sheet which was not disclosed in the return of income due to lack of relevant column in the electronic filing of return form in ITR V. The assessee was directed to produce the last three years balance sheet and in response to the same, the authorized representative of the assessee submitted the statement of affairs of self and proprietory concern for Asst Year 2008-09 only together with the computation of total income thereon. The ld AO observed certain discrepancies in the cash on hand account and in capital account in the said statement of affairs furnished by the assessee. The ld AO observed that the assessee has prepared cash book after the starting of the assessment proceedings and not at the time of depositing the cash from the cash book to his bank accounts. He further observed that assessee has already disclosed his undisclosed income in the return of income for the Asst Year 2009-10 in the form of other income and net off of other income and depreciation of case are being used for hire. However, no evidence of letting his own car for hire is not placed on r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I Bank. The meager difference of ₹ 3,281/- is met out of cash balance of the assessee. Based on these submissions, the assessee prayed for deletion of the additions made towards cash credit u/s 68 of the Act. 2.3. The ld CITA observed that the assessee had disclosed the interest income from Axis Bank and ICICI Bank in his return of income and hence there was no intention to conceal the said bank accounts in the return. He also gave a finding that the Axis bank account maintained is for non business purposes and hence the said savings bank account balance is not to be disclosed in the e-filed return where business balance sheet is to be disclosed. He observed that the ld AO had only made a wild allegation without understanding the fact that the sources of cash deposits were explainable out of previous withdrawals itself in the same bank accounts. In respect of cheque deposits, the assessee had given proper explanation with regard to the nature of those receipts which has not been properly understood and examined by the ld AO. Accordingly he deleted the additions made in the sum of ₹ 1,62,000/- and ₹ 45,20,000/- u/s 68 of the Act. Aggrieved, the revenue is in app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication by the Inspector of Income Tax. With regard to the other cheque deposits of ₹ 5 lacs and ₹ 2.50 lacs, the same were explained by the assessee to be received towards sale of cars. This fact has not been disputed by the revenue before us. In fact, the same AO had accepted this fact while framing a separate addition towards capital gains on sale of the said cars. Hence we hold that there is no case made out by the revenue for making an addition in the sums of ₹ 1,62,000/- and ₹ 45,20,000/- in the facts and circumstances of the case. Accordingly, the ground no.1 raised by the revenue is dismissed. 3. The next issue to be decided in this appeal is as to whether the ld CITA is justified in deleting the addition made on account of unexplained investment of ₹ 1,00,000/- is Max Life Insurance in the facts and circumstances of the case. 3.1. The brief facts of this issue is that the assessee made an investment of ₹ 1,00,000/- in Max Life Insurance in Cash during the financial year 2008-09 relevant to the asst year under appeal. The ld AO added this sum as undisclosed income as the cash book was rejected by the ld AO. The assessee stated that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilarly the ld AO observed that the assessee had paid ₹ 7,39,000/- to Mr S K Mukherjee towards advance for purchase of residential property, whereas the said party confirmed that he had received ₹ 9,39,000/- from the assessee. Accordingly, the ld AO concluded that the sum of ₹ 2,00,000/- was met by the assessee out of his undisclosed income. 4.2. The ld CITA observed that Sri Suresh Kumar Gourisaria did not have any evidence in hand to prove that the nature of transaction is towards advance paid to assessee. These sums were credited to SB Account with Axis Bank of the assessee in two instalments of ₹ 10,00,000/- and ₹ 5,00,000/- on 4.7.2008 and 11.7.2008 respectively. The ld CITA observed that the authenticity of the transaction is not in question. The assessee stated that these sums were received as advance for sale of land and when the transactions did not fructify, the property was ultimately sold to M/s Riddhi Siddhi Health Care Pvt Ltd on 11.2.2011 and with that fund received thereon, the money was refunded by the assessee to Sri Suresh Kumar Gourisaria on 22.2.2011. The ld CITA observed that the said sale deed has been registered on 11.2.2011 w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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