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TMI Blog2017 (4) TMI 1012X X X X Extracts X X X X X X X X Extracts X X X X ..... orised Representative on the latter issue. 2. Facts apropos for the first issue are that assessee, a director of a company called M/s. Tamilnadu Air Travels Pvt Ltd had deposited a sum of Rs. 25,73,500/- in his account in City Union Bank, Triplicane Branch, Chennai during the relevant previous year. Since assessee had not filed an return of income for the impugned assessment year a notice u/s.148 of the Income Tax Act, 1961 (in short ''the Act'') was issued to the assessee. Pursuant to this notice assessee filed a return on 25.11.2013 admitting an income of Rs. 1,57,490/- after deductions. The income declared included salary of Rs. 2,10,000/- and interest Rs. 34,819/-. Assessee was required to explain the source of the cash deposits made i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Tamilnadu Air Travels Pvt. Ltd, Chennai is unable to trace and submit the book of account. Non transactions in the savings bank account of Mr. S. Muniyandi is related to him. This money is deposited by M/s. Tamilnadu Air Travels Pvt. Ltd for purchase of property in its name. Which is very much factually and material proved through the fallowing. a) Property is registered in the name of M/s. Tamilnadu Air Travels Pvt. Ltd (Copy of sale deed already filed). b) Fund deposited in the SB accounts are utilized only far purchase of the above property. c) M/s. Tamilnadu Air Travels Pvt. Ltd Audited balance sheet shows the addition of property in its fixed assets schedule. d) Confirmation from M/s. Tamilnadu Air Travels Pvt. Ltd that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ady submitted). The directors of the company felt that if the money is deposited in the company account they will be utilized for business purpose the objective of purchase of property will not be materialized Sa they mutually agreed to. deposit the same in a separate bank account in the name of one of the director. From that account statement it is very clear that the funds deposited It not utilized only for the purpose of purchase of property. We had provided an affidavit from the broke as material evidence for proof of such transaction since we are unable to locate the old seller''. After filing the above reply, assessee also produced Mr. Ganapathy before ld. Assessing Officer on 14.03.2014. Mr. Ganapathy confirmed what he had stated i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce sheet as on 31.03.2005. As per the ld. Assessing Officer, the sundry debtors balance as on 31.03.2005 was Rs. 21,12,449/- only. Thus, according to ld. Assessing Officer claim of the assessee was not at all believable. He also noted that assessee had not drawn any salary from the said company and had no source whatsoever for justifying the deposits made in the bank account. He made an addition of Rs. 25,73,500/-. There was an addition of Rs. 31,565/- also being difference between interest admitted in the return of income filed and actual interest received by the assessee from banks. 4. Aggrieved, assessee moved in appeal before ld. Commissioner of Income Tax (Appeals). Ld. Commissioner of Income Tax (Appeals) was of the opinion that cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stand of the assessee was that deposits made in M/s. City Union Bank were out of the withdrawals made from the company for purchase of the property. If what Mr. Ganapathy stated is true, the advance of Rs. .30,00,000/- given by him to Shri. Dhanasekar, on behalf of the company would have found a place in the assets of the company as on 31.03.2005. The advance paid for acquiring asset, whether stock in trade or not, has to appear in balance sheet and if it does not appear it only means that there was no such advance given by the company. Just because assessee produced Mr. Ganapathy would not convert whatever he stated as true. Ld. Assessing Officer also specifically noted that Mr. Ganapathy had given vague answers regarding date of receipt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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