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2017 (5) TMI 357 - ITAT JODHPUR

2017 (5) TMI 357 - ITAT JODHPUR - TMI - Undisclosed income U/s 69 - unexplained source of cash deposits made in the bank account - Assessee has a Joint account with his father - Held that:- In the present case, in the paper book filed by the assessee, it was clear from the documentary evidence that at the relevant time, the assessee was a student of ICFAI University, Dehradun and had no source of income. The bank account details filed clearly shows that both the accounts, one was the joint accou .....

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However, the said discretion should be exercised keeping in view the facts and circumstances of a particular case. when it is claimed that the assessee could not possibly have any source of income, the addition on his hand is not justified within the parameters of the Income Tax Act. If at all, the additions could have been made, it could have been done either in the hands of the father or the mother of the assessee, therefore, we arrive at our considered view that the findings of the ld. CIT(A .....

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09, wherein the assessee has taken only one effective ground of appeal, which is as under: 1. The ld. CIT(A) has erred on facts and in law in confirming the addition of ₹ 3,21,000/- on account of undisclosed income U/s 69 of the IT Act, 1961. 2. The assessee craves right to add, alter or amended any of the ground of the appeal. 2. The brief facts arising herein are that the assessee during the year under consideration was a student of ICFAI University, Dehradhun perusing Masters in Busine .....

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28.02.2008 in the units of UTI Mutual Fund. The source of such investment was explained to be the amount deposited in this bank account by his mother, Smt. Devi Lohani out of the sale proceeds of the agricultural land sold on 12.02.2008. The AO from perusal of the bank account of assessee jointly maintained with his father observed that there is a deposit of ₹ 3,21,000/- in cash between 14.02.2008 to 06.03.2008. Further, in the joint account of Shri Santosh Kumar Lohani and Smt. Devi Lohan .....

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ted the cash deposit of ₹ 3,21,000/- in the account of the assessee as unexplained and made addition u/s 69 of the Act. 3. The assessee made following submissions before the ld. CIT(A): 1. The Assessee has a Joint account with his father Shri Santosh Lohani in Punjab National Bank A/c no. 0052000109134490. 2. He is a student and do not have any source of income. Copy of Degree issued by The ICFA1 university of Dehradun of Master in Business Administration are enclosed herewith. 3. Mr. Sant .....

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registered value, amount was deposited in Joint account on varies dates as follows: Sl. No. Date of cash deposit Amount of cash deposited in Joint account No. 0052000109134490 1. 14/02/2008 45,000/- 2. 15/02/2008 45,000/- 3. 16/02/2008 45,000/- 4. 18/02/2008 45,000/- 5. 19/02/2008 48,000/- 6. 20/02/2008 45,000/- 7. 06/03/2008 48,000/- Total 3,21,000/- 4. This amount was related to Shri Santosh Lohani and the amount deposited has been utilised for Mutual Fund of ₹ 5,00,000/-on 28.02.2008 wh .....

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of assess is also bad in law. Since bank account was in joint name and amount also related to joint account holder i.e. his father Shri Santosh Lohani. Therefore the addition made to assessee is deserved to be deleted. On considering the assessment order, statement of facts, grounds of appeal and written submissions, the ld CIT(A) has held that the assessee failed to prove satisfactorily, the source of cash deposits of ₹ 3,21,000/- made by him in the bank account. The appellant has not fur .....

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Lohani. The mode of operation of account was either / or survivor. The assessee has no source of income during the relevant year as he was studying at Dehradun in the ICFAI University. Thus, when assessee has no source of income and the cash was deposited in the bank account which is in the joint name with his father, the addition made in the hands of the assessee is not justified. He further submitted that it may be noted that the source of the deposit made in the joint bank account is out of .....

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sessee, she also received some extra amount. This amount was deposited by her partly in the bank account of the assessee and partly in her bank account aggregating to ₹ 5,49,000/-. In fact, the cash deposit of ₹ 2,28,000/- in the bank account of the mother of the assessee was also transferred to the bank account of the assessee and out of such amount ₹ 5 lakhs was invested in UTI on 28.02.2008. The redemption proceeds of these units was thereafter credited to this account on 31 .....

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another agricultural land. Thus, neither the assessee has deposited this amount in his bank account nor he is beneficiary of this amount. Hence, addition made by the AO and confirmed by the Ld. CIT(A) is unjustified. The ld AR further referred to the case of CIT Vs. Smt. P.K. Noorjahan 237 ITR 570 (SC) and vehemently argued that the case of the assessee is squarely covered by the decision of the Hon'ble Apex Court. 5. The ld. D.R., on the other hand, supported the orders of the authorities .....

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r mother s first husband. The said explanation offered by the assessee was rejected and addition was made u/s 69. The Tribunal, however, held that even though the explanation about the nature and sources of the purchase money was not satisfactory but in the facts and circumstances of the case it was not possible for the assessee to earn the amount invested in the properties and that by no stretch of imagination could the assessee be credited with having earned this income in the course of the as .....

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ot committed any error in taking into account the complete absence of resources of the assessee and also the fact that having regard to her age and the circumstances in which she was placed she could not be credited with having made any income of her own and in these circumstances the Tribunal was right in refusing to make an addition of the value of the investments to the income of the assessee. Ld. counsel appearing for the Revenue, has urged that the Tribunal as well as the High Court were in .....

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acting s. 69 was to confer a discretion on the ITO in the matter of treating the source of investment which has not been satisfactorily explained by the assessee as the income of the assessee and the ITO is not obliged to treat such source of investment as income in every case where the explanation offered by the assessee is found to be not satisfactory. The question whether the source of the investment should be treated as income or not under s. 69 has to be considered in the light of the facts .....

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s in which the assessee was placed and the Tribunal has found that the sources of investments could not be treated as income of the assessee. The High Court has agreed with the said view of the Tribunal. We also do not find any error in the said finding recorded by the Tribunal. There is thus no merit in these appeals and the same are accordingly dismissed. In the present case, in the paper book filed by the assessee, it was clear from the documentary evidence that at the relevant time, the asse .....

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