Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles SMS News Highlights
        Home        
Extracts
Home List
← Previous Next →

Shri Gaurav Baheti Versus I.T.O., Ward 29 (4) , Kolkata

2018 (1) TMI 335 - ITAT KOLKATA

Unexplained cash credit u/s 68 - Held that:- The claim of the assessee of having received an advance of ₹ 8,00,000/- against property from M/s. Tysom Agencies Pvt. Ltd. was duly supported by a letter issued by the said party confirming the payment of advance to the assessee. Similarly the claim of the assessee of having withdrawn cash from his other bank accounts maintained with Bank of Maharashtra and Axis Bank was also supported by the copies of relevant bank statements filed by the asse .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

is sufficient to meet all the objections raised by the Ld. CIT(A) while rejecting the explanation offered by the assessee as regards the source of cash deposits made in his bank account with Axis Bank. Keeping in view the entire material placed on record before the Tribunal, find that the source of cash deposits found to be made in his bank account with Axis Bank aggregating to ₹ 12,12,000/- is property explained by the assessee on evidence and there is no justification on the part of the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

and confirmed by the Ld. CIT(A) on account of unexplained cash credit under section 68 of the Income Tax Act, 1961. 2. The assessee in the present case is an individual who is an employee of M/s. Seacem Paints (I) Pvt. Ltd. He filed his return of income for the year under consideration on 07.01.2013 declaring a total income of ₹ 2,81,015/- comprising of the salary income and income from other sources. As per the AIR information received by the A.O., the assessee had made cash deposits aggr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

addition of ₹ 12,12,000/- to the total income of the assessee in the assessment completed under section 143(3) vide an order dated 13.03.2015. 3. The addition of ₹ 12,12,000/- made by the A.O. under section 68 was challenged by the assessee in the appeal filed before the Ld. CIT(A). During the course of appellate proceedings before the Ld. CIT(A), the source of cash deposits made in his bank account with Axis Bank, Maheshtala Branch was explained by the assessee as under: 1. Opening .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the advance of ₹ 8,00,000/- was received by him against sale of his property but since the deal did not materialise the amount of ₹ 8,00,000/- was subsequently returned back to M/s. Tysom Agencies Pvt. Ltd. The copies of bank statements were also filed by the assessee before the Ld. CIT(A) showing the withdrawals made from the banks in cash which were claimed to be deposited subsequently in the account with Axis Bank, Maheshtala Branch. 5. The explanation/submission made by the asses .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

as cancelled. Appellant has claimed to have returned ₹ 8,00,000/- in cash on 02.03.2012, but source of this cash is not revealed. Further perusal of the documents submitted by the appellant shows that assessee has claimed to have received cash amounting to ₹ 8,00,000/- on 15.06.2011. But the deposits have been made in the month of August, 2100. Further assessee has made a cash withdrawal of ₹ 2,35,000/- on 21.07.2011, but this amount is deposited in the 1st week of August, 2011 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

easons for such time lags. Further, appellant could not explain why he had to withdraw ₹ 2,35,000/- when he had almost ₹ 5,00,000/- in hand and this amount was deposited after two weeks along with the other cash in hand. Further after depositing the cash, assessee has further withdrawn cash of ₹ 1,95,000/- within three weeks of the deposit of cash. Thus there are several inconsistencies in the explanation of the appellant. Documents submitted during appeal proceedings are self .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

at proper and sufficient opportunity was not given by the A.O. to the assessee to explain the source of cash deposits found to be made in his bank account with Axis Bank, Maheshtala Branch. He contended that such opportunity was received by the assessee only during the course of appellate proceedings before the Ld. CIT(A) and availing the same, source of cash deposits made in his bank account in Axis Bank was explained by the assessee. He contended that even the documentary evidence to support a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ies Pvt. Ltd. regarding the purchase/sale of property was not submitted by the appellant. Copies of correspondences between the appellant and Tysom Agencies Pvt. Ltd. along with the Confirmation of Account reflecting the transactions were duly furnished to the CIT(A) for his necessary verification. (Ref: Pages 3 to 6 of Paper Book) (ii) The appellant did not explain the reason why the deal with Tysom Agencies Pvt. Ltd. was cancelled. The advance given by Tysom Agencies Pvt. Ltd. was subject to c .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

03.2012, but the cash deposited by the appellant in his bank accounts during the period May, 2011 to November, 2011. However, the refund of the amount was out of cash balance as on that date as evidenced by the Cash Book. (Ref: Pages 18 to 20 of Paper Book) (i) Cash amounting to ₹ 8,00,000/- from Tysom Agencies Pvt. Ltd. was received by the appellant on 15.06.2011 but the unspent amount out of this sum together with the cash withdrawal of ₹ 2,35,000/- made on 21.07.2011 was deposited .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ook for Balance Sheet) (ii) The cash deposits have not been preceded with cash withdrawals. There is substantial gap between cash deposit and cash withdrawals. Due to poor financial condition, as explained above, the appellant kept his funds in cash and deposited the same in his bank accounts only when such deposit was necessary for making urgent payments (iii) The appellant could not explain why he had to withdraw ₹ 2,35,000/- from bank when he had almost ₹ 5,00,000/- in hand Due to .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

same for utilising the same for making urgent payments in future. Documents submitted during appeal proceedings are self serving documents and these have been manipulated to support the appellant s contentions During the appeal proceedings, the appellant furnished Bank statements (Ref: Pages 7 to 16 of Paper Book) for verification of cash withdrawals from bank, his Balance Sheet as at 31.03.2011 (Ref: Page 2 of Paper Book) for verification of opening cash balance and his correspondences with Ty .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

A.O. under section 68 and confirmed by the Ld. CIT(A) is liable to be deleted. 8. The learned DR, on the other hand, referred to the relevant order sheet entries as appearing on page no 23 of the assessee s Paper Book to point out that sufficient opportunity was afforded by the A.O. to the assessee to explain the nature and source of cash deposits found to be made in his bank account with Axis Bank. He submitted that the assessee however did not avail the said opportunity and offered his explana .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ecting the same. 9. I have considered the rival submission and also perused the relevant material available on record. It is observed that even though no explanation was offered by the assessee regarding the nature and source of cash deposits found to be made in his bank account with Axis Bank, such explanation was offered by him during the course of appellate proceedings before the Ld. CIT(A). Documentary evidence to support and substantiate the said explanation was also filed by the assessee b .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Discussion Forum
what is new what is new
 


Share:            

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version