TMI Blog2018 (8) TMI 1256X X X X Extracts X X X X X X X X Extracts X X X X ..... ile Parle (E) Branch to explain credits found in bank accounts with corresponding withdrawals from other bank accounts, but fact remains that the assessee has not filed a chart explaining date-wise credit found in two bank accounts and corresponding withdrawals from two proprietory concerns’bank accounts. - Matter remanded back to the file of AO for examination of facts. - I.T.A No.3974 to 3978/Mum/2013 And I.T.A No.3971 to 3973/Mum/2013 - - - Dated:- 21-8-2018 - Shri Mahavir Singh(JUDICIAL MEMBER) And Shri G Manjunatha (ACCOUNTANT MEMBER) For The Revenue : Shri R Manjunatha Swamy For The Assessee : Shri K Gopal ORDER Per Bench: This bunch of 8 appeals, out of which 3 appeals filed by the revenue and 5 appeals filed by the assessee are directed against the order of the CIT(A)-38, Mumbai dated 14-02-2013 for the assessment year 2004-05 to 2010-11. Since facts are identical and issues are common, for the sake of convenience, these appeals were heard together and are disposed of by this common order. 2. The revenue has raised more or less common grounds of appeal for all 3 assessment years. For the sake of brevity, grounds of appeal raised for A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. The brief facts of the case are that the assessee is an individual, engaged in the business of civil construction in the name and style of two proprietory concerns, viz. M/s Sai Civil D cor and M/s Mahalaxmi Enterprises. A search and seizure action u/s 132 of the Income-tax Act, 1961 was carried out on Chandbibi Zaidi group of cases on 20-08-2009. The main person of the group is Ms.Chandbibi Zaidi, who is president of two prominent trade unions, viz. MMS( Mumbai Mazdoor Sabha) Engineering Mazdoor Sabha (EMS). She is also managing trustee of Free Trade Unions Multi Purpose Trust, a public charitable trust closely associated with two trade unions. During the course of search, certain incriminating materials were found and seized revealed that Ms.Chandbibi Zaidi is siphoning off funds of the trust through various means including alleged bogus expenditure and accordingly, a statement u/s 132(4) of the Income-tax Act, 1961 was recorded. The assessee being a civil contractor, rendered services to Free Trade Unions Multi Purpose Trust was also covered under section 132 action and accordingly, a statement u/s 132(4) of the Income-tax Act, 1961 was recorded. During the course of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opies to prove that amount received from the said trust has been included in his income-tax return and profit has been derived by following the principles of deeming net profit provided u/s 44AD of the Income-tax Act, 1961. The assessee also filed various details to match year-wise amount received from the trust and amount considered in its books of account. The assessee also filed various details to prove expenditure incurred towards carrying out repair works to Kennedy Bldg. Insofar as cash deposits in bank accounts, assessee explained before the CIT(A) that he has deposited cash out of his own source of income drawn from 2 proprietory concerns, M/s Sai Civil D cor and M/s Mahalaxmi Enterprises and accordingly filed a chart explaining amount deposited in bank account. The Ld.CIT(A), after considering relevant submissions of the assessee deleted protective additions made by the AO towards amount received from Free Trade Unions Multi Purpose Trust on the ground that the assessee has filed necessary evidences to prove that the amount received from the said trust is included in his income-tax returns and also filed various details to prove expenditure incurred for carrying out necess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ghtly deleted addition made by the AO on protective basis and his order should be upheld. 7. On the other hand, the Ld.DR submitted that the Ld.CIT(A) was erred in deleting additions made on protective basis on account of amount received from Free Trade Unions Multi Purpose Trust without giving any decision in the case of Ms.Chandbibi Zaidi wherein substantive addition was made by the AO. The Ld.CIT(A) simply deleted addition made by the AO without recording his reasons in the light of facts brought out by the AO during the course of assessment proceedings that the amount received by the assessee has been routed back to Ms.Chandbibi Zaidi, therefore, without ascertaining the facts and result of addition made in the hands of Ms.Chandbibi Zaidi, deleted addition in the hands of the assessee. 8. We have heard both the parties and perused the material available on record. The Ld. AR has filed various details to prove that the assessee has considered amount received from Free Trade Unions Multi Purpose Trust in his income-tax returns for the relevant assessment years and estimated net profit on such receipts under the provisions of section 44AD of th4e Act. The assessee also filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rises and M/s Sai Decors for which necessary evidences have been filed before the AO. The assessee further contended that there are instances where the assessee has withdrawn cash from one bank account and deposited in another bank account, but the AO has not considered withdrawal from other banks to explain credits found in another bank account. The AO also not considered withdrawals found in some bank account in earlier occasions. The assessee further contended that even the AO has made addition towards cheque transfers between assessee s individual bank account from assessee s HUF bank account. The AO also not considered amount found credited in assessee s wife s account. The assessee has filed a paper book explaining each and every credit found in two bank accounts with corresponding withdrawals from his two proprietory concerns, M/s Mahalaxmi Enterprises and M/s Sai Decors. According to the assessee, each and every credit found in two bank accounts is having corresponding withdrawals from his two proprietory concerns or there is source of income in the form of amount transferred from his HUF account or from his wife s account. The AO has ignored all these evidences to make add ..... X X X X Extracts X X X X X X X X Extracts X X X X
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