TMI Blog2019 (3) TMI 1712X X X X Extracts X X X X X X X X Extracts X X X X ..... SHRI R. K. PANDA, JJ. Appellant by: Sh. R.S. Singhvi, C.A.J Respondent by: Sh. S.L. Anuragi, Sr. DR ORDER R.K. PANDA, J. The above two appeals filed by the assessee are directed against the separate orders dated 28.2.2018 and 21.3.2018 of the ld. CIT(A)-31, New Delhi for Assessment Years 2007-08 and 2009-10 respectively. For the sake of convenience these were heard together and are being disposed of by this common order. ITA No. 4253/Del/2018 (A.Y. 2007-08) 2. Facts of the case, in brief, are that the assessee is an individual and filed his return of income on 16th July, 2008 declaring total income of ₹ 1,08,010/- which was processed under section 14143(1) of the Income Tax Act. Subsequently the case was reopened under section 147 / 148 on the basis of information received from Additional Director of Income Tax (Investigation) Unit-V, New Delhi. The assessee, in response to the notice issued under section 148 of the Income Tax Act, requested the AO to treat the original return filed earlier as return in response to notice under section 148. Subsequently the AO issued notice under section 143(2). During the course of assessment proceedin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nted to make payments/investments (by issue of cheque or DD). The appellant did this so that the investments/expenditure is shown to have been made/incurred from the bank account. Even otherwise the explanation of appellant is not acceptable. The appellant has claimed it had sold certain property on which short capital gain amounting to ₹ 78,500/- had arisen. This is for the reason that it has been noted in the assessment order that the appellant had claimed to have derived income from house property only. This also established that the appellant did not disclose income from capital gain which it has admitted now. Thus the conclusion made by the AO that the credits in the bank account have remained unexplained is valid. I also find that the several members of the family - Sh. Pankaj Sapra, Smt. Daya Sapra(Mother of Sh. Pankaj Sapra) Sh. S.N. Sapra (also known as Sh. Som Nath Sapra/Arora, father of Sh. Pankaj Sapra) have been systematically involved in such business activities and credits/cash deposits in the bank accounts have remained unexplained. 5. In final analysis, I uphold the action of the AO-(i) With regard to addition on account of unexplained deposits in bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8377; 2,70,900/- was deposited in cheques and the cash deposit was only ₹ 226530/-. Therefore, the reasons recorded by the AO are vague and not on proper appreciation of facts and based on reports of investigation wing without any independent application of mind. Therefore, on this ground itself, the reassessment proceeding should be quashed. 6. Even on merit the learned counsel for the assessee drew the attention of the Bench to the item wise deposit made in the bank account and submitted that the amount of ₹ 2,50,000/- deposited on 27.07.2006 was out of the cheque payment received on account of sale of property bearing no. 547, Block-D, Gali No. 5, Sangam Vihar, New Delhi. Similarly the cash deposit of ₹ 1,00,000/- on 18.4.2006 was out of advance amount against sale of property which was deposited in the bank account. The other deposits are either the rental income or out of the proceeds of the property no. 547. Thus the amounts stand fully explained and therefore, no addition is called for. 7. The learned DR, on the other hand, heavily relied on the order of the learned CIT(A). 8. I have considered the rival submissions made by both the sides and pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . In the impugned assessment year, the AO reopened the assessment on the basis of information received from the investigation wing that assessee has made cash deposit of ₹ 36,82,199/- in the bank account. After considering the reconciliation statement filed by the assessee, the AO made addition of ₹ 14,33,000/- after accepting the remaining amount as explained. 12. In appeal, the learned CIT(A) sustained an amount of ₹ 13,00,000/- and deleted the balance amount of ₹ 1,33,000/- by observing as under:- 4.4. I have examined the facts at hand. I find that the appellant has systemically carried business as a builder/ transacting in real Calais. The books of accounts or supporting evidence(s) were not produced before me (or even before the AO). The appellant sought to produce certain documents as additional evidence. However, the source of cash deposited in bank account remains unexplained. IN view of the fact that books of account and confirmation(s) of third parties, and even the source/confirmation(s) of credits in bank accounts have not been produced/provided such investments/credits have remained not explained satisfactorily. Merely producing some a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee is in appeal before the Tribunal by raising the following grounds. (i) That on the facts and circumstances of the case, the Assessing Officer has wrongly assumed jurisdiction u/s. 148 without proper appreciation of facts, recording of satisfaction and requisite approval in terms of provisions of sec. 151 and CIT(A) was not justified in confirming order of AO. (ii) That there is no case of any income escaping assessment and whole basis of reassessment is illegal and without jurisdiction. 2(i). That on the facts and circumstances of the case, the observation of the CIT(A)regarding addition of ₹ 13,00,000/- is highly arbitrary and contrary to facts on record. (ii) That all these transactions are fully corroborated and supported from bank statements and explanation of the appellant and as such there is no case of any addition in respect of the same. (iii) That various transactions are inter related and there is no presumption that same represent unexplained credit or unexplained investment. (iv) That impugned addition is highly arbitrary and unjustified and merely based on presumption and surmises 3. That the assessee crave leav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Requisite relief to be given by A.O. after due verification as directed by CIT(A) 24.09.2008 150,000 150,000 Receipts in respect of sale of property bearing Khasra no. 1417 (paper book page 36) 25.09.2008 50,000 50,000 Receipts in respect of sale of property bearing Khasra no. 1417 (paper book page 36) 08.12.2008 50,000 - Requisite relief to be given by A.O. after due verification as directed by CIT(A) 22.12.2008 25,000 25,000 Contra cash deposit from withdrawal 21.02.2009 120,000 120,000 Advance received back against cancellation of purchase agreement of property bearing no. K-19/1489 (paper book page 42-) 12.03.2009 30,000 - Requisite relief to be given by A.O. after due verification as directed by CIT(A) Total 1,433,00 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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