9911796707
TMI Blog2020 (2) TMI 1280X X X X Extracts X X X X X X X X Extracts X X X X ..... come-Tax Appellate Tribunal, Chennai (hereinafter called "the Tribunal") for ay: 2012-13, read as under:- Grounds of appeal for the AY 2012-13: Extract from the Hon. ITO Assessment Order dt. 10.03.2016 for the AY 2012-13 ref-page 2 para 3 During the course of the assessment proceedings the AR was asked to produce sources for cash deposits, conformation for loan, details of interest paid and copy of bank statement. In mean time, copies of bank statement are obtained from the bank on request and the bank statement were examined. The assessee informed during the course of hearing that he could not produce the details for cash deposits as the accountant suddenly left the service. After discussion, the assessee agreed for adopting 'peak credit' method to find out the income on account of cash deposits. Accordingly, peak credit was worked out to Rs. 3,05,500/- is added to the total income of the assessee. Extract from the Hon. CIT(Appeals} Order dt.10.03.2016 for the AY 2012- 13 ref-page 9 para 2 The AO has not examined the source of above cash deposits, moresoever, complete books of accounts, evidences, various ledger accounts like loan accounts, jewel loan account, co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in absence of supporting and corroborative evidences considering peak cash credit as unexplained cash in the hands of the assessee appears to be most appropriate and just and proper. vi) Thus the ground of appeal of the assessee that the peak cash credit of Rs. 3,05,500/- shall be deleted in view of the assessee now producing reconstructed P&L account, balance sheet and cash book and bank book is found to be incomplete for want of details of respective ledgers in the assessee books of accounts. vi) Hence I confirm the action of the assessing officer to treat peak cash credit as arrived by the assessing officer during the assessment proceedings for Rs. 3,05,5007- as unexplained cash credit in the hands of the assessee. The grounds of appeal on the issue is accordingly dismissed. 3. Grounds of Appeal: We humbly submit that the Hon. CIT (A)-13 it appears has erred in law and facts as mentioned below: i) With reference to point 2(i) above: a) In the Remand Report in page 2 of para 1 & 2 the Assessing Officers Remarks has clearly mentioned: b) In para 1 the Hon. A.O. has mentioned the assessee produced below mentioned books of accounts for verification. c) In para 2 the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat it shows the cash deposits made into the savings accounts. * Further perusal of the Original books of accounts, the assesse 's version with regard to the damage of books, due to flood appears to be correct. b) Hence, the Hon. CIT(A)-13 statement, "The assessee now production reconstructed....." is incorrect. Cash book, bank book , P&L account, balance sheet, etc., produced were 'Retrieved' damaged books and no1 'Reconstructed.' vii) With reference to point 2(vii) above: "Hence I confirm....................... "Rs. 3,05,500/- as unexplained cash credit in the hands of the assessee" is incorrect because: As explained in earlier paras the source for cash deposits in the bank is clearly explains and hence the Peak Credit addition treating as un explained is incorrect. Prayer: The Appellant here by earnestly pray to the Members of the Hon. ITAT that: 1) The Hon. Members of the Hon. ITAT may please permit me to file additional grounds of appeal/ submissions which the Appellant may deem necessary. 2) The Grounds of Appeal mentioned here in above may be considered favorably and if deem fit allow this Appeal and dismiss the Order of the Hon. CIT(A)- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... additions were made by AO in the hands of the assessee to the tune of Rs. 3,05,500/- for ay: 2012-13 , vide separate assessment order dated 10.03.2016 passed by AO u/s 143(3) read with Section 147 of the 1961 Act. 4. Aggrieved by an assessment framed by the AO as aforesaid for ay: 2011-12 and 2012-13 vide separate assessment orders, the assessee filed separate appeal(s) with Ld.CIT(A) for both the assessment years. The assessee filed fresh evidences before learned CIT(A) to substantiate its case but both the appeals were dismissed by the Ld.CIT(A) vide separate appellate orders both dated 11.07.2017 passed by learned CIT(A). Thereafter, the assessee filed rectification petition u/s.154 of the Act before Ld.CIT(A) on 18.09.2017 for both the ay's stating that appeal of the assessee was dismissed without considering additional evidences of cash book which was already on record , as sources of cash credits stood explained. The Ld.CIT(A) dismissed said rectification petition(s) for both the years as they were filed manually. The assessee filed another rectification petition(s) u/s.154 before learned CIT(A) for both the years which were filed on 16.10.2017 manually which again were dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y sincere apology, for not submitting Remand Report, as per the direction of the learned CIT (A), at first instance. The revised remand report is submitted as under: During the course of remand report proceedings the assessee along with authorized representative appeared before the undersigned. It was submitted by the assessee that due to heavy rain during the month of November and December 2015 the records of the assessee were damaged & due to this books of accounts could not be produced during the course of assessment proceedings. Further the assessee produced, retrieved original books of accounts for verification. Perusal of the books of accounts, the assessee's version regarding damage of books of accounts appears to be correct. The assessee produced below mentioned books of accounts for verification: 1. Balance Sheet as on 31.03.2011 2. Profit & Loss account for the F.Y. 2010-11 3. Indian Overseas Bank book maintained in the books of assessee for the F.Y. 2010-11. 4. Cash Book maintained in the books of the assessee for the F.Y. 2010-11 5. Income tax Acknowledgement for the A.Y. 2011-12, Assessing Officers Remark The details submitted by the assessee were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idering the new evidence by giving an opportunity of being heard to the appellant. The AO after considering the additional evidence submitted the Remand Report the same is reproduced here under: "During the course of remand report proceedings the assessee along with authorized representative appeared before the undersigned. It was submitted by the assessee that due to heavy rain during the month of November and December 2015 the records of the assessee were damaged & due to this books of accounts could not be produced during the course of assessment proceedings. Further the assessee produced books of accounts, the assessee's version regarding damage of books of accounts appears to be correct. The assessee produced below mentioned books of accounts for verification: 1. Balance Sheet as on 31.03.2011 2. Profit & Loss account for the F.Y. 2010-11 3. Indian Overseas Bank book maintained in the books of accounts for the F.Y. 2010-11 4. Cash Book maintained in the books of the assessee for the F.Y. 2010-11. 5. Income tax Acknowledgement for the A.Y. 2011-12. Assessing Officer Remark The details submitted by the assessee were examined. It was seen from the book & Ban ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , moresoever, complete books of accounts, evidences, various ledger accounts like loan accounts, jewel loan account, commission account, interest accounts could not be furnished before the appeal authority, as the facts remains that the same are not available with the assessee. Therefore, source of cash deposit as such could not be substantiated with evidences, moreover considering the entire cash deposit as unexplained and not giving credit for withdrawal from the bank accounts is tantamount to injustice to the assessee. Therefore, in all fairness in absence of supporting and corroborative evidences considering peak cash credit as unexplained cash in the hands of the assessee appears to be most appropriate and just and proper. Thus the ground of appeal of the assessee that the peak cash credit of Rs. 6,25,500/- shall be deleted in view of the assessee now producing reconstructed P&L account, balance sheet and cash book and bank book is found to be incomplete for want of details of respective ledgers in the assessee books of accounts. Hence I confirm the action of the assessing officer to treat peak cash credit as arrived by the assessing officer during the assessment proceedings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in March 2016 by AO for aforesaid ay's. The said factum of damage to records in floods/rains in Chennai was later proved to be correct as accepted by AO in remand report. The assessee during appellate proceedings conducted by learned CIT(A) filed reconstructed records including cash books , bank book etc but learned CIT(A) dismissed appeal(s) filed by the assessee for both the ay's. Later the assessee filed three rectifications petitions u/s 154 of the 1961 Act before learned CIT(A), the first two were dismissed by learned CIT(A) as the same were filed manually while the third rectification petition u/s 154 was e-filed which was later adjudicated by learned CIT(A) on merits. The learned CIT(A) called for remand report from AO wherein AO accepted contention of the assessee that it is due to flood/rains in Chennai the assessee could not produce its record. The following documents were admittedly produced before the authorities below which is acknoweldeged by authorities below: 1. Copy* of letter dt. 17.05.2018 submitted to Hon. ITO NCW 11(4). *(PDF copy and editable word file) 2. Copy ITR ack AY 2011-12 3. Copy of Balance sheet for the FY 2010-11 4. Copy of Profit & Loss a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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