TMI Blog2020 (5) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... e amount out of the aforesaid rental income, at the same time, the amount of ₹ 2,00,000/- was deposited on 08/05/2014 , so it cannot be presumed that that the total rental income for the whole year was received by the wife of the assessee before that date, particularly when no evidence was furnished to substantiate the same. Therefore, we are of the view that the said deposit of ₹ 2,00,000/- was unexplained. As regards to the another deposit, some amount had been withdrawn from the bank account by the wife of the assessee and remaining account is from the savings from rental income of earlier years - the submission appears to be plausible, however part of the deposit confirmed - Decided partly in favour of assessee. - ITA NO. 301/Chd/2019 - - - Dated:- 27-2-2020 - Shri. N.K. Saini, VP And Shri, Sanjay Garg, JM For the Assessee : Shri Rachit Goyal For the Revenue : Shri Rohit Mehra, Addl. CIT ORDER PER N.K. SAINI, VICE PRESIDENT This is an appeal by the Assessee against the order of the Ld. CIT(A)-II, Chandigarh dt. 13/12/2018. 2. Following grounds have been raised in this appeal: 1. The impugned order in the case cited as subject ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder dt. 20/02/2019 wherein it has been held that objectives for which Section 80IC was enacted and irresistible conclusion would be to grant 100% deduction of the profits and gains even from the year when there is substantial expansion in the existing unit, after all, this substantial expansion involves great deal of investment which has been atleast 50% in the plant and machinery of the book value thereof before taking depreciation in any year. 10. In his rival submissions the Ld. CIT DR strongly supported the orders of the authorities below. 11. We have considered the submissions of both the parties and perused the material available on the record. In the present case it is noticed that the assessee had carried out its substantial expansion and this fact has also been admitted by the A.O. , now this issue has been settled by the Hon'ble Apex Court in the case of Pr. CIT Vs. Aarham Softronics (supra) wherein it has been held as under: Objectives for which Section 80-IC was enacted, an irresistible conclusion would be to grant 100% deduction of the profits and gains even from the year when there is substantial expansion in the existing unit. After all, this substant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 2,00,000/- on 08/05/2014 and ₹ 3,75,000/- on 08/11/2014. Also the assessee held another account with UCO Bank and made cash deposit amounting to ₹ 2,00,000/-. The UCO Bank account held has duly been accounted in the books of accounts of the assessee. 14.1 The A.O. was not satisfied from the submissions of the assessee by observing that the assessee could not file any plausible explanation for deposit of ₹ 2,00,000/- and ₹ 3,75,000/- in his joint bank account with PNB Hamirpur, therefore, the same remained unexplained. Accordingly the addition of ₹ 5,75,000/- was made to the return of income of the assessee. 15. Being aggrieved the assessee carried the matter to the Ld. CIT(A) and submitted that the A.O. had not given the opportunity to explain the deposit of ₹ 5,75,000/-. He therefore, furnished the additional evidence under Rule 46A of the Income Tax Rules and submitted as under: In respect of the same it is hereby submitted that the assessee lives in a joint ^ family along with his wife, son and daughter in law. Since the assessee was living in the joint family the household expenses are met jointly by the family memb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee s wife ITR for the A.Y. 2014-15 and 2015-16 to the A.O. for her comment. In response the A.O. submitted as under: In this regard, it is submitted that total addition of ₹ 1,82,81,385/- was made under different sections, while passing order u/s 143(3) of I T . Act, 1961. Out of which 5,75,000/- was made on account of unexplained cash deposits. When the assessee was confronted on the issue vide order sheet entry dated 27.09.2017 (copy enclosed), he filed his reply as under:- During the assessment year 2015-16 relevant to financial year 2014-15, the assessee held joint account in Punjab National Bank with his zoife Santosh Kumari Khanna and made cash deposit amounting to ₹ 2,00,000/- on 08.05.2014 and ₹ 3,75,000/ on 08.11.2014. Also the assessee held another account with UCO Bank and made cash deposit amounting to ₹ 2,00,000/-. The UCO Bank account held has duly been accounted in the books of accounts of the assessee. It is evident from the above reply that plausible explanation for deposit of ₹ 2,00,000/- ₹ 3,75,000/- in Punjab National Bank was not given by the assessee, whereas due explanation was given by the assessee r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... below and further submitted that the assessee held joint bank account with his wife Smt. Santosh Kumari Khanna and made cash deposit amounting to ₹ 2,00,000/- on 08/05/2014 and ₹ 3.75 Lacs on 08/11/2014. It was further stated that the assessee was living in the joint family therefore the household expenses were met jointly by all the family members. It was further stated that the assessee s wife had her own regular source of income and that the amount of ₹ 2,00,000/- deposited was out of old savings of his wife and the rental income received in cash in the preceding years. It was further submitted that the assessee s wife withdrew the sum of ₹ 2,00,000/- on 10/09/2014 which was deposited again on 08/11/2014 therefore the addition made by the A.O. and sustained by the Ld. CIT(A) was not justified. He also furnished the copy of ITR and the computation of income of his wife which are placed at page no. 71 72 of the assessee s compilation. 18. In his rival submissions the Ld. DR strongly supported the orders of the authorities below. 19. We have considered the submissions of both the parties and perused the material available on the record. In the prese ..... X X X X Extracts X X X X X X X X Extracts X X X X
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