TMI Blog2020 (12) TMI 182X X X X Extracts X X X X X X X X Extracts X X X X ..... nts have been made by account payee cheques on account of salaries and wages, tyre purchases and diesel expenses, which totalled to ₹ 24.65 lakhs. These details were also furnished before the CIT(A) but such details received the same fate. We are of the considered view that when the assessee has explained everything with evidences, the CIT-A should not have rubbished those evidences without recording any specific findings. Cash purchase of the impugned property - HELD THAT:- AO has grossly erred in simply believing the contention of the counsel of Shri Ram Babu. It appears that ₹ 97 lakhs was deposited in cash in the bank account of Shri Ram Babu and to explain the source, the ld. counsel simply stated that Shri Ram Babu ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ference, if any, and the Assessing Officer is directed to examine the issue afresh and decide the same after giving opportunity of being heard to the assessee. This ground is, accordingly, treated as allowed for statistical purposes. - ITA No. 9434/DEL/2019 - - - Dated:- 4-12-2020 - SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER Assessee by : Shri Hiren Mehta Adv Revenue by : Shri Atigu Ahmed, Sr. DR ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER, This appeal by the assessee is preferred against the order of the CIT(A) 35, Delhi dated 20.11.2019 pertaining to A.Y 2011 12. 2. The grievances of the assessee read as under: 1. That on the facts and circumstances of the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upon the statement of the seller without providing any opportunity to the appellant for rebuttal. 6. That on the facts and circumstances of the case and in law, the ld. CIT(A) erred in sustaining addition of ₹ 22,828/- being difference in the interest earned in the bank account and interest shown in the return of income. 3. Representatives of both the sides were heard at length. Case records carefully perused. 4. Briefly stated the facts of the case are that the assessee is an individual, engaged in the business of civil contracting and during the year under consideration, has started the activity of a builder. Return was filed declaring taxable income of ₹ 11.02 lakhs. Assessment was completed under section 143(3) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he bank account with HDFC bank. 7. Proceeding further, the Assessing Officer found that the assessee has debited expenses amounting to ₹ 96,29,565/-. The assessee was asked to furnish ledger account, vouchers, bills of expenses claimed in the profit and loss account. Requisites details were furnished. The Assessing Officer was of the opinion that ₹ 72 lakhs had been incurred in cash. The assessee was asked to furnish cashbook but instead, the assessee furnished certificate from HDFC bank certifying that the cash of ₹ 48 lakhs has been withdrawn from the bank during the year under consideration. 8. The Assessing Officer was of the opinion that the assessee has not furnished any details in respect of difference of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d again the loans were taken from the same persons. The Assessing Officer has simply seen credits in the bank account without realising that the same amount is recycled. We find that detailed explanation alongwith re-conciliation has been furnished by the assessee before the CIT(A) but the same was dismissed out-rightly. 14. Similar is the fate of expenditure treated by the Assessing Officer as paid in cash in excess of cash withdrawals. We find that out of the alleged difference, most of the payments have been made by account payee cheques on account of salaries and wages, tyre purchases and diesel expenses, which totalled to ₹ 24.65 lakhs. These details were also furnished before the CIT(A) but such details received the same fate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt question arises as to how the counsel of Shri Ram Babu knew that ₹ 97 lakhs were received by Shri Ram Babu from the assessee when he has left for heavenly abode on 14.11.2013. Order sheet entries are placed at pages 1 to 3 of the paper book. Assessment proceedings are dated February 2014, which means that the assessment proceedings in the case of the assessee were much after the date of death of Shri Ram Babu. 19. In our considered view, the entire addition has been made on assumptions and surmises and on the statement of counsel of Shri Ram Babu which do not have any evidentiary value keeping in mind that Shri Ram Babu died in 2013. Considering these facts in totality, addition of ₹ 97 lakhs is directed to be deleted. Gro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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