TMI Blog2021 (7) TMI 617X X X X Extracts X X X X X X X X Extracts X X X X ..... : R. Anita, JCIT ORDER PER S. JAYARAMAN, ACCOUNTANT MEMBER: The assessee filed this appeal against the order of the Commissioner of Income Tax (Appeals)-7, Chennai in ITA No. 104/CIT(A)-7/2018-19 dated 27.06.2019 for the assessment year 2016-17. 2. Mr. Sathasivam Prakash Kumar, the assessee, an individual, e-filed his return of income for the assessment year 2016-17 admitting the total income of ₹ 5,55,380/-. On receipt of AIR information that the assessee made huge deposits into the savings bank accounts etc, the AO obtained information u/s. 133(6) and found that the assessee made huge cash deposit at ₹ 95,45,400/-. The assessee explained before the A O that one Mr. Prasanth, residing at Mogappair West has requested his friend Mr. P. Gopivaradhan, Relationship Manager of Indus Ind Bank to facilitate cash deposit of ₹ 55 lakhs in to his account and further to take a DD in favour of 1. S. Sridharan, 2. T. Sethna, 3. S. Sundaramoorthy, 4. P.L. Manjunath. Based on his request, Mr. P. Gopivaradhan had approached him to favour Mr. S. Prasanth to deposit in one of his bank account bearing A/c. No. 159444444096 with Induslnd Bank, Mogappair Branch. The sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... persons did not appear before her inspite of the fact that some of them have appeared before AO. 1.5 Learned CIT(A) erred in holding that she is not satisfied with the explanation while answers to her conclusion, under items (1) to (7) of her order, are in the sworn statement reproduced in the asst. Order itself. For the reasons stated above and those that may be adduced at the time of hearing Hon'ble ITAT be pleased to delete the addition made u/s. 68 and render justice. Appellant craves leave of the ITAT to file additional ground/evidence at the time of hearing. 3. The case was posted for hearing through video conference. The Ld. AR inviting our attention to the assessment order passed in the case of Shri S. Prasanth u/s. 143(3) r.w. 147 dated 02.12.2019 for the assessment year 2016-17 and submitted that the A O of Shri S. Prasanth has held in that order that the sources of the cash deposits of ₹ 55 lakhs made in the bank account of Shri. S. Prakash Kumar has been explained and completed his assessment by accepting the income returned by him (Shri. S. Prakash). Since, the sources of cash are explained by Shri. S. Prakash which is accepted by the departmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... money and given to me. Q. No. 9 Can you produce before me those four persons? Ans: I will confirm Q. No. 10 Please furnish their address, phone No., e-mail ID and their assessment particulars? Ans: As early as possible AO asked Mr. Prasanth to furnish the details of the 4 persons in whose favour DDs were taken. However, only addresses were furnished. Assessing Officer issued summons to the four persons also but no one appeared. Hence Assessing Officer proceeded to make the addition in appellant's hands as he had failed to conclusively establish that the cash deposits belong to other persons. In the appellate proceedings, the AR submitted the names of the four persons with DD number and amounts paid against name is below (1) S. Sridharan, (2) T. Sethna, (3) S. Sundaramoorthy, (4) P.L. Manjunath As per the Ld. Authorized Representative, appellant has discharged his primary onus of proving that the said cash of ₹ 55 lakhs belongs to him. After carefully considering the submission made and the AO's order the following conclusion is arrived at: 1. The appellant has not explained why his bank account was used as a cond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sister and mother. He took advance from the above four persons in the earlier assessment year and since, the project did not materialize those amounts were repaid to them etc. Thus, it is clear that Shri. Prasanth has taken totally a contradictory position before his A O, from the position he has sworned before the A O of this assessee, which is extracted, supra. Inviting our attention to the paperbook, wherein the copies of IndusInd Bank statements are placed, the Ld. DR submitted that the narration in the bank statement of the assessee reveals that cash deposit branch construction business on 21.4.2015. Thus, it indicates that the assessee was also in construction business . Further, it is clear from the bank statement that Shri Prasanth Kumar Samuthravadivel was also holding account with IndusInd Bank and it is clear from his statement that he did not have such huge cash balance on 21.4.2015 and further his statement has reveals huge cash deposits were made in July and September 2015 also. Therefore, the Ld. DR submitted that when Shri Prasanth Kumar Samuthravadivel himself is having bank account with the same bank, what was the need to receive and hold such huge amount in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th, who were in construction business in Trichy and they have handed over cash to Shri. Prasanth to execute the project in Chennai. Since, it did not happen, he returned back ₹ 13.75 lakhs to each of them through DD and they are all assessed to income tax etc. Based on that statement, the A O issued summons to four persons from whom Shri. Prasanth sworned to have taken the impugned cash and also required the assessee and Shri. Prasanth to coordinate with each other and produce all the four persons before him. Since, these four persons were not produced before him and the assessee has failed to establish that the impugned cash deposits are not his cash, the Assessing Officer added such cash deposits as an unexplained cash credit u/s. 68 and completed the assessment. On appeal, the Ld. CIT(A) dismissed the appeal giving the reasons which are extracted supra. Before us, the Ld. AR pleads that the A O of Shri S. Prasanth has held in his assessment order that the sources of the cash deposits of ₹ 55 lakhs made in the bank account of Shri. S. Prakash Kumar has been explained and completed his assessment by accepting the income returned by him (Shri. S. Prakash). Since, the so ..... X X X X Extracts X X X X X X X X Extracts X X X X
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