TMI Blog2021 (8) TMI 278X X X X Extracts X X X X X X X X Extracts X X X X ..... made through banking channels, thus observe that the assessee has used his bank account for the benefit of the prospective buyers of vehicles/implements, his employer only to earn some commission income. Accordingly, delete the addition and allow this ground of appeal. Unexplained investment u/s. 69 - total credit balance in bank account - HELD THAT:- On perusal of the bank statement, we observe before making FDR of ₹ 7,00,000/-, the credit balance in the bank account of the assessee was ₹ 7,29,627/-. Hence, the assessee has clearly established that he has credit balance to make the FD of ₹ 7,00,000/-. As regards the FD of ₹ 2,25,000/-, also observed that the father of the assessee has given ₹ 2,10,000/-, which is supported by the affidavit filed by the assessee itself alongwith the bank statement. Accordingly, we direct the AO to delete the addition of ₹ 7,00,000/- and ₹ 2,25,000/- and allow Ground No. 3 of the assessee. Unexplained expenditure - repayment against credit card purchases - HELD THAT:- There is no dispute to the fact that the assessee jointly with his wife has obtained a credit card to meet the immediate purchase of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iew that submitted that the cash deposits were made in Axis Bank out of sales of dress materials of his wife's business in the name of Gitanjali Dress House. Thereafter, the Assessing Officer issued notices u/s. 133(6) of the Act to the persons from which purchases were made and two parties stated that they do not have done any business with Gitanjali Dress House. As the assessee could not furnish satisfactory explanation regarding the cash deposits in the banks, the Assessing Officer made addition of ₹ 15,29,389/- on account of unexplained cash deposits in two banks of the assessee. 5. On appeal, before the ld. CIT(A), the assessee submitted a statement of cash deposited and cash withdrawn from three bank accounts alongwith consolidated cash abstracts and claimed that all the cash deposits can be explained from cash withdrawn from the bank accounts. Ld. CIT(A) forwarded these documents to the Assessing Officer for a remand report. In the remand report, the Assessing officer stated that the assessee has not furnished any detail from which is it can be proved that the assessee has received cash and there is no evidence regarding recycling of cash. Considering the above ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sited in his bank accounts are from the prospective buyers of vehicles/agricultural implements from where, he is working as Exchange Manager. Later on the cash was withdrawn and handed over to the employer i.e., Automobile Company. When the AO required the assessee to furnished the necessary evidence regarding cash deposit and withdrawn, the assessee immediately changed his version and submitted that the cash deposits are out of sale proceeds from his wife business. In the remand report, the Assessing Officer has stated that scrutiny of bank statement reveals it to be inconsistent with the fact of the same being, apart from withdrawn in cash and by cheques for ostensibly personal purchases, on a regular basis and in no insignificant sums. Further, the pattern of withdrawal reveals the account to be employed for transfer of funds in the main. i.e. deposit of cash at one place and its withdrawal at other, the funds being withdrawal almost in toto and soon after their deposit. Even otherwise, if it will be assumed that the cash deposits are from the prospective buyers of automobile/agricultural implements in the account of the assessee, then it is the duty of the assessee to furnish t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ements had deposited the cash in various places in the account of the assessee and it was the liability on the part of the assessee to withdraw the same and alternatively paid the same to his employer. In a situation like this, one may fall into realm of preponderance of probability where there are many probable factors, some may go in favour of the assessee and some may go against the assessee but the probable factors have to be weighed on material facts so collected in the form of bank statements. Looking to the facts and circumstances of the case and especially the fact that the assessee is a salaried employee having a meager income and the transaction made through banking channels, I observe that the assessee has used his bank account for the benefit of the prospective buyers of vehicles/implements, his employer only to earn some commission income. Accordingly, I delete the addition and allow this ground of appeal. 11. Ground No. 3 relates to confirmation of addition of ₹ 9,25,000/- as unexplained investment u/s. 69 of the Act. 12. I have heard the rival submissions and perused the record of the case. The Assessing Officer found that the assessee has invested thre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iz; ₹ 2,19,152/-, ₹ 2,50,000/- and ₹ 1,33,000/- created a credit balance of ₹ 7,29,627/- out of which, the assessee made deposit of ₹ 7 lakhs in time deposit/FDR. Ld. counsel further pointed out that the investment at Sl. No. 1 of ₹ 2,25,000/- has been made on 30.4.2012 out of amount given by the father of the assessee as gift, which is clearly discernible from the bank account of the assessee with SBI available at page 33 of APB, wherein, ₹ 2,10,000/- has been deposited on 4.3.2012 creating a credit balance of ₹ 2,35,379/- out of which the assessee has made investment of ₹ 2,25,000/- in the time deposit/FDR with State Bank of India. Therefore, no addition is called for u/s. 69 of the Act. Ld. counsel prayed that the addition made by the AO on both the counts and confirmed by ld. CIT(A) may kindly be ordered to be deleted keeping in view the documentary evidence submitted by the assessee alongwith confirmation and affidavit. 14. Replying to above, ld. DR strongly supported the orders of lower authorities and submitted that the addition may kindly be confirmed. Ld. D.R. submitted that the assessee's affidavit is self servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sallowed ₹ 4,07,700/- treating the same as unexplained expenditure. 19. On appeal, the ld. CIT(A) confirmed the addition. 20. Ld. A.R. of the assessee submitted that the credit card was obtained jointly in the name of the assessee and his wife to meet the requirement of his in-laws at the time of marriage of his sister in-law i.e. wife's sister. Ld. counsel explained that the marriage of sister in law Ms Usha Rani was held on 12.5.2013 but after the engagement for preparation of marriage viz; purchase of household items, gift items, clothing and jewellery, etc was going on after Diwali. Ld. counsel submitted that out of gesture to support the in-laws family, the assessee allowed his wife to make purchases by using credit card and the father-in-law of the assessee gave money to his wife in small amount, which was deposited with the bank to settle the credit card dues. Therefore, this expenditure is not attributable to the assessee as unexplained attracting trigger of section 69C of the Act. Ld. counsel strenuously contended that the assessee is not a rich or well resource person who could make purchases of ₹ 4,07,700/- despite the fact that he is a salary perso ..... X X X X Extracts X X X X X X X X Extracts X X X X
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