TMI Blog2013 (7) TMI 1177X X X X Extracts X X X X X X X X Extracts X X X X ..... erred in sustaining the assessment of ₹ 8 lakhs offered by the assessee as income from Other Sources ; (2) (Ground No.4) that the CIT (A) erred in sustaining the addition of ₹ 85,000/- as unexplained cash credits u/s 68 of the Act; (3) (Ground No.5) that the CIT (A) erred in upholding the AO s action in assessing ₹ 79,450/- as income from house property ; (4) (Ground No.6) that the CIT (A) erred in upholding the addition of ₹ 71,169/- as unexplained cash deposit u/s 69 of the Act; (5) (Ground No.7) that the AO had failed to give credit for ₹ 73,285/- paid on 28.4.2010 and 31.5.2010; (6) (Ground Nos.8, 9 10) being levy of interest u/s 234A, 234B and 234C of the Act. 3. During the cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... requested by the assessee to treat the revised return filed on 31.3.2010 as a return in compliance to the notice u/s 148 of the Act. 4.2. During the course of assessment proceedings, the AO had noticed, among others, that the assessee in the return [in response to notice u/s 148 of the Act] admitted ₹ 8 lakhs being investment in construction of house property. Apart from the above, the assessee had admitted an income of ₹ 48,300/- on a total receipt of ₹ 69,000/- under the head income from house property. However, the AO noticed from the books of account maintained and rental agreements furnished during the course of assessment proceedings that the rental receipts were to the tune of ₹ 1,13,500/- and, accordingly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see HUF and his wife. With regard to addition of ₹ 71,169 as unexplained cash deposit. It was argued that the said bank account belongs to members of the family and hence cannot be added in the hands of assessee HUF. After taking into account the contentions of the assessee as recorded in his findings, the CIT (A) had disposed off the appeal vide order dated 17.10.2012. The relevant portions of the findings of the CIT (A) are extracted, each head-wise as under: ₹ 8 lakhs as income from Other sources : 8.2 ..I do not find any strength in the argument of the appellant. It is the appellant who admitted this amount as his (sic) its income in the revised return. Any change in this should be in the form of revised return o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the course of hearing, the submissions made by the learned AR are summed up as under: - that the CIT (A) erred in upholding the assessment of ₹ 8 lakhs offered by the assessee as income under the head Other Sources disregarding the fact that the same represents the amounts lent by the members of the assessee HUF out of their individual funds and that the same being capital receipt which was not liable to assessment to tax under Scheme of the Income-tax Act; - that the CIT (A) also erred in upholding the action of the AO in assessing the assessee s income from house property disregarding the fact that the AO failed to allow deduction for interest on borrowed funds under proviso and Explanation to s. 24 of the Act; - that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss a bank account which was being maintained in the joint names of the members of the assessee HUF. Since, Shri Subbarama Gupta and his wife were incidentally not assessed to tax in their individual capacities, the AO was of the view that the said bank account and total credits stood in the said bank account at ₹ 4.22 lakhs pertained to the assessee HUF. When the assessee was required to explain as to why the said credits in the bank account should not be brought to tax net under the head Other Sources , the assessee-HUF came up with the explanation that the withdrawals from the said bank account were utilised for the purpose of construction of the house property. It was stated that since the assessee has declared an additional in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also the details of kartha s individual funds aggregating to ₹ 8 lakhs. (vi) With regard to bank account, the assessee-HUF had not produced any documentary proof to vouch that the individual members of the assessee-HUF having any independent source(s) to maintain such a bank account. (vii) In the absence of any reliable documentary proof to support the claim in respect of ₹ 8 lakhs as well as the bank account belonged to the individual members of assessee-HUF, we are of the considered view that the CIT (A) was justified in confirming the AO s action in respect of ₹ 8 lakhs and ₹ 71,169/-. In substance, the assessee s ground Nos. 1 and 3 are dismissed. (2) Income from property: (i) On the basis of books ..... X X X X Extracts X X X X X X X X Extracts X X X X
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