TMI Blog2022 (7) TMI 941X X X X Extracts X X X X X X X X Extracts X X X X ..... t as relating to share trading conducted through broker Canon Capital and money for the said purpose when falling short being transferred by one Mr.Prakash Parmar. Coupled with the fact that the assessee was a lady advanced in age ,being 78 years old, with meager means, having returned income of only Rs.99,740/-and stated to have no knowledge of shares, which considering her age and background is highly probable, the assesses explanation rings true that her bank account was being operated by others for conducting share trading transactions. The assessee we find had stated so on oath also. We completely agree with assessee that the assessee had discharged her onus of explaining the source of deposits in her account. Revenue, we hold, wrongly rejected the explanation as not tenable and made addition of the deposits in the hands of the assessee when rightfully the onus had shifted to the Revenue to inquire further into the matter having been given all relevant details of the persons allegedly operating the assesses bank account, including their names, addresses,PAN details. Both the lower authorities having failed to do this exercise, the addition on account of credits in the ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 The learned CIT(A) failed to appreciate that even otherwise also the amounts deposited in appellant's bank accounts could not have been assessed in her hands following decision of Hon'ble Supreme Court in the case of P.K. Noorjahan 237ITR 570. 3.0 The learned AO erred in making addition of Rs.20,50,422/- u/s 68 of the Act on the basis of the entries in the bank passbook of the appellant, which is never her books of account. The learned CIT(A) erred in confirming the same. 4.0 Without prejudice to any of the foregoings, even if the addition u/s 68 is upheld, the learned AO should have granted set off of loss of the similar amount incurred by the appellant for which the above payment was received from the payers and were utilized for making payment to the share broker for the loss sustained in the security business. The learned CIT(A) failed to adjudicate this specific ground taken before him. It is submitted that it be so held now. 3. Briefly put, the contentions of the ld.counsel before us against the addition so made was that it was explained to both the authorities below that the assessee being a very old woman of 78 years of age, who had subsequently ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k account was being operated by Shri Ashit P. Shah and Prakashkumar Parmar, and the fact that she was an old uneducated lady and had no knowledge about the share market. ii) Copy of the ledger account of CCFC (NSE and BSE) page no.26 to 29 pointing out cheque credited therein being identical to one issued from the bank account of the assessee, which in turn was placed before us at page no.9 to 21 i.e. CCFC bank passbook. 4. The ld.counsel for the assessee stated that the addition under section 68 in the above facts and circumstances, where the assessee had given an explanation, discharged her onus of proving the identity and genuineness of the transaction, could not have been made in the hands of the assessee. In this regard, he argued as under: i) The assessee having stated that all the entries related to the said share trading transactions carried out by Shri Ashit P. Shah and Prakashkumar Parmar through her bank accounts, having provided all their details including bank accounts and having also shown from the narrations in the bank statement that the amounts had come through NEFT from one Prakashkumar Parmar, the onus to prove the source and genuineness of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es explanation of the credits/deposits in her bank account of Rs.20,50,422/- as being amounts deposited by Sh Prakash Parmar in the course of carrying out share trading transactions in her name through her account ,is reasonably established. 8. We have perused the contents of the Bank account of the assessee, placed at P.B 9-21, and have noted that the transactions reflected therein relate majorly to NEFT deposits narrated to be from Prakash Kumar Parmar and withdrawals by way of cheques issued in the name of Canon Capital and Finance, stated to be a Share Broking Firm. Statement of the assessee in Canon Capital and Finance, placed before us at P.B22-29 as evidence, corroborates the fact of cheques issued from her bank account to the firm. These facts have not been controverted by the Revenue. Therefore the contention of the assessee that her bank account reflected transactions on account of share trading only stands established. Now coming to the aspect of deposits in her bank account totaling Rs.20,55422/- all these deposits ,as stated above are narrated in the bank statement as NEFT Prakash Kumar Parmar.Clearly all these deposits have come from transfers made by Mr.Parmar. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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