SHRI DEEPAK ASAI, Bhopal V. THE ACIT 3(1), Bhopal

ITSSA 153/IND/2015

• Counselvise Citation: [2018] 122 COUNSELVISE.COM (IT) 3826 (ITAT-INDORE)
• Duration Of Justice: 3 year(s) 1 month(s) 24 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 30-07-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 30-05-2018
• Assessment Year: 2005-2006
• Appeal Filed On: 05-06-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: H P MEENA
• Assessee Lawyers: N D PATWA S
• Keywords: Unexplained investment; Gift; Business income; Income from undisclosed sources; Search and seizure; Salary income; Loose papers; Document seized; Cost of acquisition; Reasonable cause; Corroborative evidences; Assessment record; Onus to prove; Retraction; Condonation of delay; Revised return; Documents seized; TDS
• Section: 143(3); 142(1); 133A; 153A; 10B; 205; 195; 250; 139

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE , , BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBE R . . /. I.T. (SS) A. NO S . 152 TO 157 /IND/2015 & I.T.A.NO. 426 /IND/201 5 [[ / ASSESSMENT YEAR S : 2004 - 05 TO 2010 - 11 SHRI DEEPAK ASAI, E - 8, COMFORT GARDEN, CHUNA BHATTI, KOLAR ROAD, BHOPAL. VS. ACIT , 3(1), BHOPAL. / APPELLANT / RESPONDENT . . ./ PAN : ABGPA 5291C . . /. I.T. (SS) A. NO S . 322 TO 327/IND/2017 [[ / ASSESSMENT YEAR S : 2004 - 05 TO 2009 - 10 S MT.JYOTI ASAI, E - 101/10, SHIVAJI NAGAR, BHOPAL . VS. ACIT, 3(1), BHOPAL. / APPELLANT / RESPONDENT . . ./ PAN : AFHPA4045D SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 2 : - / APPELLANT S BY : SHRI ASHISH GOYAL AND SHRI N. D. PATWA, ADVOCATES / RESPONDENT BY : SHRI H.P.MEENA, CIT DR / DATE OF HEARING : 24 .0 5 .2018. / DATE OF PRONOUNCEMENT : 30 .0 7 .2018 / O R D E R PER BENCH : THIS BUNCH OF 1 3 APPEALS IN I.T.(SS)A.NOS.152 TO 157 /IND/2015 AND I.T.A. NO. 426/IND/201 5 ARE FILED BY THE ASSESSEE SHRI DEEPAK ASAI AND ARE RELATING TO ASSESSMENT YEARS 2004 - 05 TO 2010 - 11 AND I.T.A.NOS.322 TO 327/IND/2017 BY SMT. JYOTI ASAI WIFE OF SHRI DEEPAK ASAI. SINCE COMMON ISSUES ARE INVOLVED, ALL THESE SEVEN APPEALS WERE HEARD TOGETHER AND ARE DISPOSED OF BY THIS COMMON ORDER. 2 . THE BRIEF FACTS OF THE CASE ARE THA T THE ASSESSEE IS A SUPERINTENDING ENGINEER EMPLOYED WITH P.W.D. DEPARTMENT, M.P. A SEARCH AND SEIZURE OPERATION U/S 132(1) OF THE INCOME - TAX ACT, 1961, WAS CARRIED OUT ON SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 3 : - 04.02.2010 AND 05.02.2010 AT THE RESIDENTIAL PREMISES OF THE ASSESSEE AND HIS FAMILY MEMBERS SITUATED AT E - 8, COMFORT GARDEN, KOLAR ROAD, BHOPAL. AT THE TIME OF SEARCH , THE ASSESSEE WAS ON DEPUTATION AS GM IN MADHYA PRADESH ROAD DEVELOPMENT CORPORATION. THE ASSESSEES FAMILY CONSISTS OF HIS WIFE SMT. JYOTI ASAI, DAUGHTER MS. ANKITA ASA I AND SON MASTER SHOBHIT ASAI. DURING THE COURSE OF THESE SEARCH OPERATIONS, TOTAL CASH OF RS. 1,24,250/ - , TOTAL JEWELLERY OF RS. 12,97,377/ - AND NSCS OF RS. 1,50,000/ - HAVE BEEN FOUND FROM HIS RESIDENCE AND LOCKERS ALONGWITH VARIOUS DOCUMENTS. ACCORDINGLY , PROCEEDINGS U/S 153A HAVE BEEN INITIATED IN THE CASE OF THE ASSESSEE AND HIS WIFE. RETURNS U/S 153A WERE FILED ON 30.05.2011. THE CASE WAS TAKEN UP FOR SCRUTINY ASSESSMENT U/S 153A READ WITH SECTION 143(3) OF THE INCOME - TAX ACT, 1961, (HEREINAFTER REFERR ED TO AS THE ACT) . THE AO PASSED A CONSOLIDATED ORDER FOR THE A.YS. 2004 - 05 TO 2010 - 11 VIDE HIS ORDER SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 4 : - DATED 28.12.2009. WHILE MAKING THE ASSESSMENT, THE AO MADE ADDITION IN RESPECT OF INVESTMENTS MADE BY THE ASSESSEE, HIS FAMILY MEMBERS AND RELATIVES IN RESPECT OF PURCHASE OF IMMOVABLE PROPERTIES, HOUSE HOLD UTENSILS, INVESTMENT IN INSURANCE POLICIES AND BANK DEPOSITS ETC. THE DETAILS OF THE INCOME DISCLOSED IN THE ORIGINAL RETURN, RETURNS FILED U/S 153 OF THE ACT AND ASSESSED BY THE AO FOR THE ASSESSMEN T YEARS 2004 - 05 TO 2010 - 11 ARE AS UNDER : - ASSESSMENT YEAR. ORIGINAL RETURN DETAILS RETURNED INCOME U/S 153A ASSESSED INCOME DT OF RETURN INCOME (RS.) (RS.) (RS.) 2004 - 05 09.08.2004 1,84,290/ - 1,84,470/ - 20,13,950/ - 2005 - 06 26.08.2005 2,08,770/ - 2, 08,770/ - 23,38,215/ - 2006 - 07 24.07.2006 1,79,420/ - 1,81,250/ - 40,46,820/ - 2007 - 08 10.08.2007 2,00,670/ - 2,01,300/ - 23,86,550/ - 2008 - 09 23.06.2008 2,34,490/ - 2,36,120/ - 57,76,470/ - 2009 - 10 11.07.2009 4,37, 830/ - 4,38,790/ - 77,53,150/ - 2010 - 11 30.05.2011 4,59,570/ - N.A. 77,02,640/ - AGGRIEVED AGAINST THIS, THE ASSESSEE PREFERRED AN AP PEAL BEFORE THE LD. CIT(A), WHO AFTER CONSIDERING THE SUBMISSIONS PARTLY ALLOWED THE APPEALS, THEREBY THE LD. CIT(A) PARTLY SUSTAINED THE ADDITIONS RELATED TO DIFFERENT SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 5 : - ASSE SSMENT YEARS. NOW THE ASSESSEE IS IN APPEAL BEFORE THIS TRIBUNAL. WE, THEREFORE, TAKE UP THE YEAR - WISE APPEALS FILED BY THE ASSESSEE. I.T.(SS)A.NO. 152/IND/2015 : A.Y. 2004 - 05 : 3 . THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS : - 1 . THAT THE ASSESSMENT MADE U /S 153A R.W.S. 143(3) OF THE INCOME - TAX ACT BE HELD TO BE BAD IN LAW AND ON FACTS AND BE QUASHED. 2. THAT THE ADDITION OF RS. 1,09,000/ - MADE AS PER PARA 6.1 OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT(A) FOR OPENING CASH BALANCE AND RENTAL INCOME RE CEIVED DURING THE YEAR BE HELD TO BE BAD AND UNJUSTIFIED WHEN THE OPENING CASH BALANCE HAD BEEN FULLY EXPLAINED AND THE RENTAL INCOME FORMED PART OF BOTH THE ORIGINAL RETURN AND THE RETURN U/S 153A. THE ADDITION OF RS. 1,09,000/ - MADE BE THEREFORE QUASHED AND DELETED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 6 : - 3. THAT THE ADDITION OF RS. 2,90,000/ - MADE AS PER PARA 6.2 OF THE ASSESSMENT ORDER AND CONFIRMED BY THE LD. CIT(A) FOR OPENING CASH BALANCE AND PROFESSIONAL INCOME SHOWN IN THE CASH FLOW STATEMENT OF SMT. JYOTI ASAI BE HELD TO BE BAD, UNLAWF UL AND UNJUSTIFIED WHEN SMT. JYOTI ASAI IS SEPARATELY ASSESSED TO TAX AND HAD BEEN FILING HER INCOME RETURNS SINCE LONG. THE ADDITION OF RS. 2,90,000/ - MADE BE THEREFORE QUASHED AND DELETED. 4. THAT THE ADDITION OF RS. 1,73,376/ - MADE AS PER PARA NO. 10B O F THE ASSESSMENT ORDER AND CONFIRMED BY THE LD. CIT(A) BE HELD TO BE OUT OF CONTEXT AND WITHOUT ANY BASIS. THE ADDITION MADE BE HELD TO BE BAD AND UNJUSTIFIED AND BE QUASHED. 5. THAT THE ADDITION OF RS. 45,000/ - MADE AS PER PARA NO.10V OF THE ASSESSMENT OR DER AND SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 7 : - CONFIRMED BY THE LD. CIT(A) FOR CASH DEPOSITS MADE BY SMT. JYOTI ASAI IN HER S. B. ACCOUNT NO. 01190009594 WITH STATE BANK OF INDORE, BETUL TO BE HELD TO BE BAD, UNJUSTIFIED AND UNLAWFUL AND BE QUASHED. 6 . THAT THE ESTIMATED ADDITION OF RS. 67,545 / - CONFIRMED BY THE LD. CIT(A) FOR HOUSE HOLD EXPENSES AND EDUCATIONAL EXPENSES BE HELD TO BE BAD AND UNJUSTIFIED. THE ADDITION MADE BEING BASED ON ESTIMATE AND CONJECTURES BE QUASHED AND DELETED. 7. THAT THE ADDITION OF RS. 1,00,000/ - MADE AS PER PARA NO. 13 OF THE ASSESSMENT ORDER AND CONFIRMED BY THE LD. CIT(A) FOR GIFT RECEIVED BY DEEPAK ASAI HUF FROM SHRI RAMBHAU ASAI THROUGH ACCOUNT PAYEE CHEQUE BE HELD TO BE BAD, SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 8 : - UNREASONABLE, UNLAWFUL AND UNJUSTIFIED AND BE QUASHED. 4 . GROUND NO. 1 IS NOT PRESSED BY THE LD. COUNSEL FOR THE ASSESSEE. HENCE, GROUND NO.1 IS DISMISSED AS NOT PRESSED. 5 . GROUND NO. 2 RELATES TO THE ADDITION OF RS. 1,09,000/ - FOR OPENING CASH BALANCE AND RENTAL INCOME RECEIVED. 6 . THE LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSION AS MADE I N THE WRITTEN SUBMISSION. THE LD. COUNSEL FOR THE ASSESSEE VEHEMENTLY ARGUED THAT THE ACTION OF THE AUTHORITIES BELOW IS HIGHLY ARBITRARY, UNJUSTIFIED AND CONTRARY TO THE MATERIAL PLACED ON RECORD. HE SUBMITTED THAT AT THE TIME OF SEARCH, THE ASSESSEE WAS SERVING AS SUPERINTENDING ENGINEER IN PUBLIC WORKS DEPARTMENT. IT IS STATED THAT THE SOURCE OF INCOME OF THE ASSESSEE WAS FROM SALARY, RENT FROM HOUSE AND INTEREST INCOME ON SAVINGS FROM BONDS. IT IS SUBMITTED THAT THE ASSESSEE HA D DECLARED SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 9 : - THE INCOME OF R S. 1,84,290/ - IN HIS ORIGINAL RETURN OF INCOME FILED ON 09.08.2004 . THE ASSESSEE FILED SAME FIGURE IN THE RETURN FILED U/S 153A OF THE ACT. THE ASSESSING AUTHORITY ASSESSED INCOME AT RS. 20,13,990/ - . THUS, THE AO MADE ADDITION OF RS. 18,29,484/ - FOR THE YE AR UNDER APPEAL . THE LD. CIT(A) DELETED THE ADDITION OF RS. 10,44,563/ - AND SUSTAINED THE ADDITION OF RS. 7,84,920/ - . THE SUBMISSION OF THE ASSESSEE WITH REGARD TO THE ADDITION SUSTAINED ON ACCOUNT OF OPENING CASH BALANCE AND RENTAL INCOME IS AS UNDER : - SUBMISSIONS GROUND NO.2 OF ASSESSEE : OPENING CASH OF RS. 1,00,000/ - AND RENTAL INCOME OF RS. 9,000/ - : THAT THE ADDITION OF RS. 1,09,000/ - MADE AS PER PARA 6.1 OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT(A) FOR OPENING CASH BALANCE AND RENTAL I NCOME RECEIVED DURING THE YEAR BE HELD TO BE BAD AND UNJUSTIFIED WHEN THE OPENING CASH BALANCE HAD BEEN SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 10 : - FULLY EXPLAINED AND THE RENTAL INCOME FORMED PART OF BOTH THE ORIGINAL RETURN AND THE RETURN U/S 153A. THE ADDITION OF RS. 1,09,000/ - MADE BE THEREFORE QUASHED AND DELETED. FACTS THE ADDITION COMPRISES OF TWO ADDITIONS: OPENING CASH RS. 1,00,000 RENTAL INCOME RS. 9,000 THE CASH FLOW STATEMENT OF ASSESSEE (CHART - 4) SHOWS THE OPENING CASH BALANCE OF RS. 1,00,000/ - FOR F.Y. 2003 - 04. THE ASSESSEE C ONTENDED THAT HIS SALARY WAS RECEIVED IN CASH TILL MARCH 2003. FURTHER, HE ALSO EARNED RENTAL INCOME FROM PROPERTY AT DANISH NAGAR, BHOPAL. THE PROPERTY WAS PUT ON RENT DURING F.Y. 2002 - 03. WHAT LD AO DID? SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 11 : - LD AO DISBELIEVED ON THE CASH FLOW STATEMENT SUBM ITTED BY THE APPELLANT AND ALLEGED THAT: - FOR OPENING CASH A. UNLIKELY TO KEEP CASH BALANCE OF RS. 1 LAC WHEN MANY BANK ACCOUNTS ARE HELD. FOR RENTAL INCOME B. ON ENQUIRY ONLY PLOT AT DANISH NAGAR WAS BROUGHT BY APPELLANT AND HENCE RENTAL INCOME CANNOT BE E ARNED. C . NO RENTAL AGREEMENT OR OTHER PROOF WAS SUBMITTED. LD AO ADDED THE OP ENING BALANCE AND RENTAL INCOME OF VARIOUS YEARS IN FOLLOWING MANNER: SR. NO A.Y. AMOUNT (RS.) REMARKS 1. 2004 - 05 1,09,000 FULL RS. 1,00,000 - OPENING CASH. RS. 9,000 (OUT OF RS. 36,000) RENTAL INCOME IN CASH. 2. 2005 - 06 36,000 RENTAL INCOME 3. 2006 - 07 36,000 RENTAL INCOME 4. 2007 - 08 36,000 RENTAL INCOME 5. 2008 - 09 36,000 RENTAL INCOME SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 12 : - 6. 2009 - 10 44,000 RENTAL INCOME 7. 2010 - 11 48,000 RENTAL INCOME LD CIT(A), ON THE BAS IS OF THE SEIZED DOCUMENT LPS - D1 (PB 264 - 270 ARE RENT AGREEMENTS) WHICH ARE THE RENT AGREEMENTS DATED 03.07.06, 03.11.07 AND 23.09.09 IN RESPECT OF DANISH NAGAR PROPERTY AT H.NO.1 /65 DELETED THE RENTAL INCOME ADDITIONS FROM A.Y. 2005 - 06. HOWEVER, IN ABSE NCE OF ANY PROOF OF APPELLANT RECEIVING SALARY IN CASH FROM DEPARTMENT, SUSTAINED THE OPENING CASH BALANCE AND RENTAL INCOME AT RS. 1,09,000/ - . SUBMISSIONS: - FOR OPENING CASH THE APPELLANT IS IN EMPLOYMENT WITH MPPWD SINCE FEB. 1985 AND SALARY FROM THE DE PARTMENT WAS RECEIVED IN CASH TILL DEC. 2002. A. PROOF FOR THIS IS LETTER FROM M.P GOVT DATED 18.10.02, REGARDING CHANGE IN MODE OF SALARY PAYMENT. (PB 426/ III) SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 13 : - B. DISBURSEMENT SLIPS ILLUSTRATIVE FROM 1994 - 2002 ON PB 428 - 436/ III C. BREAKUP OF SALARY AND A LLOWANCES FROM 1984 - 85 TO 2009 - 10. (PB 437 - 439/ III) D. DETAILS OF CHANGE IN INCUMBENCY 1988 - 2010 ON PB 427/ III THE AFORESAID DOCUMENTS WERE NOT DENIED BY LD AO/ CIT(A). IT IS IMPOSSIBLE TO HOLD THAT APPELLANT HAD NO OPENING CASH IN HAND ON A PARTICULAR D ATE (31.03.2003). THE CHART FOR SALARY INCOME, RENTAL INCOME IN 5 YEARS IMMEDIATELY PRECEDING THE RELEVANT YEAR AS PER INCOME TAX RETURN FILED AND PLACED ON RECORD IS AS UNDER: A.Y SALARY INCOME RENTAL INCOME 1999 - 00 1,91,720 NIL 2000 - 01 1,77,346 NIL 2001 - 02 2,03,601 NIL 2002 - 03 1,98,370 NIL SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 14 : - 2003 - 04 2,08,630 36,000 TOTAL 9,79,667 36,000 OUT OF THE TOTAL CASH AVAILABLE IN LAST FIVE YEARS AT RS. 10,15,667/ - , IF WE ASSUME THE HOUSEHOLD EXPENDITURE AND OTHER INVESTMENT TO BE 70% , THE SAVINGS WILL STI LL BE APPROX 3 LACS. AND CONSIDERING THAT THE APPELLANTS WIFE IS ALSO EARNING MEMBER, THE SAVING OF RS. 1,00,000/ - IS A VERY FAIR AMOUNT. FOR RENTAL INCOME RENTAL INCOME WAS OFFERED IN REGULAR RETURN PRIOR TO SEARCH. PB 31B/ I. EARNING OF RENTAL INCOME W AS ACCEPTED DURING SEARCH ALSO. (PB - 177 REPLY TO Q. NO.1 STATEMENT DATED 04.02.2010). APPELLANT RECEIVED RENTAL INCOME FROM HOUSE PROPERTY SITUATED AT DANISH NAGAR AT D - 1/165, W.E.F. 01.04.02. BUILDING PERMISSION WAS TAKEN ON 06.05.1999. (PB 275/ II) SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 15 : - PART RENTAL INCOME FOR THE SAME PROPERTY WAS ACCEPTED IN A.Y. 2004 - 05 (RS. 27,000) BY LD AO HIMSELF. THE FINDINGS THEREFORE ARE SELF - CONTRADICTORY . RENT OF RS. 36,000 P.A. WAS ALSO ACCEPTED FROM A.Y. 2005 - 06 ONWARDS BY THE LD CIT(A). SINCE, THE RENTAL AGREEME NT GETS RENEWED EVERY YEAR; THE APPELLANT COULD NOT PRODUCE THE AGREEMENT DATED IN YEAR 2003. THUS, LD CIT(A) WAS NOT JUSTIFIED IN NOT ACCEPTING THE OPENING CASH BALANCE AND RENTAL INCOME FOR THE A.Y. 2004 - 05 MERELY, WHEN SURROUNDING CIRCUMSTANCES PROVE TH AT SUCH OPENING CASH WAS AVAILABLE AND RENT WAS ALSO PARTLY ACCEPTED. NON - ABATED ASSESSMENT : - NOTHING WAS FOUND IN SEARCH TO SHOW THAT THE RENTAL INCOME WAS FALSE. SINCE, AT THE TIME, WHEN SEARCH WAS CONDUCTED, ASSESSMENT FOR A.Y. 2004 - 05 WAS NON - ABATED, THEREFORE, SCOPE OF THESE PROCEEDINGS SHOULD BE LIMITED TO UNDISCLOSED INCOME FOUND AS A RESULT OF ANY INCRIMINATING MATERIAL FOUND DURING SEARCH. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 16 : - CIT VS KABUL CHAWLA , 380 ITR 573 (DEL.) CIT VS CONTINENTAL WAREHOUSING CORPORATION 58 TAXMANN.COM 78 (BOM.) THUS, IT IS PRAYED THAT THE ADDITION MAY KINDLY BE DELETED. 7 . THE LD.DEPARTMENTAL REPRESENTATIVE OPPOSED THE SUBMISSION. IN THE REJOINDER, THE LD.AUTHORIZED REPRESENTATIVE OF THE ASSESSEE TOOK US THROUGH THE CASH FLOW AND ALSO THE CERTIFICATE ISSUED BY T HE GOVERNMENT OF MADHYA PRADESH THAT SALARY IN CASH WAS BEING PAID TO THE ASSESSEE. THE ASSESSEE HAS ALSO TAKEN US THROUGH THE RENT AGREEMENT. WE HAVE CONSIDERED THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE AUTHORITIES BELOW HAV E NOT ACCEPTED THE EXPLANATION. THE LD.CIT(A) IN RESPECT OF OPENING CASH BALANCE IN HIS ORDER REJECTED THE EXPLANATION OF THE ASSESSEE ON THE BASIS THAT THE ASSESSEE APPELLANT HAS NOT BEEN ABLE TO SUBMIT THE EVIDENCE IN THE FORM OF HIS BANK ACCOUNT STATEM ENT, EVEN IF SALARY HAS BEEN RECEIVED IN CASH FROM HIS DEPARTMENT. THE FINDING OF SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 17 : - THE LD. CIT(A) IS CONTRARY TO THE RECORDS. FROM THE LETTER DATED 18 TH OCTOBER, 2002, THE GOVERNMENT OF MADHYA PRADESH, DEPARTMENT OF FINANCE, IT IS CLEAR THAT THE PAYMENT OF SALARY THROUGH BANKING CHANNEL WAS ADOPTED FROM OCTOBER, 2002. THEREFORE, KEEPING IN VIEW THE FACTS OF THE PRESENT CASE, WE HOLD THAT CASH OF RS. 1 LAKH WAS ACCUMULATED SAVING OF THE ASSESSEE OUT OF SALARY INCOME. THE AO IS DIRECTED TO DELETE THE ADDITION MADE ON THIS ACCOUNT. IN RESPECT OF DISALLOWANCE OF RENTAL INCOME, WE FIND THAT THE LD. CIT(A) HIMSELF HAS STATED THAT THE STATUTORY DEDUCTION IN RESPECT OF INCOME FROM HOUSE PROPERTY HAS BEEN ACCEPTED BY THE AO. THEREFORE, WE DO NOT SEE ANY REASON OF SUSP ICION NOT HAVING EARNED THE RENTAL INCOME. SINCE THE ENTIRE ADDITION IS BASED ON SUSPICION ONLY, THE SAME CANNOT BE SUSTAINED. THE AO IS DIRECTED TO DELETE SUCH ADDITION. GROUND NO.2 OF THE ASSESSEES APPEAL IS ALLOWED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 18 : - 8 . GROUND NO. 3 IS IN RESPECT OF ADDITI ON OF RS. 2 ,90,000/ - MADE AS PER PARA 6.3 OF THE ASSESSMENT ORDER AND CONFIRMED BY THE LD. CIT(A) IN RESPECT OF OPENING CASH BALANCE AND PROFESSIONAL INCOME SHOWN IN THE CASH FLOW STATEMENT SHOWN IN THE CASE OF SMT. JYOTI ASAI. THE LD. COUNSEL FOR THE ASS ESSEE REITERATED THE SUBMISSIONS AS MADE IN THE WRITTEN SUBMISSIONS. HE SUBMITTED THAT THE WIFE OF THE ASSESSEE IS DULY QUALIFIED MEDICAL PROFESSIONAL AND HAS BEEN DECLARING HER INCOME FROM PROFESSION AND AGRICULTURE. HE SUBMITTED THAT THE OPENING CASH BA LANCE OF RS. 1,50,000/ - IN CASH FLOW AS ON 1.4.2003 IN THE CASE OF WIFE OF THE ASSESSEE, WAS OUT OF PAST SAVING AND PETTY CASH GIFT RECEIVED BY HER. THE SUBMISSIONS OF THE ASSESSEE ARE AS UNDER : - SUBMISSIONS: AT THE OUTSET, IT IS SUBMITTED THAT SMT. J YOTI ASAI WAS A SEPARATE INCOME - TAX ASSESSEE. SHE FILED SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 19 : - RETURN U/S. 139 FROM A.Y. 2002 - 03, MUCH PRIOR TO SEARCH. SHE ACCEPTED THAT SHE WAS A MEDICAL PRACTI TI ONER & ICICI AGENT, DURING THE COURSE OF SEARCH. NOTHING INCRIMINATING WAS FOUND IN SEARCH TO PROVE THAT HER INCOME SHOWN IN REGULAR RETURN WAS FALSE. THE ADDITION IN HANDS OF SMT. JYOTI ASAI WAS DELETED, BUT THE RETURNED INCOME U/S. 153A WAS ACCEPTED. PB 472 - 478/ III. THUS, THE PERTINENT FACT IS THAT SHE HAD EARNED THE INCOME. ADDITION OF SAME INCOME I N HANDS OF ASSESSEE WOULD CLEARLY BE A DOUBLE ADDITION. ADDITION - WISE SUBMISSIONS ARE MADE IN FORGOING PARAGRAPHS. THE ALLEGATION AS TO NON - ACCEPTANCE OF THE CASH FLOW STATEMENT WOULD ALSO BE DISCUSSED TOGETHER: A. OPENING CASH SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 20 : - THE OPENING CASH OF RS. 1,5 0,000/ - IN THE CASH FLOW AS ON 01.04.2003 IS OUT OF PAST SAVINGS AND PETTY CASH GIFT RECEIVED BY SMT. JYOTI ASAI. THE TABLE BELOW EXPLAINS: - PARTICULARS AMOUNT CASH GIFT RECEIVED DURING MARRIAGE IN 1990 (RTI LETTER ON PB 793 SUBMITTED TO PWD DEPARTMENT) 35,611 SMALL HOUSEHOLD SAVINGS DURING 1990 - 2003 1990 TO 1995 @ 2000 X 5 YEARS=10,000 1995 TO 2000 @ 3000 X 5 YEARS=15,000 2000 TO 2003 @ 5000 X 3 YEARS=15,000 40,000 GIFT ON BIRTH OF FIRST CHILD 21,000 GIFT ON BIRTH OF SECOND CHILD 11,000 GIFTS DURING BIRTHDAYS AND MARRIAGE ANNIVERSARY (1990 TO 2003) 2000 X 13 = 26000 3000 X 13 = 36000 62,000 LAND 1.62 ACRE RECEIVED FROM FATHER & BHUA AS GIFT ON 24 OCT 1996 INCOME FROM ABOVE LAND 1997 TO 60,000 SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 21 : - 2001 IS RS. 12000 X 5 YEARS = TOTAL RECEIPTS 2,29,6 11 IT IS PRAYED THAT CASH IN HAND IS MUCH BELOW THIS AND THEREFORE ACCEPTABLE. B. INCOME FROM MEDICAL PROFESSION : THE ASSESSEES WIFE SMT. JYOTI ASAI IS SEPARATE INCOME TAX ASSESSEE SINCE 2002 - 03. INCOME TAX RETURNS A.Y 2002 - 03 TO 2009 - 10 ARE ON PB 492 - 512/ III. THESE WERE FILED PRIOR TO SEARCH. INCOME FROM MEDICAL PRACTICE, AGRICULTURAL INCOME, INTEREST ON BANK ACCOUNTS, INCOME FROM LIFE INSURANCE COMMISSION ETC WERE ALREADY CLAIMED. NON - ABATED ASSESSMENT : - NOTHING WAS FOUND IN SEARCH TO SHOW THAT THE RENTAL INCOME WAS FALSE. SINCE, AT THE TIME, WHEN SEARCH WAS CONDUCTED, ASSESSMENT FOR A.Y. 2004 - 05 WAS NON - ABATED, THEREFORE, SCOPE OF THESE PROCEEDINGS SHOULD BE LIMITED TO UNDISCLOSED INCOME FOUND AS A RESULT OF ANY INCRIMINATING MATERIAL FOUND DURING SEARCH. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 22 : - SHE IS REGISTERED MEDICAL PRACTITIONER. MEDICAL CERTIFICATE IS AT PB 471/ III. THE SAME WAS NO CHALLENGED. IN THE CASE OF SMT. JYOTI ASAI, THE ADDITIONS MADE IN THE 153A PROCEEDINGS WERE DELETED STILL THE RETURNED INCOME U/S. 153A HAS BEEN ASSESS ED. LIKE IN A.Y. 2008 - 09, SHE HAD OFFERED INCOME OF RS. 9,65,368 IN HER RETURN U/S. 153A. AFTER APPEAL EFFECT, THE NET TOTAL INCOME OF SMT. JYOTI ASAI FOR A.Y. 2008 - 09 REMAINS AT RS. 9,65,368. THUS, IN ANY CASE, THE DEPARTMENT HAS ACCEPTED THAT SHE EARNED RS. 9,65,368, MAY OR MAY NOT BE FROM MEDICAL PROFESSION. THIS EXPLAINS HER INVESTMENTS. AGRICULTURAL INCOME : THE ASSESSEES WIFE SMT. JYOTI ASAI IS SEPARATE INCOME TAX ASSESSEE SINCE 2002 - 03. INCOME TAX RETURNS A.Y 2002 - 03 TO 2009 - 10 ARE ON PB 492 - 512/ II I. THESE WERE FILED PRIOR TO SEARCH. INCOME FROM MEDICAL PRACTICE, AGRICULTURAL SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 23 : - INCOME, INTEREST ON BANK ACCOUNTS, INCOME FROM LIFE INSURANCE COMMISSION ETC WERE ALREADY CLAIMED. LAND IS 0.656 HECTARES (1.62 ACRES). KHASRA FOR THE EARNING OF AGRICULTURAL INCOME WAS ALSO FILED. PB 520 - 524/ III. AGRICULTURAL INCOME IN THE RANGE OF RS. 15,000 - 18000 SHOWN IS VERY NOMINAL. SMT JYOTI ASAI RECEIVED AN AGRICULTURAL LAND IN GIFT FROM HER BHUA SMT GANGABAI AND FATHER SHRI UDARAM THROUGH A REGISTERED GIFT DEED DATE D 24.10.1996. (PB 513 - 519/ III). THE GIFT DEED WAS NEVER DOUBTED BY THE LD AO/ CIT(A) AND FURTHER NOTHING WAS FOUND IN SEARCH TO SHOW THAT THE GIFT WAS BOGUS. ADVANCE FROM PLOT SALE : JYOTI ASAI OWNED A PLOT NO 385, SITUATED AT MANAVTA NAGAR, INDORE. THIS PLOT WAS RECEIVED BY HER THROUGH NOTARIZED WILL OF HER BHUA LATE SMT. GANGA BAI. SMT. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 24 : - GANGA BAI EXPIRED ON 09.09.2006. AFTER HER DEATH, SMT JYOTI ASAI BECAME THE OWNER OF THE SAID PLOT. SMT. JYOTI ASAI ENTERED INTO AN AGREEMENT WITH SMT. RAJENDRA KAUR BAGG A TO SALE THE PLOT FOR RS. 15,00,000 AND RECEIVED AN ADVANCE OF RS. 7,00,000/ - DURING F.Y. 2007 - 08. FURTHER AMOUNT OF RS. 5,00,000/ - WAS RECEIVED BY HER IN F.Y. 2008 - 09, RS. 2,00,000 IN F.Y. 2009 - 10 AND RS. 1,00,000 IN F.Y. 2010 - 11. THE SALE DEED OF THE SA ID PLOT WAS EXECUTED ON 17.09.2010. SUBMISSION ON PB 126. THE CASH AMOUNT RECEIVED BY VIRTUE OF THIS TRANSACTION IS DULY RECORDED IN THE SALE DEED. THE WILL OF LATE SMT. GANGA BAI AND SALE DEED WAS ALSO PLACED BEFORE LD AO AND CIT(A). RENTAL INCOME FROM S HOP AT BHANDARA: - DURING THE FY. 2009 - 10, SMT. JYOTI ASAI RECEIVED RENTAL INCOME OF RS. 68,500/ - FROM SHOP NO. 3 SITUATED AT DALAL COMPLEX BHANDARA. THE SHOP WAS ACQUIRED BY HER SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 25 : - THROUGH REGISTERED DEED DATED 30.03.2009. RENT AGREEMENT OF THE SHOP WAS SEIZE D DURING SEARCH AND MARKED AS LPS - D3, PG NO 22 TO 24 (REFER PB 376 - 378/ II) CASH RECEIVED FROM MOTHER IN LAW URMILA ASAI CASH GIFT OF RS. 2,00,000/ - RECEIVED BY SMT JYOTI ASAI FROM HER MOTHER IN LAW SMT URMILA ASAI ON 02.12.2009. AFFIDAVIT OF SMT URMILA ASAI EXPLAINING THE SOURCE OF GIFT IS ON RECORD. ADVANCE AGAINST SALE OF AGRICULTURAL LAND : SMT . JYOTI ASAI OWNS 1.62 ACRES OF IRRIGATED AGRICULTURAL LAND AT KHASRA NO 40/4, VILLAGE MEHANDIWADA, DISTT BALAGHAT. SHE ENTERED INTO AN AGREEMENT FOR SALE OF LA ND TO SMT. NIRMALA DEKATA FOR RS. 6,00,000/ - AND RECEIVED AN ADVANCE OF RS. 5,00,000/ - IN MARCH 2009. REMAINING AMOUNT OF RS. 1,00,000/ - WAS RECEIVED IN DEC. 2010. THE SALE DEED WAS REGISTERED IN MARCH 2011. THE RELEVANT DOCUMENTS IN SUPPORT ARE ON RECORD. PB 751/ III. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 26 : - OTHER SUBMISSIONS: JYOTI ASAI IS ADVISOR WITH ICICI PRUDENTIAL LIFE INSURANCE CO. THE DOCUMENTS IN SUPPORT ARE: - APPOINTMENT LETTER FROM ICICI PRUDENTIAL (PB 314 - 315). ADVISORY LICENSE FROM ICICI PRUDENTIAL LIFE INSURANCE. (PB 318) LICENSE FROM IRDA.(PB 318) THE RECEIPT FROM ICICI PRUDENTIAL WAS SUBJECT TO TDS. THE AFORESAID DOCUMENTS WERE NEVER FOUND TO BE FALSE. LD AO STATED THAT SMT. JYOTI ASAI WAS APPOINTED BY SMT. SEEMA JAISWAL. THIS FACT IS TOTALLY WRONG. LETTER PB 314 - 315 S IGNED BY H.R. HEAD OF ICICI BANK, MUMBAI MR. RAHUL BELWALKAR. INCOME FROM ICICI WAS OFFERED IN REGULAR RETURNS PRIOR TO SEARCH. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 27 : - NON - ABATED ASSESSMENT : - NOTHING WAS FOUND IN SEARCH TO SHOW THAT THE RENTAL INCOME WAS FALSE. SINCE, AT THE TIME, WHEN SEAR CH WAS CONDUCTED, ASSESSMENT FOR A.Y. 2004 - 05 WAS NON - ABATED, THEREFORE, SCOPE OF THESE PROCEEDINGS SHOULD BE LIMITED TO UNDISCLOSED INCOME FOUND AS A RESULT OF ANY INCRIMINATING MATERIAL FOUND DURING SEARCH. IT IS JUST A PRESUMPTION OF THE LD AO THAT JYOT I ASAI WAS DUMMY AGENT OF SEEMA JAISWAL. NO EVIDENCE WAS BROUGHT ON RECORD. ALSO, THE ALLEGED STATEMENTS OF SEEMA JAISWAL OR ANY OTHER AGENT WERE NEVER CONFRONTED TO APPELLANT/ JYOTI ASAI AND NO OPPORTUNITY OF CROSS - EXAMINATION WAS GRANTED. IT IS ONLY NOW, BEFORE YOUR HONOURS, WHEN THE APPELLANT APPLIED IN THE MEANTIME UNDER RTI ACT AND EVEN THEN THE SAME WERE NOT GRANTED; BUT NOW AT THIS STAGE THE SAME HAVE BEEN GRANTED. THE SAME ARE PLACED AT PB 535 - 594. THE SAME WERE NEVER ALLOWED TO BE CROSS - EXAMINED AN D CONTROVERTED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 28 : - ALLEGATION OF BENAMI BURDEN OF PROOF ON DEPARTMENT IT IS A TRITE LAW THAT THE BURDEN OF PROOF TO ESTABLISH BENAMI IS ON DEPARTMENT. NO EVIDENCE WAS EVER BROUGHT ON RECORD TO PROVE BENAMI IN THE CASE. SMT JYOTI ASAI IS AN INCOME TAX AS SESSEE AND RETURN OF INCOME WERE FILED BEFORE THE DATE OF SEARCH. THEY HAVE THEIR OWN SOURCES. SHE DID NOT STATE THAT INVESTMENT WAS MADE BY DEEPAK ASAI. NO EVIDENCE TO PROVE THAT MONEY WENT FROM THE COFERS OF DEEPAK ASAI WAS FOUND IN SEARCH. NO EVIDENCE O F BRIBE WAS FOUND. NO ADDITION FOR SAME CAN BE MADE. 9 . THE LD. DEPARTMENTAL REPRESENTATIVE OPPOSED THE SUBMISSIONS. IN THE REJOINDER, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT AS PER INCOME TAX RULES, THE ASSESSEE WAS NOT REQUIRED TO MAINTAIN THE DET AILS RELATED TO THE MEDICAL PROFESSION , AS THE PROFESSIONAL RECEIPTS WERE BELOW THE PRESCRIBED LIMIT . SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 29 : - 10 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE LD. CIT(A) HAS CONFIRMED THIS ADDITION BY HOLDING AS UND ER : - 5.2 APPELLANT'S SUBMISSIONS ALONG WITH ASSESSMENT ORDER AND RECORDS HAVE BEEN CONSIDERED CAREFULLY. THE ONLY EVIDENCE SUBMITTED IN ASSESSMENT AS WELL AS APPEAL TO PROVE VARIOUS INCOMES, RECEIPTS AND INVESTMENTS DECLARED BY SMT. JYOTI ASAI IS REGISTR ATION CERTIFICATE DTD 25.11.2000 ISSUED UNDER BIHAR DEVELOPMENT OF AYURVEDIC AND UNANI SYSTEMS OF MEDICINE ACT, 1951 AS MEDICAL PRACTITIONER I.E. VAIDAYA. SHE HAS ALSO CLAIMED TO BE AN ADVISER WITH ICICI PRUDENTIAL LIFE INSURANCE CO. LTD. SINCE 2005 AND EA RNING COMMISSION THEREFROM AT RS.1,00,000 / - (2005 - 2006); RS. 2,00,000 / - (2006 - 2007),RS.4,OO,OOO / - (2007 - 08) AND RS.8,00,000 / - (2008 - 09). THEREAFTER, NO SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 30 : - COMMISSION INCOME HAS BEEN EARNED TILL DATE OF SEARCH IN FEB.' 2010. SHE HAS BEEN FOUND TO BE A DUMMY AGENT O NLY WORKING AT BEHEST OF SMT. SEEMA JAISWAL - MANAGER IN ICICI PRUDENTIAL - TO CHANNELIZE UNACCOUNTED MONEY OF THE APPELLANT, SHRI ARVIND JOSHI & VARIOUS OTHER GOVT. OFFICERS WHO HAVE BEEN CLIENTS OF SMT. SEEMA JAISWAL. A.O. HAS MENTIONED IN DETAIL IN THE AS SESSMENT ORDER (PG NO.5 TO 10) THE MODUS OPERANDI ADOPTED IN THIS REGARD AS FOUND DURING THE COURSE OF SEARCH OPERATIONS AND EXTENSIVE POST SEARCH INVESTIGATIONS IN CASE OF THE APPELLANT, SHRI ARVIND JOSHI, SMT. SEEMA JAISWAL AND OTHERS. THE APPELLANT HAS ALSO FAILED MISERABLY AT ALL STAGES OF PROCEEDINGS - SEARCH, POST SEARCH, ASSESSMENT AS WELL AS APPEAL - TO PROVE SATISFACTORILY THE SOURCE OF VARIOUS CASH RECEIPTS, INCOME EARNED AND SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 31 : - INVESTMENTS SHOWN AS PER HER CASH FLOW STATEMENT, THOUGH SHE IS FOUND TO HAVE DECLARED INCOME OF RS. L,25,000 / - , RS.2,08,770 / - , RS.L,02,680 / - , RS.79,120 / - , RS.4,90,670 / - & RS.8,91,970 / - FOR A YS 2004 - 05 TO 2009 - 10 AS PER HER REGULAR RETURNS BUT THE FACT REMAINS THAT DECLARED PROFESSIONAL INCOME, AGRICULTURAL INCOME, RECEIPTS I N FORM OF GIFTS, ADVANCES ETC HAVE NOT BEEN SUPPORTED BY THE APPELLANT AT ANY STAGE OF THE PROCEEDINGS THOUGH SPECIFICALLY BEING ASKED TO DO SO. IN FACT, AS PER ORDER SHEET ENTRY DTD 15.12.2011, IN THE ASSESSMENT RECORDS OF SMT. JYOTI ASAI, SHE THROUGH H ER - AR - HAS EXPRESSED INABILITY TO PROVE WITH SUPPORTING DOCUMENTARY EVIDENCES THESE AMOUNTS SHOWN IN HER CASH FLOW STATEMENTS. THUS, THE APPELLANT AND HIS WIFE HAVE FAILED TO PROVE THE INCOME DECLARED AND AMOUNTS RECEIVED BY HER FOR SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 32 : - THESE YEARS. CONSIDE RING THE FACTS OF THE CASE, THE A.O. IS FOUND JUSTIFIED IN REJECTING THE CASH FLOW OF MRS. JYOTI ASAI SUBMITTED DURING ASSESSMENT PROCEEDINGS AND IN HOLDING THAT THESE AMOUNTS REPRESENT INCOME FROM UNDISCLOSED SOURCES IN THE HANDS OF THE APPELLANT. ACCORDI NGLY, FOLLOWING YEAR WISE SUBSTANTIVE ADDITIONS MADE IN THE HANDS OF THE APPELLANT ARE, HEREBY, CONFIRMED IN HIS HANDS. S.NO. A.Y. AMOUNT RS. 1. 2004 - 05 2,90,000/ - 2. 2005 - 06 1,27,200/ - 3. 2006 - 07 1,58,000/ - 4. 2007 - 08 1,33,000/ - 5. 2008 - 09 8,43,000 / - 6. 2009 - 10 11,72,000/ - 7. 2010 - 11 6,75,500/ - 11 . FROM THE ABOVE FINDING OF THE LD. CIT(A), IT IS EVIDENT THAT THE LD. CIT(A) SUSTAINED THE ADDITION IN RESPECT OF PROFESSIONAL RECEIPTS, GIFTS ETC. BY THE WIFE OF ASSESSEE ON THE BASIS THAT NO SUPPORTING EVIDENCE HAS BEEN FURNISHED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 33 : - HOWEVER, IT IS THE CASE OF THE ASSESSEE THAT IN VIEW OF THE FACTS THAT INCOME EARNED FROM PROFESSION WAS BELOW THE MONETARY LIMIT PRESCRIBED FOR WHICH WIFE OF THE ASSESSEE WAS NOT REQUIRED TO MAINTAIN BOOKS OF ACCOUNT AND PATIE NT REGISTER. THEREFORE, SHE HAD NOT MAINTAINED THE BOOKS OF ACCOUNT . THIS ASPECT IS NOT CONSIDERED BY THE AUTHORITIES BELOW. THEREFORE, WE HOLD THAT THE FINDING ARRIVED AT BY THE AUTHORITIES IS NOT JUSTIFIED, PARTICULARLY WHEN WIFE OF THE ASSESSEE IS ADM ITTEDLY A MEDICAL PROFESSIONAL AND THIS FACT IS DULY DISCLOSED IN EARLIER YEARS. EVEN OTHERWISE ALSO THE AO HAS BASED HIS FINDING PURELY ON THE CONJECTURE BASIS THAT THE UNDISCLOSED INCOME OF THE ASSESSEE IS ROUTED THROUGH THE WIFE OF THE ASSESSEE. FURTHE R, THE AUTHORITIES HAVE REJECTED CLAIM OF GIFT AND EARNING OF AGRICULTURAL INCOME ETC. IT IS A NORMAL PRACTICE IN INDIAN HOUSE HOLD THAT FEMALE MAKES SMALL SAVINGS AND ALSO GET GIFTS ON THE OCCASION OF BIRTH DAY AND OTHER FESTIVAL OCCASIONS. THE GIFTS SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 34 : - AS C LAIMED, IN OUR VIEW, IS REASONABLE KEEPING IN VIEW THE STATUS OF THE ASSESSEE. HENCE, WE DIRECT THE AO TO DELETE THIS ADDITION. GROUND NO. 3 OF THE ASSESSEES APPEAL IS ALLOWED. 12 . GROUND NO. 4 IS IN RESPECT OF ADDITION OF RS. 1,73,376/ - MADE AS P E R PARA 1 0B OF THE ASSESSMENT ORDER AND CONFIRMED BY THE LD. CIT(A). 13 . THE LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS AS MADE IN THE WRITTEN SUBMISSIONS. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED TH A T THIS ADDITION RELATED TO CASH DEPOSITED IN BANK ACCO UNT NO. 1470 / 127 IN M.P.RAJYA SAHAKARI BANK. THE LD. COUNSEL FOR THE ASSESSEE DREW OUR ATTENTION TO PAGE NO.33, IN WHICH IT WAS MENTIONED THAT THE ENTIRE CREDIT IN THIS BANK ACCOUNT EITHER BY CHEQUE OR CASH ARE ADDED AND AGAIN THE CHEQUE DEPOSITS ARE ALSO ADDED WHICH ARE LATER ON USED FOR INVESTMENT. THIS AMOUNTED TO DOUBLE ADDITION. THE SOURCE OF DEPOSIT ARE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 35 : - MATURITY OF FIXED DEPOSITS OF RS. 48,128/ - (P.B.629 ) AND GIFT FROM FATHER SHRI R.J. ASAI VIDE CHEQUE NO. 98139 DATED 1.6.2003 (P.B.358) . FURTHER RS. 20,000/ - CASH WITHDRAWAL FROM ICICI ACCOUNT NO.4458. 14 . THE LD. DEPARTMENTAL REPRESENTATIVE OPPOSED THE SUBMISSIONS AND SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 15 . WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD . WE FIND THAT THE GIFT OF RS. 1,00,000/ - FROM SHRI R.J.ASAI AND RS. 48,128/ - FROM FIXED DEPOSIT MATURITY AND RS. 20,000/ - CASH WITHDRAWAL FROM ICICI BANK ARE WELL ESTABLISHED . THE REMAINING AMOUNT OF RS. 5,248/ - IS UNEXPLAINED . WE, THEREFORE, DIRECT THE AO TO DELET E THE ADDITION OF RS. 1, 68,128/ - AND MAINTAIN THE ADDITION OF RS. 5,248/ - . THIS GROUND IS PARTLY ALLOWED . SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 36 : - 16 . GROUND NO. 5 RELATE S TO THE ADDITION OF RS. 45,000/ - MADE AS PER PARA NO.10V OF THE ASSESSMENT ORDER AND CONFIRMED BY THE LD. CIT(A). 17 . THE AO FOUND H UGE AMOUNT OF CASH AMOUNT DEPOSITED DURING THE PERIOD 2003 - 04 TO 2004 - 05 AT RS. 65,000/ - . THE AO NOTED THAT SHRI DEEPAK ASAI WAS A GOVERNMENT SERVANT AND THE CASH DEPOSITED IN THE ACCOUNT SEEM ED TO THE SUSPICIOUS. SINCE THE ONLY SOURCE OF INCOME CLAIMED B Y MR. JYOTI ASAI WAS FROM MEDICAL PROFESSION, THE AO TREATED THAT THE AMOUNT DEPOSITED IN THE ACCOUNT WAS THE UNDISCLOSED INC O ME OF SHRI DEEPAK ASAI. THE AO ADDED THE INCOME OF RS. 45000/ - IN ASSESSMENT YEAR 2004 - 05 AND RS. 20,000/ - IN ASSESSMENT YEAR 2005 - 06. THE ASSESSEE PREFERRED AN APPEAL BEFORE THE LD. CIT(A), WHO CONFIRMED THE ADDITION OF RS. 45,000/ - . 18 . WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL PLACED BEFORE US. WE OBSERVE FROM THE WRITTEN SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 37 : - SUBMISSIONS SUBMITTED FOR GROUND NO. 3 ABO VE. SMT. JYOTI ASAI HAD SUFFICIENT INCOME AND THE ADDITION HAS BEEN MADE ON SUSPICION. THE ASSESSEE HAS ALSO SUBMITTED THE CASH FLOW CHART - 5 OF SMT. JYOTI ASAI FOR ASSESSMENT YEAR 2003 - 04 TO 2009 - 10 , IN WHICH THE AMOUNT OF RS. 45,000/ - IS ALSO REFLECTED. HENCE, T HE ADDITION OF RS. 45000/ - IS DELETED . GROUND NO. 5 IS ALLOWED. 19 . GROUND NO.6 RELATES TO THE ESTIMATED ADDITION OF RS. 67,545/ - CONFIRMED BY THE LD. CIT(A) FOR HOUSE HOLD EXPENSES AND EDUCATIONAL EXPENSES. 20 . FACTS APROPOS GROUND NO. 6 ARE THAT THE AO WHILE GOING THROUGH THE BANK ACCOUNT OF ASSESSEE AND HIS FAMILY MEMBERS NOTICED THAT EXPENSES RELATED TO HOUSEHOLD LIKE VEHICLE RUNNING, SERVANT, HOUSE MAINTENANCE, TRAVELLING, FOOD, EDUCATION, MEDICAL WERE NOT REFLECTED. ON THE BASIS OF STATEMENT OF SMT. JYOTI ASAI , THE HOUSEHOLD EXPENSES AND EDUCATION EXPENSES OF TWO CHILDREN WER E E STIMATED AT SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 38 : - RS. 2,40,000/ - FOR A.Y.2010 - 11 (RS.10,000/ - PER MONTH FOR HOUSEHOLD PLUS RS. 10,000/ - PER MONTH FOR EDUCATION). THE 10% INFLATION WAS CONSIDERED AND ESTIMATION FOR PREVIOUS YEARS WAS MADE ACCORDINGLY. THE LD CIT(A) HELD THAT THE LD AO WAS NOT REASONABLE IN NOT CONSIDERING THE DECLARED HOUSEHOLD EXPENSES AND GAVE CREDIT FOR THE SAME , AS PER THE DETAILS GIVEN BELOW. A.Y ADDITION BY ASSESSING OFFICER HOUSEHOLD EXPE NSES DECLARED ADDITION CONFIRMED 2004 - 05 1,27,545 60,000 67,545 2005 - 06 1,41,717 60,000 81,717 2006 - 07 1,57,464 72,000 85,464 2007 - 08 1,74,960 84,000 90,960 2008 - 09 1,94,400 96,000 98,400 2009 - 10 2,16,000 1,08,000 1,08,000 2010 - 11 2,40,000 1,20,000 1,20,000 21 . THE LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS AS PER WRITTEN SUBMISSIONS, WHICH IS REPRODUCED AS UNDER : - SUBMISSIONS: SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 39 : - NO INCRIMINATING DOCUMENT FOUND DURING SEARCH WAS QUOTED TO HOLD ANY UNACCOUNTED HOUSEHOLD EXPENSES MADE BY THE APPELLANT. NO ADDITION CAN BE MADE IN PROCEEDINGS U/S. 153A. LOOSE PAPERS QUOTED WERE ADDED SEPARATELY, AND HAVE BEEN DISCUSSED SEPARATELY. THE ASSESSEE IS A GOVERNMENT EMPLOYEE AND MOST OF THE TELEPHONE, SERVANT, MOTOR CAR AND ALLIED EXPENSES ARE MET BY EMPLOYER - PWD. PB 427/ III . THE PAYMENTS LIKE ELECTRICITY, MOBILE ETC . HAVE BEEN FOUND TO BE PAID THROUGH CHEQUE. ( C THE CASH FLOW STATEMENT OF SMT. JYOTI ASAI TRULY DISCLOSE S ALL THE OTHER EXPENSES LIKE PURCHASE OF JEWELLERY, HOUSEHOLD ITEMS LIKE LCD, REFR IGERATOR, LAPTOP ETC. THE FEES FOR DAUGHTERS EDUCATION IN IIT - KANPUR PAID THROUGH CASH AND DD ARE ALSO DULY REFLECTED IN THE CASH FLOW STATEMENT SEPARATELY . SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 40 : - APART FROM ABOVE EXPENSES, THE FOOD AND OTHER EXPENSES ARE COVERED IN THE DECLARED HOUSEHOLD EXPE NDITURE. THE ADDITION BEING NOT DULY SUPPORTED BY ANY EVIDENCE DESERVES TO BE DELETED. 22 . THE LD. DEPARTMENTAL REPRESENTATIVE OPPOSED THE SUBMISSIONS AND SUPPORTED THE ORDERS OF THE LOWER AUTHORITIES. 23 . WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MAT ERIAL AVAILABLE ON RECORD. WE FIND THAT THE ADDITION HAS BEEN MADE PURELY ON THE BASIS OF CONJECTURES AND SURMISES AND NOT BASED UPON ANY MATERIAL EVIDENCE. WE , THEREFORE, CANNOT SUSTAIN THIS ADD ITION, AS THE REVENUE HAS NOT BROUGHT ON RECORD ANY MATERIAL SUGGESTING THAT THE ASSESSEE HAD INCURRED HIGHER HOUSE HOLD EXPENSES. WE DIRECT THE AO TO DELETE THE ADDITION. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 41 : - 24 . GROUND NO. 7 RELATES TO THE ADDITION OF RS. 1,00,000/ - MADE AS PER PARA NO.13 OF THE ASSESSMENT ORDER AND CONFIRMED BY THE LD. CIT(A) FOR GIFT R ECEIVED FROM SHRI RAMBHAU ASAI. 25 . FACTS APROPOS GROUND NO. 7 ARE THAT D URING THE COURSE OF SEARCH, A DOCUMENT LPS - D1 (PG. NO 17) (PB - 358) WAS SEIZED. IT IS THE DECLARATION OF GIFT DATED 01.06.2003 THROUGH WHICH RAMBHAU GHANSHYAM ASAI (DONOR) MADE A GIFT OF RS. 1,00,000/ - TO DEEPAK RAMBHAU ASAI (HUF) (DONEE), THROUGH CHEQUE NO 098139 DATED 01.06.2003 DRAWN ON STATE BANK OF INDIA., SHIVAJI NAGAR BRANCH. IT WAS ALLEGED BY AO THAT THE DONOR SHRI RAMBHAU GHANSYAM ASAI D ID NOT HAVE ANY SOURCE OF I NCOME AND SHRI D EEPAK ASAI WAS THE ONLY EARNING MEMBER OF THE FAMILY. THE AO CONTENDED THAT THE GIFT IS NOTHING BUT JUST AN ATTEMPT TO JUSTIFY THE UNDISCLOSED INCOME OF SHRI DEEPAK ASAI. THE LD CIT(A) SUSTAINED THE ADDITION SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 42 : - CONTENDING THAT THE RETURNS DECLARING INCOMES FR OM UNSUBSTANTIATED SOURCES HAD BEEN FILED BY ASSESSEES FAMILY MEMBERS TO BUILD UP CAPITAL IN THEIR HANDS TO EXPLAIN UNDISCLOSED INCOME OF THE ASSESSEE RECEIVED IN THE FORM OF GIFTS, ADVANCES AND DEPOSITS FROM TIME TO TIME. 26 . THE LD. COUNSEL FOR THE ASSESS EE REITERATED THE SUBMISSIONS BEFORE US AS PER THE WRITTEN SUBMISSIONS SUBMITTED, WHICH IS REPRODUCED AS UNDER : - SUB MISSIONS 1 . THE GIFT DEED WAS EXECUTED WELL BEFORE DATE OF SEARCH (PB 358) AND THE DONOR AND DONEE ARE BOTH ASSESSED TO INCOME - TAX. THE DOCU MENT ITSELF WAS SEIZED IN SEARCH. IT CANNOT BE SAID TO BE AN AFTERTHOUGHT IN ANY CASE. 2 . THE DOCUMENT DOES NOT RELATE TO ASSESSEE DEEPAK ASAI (INDIVIDUAL). THE ADDITION, IF ANY, SHOULD BE IN HANDS OF DEEPAK ASAI (HUF) WHICH IS A SEPARATE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 43 : - INCOME TAX ASSESSEE , ADDING IN THE HANDS OF DEEPAK ASAI (INDIVIDUAL) IS GROSSLY WRONG AND UNJUSTIFIED. 3 . THE EXTRACT OF SAVING BANK ACCOUNT NO. 10064562621 WITH STATE BANK OF INDIA IS AT CIT(A) ORDER PG . NO 174. 4 . THE LD AO IS NOT CORRECT IN SAYING THAT SHRI RAMBHAU ASAI HAS NO SOURCE OF INCOME AS HE WAS A DOCTOR (VETERINARY). HE RETIRED FROM VETERINARY DEPARTMENT, GOVT OF MP AND WAS RECEIVING PENSION FROM THE SAID DEPARTMENT. 5 . THE DONOR ALSO HAVE RENTAL INCOME FROM THE PROPERTY SITUATED AT E - 7/140, ARERA COLONY, BHOPAL. N 6 . IT IS THEREFORE PRAYED THAT THE ADDITION MAY KINDLY BE DELETED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 44 : - 27 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 28 . WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE GIFT DEED WA S EXECUTED PRIOR TO THE SEARCH. THE DONOR AND DONE E BOTH ARE INCOME TAX ASSESSEES. SHRI RAMBHAU WAS A VETERINARY DOCTOR AND WAS IN GOVERNMENT SERVICE AND ALSO HAD RENTAL INCOME FROM HIS HOUSE SITUATED AT E - 7/140, ARERA COLONY, BHOPAL. THE SOURCE OF INCOME OF RS. 1.50 LAKHS WAS GIFT FROM SHRI R.J. ASAI VIDE CHEQUE NO. 255878 HAS ALREADY BEEN ESTABLISHED AND THE AMOUNT IS ALLOWED IN GROUND NO.4. OF RS. 1.50 LAKHS . THE AFFIRMATION BY THE FATHER REGARDING GIFT IS ALSO ON RECORD OF RS. 1,50,000/ - . WE, THEREF ORE, DIRECT THE AO TO DELETE THE ADDITION OF RS. 1 LAKH. THIS GROUND OF THE ASSESSEES APPEAL IS ALLOWED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 45 : - 29 . IN THE RESULT, THE APPEAL IN I.T.(SS)A.NO. 152/IND/2015 FOR THE ASSESSMENT YEAR 2004 - 05 IS PARTLY ALLOWED. I.T.(SS)A.NO. 153/IND/2015 A.Y. 2005 - 06 : 30 . THE HAS RAISED FOLLOWING GROUNDS OF APPEAL : - 1 . THAT THE ASSESSMENT MADE U/S 153A R.W.S. 143(3) OF THE INCOME - TAX ACT BE HELD TO BE BAD IN LAW AND ON FACTS AND BE QUASHED. 2 . THAT THE ADDITION OF RS. 1, 27,200/ - MADE AS PER PARA 6. 2 OF THE ASSESSMENT ORDER AN D CONFIRMED BY THE CIT(A) FOR PROFESSIONAL INCOME AND AGRICULTURAL INCOME SHOWN IN THE CASH FLOW STATEMENT OF SMT. JYOTI ASAI BE HELD TO BE BAD , UNLAWFUL AND UNJUSTIFIED WHEN SMT. JYOTI ASAI IS SEPARATELY ASSESSED TO TAX AND HAD BEEN FILING HER INCOME TAX RETURNS SINCE LONG. THE ADDITION OF RS. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 46 : - 1,27,200/ - MADE BE THEREFORE QUASHED AND DELETED. 3 . THAT THE ADDITION OF RS. 6,460/ - MADE AS PER PARA NO. 7A OF THE ASSESSMENT ORDER AND CONFIRMED BY THE LD. CIT(A) FOR PURCHASE OF SAMSUNG WASHING MACHINE ACQUIRED BY SMT. JYOTI ASAI BE HELD TO BE BAD, UNJUSTIFIED AND UNLAWFUL AND BE QUASHED. 4 . THAT THE ADDITION OF RS. 5,00,000/ - MADE AS PER PARA NO.8A OF THE ASSESSMENT ORDER AND CONFIRMED BY THE LD. CIT(A) FOR COST OF ACQUISITION OF PROPERTY SITUATED AT E - 8, COMFORT GARD EN, CHUNA BHATTI, KOLAR ROAD, BHOPAL BE HELD TO BE OUT OF CONTEXT AND WITHOUT ANY BASIS. THE SAID PROPERTY IS OWNED BY SHRI KAILASHCHAND PARATE. THE ADDITION MADE BE HELD TO BE BAD AND UNJUSTIFIED AND BE QUASHED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 47 : - 5 . THAT THE ADDITION OF RS. 70,217/ - MADE AS P ER PARA NO.10 B OF THE ASSESSMENT ORDER AND CONFIRMED BY THE LD. CIT(A) TO BE HELD TO BE BAD OUT OF CONTEXT AND WITHOUT ANY BASIS. THE ADDITION MADE BE HELD TO BE BAD AND UNJUSTIFIED AND BE QUASHED. 6 . THAT THE ADDITION OF RS. 55,000/ - MADE AS PER PARA NO.10E OF THE ASSESSMENT ORDER AND CONFIRMED BY THE LD. CIT(A) FOR CREDITS IN ICICI BANK ACCOUNT NO. 028301500684 BELONGING TO SHRI KAILASHCHAND PARATE BE HELD TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 7 . THAT THE ADDITION OF RS. 28,702/ - MADE AS PER PARA NO.10K OF THE ASSESSMENT ORDER AND CONFIRMED BY THE LD. CIT(A) FOR CREDITS IN ACCOUNT NO. 10064562621 WITH STATE BANK OF INDIA, SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 48 : - SHIVAJI NAGAR, BHOPAL BELONGING TO RAMBHAU GHANSHYAM ASAI BE HELD TO BE UNREASONABLE, BAD, UNJUST IFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 8 . THAT THE ADDITION OF RS. 20,000/ - MADE AS PER PARA NO.10V OF THE ASSESSMENT ORDER AND CONFIRMED BY THE LD. CIT(A) FOR CASH DEPOSITS MADE BY SMT. JYOTI ASAI IN HER S.B.ACCOUNT NO.01190009594 WITH STATE BANK OF INDORE, BETUL BE HELD TO BE BAD, UNJUSTIFIED AND UNLAWFUL AND BE QUASHED. 9 . THAT THE ESTIMATED ADDITION OF RS. 81,717/ - CONFIRMED BY THE LD. CIT(A) FOR HOUSE HOLD EXPENSES AND EDUCATIONAL EXPENSES BE HELD TO BE BAD AND UNJUSTIFIED. THE ADDITION MADE BEING BASED ON ESTIMATE AND CONJECTURES BE QUASHED AND DELETED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 49 : - 10 . THAT THE ADDITION OF RS. 1,55,550 MADE AS PER PARA NO.14 OF THE ASSESSMENT ORDER AND CONFIRMED BY THE LD. CIT(A) FOR APPROXIMATE COST OF MALAYSIA AND SINGAPORE TOUR UNDERTAKEN BY THE ASSESSEE ON BE HALF OF HIS DEPARTMENT BE HELD TO BE BAD, UNJUSTIFIED AND UNREASONABLE. THE TOUR UNDERTAKEN WAS FREE OF COST TO THE APPELLANT. THE ADDITION MADE IS THEREFORE HIGHLY DISPUTED AND IS REQUESTED TO BE DELETED. 31 . GROUND NO. 1 IS NOT PRESSED BY THE LD. COUNSEL FO R THE ASSESSEE. HENCE, GROUND NO.1 IS DISMISSED AS NOT PRESSED. 32 . GROUND NO. 2 RELATES TO THE ADDITION OF RS. 1,27,200/ - MADE AS PER PARA 6.2 OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT(A) FOR PROFESSIONAL INCOME AND AGRICULTURAL INCOME SHOWN IN THE CA SH FLOW STATEMENT OF SMT. JYOTI ASAI. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 50 : - 33 . THE LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSION WHICH HE MADE FOR GROUND NO. 3 OF THE ASSESSEE FOR ASSESSMENT YEAR 2004 - 05. 34 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 35 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE HAVE DEALT WITH THIS ISSUE IN DETAIL WHILE DEALING GROUND NO. 3 OF THE ASSESSEE FOR ASSESSMENT YEAR 2004 - 05. WE HAVE HELD IN THAT GROUND THAT PROFESSIONAL RE CEIPTS, GIFTS ETC. BY THE WIFE OF ASSESSEE TO BE REASONABLE . WE, T HEREFORE, HOLD THAT THE FINDING ARRIVED AT BY THE AUTHORITIES IS NOT JUSTIFIED, PARTICULARLY WHEN WIFE OF THE ASSESSEE IS ADMITTEDLY A MEDICAL PROFESSIONAL AND THIS FACT IS DULY DISCLOSED IN EARLIER YEARS. EVEN OTHERWISE ALSO THE AO HAS BASED HIS FINDING ON PURELY ON THE CONJECTURE BASIS THAT THE UNDISCLOSED INCOME OF THE ASSESSEE IS ROUTED SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 51 : - THROUGH THE WIFE OF THE ASSESSEE. FURTHER, THE AUTHORITIES HAVE ALSO REJECTED CLAIM OF GIFT AND EARN ING OF AGRICULTURAL INCOME ETC. IT IS A NORMAL PRACTICE IN INDIAN HOUSE HOLD THAT FEMALE MAKES SMALL SAVINGS AND ALSO GET GIFTS ON THE OCCASION OF BIRTH DAY AND OTHER FESTIVAL OCCASIONS. THE GIFTS AS CLAIMED, IN OUR VIEW, IS REASONABLE KEEPING IN VIEW THE STATUS OF THE ASSESSEE. HENCE, WE DIRECT THE AO TO DELETE THIS ADDITION OF RS. 1,27,200/ - . 36 . GROUND NO. 3 RELATES TO THE ADDITION OF RS. 6,460/ - MADE AS PER PARA NO.7A OF THE ASSESSMENT ORDER AND CONFIRMED BY THE LD. CIT(A) FOR PURCHASE OF SAMSUNG WASHIN G MACHINE ACQUIRED BY SMT. JYOTI ASAI. 37 . THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT THIS IS DISCUSSED IN DEPARTMENTAL APPEAL FOR ASSESSMENT YEAR 2004 - 05. THE LD. COUNSEL FOR THE ASSESSEE INVITED OUR ATTENTION TOWARDS THE SUBMISSIONS MADE FOR THE DEPARTM ENTAL APPEAL FOR ASSESSMENT YEAR 2004 - 05. THE LD. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 52 : - COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE BILL FOR PURCHASE OF SAMSUNG (SANSUI) WASHING MACHINE DATED 10.01.05 IN THE NAME OF SMT. JYOTI ASAI , WHICH IS PLACED ON PB 320 (PAGE NO.134 OF LPS D2). THE PAYMEN T OF RS. 6,490/ - WAS MADE BY SMT. JYOTI ASAI AND THE PAYMENT THEREOF IS ALSO APPEARING IN HER CASH - FLOW STATEMENT SUBMITTED FOR ASSESSMENT YEAR 2005 - 06 ( CHART 5 ). THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT NO ADDITION ON THE BASIS OF SUSPICION CAN B E MADE AND THE ADDITION ON THE BASIS OF PRESUMPTION AND ASSUMPTION IS NOT JUSTIFIED. 38 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 39 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RE CORD. WE HAVE PERUSED THE MATERIAL AVAILABLE ON THE PAPER BOOK. WE FIND THAT THE BILL FOR PURCHASE OF SAMSUNG WASHING MACHINE DATED 10.01.2005 IS IN THE NAME OF SMT. JYOTI ASAI, WHICH IS SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 53 : - PLACED ON PB 320. THE PAYMENT OF RS. 6490/ - WAS MADE BY SMT. JYOTI AS AI AND THE PAYMENT IS ALSO APPEARING IN HER CASH FLOW STATEMENT FOR ASSESSMENT YEAR 2005 - 06. WE, THEREFORE, DIRECT THE AO TO DELETE THE ADDITION OF RS. 6,490/ - , AS IT IS BASED ON SURMISES AND CONJECTURES. 40 . GROUND NO. 4 RELATES TO THE ADDITION OF RS. 5,00, 000/ - MADE AS PER PARA NO.8A OF THE ASSESSMENT ORDER AND CONFIRMED BY THE LD. CIT(A) FOR COST OF ACQUISITION OF PROPERTY SITUATED AT E - 8, COMFORT GARDEN, CHUNA BHATTI, KOLAR ROAD, BHOPAL BE HELD TO BE OUT OF CONTEXT AND WITHOUT ANY BASIS. 41 . BRIEF FACTS OF T HE CASE ARE THAT D URING THE COURSE OF SEARCH AT THE RESIDENTIAL PREMISES OF THE ASSESSEE, STATEMENT OF JYOTI ASAI WAS RECORDED IN WHICH SHE STATED THAT THE HOUSE AT E - 8, COMFORT GARDEN, CHUNNA BHATTI BHOPAL (THE HOUSE PROPERTY) WAS OWNED BY SHRI K.C PARA TE (BROTHER OF JYOTI ASAI). SHE ALSO STATED THAT SHRI K.C PARATE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 54 : - IS WORKING AS MANAGER OF CHINDWARA GRAMIN BANK, AND THE SAID HOUSE IS FINANCED BY ICICI BANK. DURING THE COURSE OF SEARCH C ERTAIN LOOSE PAPERS WERE ALSO FOUND AND SEIZED, RELATING TO THE PROP ERTY NAMED AS LPS - D2, PG NO 1 TO 38 (PB 360 - 371) , WHICH CONTAINED FOLLOWING DOCUMENTS: - SALE DEED DATED 28.03.2005 BETWEEN SHRI K.C. PARATE AND V.K.BUILDERS. POWER OF ATTORNEY GRANTED BY SHRI K.C. PARATE TO HIS SISTER JYOTI ASAI. ( PB 366 - 367 ) AGREEMEN T FOR SALE DATED 12.03.2005 OF THE SAID HOUSE PROPERTY AND AGREEMENT OF POSSESSION FROM V.K BUILDERS. ( PB 360 - 365 ) DURING THE COURSE OF SEARCH, THE ASSESSEE WAS CONFRONTED ABOUT THE SAME AND THE ASSESSEE CONFIRMED THAT THE HOUSE WAS OWNED BY SHRI K.C. PAR ATE. ( PB 179 QUE. 12 ) . ALSO PB 180 QUE. 16. FURTHER PB 181 (BACK) QUE 22 - 23. ALSO P .B. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 55 : - 187/QUE 187/ QUE 18 - 20. THE AO, ON THE BASIS OF FOLLOWING ALLEGATIONS MADE THE ADDITIONS : - 1 . MALIKANA MUKHTARNAMA BETWEEN SHRI K.C. PARATE AND SMT. JYOTI ASAI WAS FOUND FROM POSSESSION OF ASSESSEE, ALSO THE ICICI BANK STATEMENT FOR A/C NO 684 (FROM WHERE THE REPAYMENT OF HOUSING LOAN WAS MADE) WAS FOUND FROM THE RESIDENTIAL PREMISES OF ASSESSEE. ( PB 366 - 368 . ) 2 . HUGE CASH WAS DEPOSITED IN THE ICICI BANK ACCOUNT NO 684 TOW ARDS REPAYMENT OF HOUSING LOAN. 3 . IN THE AGREEMENT FOR POSSESSION BETWEEN V.K BUILDER AND K.C. PARATE, DATED 09.06.2005, SMT JYOTI ASAI HAS SIGNED IN THE NAME OF PURCHASER. SIGNATORIES IN ALL THE THREE DOCUMENT IS ASSESSEE . SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 56 : - THE ASSESSEE HAD SIGNED AS ONE OF THE WITNESSES ON THE POSSESSION AGREEMENT. THE CASH RECEIPT FROM V.K. BUILDER AMOUNTING TO RS. 1,00,000/ - SIGNED BY THE ASSESSEE. THE ASSESSEE HAS SIGNED IN THE BANK DEPOSIT SLIP IN ICICI BANK A/C 684. THE AO ADDED THE TOTAL COST OF PROPERTY I.E. RS. 11, 70,200/ - IN THE HANDS OF THE ASSESSEE, HOLDING THAT IT WAS THE UNDISCLOSED AND BENAMI INVESTMENT IN THE NAME OF SHRI. K.C. PARATE, AS SMT. JYOTI ASAI D ID NOT HAVE ANY SOURCE OF INCOME. D URING THE COURSE OF SEARCH , SOME BILLS RELATED TO THE RENOVATION EXPEN SES OF THE PROPERTY WERE ALSO FOUND. SMT JYOTI ASAI OFFERED NO EXPLANATION AND SURRENDERED THE SUM OF RS. 2,00,000/ - TOWARDS RENOVATION EXPENSES . ) IN THE REVISED RETURN FILED, THE SURRENDER WAS NOT REFLECTED. FURTHER THE BILLS AMOUNTING TO, RS. 17,950/ - AN D RS. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 57 : - 22,595/ - DATED 22.09.06 AND PAYMENT OF RS. 12,800/ - DATED 03.10.06 ( A.Y. 06 - 07 RELATING TO RENOVATION WERE ALSO FOUND IN THE NAME OF THE ASSESSEE. THE AO MADE THE ADDITIONS AS UNDER : - SR. NO A.Y. AMOUNT 1. 2005 - 06 5,00,000/ - 2006 - 07 14,23,545/ - (11,70,200+2,00,000+17,950 +22,595+12,800) THE ASSESSEE WENT IN APPEAL. THE LD. CIT(A) AFTER CONSIDERING THE SUBMISSIONS, STATEMENT OF ASSESSEE AND WIFE AND THE DOCUMENTS SEIZED FROM THE RESIDENTIAL PREMISES ALLEGED THAT: - A . THE HOUSE IN RESPECT OF WHICH THE ADDITIONS HAVE BEEN MADE WAS THE CURRENT RESIDENCE OF THE ASSESSEE AND HIS FAMILY. B . THE OWNER SHRI K.C. PARATE IN HIS ASSESSMENT COULD NOT EXPLAIN THE SOURCE OF INVESTMENT, ALLEGED HOUSING LOAN TAKEN FROM ICICI BANK AT SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 58 : - BHOPAL AND EVIDENCE AND SOURCE OF HOUSE LOAN REPAYMENT. C . THE STATEMENT OF SURRENDER BY SMT. JYOTI ASAI IS NOT VOLUNTARY STATEMENT AND THE RETRACTION MADE AFTER LONG PERIOD WAS NOT SUPPORTED BY EVIDENCE. D . THE ADDITION WAS NOT MADE SOLELY ON BASIS OF STATEMENT BUT ON THE BASIS OF CORROBORATIVE EVIDENCE FOUND IN SUPPORT THEREOF. THE LD. CIT(A) SUSTAINED THE ADDITION MADE BY THE AO AND ONLY DELETED THE ADDITION OF RS. 2,00,000/ - FROM A.Y. 2006 - 07 AS IT WAS SEPARATELY ADDED IN A.Y. 2010 - 11. 42 . THE LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSI ONS AS MADE IN THE WRITTEN SUBMISSIONS , WHICH ARE REPRODUCED AS UNDER : - SUBMISSIONS: SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 59 : - 1 . THE REGISTERED SALE DEED DATED 28.03.15, OF THE SAID PROPERTY IS REGISTERED IN NAME OF SHRI K.C. PARATE. THE PAYMENT FOR ACQUIRING THE PROPERTY IS THROUGH HOUSE LOAN OF RS. 5,00,000/ - FROM ICICI BANK AND BALANCE THROUGH CHEQUE. THE ASSESSEE WAS RESIDING IN THE HOUSE IN THE CAPACITY OF A TENANT AND WAS PAYING MONTHLY RENT OF RS. 5000/ - P.M ALSO. THE SAME IS REFLECTED IN THE CASH FLOW OF THE ASSESSEE ALSO (CHART - 4) 2 . T HE MAL IKANAMA MUKHTARNAMA/ POWER OF ATTORNEY WAS ENTERED BETWEEN THE REGISTERED OWNER SHRI K.C. PARATE AND SMT. JYOTI ASAI , AS THE PROPERTY IS SITUATED IN BHOPAL AND SHRI K.C. PARATE WAS WORKING AND RESIDING IN CHINDWADA. THUS, FOR EASE AND CONVENIENCE THE SAID POWER OF ATTORNEY WAS ENTERED. SAME WAS FOUND IN SEARCH AND WAS DATED 15.06.05 I.E. BEFORE THE DATE OF SEARCH. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 60 : - 3 . THE AGREEMENT OF POSSESSION IN RESPECT OF SAID HOUSE PROPERTY WAS DATED 15.06.05, IN WHICH SMT JYOTI ASAI HAD SIGNED IN NAME OF PURCHASER AS THE POWER OF ATTORNEY IN RESPECT OF THE SAID HOUSE WAS IN HER NAME. THUS, IT CANNOT BE SAID THAT INVESTMENT WAS MADE BY SMT. JYOTI ASAI/ DEEPAK ASAI. 4 . THE LD AO'S ALLEGATION THAT THE CASH DEPOSITED IN THE SAID ACCOUNT OF ICICI FLOWS FROM THE ASSESSEE IS INCOR RECT AS SHRI K.C. PARATE IS REGIONAL BANK MANAGER IN MADHYA PRADESH CENTRAL GRAMIN BANK, CHINDWARA AND IS SEPARATELY ASSESSED TO TAX. THERE IS NO EVIDENCE THAT THE CASH DEPOSITED IN THE ACCOUNT IS FROM THE ASSESSEE. SOME DEPOSIT SLIPS WERE FILLED BY ASSES SEE, AS ASSESSEE WAS IN BHOPAL AND AMOUNT WAS GIVEN BY SHRI K.C. PARATE. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 61 : - 5 . THE ADDITION WITH REGARD TO COST OF PROPERTY IS MADE ON THE BASIS OF LEDGER ACCOUNTS OF V.K. BUILDERS STATING THAT RS. 5 LAC WERE PAID IN A.Y. 2005 - 06 AND RS. 11,70,200/ - WERE PAID IN A.Y. 2006 - 07. IN FACT, THE LEDGER ACCOUNTS OF THE BUILDER WERE NEVER PROVIDED TO THE ASSESSEE AND THE AGREEMENT TO SALE AS WELL AS THE REGISTERED SALE DEED REFLECT THAT THE PROPERTY WAS PURCHASED BY PAYING FOLLOWING : - SR. NO AMOUNT REMARKS 1. 1,70,200 IN CASH ON 01.04.05 2. 5,00,000 THROUGH ICICI HOME LOAN CHQ NO 955053 DATED 21.03.05 3. 2,00,000 2,00,000 1,00,000 THROUGH CHQ NO 510246, 510247,510249 RESPECTIVELY DATED 14.03.05 SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 62 : - THUS, THE TOTAL COST OF THE HOUSE PROPERTY IS 11,70,200/ - . 6 . ALSO, IT WAS ALLEGED BY THE LD AO THAT THE RENOVATION EXPENSES AMOUNTING TO RS. 17,950+ 22,595+ 12,800=53,345/ - AS PER SEIZED LPS D2, PG NO 88 TO 90 (ON PB 325 - 327) ARE UNEXPLAINED IS NOT CORRECT, AS THE SEIZED DOCUMENTS TOTAL IS RS. 22,595/ - WHICH IS REFLECTED IN TH E CASH FLOW OF ASSESSEE (CHART - 4). THE LD AO HAS ERRED IN ADDING ALL THE AMOUNT MENTIONED IN PB 325 - 327, WITHOUT CONSIDERING THAT THE TOTAL AMOUNT OF RS. 22,595/ - INCLUDES THE WATERPROOFING TREATMENT OF RS. 17,950/ - (REFER PB 326). ALSO, THE ADDITION OF RS. 12,800/ - ON BASIS OF PB325 IS THE PART AMOUNT RECEIVED OUT OF TOTAL BILL OF RS. 22,595/ - . 7 . THE OTHER ADDITION IN RESPECT OF THE RENOVATION EXPENSES AMOUNTING TO RS. 2,00,000/ - IS BASED ON SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 63 : - THE SURRENDER MADE BY SMT. JYOTI ASAI AT TIME OF SEARCH. THE STATEM ENT RECORDED WAS AT ODD HOUR AND SHE WAS UNDER MENTAL STRESS AND IMMENSE PRESSURE, THUS, SURRENDERED IN REPLY TO Q NO 83. IT IS PERTINENT TO NOTE HERE THAT THE SURRENDER WAS RETRACTED. NEITHER ASSESSEE NOR SMT. JYOTI ASAI DISCLOSED THE SAME IN THE REVISED RETURN FILED IN RESPONSE TO NOTICE U/S 153A. ALSO, APART FROM THE BILLS OF ANANT ASSOCIATES (LPS - D2, PG NO 88 TO 90), THERE WERE NO OTHER INCRIMINATING DOCUMENT FOUND WHICH SUPPORT THE HUGE UNEXPLAINED ADDITION OF RS. 2,00,000/ - MADE ON ACCOUNT OF RENOVATI ON. 8 . BENAMI IT IS SUBMITTED THAT THE BURDEN OF PROOF IS ON THE DEPARTMENT TO ESTABLISH BENAMI. SUCH A BURDEN CANNOT BE DISCHARGED MERELY ON A SUSPICION OF BENAMI. T H E FOLLOWING FACTORS WOULD BE RELEVANT: SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 64 : - ( I ) POWER OF ATTORNEY GIVEN BY K.C. PARATE WAS ONLY FOR OBTAINING POSSESSION OF HOUSE AS HE WAS NOT IN BHOPAL. ( II ) ALTHOUGH THERE MIGHT HAVE BEEN SURRENDER ON MAINTENANCE OF HOUSE, BUT THERE WAS NO SURRENDER ON INVESTMENT OF HOUSE. A TENANT CAN ALSO GET IT REPAIRED. RENT PAID FOR AN INDEPENDENT HOUSE WAS ONLY RS. 5,000 WHICH WAS NOMINAL. ( III ) DEPARTMENT COULD NOT DISPROVE THAT RENT WAS NOT PAID. 43 . THE LD. DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDERS OF THE LOWER AUTHORITIES. 44 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECO RD. ADMITTEDLY, THE AO HAS TREATED THE PROPERTY IN QUESTION AS THE BENAMI PROPERTY. IT IS POINTED OUT BY THE LD. COUNSEL FOR THE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 65 : - ASSESSEE THAT THE SALE CONSIDERATION WAS PAID THROUGH BANKING CHANNEL. THE SUBSTANTIAL AMOUNT WAS PAID BY TAKING HOUSING LOAN F ROM BANK AND ACCUMULATED SAVINGS OF THE ASSESSEE. THE ENTIRE FINDING IS BASED UPON SUSPICION AND IS NOT SUPPORTED BY ANY MATERIAL EVIDENCE. THE REVENUE COULD NOT CONTROVERT THE FACT THAT OUT OF SALE CONSIDERATION, SHRI K. C. PARATE HAD MADE PAYMENT BY TAKI NG HOUSING LOAN AND ALSO OUT OF HIS PAST SAVINGS. IN OUR CONSIDERED VIEW, MERELY BECAUSE THE WIFE OF THE ASSESSEE HAD ACTED AS ATTORNEY FOR EXECUTING THE DOCUMENTS ON BEHALF OF HIS BROTHER, IT IS NOT SUFFICIENT TO HOLD THAT THE HOUSE IS A BENAMI PROPERTY O F THE ASSESSEE. UNDER THESE FACTS, WE ARE UNABLE TO SUSTAIN THE FINDING OF THE LD. CIT(A). THE AO IS DIRECTED TO DELETE THE ADDITION. HOWEVER, IT IS CLARIFIED THAT THE REVENUE WOULD BE AT LIBERTY TO EXAMINE THE ISSUE IN THE CASE OF SHRI K. C. PARATE IN RES PECT OF SOURCE OF INVESTMENT. IN CASE IF THE SOURCE IS NOT SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 66 : - EXPLAINED, THE AUTHORITIES WOULD BE AT LIBERTY TO MAKE THE ADDITION. GROUND NO. 4 IS ALLOWED. 45 . GROUND NO. 5 RELATES TO THE ADDITION OF RS. 70,217/ - MADE AS PER PARA NO.10B OF THE ASSESSMENT ORDER A ND CONF IR MED BY THE LD. CIT(A). 46 . FACTS APROPOS THIS GROUND ARE THAT ON GOING THROUGH THE BANK STATEMENT, THE AO FOUND A CONSIDERABLE SIZE OF CASH AMOUNT, WHICH WAS DEPOSITED DURING THE PERIOD 03 - 04 TO 09 - 10. THE ASSESSEE HAS DEPOSITED THE ABOVE AMOUNT SO A S TO ISSUE CHEQUES FOR CLEARING. THERE WERE VARIOUS CHEQUES DEPOSITS, WHICH HAVE BEEN ISSUED FOR SOME INVESTMENT. SINCE THE ASSESSEE SHRI DEEPAK ASAI IS A SALARIED CLASS EMPLOYEE AND HIS DEPOSITS DID NOT COMMENSURATE WITH THAT OF THE INCOME RECEIVED, THER EFORE IT APPEARED THAT VARIOUS AMOUNTS DEPOSITED IN THE ABOVE ACCOUNT WAS UNDISCLOSED INCOME OF THE ASSESSEE, WHICH HAD NOT BEEN OFFERED FOR TAXATION. SHRI DEEPAK ASAI SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 67 : - SUBMITTED A CASH FLOW STATEMENT AND NARRATION OF BANK ACCOUNTS FOR VARIOUS BANKS. HOWEVE R, HE DID NOT MENTION THE CASH DEPOSITS IN HIS CASH FLOW STATEMENT. NEITHER DID HE DECLARE HIS BANK IN THE LIST OF BANK ACCOUNTS AS PER NARRATION PROVIDED. ACCORDINGLY, THE ENTIRE AMOUNT AS PER BANK ACCOUNT WHICH COULD BE SEEN AS CREDITS IN THE BANK ACCOU NT 1470/127 OF M.P. RAJYA SAHKARI BANK IS TREATED AS UNDISCLOSED INCOME OF SHRI DEEPAK ASAI AND ACCORDINGLY ADDED TO THE INCOME OF SHRI DEEPAK ASAI FOR VARIOUS ASSESSMENT YEARS : - S.NO. A.Y. AMOUNT ( RS. ) 1. 2004 - 05 1,73,376/ - 2. 2005 - 06 70,217/ - 3. 2006 - 07 97/ - 4. 2007 - 08 80,743/ - 5. 2008 - 09 2,40,145/ - 6. 2009 - 10 1,02, 027/ - 7. 2010 - 11 1,89,175/ - 47 . THE ASSESSEE WENT IN APPEAL BEFORE THE LD. CIT(A), WHO AFTER CONSIDER THE SUBMISSIONS CONFIRMED THE ADDITION OF SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 68 : - RS. 70,217/ - . AGGRIEVED BY THIS, THE A SSESSEE IS IN APPEAL BEFORE THIS TRIBUNAL. 48 . THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT THE ADDITION HAS WRONGLY BEEN MADE WHEN THE SAME IS REFLECTED IN ACCOUNT BOOKS AND ALSO IN CASH FLOW. THE ADDITION MADE IS OUT OF CONTEXT AND WITHOUT ANY BASIS. THE ADDITION MADE BE HELD TO BE BAD AND UNJUSTIFIED AND BE QUASHED. 49 . THE LD. DEPARTMENTAL REPRESENTATIVE OPPOSED THE SUBMISSIONS AND RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 50 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABL E ON RECORD. IT IS NOTICED THAT THE ENTIRE CREDITS HAVE BEEN ADDED BY THE AO. IT IS POINTED OUT THAT CHEQUE DEPOSITS OF RS. 35,000/ - , WHICH WAS SUBSEQUENTLY RETURNED, HENCE USED FOR INVESTMENT, IS NOT CONSIDERED BY THE AO. IT IS STATED THAT THE INTEREST O F RS. 59/ - AND RS. 35 / - WAS ALSO ADDED AS INCOME. SINCE THE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 69 : - INCOME IS BELOW TAXABLE LIMIT, THE SAME AMOUNT OUGHT NOT TO HAVE BEEN ADDED. WE FIND MERIT INTO THIS CONTENTION. OUT OF ADDITION OF RS. 70,217/ - , RS. 35,0 9 4/ - NEEDS TO BE DELETED. THE AO IS DIREC TED TO DELETE THE ADDITION. THIS GROUND OF THE ASSESSEES APPEAL IS PARTLY ALLOWED. 51 . GROUND NO. 6 RELATES TO ADDITION OF RS. 55,000/ - MADE FOR CREDITS IN ICICI BANK ACCOUNT. 52 . ON GOING THROUGH THE ICICI BANK ACCOUNT STATEMENT, IT WAS SEEN THAT A CONSIDERABLE SIZE OF CASH AMOUNT HAD BEEN DEPOSITED DURING THE PERIOD 06 - 07 TO 10 - 11 TO THE TUNE OF RS. 1,84,000/ - . SHRI KAILASH PARATE HAD DEPOSITED THE ABOVE AMOUNT IN CASH SO AS TO MEET OUT THE LOAN OUTSTANDING TAKEN FOR PURCHASE OF HOUSE AT E - 8, COMFORT GARDEN. DUR ING SEARCH, THE ABOVE ACCOUNTS WAS FOUND AT THE RESIDENTIAL PREMISES OF SHRI DEEPAK ASAI. THE CASH DEPOSIT SLIPS OF THE AFORESAID ACCOUNTS WAS ALSO FOUND TO BE FILLED IN BY SHRI DEEPAK ASAI UNDER THE NAME OF SHRI SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 70 : - K.C.PARATE. THERE WERE SOME CHEQUES DEPOSI TS WHICH WERE LATER BEING ISSUED FOR SOME INVESTMENT. THE AO FOUND THAT THE CASH DEPOSITED WAS NOTHING BUT WAS THE UNACCOUNTED INCOME OF SHRI DEEPAK ASAI, WHICH WAS INVESTED THROUGH KAILASH PARATE TO REMIT OFF THE HOUSING LOAN. THE AO TREATED THE AMOUNT OF RS. 1,84,000/ - DEPOSITED IN THE ABOVE ACCOUNT AS UNDISCLOSED INCOME OF THE ASSESSEE SHRI DEEPAK ASAI, WHICH WAS NOT OFFERED FOR TAXATION AND THE SAME WAS ADDED AS UNDISCLOSED INCOME OF SHRI DEEPAK ASAI. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASS ESSEE WAS ASKED VIDE QUESTIONNAIRE U/S 142(1) REGARDING ABOVE ACCOUNTS, IN RESPONSE TO WHICH SHRI DEEPAK ASAI SUBMITTED A CASH FLOW STATEMENT AND NARRATION OF BANK ACCOUNTS FOR VARIOUS BANKS. THE AO FOUND THAT THE ASSESSEE DID NOT MENTION THE CASH DEPOSITS IN HIS CASH FLOW STATEMENT. HE DID NOT DECLARE HIS BANK IN THE LIST OF BANK ACCOUNTS AS PER NARRATION PROVIDED. THE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 71 : - ASSESSEE MERELY STATED THAT THE ACCOUNT BELONGED TO MR. PARATE. THE ASSESSEE WAS CONFRONTED WITH THE FACT THAT THE ACCOUNT BELONGED TO HIM AS PER EVIDENCES. THE ASSESSEE DID NOT FILE ANY REPLY REGARDING THIS. ACCORDINGLY, ALL THE CREDITS IN THE ABOVE BANK ACCOUNT FOR THE RELEVANT YEAR WERE TREATED AS HIS UNDISCLOSED AND ADDED TO HIS INCOME FOR VARIOUS YEARS AS FOLLOWS : - S.NO. A.Y. AMOUNT 1 2004 - 05 - 2. 2005 - 06 55,000 / - 3. 2006 - 07 6,37 , 750/ - 4. 2007 - 08 71,460/ - 5. 2008 - 09 50,316/ - 6. 2009 - 10 83,864/ - 7. 2010 - 11 90,555/ - 53 . THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT THE ADDITION OF RS. 55,000/ - MADE FOR CREDITS IN ICICI BANK A/C N O.028301500684 BELONGED TO SHRI KAILASHCHAND PARATE . THE LD. COUNSEL FOR THE ASSESSEE DREW OUR ATTENTION TO P.B.PAGE 595 - 596 OF P.B.III, WHICH IS THE AFFIDAVIT OF SHRI SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 72 : - KALASH CHAND PARATE REGARDING PURCHASE OF PROPERTY. THE ASSESSEE SUBMITTED A CASH FLOW AND ALSO NARRATION OF BANK ACCOUNTS FOR VARIOUS BANKS. T HE ADDITION MADE IS UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE PLEASE BE QUASHED. 54 . THE LD. DEPARTMENTAL REPRESENTATIVE OPPOSED THE SUBMISSIONS AND RELIED ON THE ORDERS OF THE LOW ER AUTHORITIES. 55 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IT IS STATED THAT THE BANK ACCOUNT BELONGED TO THE BROTHER - IN - LAW OF THE ASSESSEE, SHRI K. C. PARATE. IN SUPPORT OF THIS , AN AFFIDAVIT TO THIS EFF ECT WAS FILED AT PB PAGE NOS. 595 & 596. SINCE THE ACCOUNT DOES NOT BELONG TO THE ASSESSEE, IN OUR VIEW, THE AO SHOULD NOT HAVE MADE ADDITION AT THE HANDS OF THE ASSESSEE. THE AO WOULD BE AT LIBERTY TO CONSIDER THE ADDITION , IF IT IS UNEXPLAINED, IN THE HA NDS OF SHRI K. C. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 73 : - PARATE. THE AO IS DIRECTED TO DELETE THE ADDITION. GROUND NO. 6 IS ALLOWED. 56 . GROUND NO. 7 RELATES TO ADDITION OF RS. 28,702/ - MADE AS PER 10K OF THE ASSESSMENT ORDER AND CONFIRMED BY THE LD. CIT(A) MADE FOR CREDITS IN ACCOUNT NO.10064526 21 WITH STATE BANK OF INDIA, SHIVAJI NAGAR, BHOPAL , BELONGING TO RAMBHAU GHANSHYAM ASAI. 57 . PERUSAL OF THE ACCOUNT NO. 1006452621 WITH STATE BANK OF INDIA, SHIVAJI NAGAR, BHOPAL, REVEALED THAT IN ALMOST ALL THE ACCOUNTS HEAVY CASH /CHEQUE TRANSACTION WAS OBSER VED. THE AO NOTED THAT SHRI R.G.ASAI HAD NO SOURCE OF INCOME AND, THEREFORE, THE DEPOSITS IN THE ABOVE ACCOUNT SEEMED TO BE SUSPICIOUS. IT SEEMED THAT SHRI DEEPAK ASAI HAD ROUTED HIS UNACCOUNTED/ILLGOTTEN MONEY THROUGH THE ABOVE ACCOUNT AND THEN FURTHER USED AS A TOOL FOR INVESTMENT. THE AO FURTHER FOUND THAT THIS ACCOUNT OF SHRI R. G. ASAI WAS FOUND IN THE POSSESSION OF SHRI DEEPAK SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 74 : - ASAI DURING THE COURSE OF SEARCH AT HIS RESIDENTIAL PREMISES . SHRI R. G. ASAI HAD NO SOURCE OF INCOME EXCEPT PENSION INCOME. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSEE WAS ASKED VIDE QUESTIONNAIRE U/S 142(1) ABOUT THE ABOVE ACCOUNT. SHRI DEEPAK ASAI SUBMITTED A CASH FLOW STATEMENT AND NARRATION OF BANK ACCOUNTS FOR VARIOUS BANKS. HE DID NOT MENTION THE CASH DEPO SITS IN HIS CASH FLOW STATEMENT. HE DID NOT DECLARE HIS BANK IN THE LIST OF BANK ACCOUNTS AS PER NARRATION PROVIDED. THE AO WAS NOT SATISFIED WITH THE CASH FLOW SUBMITTED BY THE ASSESSEE. ACCORDINGLY, ALL THE CREDITS IN THE ABOVE MENTIONED BANK ACCOUNT FOR THE RELEVANT YEAR WAS BEING TREATED AS OF SHRI DEEPAK ASAIS UNDISCLOSED INCOME AND ADDED TO HIS INCOME FOR VARIOUS YEARS AS FOLLOWS : - SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 75 : - S.NO. A.Y. AMOUNT ( RS.) 1. 2004 - 05 - 2. 2005 - 06 28,702/ - 3. 2006 - 07 232/ - 4. 2007 - 08 10,054/ - 5. 2008 - 09 1,15, 856 6. 2009 - 10 80/ - 7. 2010 - 11 83/ - 58 . THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT THE ADDITION OF RS. 28,702 / - MADE FOR CREDITS IN ACCOUNT NO.1006452621 WITH STATE BANK OF INDIA, SHIVAJI NAGAR, BHOPAL, BELONGED TO RAMBHAU GHANSHYAM ASAI. THE ASSESSEE SUBMITTED A CASH FLOW AND ALSO NARRATION OF BANK ACCOUNTS FOR VARIOUS BANKS. THE ADDITION MADE IS UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE PLEASE BE QUASHED. 59 . THE LD. DEPARTMENTAL REPRESENTATIVE OPPOSED THE SUBMISSIONS AND RELIED O N THE ORDERS OF THE LOWER AUTHORITIES. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 76 : - 60 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT ACCOUNT NO.1006452621 WITH STATE BANK OF INDIA, SHIVAJI NAGAR, BHOPAL, BELONGED TO RAMBHAU GHANSHYAM ASAI. WE HAVE PERUSED THE STATEMENT OF ACCOUNT OF SHRI R. G. ASAI , WHICH IS AT PAGE 144 OF AOS ORDER . WE FIND THAT ENTRY SHOWING A N AMOUNT OF RS. 28,423 .25 TOWARDS FDR MATURITY AND INTEREST AMOUNTING TO RS. 279/ - IS REFLECTING . SINCE THE ACCOUNT DOES NOT BELONG TO THE ASSESSEE, IN OUR VIEW, THE AO SHOULD NOT HAVE MADE ADDITION IN THE HANDS OF THE ASSESSEE. THE AO IS DIRECTED TO DELETE THE ADDITION. GROUND NO. 7 IS ALLOWED. 61 . GROUND NO. 8 RELATES TO THE ADDITION OF RS. 20,000/ - MADE PER PARA NO.10V FOR CASH DEPOSI TS MADE BY SMT. JYOTI ASAI IN HER S.B. ACCOUNT NO.011 90009594 WITH STATE BANK OF INDORE, BETUL. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 77 : - 62 . THE AO FOUND THAT THE HUGE AMOUNT OF CASH WAS DEPOSITED DURING THE PERIOD 03 - 04 TO 04 - 05 TO THE TUNE OF RS. 65,000/ - . THE AO NOTED THAT SHRI DEEPAK ASAI WAS A G OVERNMENT SERVANT AND THE CASH DEPOSITED IN THE ACCOUNT SEEMED TO BE SUSPICIOUS. THE INCOME EARNED BY SHRI DEEPAK ASAI DID NOT COMMENSURATE WITH THAT OF HIS INCOME. THE ONLY SOURCE OF INCOME CLAIMED BY MRS. JYOTI ASAI WAS F ROM MEDICAL PROFESSION. THEREFORE , THE AO TREATED THE AMOUNT OF RS. 65,000/ - AS UNDISCLOSED INCOME OF SHRI DEEPAK ASAI. DURING ASSESSMENT PROCEEDINGS, THE ABOVE MENTIONED BANK ACCOUNT WAS ASKED OF THE ASSESSEE VIDE QUESTIONNAIRE U/S 142(1). SHRI DEEPAK ASAI AND JYOTI ASAI SUBMITTED A CASH FLOW STATEMENT AND NARRATION OF BANK ACCOUNTS FOR VARIOUS BANKS. THE AO FOUND THE CASH FLOW TO BE FALSE. ACCORDINGLY, ALL THE CASH CREDITS IN THE ABOVE ME NTIONED BANK ACCOUNTS FOR THE RELEVANT YEAR WAS SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 78 : - BEING TREATED AS SHRI DEEPAK ASAIS UNDISCLOSED INCOM E AND ADDED TO HIS INCOME FOR VARIOUS YEARS AS FOLLOWS : - S.NO. A.Y. AMOUNT ( RS.) 1. 2004 - 05 45,000/ - 2. 2005 - 06 20,000/ - 63 . THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT THE ADDITION OF RS. 20,000/ - MADE FOR CREDITS IN ACCOUNT NO. 01190009594 WITH ST ATE BANK OF INDORE, BETUL, BELONGED TO SMT. JYOTI ASAI . THE ASSESSEE AND SMT. JYOTI ASAI SUBMITTED A CASH FLOW AND ALSO NARRATION OF BANK ACCOUNTS FOR VARIOUS BANKS. THE SAID AMOUNT IS REFLECTED IN CASH FLOW. THE ADDITION MADE IS UNREASONABLE, BAD, UNJUST IFIED AND UNLAWFUL. THE ADDITION MADE PLEASE BE QUASHED. 64 . THE LD. DEPARTMENTAL REPRESENTATIVE OPPOSED THE SUBMISSIONS AND RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 79 : - 65 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE OBSERVE THAT THE ACCOUNT NO.01190009594 WITH STATE BANK OF INDORE, BETUL, BELONGED TO SMT. JYOTI ASAI. THIS CASH DEPOSIT WAS ALSO REFLECTED IN CASH FLOW. SINCE THE ACCOUNT DOES NOT BELONG TO THE ASSESSEE, IN OUR VIEW, THE AO SHOULD NOT HAVE MADE ADDITION IN THE HANDS OF THE ASSESSEE. THE AO IS DIRECTED TO DELETE THE ADDITION. HOWEVER, THE AO WOULD BE FREE TO EXAMINE THIS ADDITION AND IF FOUND UNEXPLAINED THE ADDITION MAY BE MADE IN THE HANDS OF SMT. JYOTI ASAI. GROUND NO. 8 IS ALLOWED. 66 . GROUND N O. 9 RELATES TO THE ESTIMATION ADDITION OF RS. 81,717/ - CONFIRMED BY THE LD. CIT(A) FOR HOUSE HOLD EXPENSES AND EDUCATIONAL EXPENSES. 67 . WE HAVE DEALT WITH THIS ISSUE IN PARAGRAPHS 20 TO 23 IN I.T.(SS)A.NO. 152/IND/2016 FOR THE ASSESSMENT YEAR SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 80 : - 2004 - 05. FOLLOW ING THE SAME REASONING AS GIVEN IN PARA 23, WE DIRECT THE AO TO DELETE THE ADDITION OF RS. 81,717/ - . 68 . GROUND NO. 10 RELATES TO THE ADDITION OF 1,55,550/ - MADE AS PER PARA NO.14 OF THE ASSESSMENT ORDER AND CONFIRMED BY THE LD. CIT(A) FOR APPROXIMATE COST OF MALAYSIA AND SINGAPORE TOUR UNDERTAKEN BY THE ASSESSEE ON BEHALF OF HIS DEPARTMENT. 69 . DURING THE COURSE OF ASSESSMENT PROCEEDINGS, MR. DEEPAK ASAI & JYOTI ASAI WAS ASKED TO JUSTIFY THE SOURCE OF INVESTMENT IN VARIOUS FOREIGN TRAVEL WHICH HAS BEEN UNDERTAKEN BY THEM. THEY HAD UNDERTAKEN FOLLOWING TRIPS ABROAD DURING THE PERIOD RELEVANT TO ASSESSMENT YEAR 2004 - 05 TO 2009 - 10 : - S.NO. PLACE DATE OF DEPARTURE DATE OF ARRIVAL TRAVELLER 1 MALAYSIA AND SINGAPORE 21.11.2004 12.12.2004 DEEPAK ASAI 2 SYDNEY 14.12.2 007 19.12.2007 JYOTI ASAI, DEEPAK ASAI , SHOBHIT ASAI SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 81 : - 3. BEIJING 01.07.2009 06.07.2009 JYOTI ASAI, DEEPAK ASAI , SHOBHIT ASAI ANKITA ASAI 70 . DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THEY WERE ASKED TO JUSTIFY THE DETAILS OF EXPENDITURE FOR THE ABOVE ME NTIONED TRIPS AS WELL AS SOURCE OF ABOVE MENTIONED EXPENDITURE ALONGWITH PROOF. REGARDING THE TRIP TO MALAYSIA AND SINGAPORE, IT WAS SUBMITTED THAT THIS WAS THE OFFICIAL TRIP AND THE EXPENSES WERE BORNE BY THE GOVERNMENT . HOWEVER, NO PROOF OF SUCH EXPENDI TURE WAS GIVEN. REGARDING THE TRIP TO SYDNEY FOR THREE PEOPLE, IT WAS CLAIMED THAT MRS. JYOTI ASAI SPONSORED BY ICICI WHILE EXPENDITURE OF RS. 60,000/ - EACH FOR DEEPAK ASAI AND SHOBHIT ASAI WAS BORNE BY SELF. NO SOURCE OF EXPENDITURE IN ABOVE MENTIONED FO REIGN TRIPS WAS PROVIDED FOR ALL THE THREE MEMBERS. NO PROOF OF THE TRIP REGARDING SPONSORSHIP FROM ICICI WAS GIVEN. THE AO REQUESTED THE RATES FROM TRAVEL SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 82 : - AGENCY FOR TRAVEL AND STAY FOR SAME AMOUNT OF DURATION AND PERIOD. ACCORDING TO THE RATES GIVEN A TR IP TO MALAYSIA AND SINGAPORE PER ADUL T WOULD COST RS. 52,400 / - + US DOLLAR 525 = 76,550/ - . THE AIR FARE WOULD COST RS. 79,000/ - PER PERSON . A TRIP TO SYDNEY WOULD COST RS. 58,300/ - PER PERSON. THE AIR FARE WOULD COST RS. 50,000/ - PER PERSON. SINCE NO JUSTI FICATION FOR THE VARIOUS TRIPS WAS GIVEN, THE AO WAS FORCED TO APPROXIMATE THE RATES BASED ON THE APPROXIMATIONS GIVEN BY TRAVEL AGENCY. ACCORDINGLY, THE COST OF MALAYSIA AND SINGAPORE TRIP WAS BEING APPROXIMATED AT RS. 1,55,550/ - . THIS AMOUNT WAS BEING AD DED TO THE TOTAL INCOME OF MR. DEEPAK ASAI FOR ASSESSMENT YEAR 2005 - 06. FURTHER THE COST OF SYDNEY TRIP FOR 3 PEOPLE IS BEING APPROXIMATED AT RS. 3,24,900/ - . THIS AMOUNT WAS BEING ADDED SUBSTANTIVE TO THE INCOME OF MR. DEEPAK ASAI AND SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 83 : - PROTECTIVELY TO THE I NCOME OF MRS. JYOTI ASAI FOR ASSESSMENT YEAR 2008 - 09 FURTHER THE COST OF BEIJING TRIP FOR 4 PEOPLE WAS BEING APPROXIMATED AT RS. 5,00,000/ - . THIS AMOUNT WAS BEING ADDED SUBSTANTIVELY TO THE INCOME OF MR. DEEPAK ASAI AND PROTECTIVELY TO THE INCOME OF MRS JY OTI ASAI FOR ASSESSMENT YEAR 2010 - 11. 71 . ON APPEAL, THE LD. CIT(A) CONFIRMED THE AMOUNT OF RS. 1,55,550/ - TOWARDS THE MALAYSIA AND SINGAPORE TRIP. 72 . THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT THE ADDITION OF RS. 1,55,550/ - MADE AS PER PARA NO. 14 OF THE AS SESSMENT ORDER AN D CONFIRMED BY THE CIT(A) FOR APPROXIMATE COST OF MALAYSIA AND SINGAPORE TOUR UNDER TAKEN BY THE ASSESSEE WAS ON BEHALF OF HIS DE PARTMENT . THE TOUR UNDER TAKEN WAS FREE OF COST TO THE ASSESSEE . THE ADDITION MADE WAS , THEREFORE , HIGHLY DISP UTED AND IS REQUESTED TO BE DELETED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 84 : - 73 . THE LD. DEPARTMENTAL REPRESENTATIVE OPPOSED THE SUBMISSIONS AND RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 74 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IN THE YEAR UN DER APPEAL, IT IS THE CASE OF THE ASSESSEE THAT THIS TRIP WAS SPONSORED BY THE GOVERNMENT OF MADHYA PRADESH. IN SUPPORT OF THIS, THE ASSESSEE HAS FURNISHED ORDER OF THE PUBLIC WORKS DEPARTMENT , WHICH IS ENCLOSED AT P. B. PAGE NO. 406 AND THE LETTER FROM M .P. ROAD DEVELOPMENT CORPORATION, WHICH IS PLACED AT PAPER BOOK PAGE NO. 619. WE OBSERVE THAT AS PER THESE LETTERS, THE EXPENSES WERE BORNE BY THE GOVERNMENT. THIS FACT IS NOT CONTROVERTED BY THE REVENUE BY PLACING ANY CONTRARY MATERIAL ON RECORD. WE, T HEREFORE, DIRECT THE AO TO DELETE THE ADDITION OF RS. 1,55,550/ - . GROUND NO. 10 IS ALLOWED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 85 : - I.T.(SS)A.NOS. 154/IND/2015 A.Y.2006 - 07: 75 . THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : - 1 . THAT THE ASSESSMENT MADE U/S 153A R.W.S. 143(3) OF THE INCO ME - TAX ACT BE HELD TO BE BAD IN LAW AND ON FACTS AND BE QUASHED. 2 . THAT THE ADDITION OF RS. 1,58,000/ - MADE AS PER PARA 6.2 OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT(A) FOR PROFESSIONAL INCOME AND AGRICULTURAL INCOME SHOWN IN THE CASH FLOW STATEMENT OF SMT.JYOTI ASAI BE HELD TO BE BAD, UNLAWFUL AND UNJUSTIFIED WHEN SMT. JYOTI ASAI IS SEPARATELY ASSESSED TO TAX AND HAD BEEN FILING HER INCOME TAX RETURNS SINCE LONG. THE ADDITION OF RS. 1,58,000/ - MADE BE THEREFORE QUASHED AND DELETED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 86 : - 3 . THAT THE ADDITION OF RS. 70,040/ - MADE AS PER PARA NO. 7A OF THE ASSESSMENT ORDER AND CONFIRMED BY THE LD. CIT(A) FOR VARIOUS HOUSE HOLD ITEMS ACQUIRED BY SMT.JYOTI ASAI BE HELD TO BE BAD, UNJUSTIFIED AND UNLAWFUL AND BE QUASHED. 4 . THAT THE ADDITION OF RS.12,23,545/ - CONFIRME D BY THE LD. CIT(A) FOR COST OF ACQUISITION OF PROPERTY SITUATED AT E - 8, COMFORT GARDEN, CHUNA BHATTI, KOLAR ROAD, BHOPAL BE HELD TO BE OUT OF CONTEXT AND WITHOUT ANY BASIS. THE SAID PROPERTY IS OWNED BY SHRI KAILASHCHAND PARATE. THE ADDITION MADE BE HELD TO BE BAD AND UNJUSTIFIED AND BE QUASHED. 5 . THAT THE ADDITION OF RS. 1,00,000/ - CONFIRMED BY THE LD. CIT(A) AS PER PARA 9 OF THE ASSESSMENT ORDER BE HELD TO BE OUT OF CONTEXT AND WITHOUT ANY BASIS. THE ADDITION MADE BE HELD TO BE BAD AND UNJUSTIFIED AND BE QUASHED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 87 : - 6 . THAT THE ADDITION OF RS. 97/ - MADE AS PER PARA NO.10B OF THE ASSESSMENT ORDER AND CONFIRMED BY THE LD. CIT(A) BE HELD TO BE BAD AND UNJUSTIFIED AND BE QUASHED. 7 . THAT THE ADDITION OF RS. 6,37,750/ - MADE AS PER PARA NO.10E OF THE ASSESSMENT ORDER A ND CONFIRMED BY THE LD. CIT(A) FOR CREDITS IN ICICI BANK ACCOUNT NO. 028301500684 BELONGING TO SHRI KAILASHCHAND PARATE BE HELD TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 8 . THAT THE ADDITION OF RS. 70,000/ - CONFIRMED BY THE LD. CIT(A) AS PER PARA NO.10H OF THE ASSESSMENT ORDER FOR CREDITS IN PPF ACCOUNT NO. 10064645522 WITH STATE BANK OF INDIA, SHIVAJI NAGAR, BHOPAL BELONGING TO LATE SHRI R. G. ASAI BE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 88 : - HELD TO BE BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED . 9 . THAT THE ADDITION OF RS. 500/ - CONFIRMED BY THE LD. CIT(A) AS PER PARA NO.10 - I OF THE ASSESSMENT ORDER FOR CREDITS IN PPF ACCOUNT NO. 1006462350 WITH STATE BANK OF INDIA, SHIVAJI NAGAR, BHOPAL, BELONGING TO LATE SHRI R. G. ASAI BE HELD TO BE UNREASONABLE , BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BEING BASED ON ESTIMATE AND CONJECTURES BE QUASHED AND DELETED. THE ADDITION MADE BE QUASHED. 10 . THAT THE ADDITION OF RS. 20,000/ - MADE AS PER PARA NO.10L OF THE ASSESSMENT ORDER AND CONFIRMED BY THE LD. CIT (A) FOR CASH CREDITS IN PPF ACCOUNT NO. 10064645511 WITH STATE BANK OF INDIA, SHIVAJI NAGAR, BHOPAL, BELONGING TO SMT. JYOTI ASAI BE HELD TO BE UNREASONABLE, BAD, SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 89 : - UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 11 . THAT THE ADDITION OF RS. 20,000/ - MAD E AS PER PARA NO.10M OF THE ASSESSMENT ORDER AND CONFIRMED BY THE LD. CIT(A) FOR CASH CREDITS IN ACCOUNT NO. 53020703267 WITH STATE BANK OF INDORE, SHAHPURA, BHOPAL BELONGING TO SMT. JYOTI ASAI BE HELD TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. TH E ADDITION MADE BE QUASHED. 12 . THAT THE ADDITION OF RS. 2,05,251/ - MADE AS PER PARA NO.10P OF THE ASSESSMENT ORDER AND CONFIRMED BY THE LD. CIT(A) FOR CREDITS IN ACCOUNT NO. 900210100014831 WITH BANK OF INDIA, ARERA COLONY, BHOPAL, BELONGING TO RAMBHAU GHANS HYAM ASAI BE HELD TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 90 : - 13 . THAT THE ADDITION OF RS. 41,000/ - MADE AS PER PARA NO.10U OF THE ASSESSMENT ORDER AND CONFIRMED BY THE LD. CIT(A) FOR CASH CREDITS IN ACCOUNT NO. 1006456314 7 WITH STATE BANK OF INDIA, AKBARPUR, BELONGING TO SMT. JYOTI ASAI BE HELD TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 14 . THAT THE ESTIMATED ADDITION OF RS. 85,464/ - CONFIRMED BY THE LD. CIT(A) AS PER PARA NO.11 OF THE ASS ESSMENT ORDER FOR HOUSE HOLD EXPENSES AND EDUCATIONAL EXPENSES TO BE HELD TOBE BAD AND UNJUSTIFIED. THE ADDITION MADE BEING BASED ON ESTIMATED AND CONJECTURES BE QUASHED AND DELETED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 91 : - 76 . GROUND NO. 1 IS NOT PRESSED BY THE LD. COUNSEL FOR THE ASSESSEE. HENCE , GROUND NO.1 IS DISMISSED AS NOT PRESSED. 77 . GROUND NO. 2 RELATES TO THE ADDITION OF RS. 1, 58,000/ - MADE AS PER PARA 6.2 OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT(A) FOR PROFESSIONAL INCOME AND AGRICULTURAL INCOME SHOWN IN THE CASH FLOW STATEMENT OF SMT. JYOTI ASAI. 78 . THE LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSION WHICH HE MADE FOR GROUND NO. 3 OF THE ASSESSEE FOR ASSESSMENT YEAR 2004 - 05. 79 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 80 . WE HAVE CONSIDERED T HE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE HAVE ALREADY DEALT WITH THIS ISSUE IN DETAIL WHILE DEALING GROUND NO. 3 OF THE ASSESSEE FOR ASSESSMENT YEAR 2004 - 05. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 92 : - WE HAVE HELD IN THAT GROUND THAT PROFESSIONAL RECEIPTS, GIFTS ETC. BY THE WIFE OF ASSESSEE TO BE REASONABLE. WE, THEREFORE, HOLD THAT THE FINDING ARRIVED AT BY THE AUTHORITIES IS NOT JUSTIFIED, PARTICULARLY WHEN WIFE OF THE ASSESSEE IS ADMITTEDLY A MEDICAL PROFESSIONAL AND THIS FACT IS DULY DISCLOSED IN EARLIER Y EARS. EVEN OTHERWISE ALSO THE AO HAS BASED HIS FINDING PURELY ON THE CONJECTURE BASIS THAT THE UNDISCLOSED INCOME OF THE ASSESSEE IS ROUTED THROUGH THE WIFE OF THE ASSESSEE. FURTHER, THE AUTHORITIES HAVE ALSO REJECTED CLAIM OF GIFT AND EARNING OF AGRICULTU RAL INCOME ETC. IT IS A NORMAL PRACTICE IN INDIAN HOUSE HOLD THAT FEMALE MAKES SMALL SAVINGS AND ALSO GET GIFTS ON THE OCCASION OF BIRTH DAY AND OTHER FESTIVAL OCCASIONS. THE GIFTS AS CLAIMED, IN OUR VIEW, IS REASONABLE KEEPING IN VIEW THE STATUS OF THE AS SESSEE. HENCE, WE DIRECT THE AO TO DELETE THIS ADDITION OF RS. 1,58,000/ - . GROUND NO. 2 IS ALLOWED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 93 : - 81 . GROUND NO. 3 RELATES TO ADDITION OF RS. 70,040/ - MADE AS PER PARA NO.7A OF THE ASSESSMENT ORDER AND CONFIRMED BY THE LD. CIT(A) FOR VARIOUS HOUSE HOLD I TEMS ACQUIRED BY SMT. JYOTI ASAI. 82 . THIS ADDITION HAS BEEN MADE BY THE AO AS PER PARA NO.7A OF THE ASSESSMENT ORDER. THE ADDITION WAS MADE FOR ACQUIRING FOLLOWING HOUSE HOLD ITEMS BY SMT. JYOTI ASAI, WHICH ARE AS FOLLOWS : 2006 - 07 70,040 ASSESSEE WINDOW AI R CONDITIONER BILL DATED 27.06.05. (PB 321) 23,490 IFB MICROWAVE OVEN BILL DATED 29.10.05 (PB 322) 11,450 ACQUAGUARD WATER PURIFIER BILL 12,500 SOLAR WATER HEATING SYSTEM BILL DATED 13.07.05 (PB 323) 17,500 CHIMNEY BILL DATED 13.06.05 (PB 324) 5 ,111 TOTAL 70,051 LPS D - 2, PG NO 126 LPS D - 2, PG NO 131 LPS D - 2, PG NO 133 LPS D - 2, PG NO 127 LPS D - 2, PG NO 127 83 . ON APPEAL, THE LD. CIT(A) CONFIRMED THE ABOVE ADDITION. 84 . THE LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS AS PER WRITTEN SUBMISSION SUBMITTED, WHICH IS ON RECORD : - SUBMISSIONS: - SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 94 : - 1 . THE BILL FOR PURCHASE OF SAMSUNG (SANSUI) WASHING MACHINE DATED 10.01.05 IS IN THE NAME OF SMT. JYOTI ASAI. (PB 320) 2 . THE PAYMENT OF RS. 6,490/ - WAS MADE BY SMT. JYOTI ASAI AND THE PAYMENT THEREOF IS APPEARING IN HER CASH - FLOW STATEMENT FOR A.Y. 2005 - 06.(CHART - 5). 3 . NO ADDITION ON THE BASIS OF SUSPICION CAN BE MADE AND THE ADDITION ON BASIS OF PRESUMPTION AND ASSUMPTIONS IS NOT JUSTIFIED. 85 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF T HE LOWER AUTHORITIES. 86 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT ALL THE AFORESAID ITEMS WERE ACQUIRED BY SMT. JYOTI ASAI. ALL THE BILLS WERE IN HER NAME. THE PAYMENT THEREOF WAS APPEARING IN HER CASH FLOW STATEMENT FOR ASSESSMENT YEAR SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 95 : - 2006 - 07 (CHART - 5). SMT. JYOTI ASAI IS INCOME TAX ASSESSEE AND WAS EARNING PROFESSIONAL INCOME AS WELL AS AGRICULTURAL INCOME. THE SAME WAS ALSO DULY REFLECTED IN THE RETURNS FILED U/S 139 & 153 , WHICH ARE AT P .B. 281 - 282 & P.B. 30 2 & 303. THE SOURCE OF INCOME IS ESTABLISHED AND DULY SUPPORTED BY THE RETURNS. THE EXPENSES ARE ALSO DULY SHOWN IN THE CASH FLOW . WE, THEREFORE, DIRECT THE AO TO DELET E THE ADDITION OF RS. 70,040/ - . GROUND NO.3 IS ALLOWED. 87 . GROUND NO. 4 RELATES TO ADDITION OF RS. 12,23,545/ - CONFIRMED BY THE CIT(A) FOR COST OF ACQUISITION OF PROPERTY SITUATED AT E - 8 , COMFORT GARDEN, CHUNA BHATTI, KOLAR ROAD, BHOPAL. 88 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE HAVE ALREADY DEALT WITH THIS ISSUE IN PARAS 41 - 44. IT WAS ESTABLISHED THA T THE PROPERTY WAS OWNED BY SHRI KAILASH CHAND PARATE. FOLLOWING THE SIMILAR REASONING IN DETAIL IN PARAS NO. 4 1 SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 96 : - TO 44 ABOVE, THE AO IS DIRECTED TO DELETE THE ADDITION O F RS. 12,23,545/ - . HOWEVER, THE AO WO ULD BE AT LIBERTY TO EXAMINE THE SOURCE OF ACQUISITION IN THE CASE OF SHRI K. C. PARATE. 89 . GROUND 5 RELATES TO THE ADDITION OF RS. 1,00,000/ - . 90 . MR. DEEPAK ASAI SHOWED THAT HE HA D SHOWN A OPENING CASH BALANCE OF RS. 1,00, 000/ - FOR FINANCIAL YEAR 2003 - 04 AND HAD CLAIMED RECURRING INCOMES FROM RENT AND SALARIES WHICH WAS RECEIVED BY HIM IN CASH TILL MARCH, 2011. 91 . W E HAVE ALREADY DEALT WITH THIS SIMILAR ISSUE IN GROUND NO. 2 FOR ASSESSMENT YEAR 2004 - 05. IN THAT GROUND, W E HAV E HELD IN PARA 7 THAT THE CASH OF RS. 1 LAKH WAS ACCUMULATED SAVING OF THE ASSESSEE OUT OF SALARY INCOME. HENCE, FOLLOWING THE SAME REASONING , WE DIRECT THE AO TO DELETE THE ADDITION OF RS. 1 LAKH. GROUND NO. 5 IS ALLOWED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 97 : - 92 . GROUND N O . 6 RELATES TO THE ADDI TION OF RS. 97/ - AS PER PARA N O. 10B OF THE ASSESSMENT ORDER AND CONFIRMED BY THE LD. CIT(A). 93 . WE HAVE DECIDED THE S IMILAR GROUNDS AS GROUND NO. 4 IN ASSESSMENT YEAR 2004 - 05 AND GROUND NO. 5 IN ASSESSMENT YEAR 2005 - 06 . 94 . BRIEFLY STATED, THE FACTS ARE THAT T HE AO FOUND A CONSIDERABLE SIZE OF CASH AMOUNT, WHICH WAS DEPOSITED DURING THE PERIOD 03 - 04 TO 09 - 10. THE ASSESSEE HAS DEPOSITED THE ABOVE AMOUNT SO AS TO ISSUE CHEQUES FOR CLEARING. THERE WERE VARIOUS CHEQUES DEPOSITS, WHICH HAVE BEEN ISSUED FOR SOME INVEST MENT. SINCE THE ASSESSEE SHRI DEEPAK ASAI IS A SALARIED CLASS EMPLOYEE AND HIS DEPOSITS DID NOT COMMENSURATE WITH THAT OF THE INCOME RECEIVED, THEREFORE IT APPEARED THAT VARIOUS AMOUNTS DEPOSITED IN THE ABOVE ACCOUNT WAS THE UNDISCLOSED INCOME OF THE ASSES SEE, WHICH HAD NOT BEEN OFFERED FOR TAXATION. SHRI DEEPAK ASAI SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 98 : - SUBMITTED A CASH FLOW STATEMENT AND NARRATION OF BANK ACCOUNTS FOR VARIOUS BANKS . ACCORDINGLY, THE ENTIRE AMOUNT AS PER BANK ACCOUNT WHICH COULD BE SEEN AS CREDITS IN THE BANK ACCOUNT 1470/127 OF M.P. RAJYA SAHKARI BANK IS TREATED AS UNDISCLOSED INCOME OF SHRI DEEPAK ASAI AND ACCORDINGLY ADDED TO THE INCOME OF SHRI DEEPAK ASAI FOR VARIOUS ASSESSMENT YEARS . THIS AMOUNT OF RS. 97/ - WAS ADDED IN THE ASSESSMENT YEAR 2006 - 07. 95 . THE LD. COUNSEL FOR TH E ASSESSEE REITERATED THE SUBMISSIONS AS MADE IN THE WRITTEN SUBMISSIONS. THE LD. COUNSEL FOR THE ASSESSEE DREW OUR ATTENTION TO PAGE NO. 33 AND STATED THAT T HIS AMOUNT OF RS. 97/ - IS TOWARDS THE INTEREST CREDITED FOR THE PERIOD. INCOME FROM THIS YEAR WAS BELOW TAXABLE LIMIT. 96 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE OBSERVE THAT THE AMOUNT OF RS. 97/ - IS TOWARDS THE INTEREST CREDITED FOR SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 99 : - THE PERIOD. INCOME FROM THAT YEAR WAS BEL OW TAXABLE LIMIT. HENC E, NO RETURN WAS FILED. WE, THEREFORE, DIRECT THE AO TO DELETE THE ADDITION OF RS. 97/ - . GROUND NO. 6 IS ALLOWED. 97 . GROUND NO. 7 RELATES TO THE ADDITION OF RS. 6,37,750/ - MADE BY THE AO AND CONFIRMED BY THE LD. CIT(A) TOWARDS THE CREDITS IN ICICI BANK A/C NO. 028301500684. 98 . THIS ISSUE WE HAVE ALREADY DEALT WITH IN DETAIL IN GROUND NO. 6 IN I.T.(SS)A.NOS. 153/IND/2015 FOR THE ASSESSMENT YEAR 2005 - 06. 99 . THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT THE ADDITION OF RS. 6,37,750/ - MADE FOR CREDITS IN ICIC I BANK A/C NO.028301500684 BELONGED TO SHRI KAILASHCHAND PARATE. THE LD. COUNSEL FOR THE ASSESSEE DREW OUR ATTENTION TO P.B.PAGE 595 - 596 OF P.B.III, WHICH IS THE AFFIDAVIT OF SHRI KALASH CHAND PARATE REGARDING PURCHASE OF PROPERTY. THE ASSESSEE SUBMITTED A CASH FLOW AND ALSO NARRATION OF BANK SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 100 : - ACCOUNTS FOR VARIOUS BANKS. THE ADDITION MADE IS UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE PLEASE BE QUASHED. 100 . THE LD. DEPARTMENTAL REPRESENTATIVE OPPOSED THE SUBMISSIONS AND RELIED ON THE OR DERS OF THE LOWER AUTHORITIES. 101 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IT IS STATED THAT THE BANK ACCOUNT BELONGED TO THE BROTHER - IN - LAW OF THE ASSESSEE, SHRI K. C. PARATE. IN SUPPORT OF THIS, AN AFF IDAVIT TO THIS EFFECT WAS FILED AT PB PAGE NOS. 595 & 596. SINCE THE ACCOUNT DOES NOT BELONG TO THE ASSESSEE, IN OUR VIEW, THE AO SHOULD NOT HAVE MADE ADDITION AT THE HANDS OF THE ASSESSEE. THE AO WOULD BE AT LIBERTY TO CONSIDER THE ADDITION, IF IT IS UNEX PLAINED, IN THE HANDS OF SHRI K. C. PARATE. THE AO IS DIRECTED TO DELETE THE ADDITION. GROUND NO. 7 IS ALLOWED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 101 : - 102 . GROUND NO.8 RELATES TO THE ADDITION OF RS. 70,000/ - CONFIRMED BY THE LD. CIT(A) AS PER PARA NO.10H OF THE ASSESSMENT ORDER FOR CREDITS IN P PF ACCOUNT NO. 10064645522 WITH STATE BANK OF INDIA, SHIVAJI NAGAR, BHOPAL BELONGING TO LATE SHRI R. G. ASAI . 103 . FACTS ARE IN BRIEF ARE THAT THE ACCOUNT NO.100646 45522 WITH STATE BANK OF INDIA, SHIVAJI NAGAR, BHOPAL, BELONGED TO KU.ANKITA ASAI (DAUGHTER O F ASSESSEE ) . DURING THE YEAR THE AMOUNT OF RS. 97,752/ - WAS CREDITED IN THIS ACCOUNT. THE AO MADE ADDITION OF RS. 70,000/ - . THE ASSESSEE WENT IN APPEAL BEFORE THE LD. CIT(A),WHO AFTER CONSIDERING THE SUBMISSIONS CONFIRMED THE ADDITION. 104 . THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT THE ABOVE ACCOUNT WAS BELONGED TO KU. ANKITA ASAI, WHO IS DAUGHTER OF THE ASSESSEE . THE LD. COUNSEL FOR THE ASSESSEE FURTHER CONTENDED THAT T HE AMOUNT OF RS. 70,000/ - WAS THE AMOUNT OF PPF AND RS. 27,752/ - WAS TOWARDS INTE REST. THE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 102 : - AMOUNT OF RS. 70,000/ - WAS DEPOSITED BY CHEQUE. THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT THE ADDITION MADE IS UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. 105 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES . 106 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE ACCOUNT NO.10064645522 WITH STATE BANK OF INDIA, SHIVAJI NAGAR, BHOPAL, BELONGED TO KU.ANKITA ASAI (DAUGHTER OF ASSESSEE ) AND THE AMOUNT OF RS. 97,752/ - WAS CREDITED IN THIS ACCOUNT. THE EXPLANATION O F THE ASSESSEE ALONG WITH CASH FLOW CONSIDERED AND FOUND TO BE CORRECT. HENCE, THIS ADDITION IS DIRECTED TO BE DELETED. 107 . GROUND NO. 9 RELATES TO THE ADDITION OF RS. 500/ - CONFIRMED BY THE LD. CIT(A) AS PER PARA NO.10 - I OF THE ASSESSMENT ORDER FOR CREDITS IN PPF ACCOUNT NO.100 646 4642350 WITH STATE BANK OF INDIA, SHIVAJI NAGAR, BHOPAL. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 103 : - 108 . THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT THIS PPF ACCOUNT BELONG S TO SHRI R. G. ASAI . THE LD. COUNSEL DREW OUR ATTENTION TO PAGE 35 AND STATED THAT THE AMOUNT OF RS. 11,580/ - WAS INTEREST ON PPF AND THE AMOUNT OF RS. 500/ - WAS DEPOSITED BY CHEQUE. THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT THE ACCOUNT BELONGED TO LATE SHRI R.G.ASAI AND ADDITION MAD E IS UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. 109 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES . 110 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE HAVE PERUSED THE RE CORDS. WE FIND THAT THE AMOUNT OF RS. 11,580/ - WAS INTEREST ON PPF AND RS. 500/ - WAS DEPOSITED BY CHEQUE. WE, THEREFORE, DIRECT THE AO TO DELETE THE ADDITION OF RS. 500/ - . GROUND NO. 9 IS ALLOWED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 104 : - 111 . GROUND NO. 10 RELATES TO ADDITION OF RS. 20,000/ - FOR C ASH CREDITS IN PPF A/C NO. 100646445511 WITH STATE BANK OF INDIA, SHIVAJI NAGAR, BHOPAL, BELONGING TO SMT. JYOTI ASAI. 112 . THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT THIS ACCOUNT BELONG S TO SMT. JYOTI ASAI AND THE AMOUNT WAS DEPOSITED IN CASH AND IT WA S DULY REFLECTED IN CASH FLOW. THE LD. COUNSEL FOR THE ASSESSEE ALSO DREW OUR ATTENTION TO PAGE 146 & 147 PAGE OF THE AOS ORDER AND POINTED OUT THE REFLECTION OF THE AMOUNT IN THE ACCOUNT NO. 100646445511 . 113 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED O N THE ORDERS OF THE LOWER AUTHORITIES. 114 . WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND HAVE PERUSED THE RECORDS. WE FIND THAT THE PPF ACCOUNT BELONGED TO SMT. JYOTI ASAI . THE AMOUNT OF RS. 20,000/ - WAS DEPOSITED IN CASH. WE HAVE ALSO PERUSED THE CASH FLOW . SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 105 : - WE, THEREFORE, DIRECT THE AO TO DELETE THE ADDITION OF RS. 20000/ - . GROUND NO. 10 IS ALLOWED. 115 . GROUND NO. 11 RELATES TO THE ADDITION OF RS. 20,000/ - FOR CASH CREDITS IN A/C NO.53020703267 WITH STATE BANK OF IND ORE, SHAHPUR, BHOPAL. 116 . THE LD. COUNSEL F OR THE ASSESSEE CONTENDED THAT THIS ACCOUNT BELONG S TO SMT. JYOTI ASAI AND THERE WAS NO CASH DEPOSIT IN THAT ACCOUNT DURING THE YEAR. THE LD. COUNSEL FOR THE ASSESSEE TOOK US TO PAGE NOS. 657 & 658 OF PAPER BOOK III OF A/C NO. 53020703267 AND STATED THA T NO ENTRY OF CASH DEPOSIT WAS REFLECTING. THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT THE ADDITION MADE BE QUASHED. 117 . LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 118 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE ABOVE ACCOUNT BELONGED TO SMT. JYOTI ASAI. WE HAVE ALSO SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 106 : - PERUSED THE PHOTOCOPY OF THE ACCOUNT PLACED AT P.B. - III PAGE 657 AND 658 AND FIND THAT THERE IS NO CASH DEPOSIT ENTRY OF RS. 20,000/ - . WE , THEREFORE, DIRECT THE AO TO DELETE THE ADDITION OF RS. 20,000/ - . GROUND NO. 11 IS ALLOWED. 119 . GROUND NO. 12 RELATES TO THE ADDITION OF RS. 2,05,2 51/ - FOR CREDITS IN ACCOUNT NO. 900210100014831 WITH BANK OF INDIA, ARERA COLONY, BHOPAL. 120 . THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT THIS ACCOUNT BELONG S TO SHRI RAMBHAU GHANSHYAM ASAI . THE CASH OF RS. 1,01,450/ - WAS DEPOSITED, WHICH WAS THE INCOME FROM VETERINARY PRACTICE AND RS. 1,15,000/ - WAS DEPOSITED, WHICH WAS OUT OF MATURITY OF BONDS. IT WAS DEPOS ITED IN BANK VIDE CHEQUE NO. 66352 DATED 18.11.2005 OF RS. 1,00,000/ - AND RS. 15,000/ - VIDE CHEQUE NO. 40392 DATED 28.08.2006 . THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT THE ADDITION MADE BE QUASHED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 107 : - 121 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 122 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE HAVE ALSO GONE THROUGH THE ORDERS OF THE LOWER AUTHORITIES. WE OBSERVE THAT THE AO MADE THE ADDITION WITHOUT CONSIDERIN G THE EXPLANATION GIVEN BY THE ASSESSEE AND MADE THE ADDITION ON CONJECTURES AND SURMISES . WE OBSERVE THAT T HE CASH OF RS. 1,01,450/ - WAS DEPOSITED, WHICH WAS THE INCOME FROM VETERINARY PRACTICE AND RS. 1,15,000/ - WAS DEPOSITED, WHICH WAS OUT OF MATURITY OF BONDS. IT WAS DEPOSITED IN BANK VIDE CHEQUE NO. 66352 DATED 18.11.2005 OF RS. 1,00,000/ - AND RS. 15,000/ - VIDE CHEQUE NO. 40392 DATED 28.08.2006. SHRI RAMBHAU GHANSHYAM ASAI WAS A VETERINARY DOCTOR. HE RETIRED FROM VETERINARY DEPARTMENT, GOVERNMENT OF M ADHYA PRADESH AND WAS RECEIVING PENSION FROM THE SAID DEPARTMENT. HENCE, THE EXPLANATION OF THE ASSESSEE IS PLAUSIBLE ONE . THERE IS NO ADVERSE MATERIAL. HENCE THE IMPUGNED ADDITION IS DIRECTED TO BE DELETED . THIS GROUND OF ASSESSEES APPEAL IS ALLOWED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 108 : - 123 . GROUND NO. 13 RELATES TO THE ADDITION OF RS. 41,000/ - FOR CASH CREDITS IN ACCOUNT NO. 10064563147 WITH STATE BANK OF INDIA, AKBARPUR, BELONGING TO SMT. JYOTI ASAI. 124 . THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT THE AMOUNT OF RS. 41,000/ - WAS DEPOSIT ED OUT OF CASH WITHDRAWAL FROM ICICI BANK. THIS AMOUNT WAS DULY REFLECTED IN CHART 4 CASH FLOW STATEMENT . THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT THE ADDITION MADE IS UNREASONABLE AND BE QUASHED. 125 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE HAVE GONE THROUGH THE ORDERS OF THE LOWER AUTHORITIES. WE FIND THAT THE AMOUNT OF RS. 41,000/ - WAS DEPOSITED OUT OF CASH WITHDRAWAL FROM ICICI BANK S. B. ACCOUNT NO. 005501004458 AND BELONGED TO SMT. JYOTI A SAI. WE FIND THAT THE ENTRY IS REFLECTING IN CASH FLOW STATEMENT. WE, SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 109 : - THEREFORE, DIRECT THE AO TO DELETE THE ADDITION OF RS. 41,000/ - . GROUND NO.13 IS ALLOWED. 126 . GROUND NO. 14 RELATES TO THE ESTIMATED ADDITION OF RS. 85,464/ - FOR HOUSE HOLD EXPENSES AND EDUCATIONAL EXPENSES. 127 . WE HAVE DEALT WITH THIS ISSUE IN DETAIL IN GROUND NO. 6 IN I.T.A.NOS. 152/IND/2016 FOR ASSESSMENT YEAR 2004 - 05 . FOLLOWING THE SAME REASONING, WE DIRECT THE AO TO DELETE THE ADDITION OF RS. 85,464/ - . GROUND NO. 14 IS ALLOWED. 128 . IN THE RESULT, THE APPEAL FILED IN I.T.(SS)A.NO. 154/IND/2015 FOR ASSESSMENT YEAR 2006 - 07 IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. I.T.(SS)A.NO. 155/IND/2015 A.Y. : 2007 - 08: 129 . THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : 1 . THAT THE ASS ESSMENT MADE U/S 153A R.W.S.143(3) OF THE INCOME - TAX ACT BE HELD TO BE BAD IN LAW AND ON SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 110 : - FACTS AND BE QUASHED. 2 . THAT THE ADDITION OF RS.1,33,000/ - MADE AS PER PARA 6.2 OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR PROFESSIONAL INCOME AND A GRICULTURAL INCOME SHOWN IN THE CASH FLOW STATEMENT OF SMT. JYOTI ASAI BE HELD TO BE BAD, UNLAWFUL AND UNJUSTIFIED WHEN SMT. JYOTI ASAI IS SEPARATELY ASSESSED TO TAX AND HAD BEEN FILING HER INCOME TAX RETURNS SINCE LONG. THE ADDITION OF RS.1,33,000/ - MADE BE THEREFORE QUASHED AND DELETED. 3 . THAT THE ADDITION OF RS.83,043/ - MADE AS PER PARA NO.7A OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR INCOME OF DEEPAK ASAI HUF BE HELD TO BE BAD, UNJUSTIFIED AND UNLAWFUL AND BE QUASHED. 4 . THAT THE ADDITI ON OF RS.22,595/ - CONFIRMED BY THE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 111 : - CIT (APPEALS) AS PER PARA NO.7A OF THE ASSESSMENT ORDER FOR WATERPROOFING TREATMENT OF RESIDENCE BE HELD TO BE BAD, UNJUSTIFIED AND UNLAWFUL AND BE QUASHED. THE AMOUNT OF RS. 22,595/ - IS COVERED IN THE CASH - FLOW STATEMENT OF DEEPAK ASAI. 5 . THAT THE ADDITION OF RS. 4,17,390/ - CONFIRMED BY THE CIT (APPEALS) AS PER PARA NO.9 OF THE ASSESSMENT ORDER BE HELD TO BE OUT OF CONTEXT AND WITHOUT ANY BASIS. THE ADDITION MADE BE HELD TO BE BAD AND UNJUSTIFIED AND BE QUASHED. 6 . THAT THE ADDITION OF RS. 80, 743/ - MADE AS PER PARA NO.10B OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) BE HELD TO BE OUT OF CONTEXT AND WITHOUT ANY BASIS. THE ADDITION MADE BE HELD TO BE BAD AND UNJUSTIFIED AND BE QUASHED. 7 . THAT THE ADDITION OF RS.71, 460/ - MADE AS PER PARA SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 112 : - NO.10E OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR CREDITS IN ICICI BANK ACCOUNT NO.028301500684 BELONGING TO SHRI KAILASHCHAND PARATE BE HELD TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 8 . THAT THE ADDITION OF RS.1,03,000/ - MADE AS PER PARA NO.10G OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR CASH DEPOSITS IN ICICI BANK ACCOUNT NO. 005501004458 BELONGING TO SHRI DEEPAK ASAI BE HELD TO BE UNREASONABLE, BAD, UNJUSTI FIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 9 . THAT THE ADDITION OF RS.13,000/ - CONFIRMED BY THE CIT (APPEALS) AS PER PARA NO.10H OF THE ASSESSMENT ORDER FOR CREDITS IN PPF ACCOUNT NO.10064645522 SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 113 : - WITH STATE BANK OF INDIA, SHIVAJI NAGAR, BHOPAL BELONGING TO KU. ANKITA ASAI BE HELD TO BE UNREASONABLE, BAD,UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 10 . THAT THE ADDITION OF RS. 500/ - CONFIRMED BY THE CIT (APPEALS) AS PER PARA NO.10 - I OF THE ASSESSMENT ORDER FOR CREDITS IN PPF ACCOUNT NO.10064642350 WITH STATE BANK OF INDIA, SHIVAJI NAGAR, BHOPAL BELONGING TO LATE SHRI R.G. ASAI BE HELD TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 11 . THAT THE ADDITION OF RS.10,054/ - MADE AS PER PARA NO.10K OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR CREDITS IN ACCOUNT NO.10064562621 WITH STATE BANK OF INDIA, SHIVAJI NAGAR, BHOPAL, BELONGING TO SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 114 : - RAMBHAU GHANSHYAM ASAI BE HELD TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 12 . THAT THE AD DITION OF RS.30,000/ - MADE AS PER PARA NO.10M OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR CASH CREDITS IN ACCOUNT NO. 53020703267 WITH STATE BANK OF INDORE, SHAHPURA, BHOPAL BELONGING TO SMT. JYOTI ASAI BE HELD TO BE UNREASONABLE, BAD, U NJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 13 . THAT THE ADDITION OF RS.3,89,701/ - MADE AS PER PARA NO.10P OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR CREDITS IN ACCOUNT NO.900210100014831 WITH BANK OF INDIA, ARERA COLONY, BHOPAL BELONGING TO SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 115 : - RAMBHAU GHANSHYAM ASAI BE HELD TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 14 . THAT THE ADDITION OF RS.10,000/ - MADE AS PER PARA NO.10U OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT(APPEALS) FOR CASH CREDI TS IN ACCOUNT NO.10064563147 WITH STATE BANK OF INDIA, AKBARPUR BELONGING TO SMT. JYOTI ASAI BE HELD TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 15 . THAT THE ESTIMATED ADDITION OF RS.90,960/ - CONFIRMED BY THE CIT (APPEALS) AS PER PARA NO.11 OF THE ASSESSMENT ORDER FOR HOUSE HOLD EXPENSES AND EDUCATIONAL EXPENSES BE HELD TO BE BAD AND UNJUSTIFIED. THE ADDITION MADE BEING BASED ON ESTIMATE AND CONJECTURES BE QUASHED AND DELETED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 116 : - 130 . GROUND NO. 1 IS NOT PRESSED BY THE LD. COUNSEL FOR THE ASSESSEE. HENCE, GROUND NO.1 IS DISMISSED AS NOT PRESSED. 131 . GROUND NO. 2 RELATES TO THE ADDITION OF RS. 1,33,000/ - MADE AS PER PARA 6.2 OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT(A) FOR PROFESSIONAL INCOME AND AGRICULTURAL INCOME SHOWN IN THE CASH FLOW STATEMENT OF SMT. JYOTI ASAI. 132 . THE LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSION WHICH HE MADE FOR GROUND NO. 3 OF THE ASSESSEE FOR ASSESSMENT YEAR 2004 - 05. 133 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 134 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE HAVE ALREADY DEALT WITH THIS ISSUE IN DETAIL WHILE DEALING GROUND NO. 3 OF THE ASSESSEE FOR ASSESSMENT YEAR 2004 - 05. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 117 : - WE HAVE HELD IN THAT GROUND THAT PROFESSIONAL RECEIPTS, GIFTS ETC. BY THE WIFE OF ASSESSEE TO BE REASONABLE. WE, THEREFORE, HOLD THAT THE FINDING ARRIVED AT BY THE AUTHORITIES IS NOT JUSTIFIED, PARTICULARLY WHEN WIFE OF THE ASSESSEE IS ADMITTEDLY A MEDICAL PRO FESSIONAL AND THIS FACT IS DULY DISCLOSED IN EARLIER YEARS. EVEN OTHERWISE ALSO THE AO HAS BASED HIS FINDING PURELY ON THE CONJECTURE BASIS THAT THE UNDISCLOSED INCOME OF THE ASSESSEE IS ROUTED THROUGH THE WIFE OF THE ASSESSEE. FURTHER, THE AUTHORITIES HAV E ALSO REJECTED CLAIM OF GIFT AND EARNING OF AGRICULTURAL INCOME ETC. IT IS A NORMAL PRACTICE IN INDIAN HOUSE HOLD THAT FEMALE MAKES SMALL SAVINGS AND ALSO GET GIFTS ON THE OCCASION OF BIRTH DAY AND OTHER FESTIVAL OCCASIONS. THE GIFTS AS CLAIMED, IN OUR VI EW, IS REASONABLE KEEPING IN VIEW THE STATUS OF THE ASSESSEE. HENCE, WE DIRECT THE AO TO DELETE THIS ADDITION OF RS. 1,33,000/ - . GROUND NO. 2 IS ALLOWED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 118 : - 135 . GROUND NO. 3 RELATES TO ADDITION OF RS. 83,043/ - FOR INCOME OF DEEPAK ASAI HUF BE HELD TO BE B AD, UNJUSTIFIED AND UNLAWFUL AND BE QUASHED. 136 . BRIEFLY STATED THE FACTS OF THE CASE ARE THAT D URING THE SEARCH PROCEEDINGS, LPS D1, PG NO 13 TO 15 (PB 407 - 408/ II) WAS SEIZED, WHICH CONTAINED THE COMPUTATION OF INCOME OF DEEPAK RAMBHAU ASAI (HUF ), FOR A.Y. 2007 - 08 AND 2008 - 09, DECLARING INCOME OF RS. 83,043 / - AND RS. 7,03,377/ - RESPECTIVELY. IN THE ASSESSMENT PROCEEDINGS, SHOW CAUSE NOTICES WERE ISSUED AND ENQUIRIES WERE MADE IN ORDER TO TREAT THE RETURN FILED TO BE UNEXPLAINED INCOME OF THE ASSE SSEE. THE FOLLOWING ALLEGATIONS WERE THE BASIS OF THE ADDITIONS: - ( I ) THE RETURNED INCOME SHOW ED RENTAL INCOME FROM MARUTI CAR, WHEREAS IN THE STATEMENT RECORDED DURING SEARCH, THE ASSESSEE DENIED TO OWN ANY MOVABLE OR SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 119 : - IMMOVABLE ASSET. ALSO NO DOCUMENT RELATI NG TO RENTAL INCOME OF MARUTI CAR WAS FOUND DURING SEARCH. ( II ) IN RETURN FOR A.Y 2008 - 09, ASSESSEE HAS SHOWN TO HAVE RECEIVED GIFT FROM HIS FATHER OF RS. 1,50,000/ - , ON PERUSAL OF THE BANK STATEMENT , IT WAS FOUND THAT BOGUS CHEQUE ENTRIES WERE ROUTED AND SHO WN IN THE NAME OF DEEPAK ASAI HUF. ( III ) THE LD AO AND CIT(A) HELD THAT SINCE NO EXPLANATION REGARDING THE PROOF OF INCOME OF HIS HUF WERE FILED AND THESE RETURNS WERE FILED TO PROVE VARIOUS UNDISCLOSED RECEIPTS AND INVESTMENTS OF THE ASSESSEE THROUGH ADVANCES A ND GIFTS ETC. THE AO MADE ADDITION S FOR A.Y. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 120 : - 2007 - 08 AND 2008 - 09 OF RS. 83,043 / - AND RS. 7,03,377/ - RESPECTIVELY . 137 . THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT THE ADDITION IS PURELY BASED ON SUSPICION AND SURMISES. DEEPAK ASAI (HUF) IS SEPARATE INCOME TAX ASSESSEE WITH PAN NO AAFHD1205B. IN T HE COMPUTATION ALSO IT WAS CLEARLY MENTION ED DEEPAK ASAI (HUF). THE HUF WAS FORMED MUCH BEFORE THE DATE OF SEARCH, I.E ON 15.07.1995. THE LD. COUNSEL FOR THE ASSESSEE DREW OUR ATTENTION TO PAGES 687 AND 688 O F PAPER BOOK III AND POINTED OUT THAT THE COMPUTATION OF INCOME OF DEEPAK RAMBHAU ASAI (HUF) IS FILED FOR ASSESSMENT YEAR 2008 - 09 AND IS PLACED AT PAGE 687 . IN THE COMPUTATION OF INCOME MARUTI RENTAL IS SHOWN AT RS. 72,000/ - AND GIFT U/S 56(2)(V) IS SHOWN AT RS. 1,50,000/ - , WHICH WAS GIVEN BY SHRI RAMBHAU ASAI ON 01.08.07 . THE LD. COUNSEL FOR THE ASSESSEE FURTHER POINTED OUT THAT IN THE CAPITAL ACCOUNT, WHICH IS PLACED AT PAGE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 121 : - 688 OF PAPER BOOK III, THE CLOSING BALANCE IS SHOWN AS RS. 7,03,377 / - , OPENING B ALANCE AS RS. 4,94,170/ - . BANK INTEREST IS SHOWN AT RS. 3145/ - AND CAR RENT RS. 56,062/ - AND THE GIFT AMOUNT FROM SHRI RAMBHAU ASAI ON 1.08.2007 WAS SHOWN AT RS. 1,50,000/ - . THE RETURN OF HUF WAS FILED MUCH BEFORE THE DATE OF SEARCH. THE ALLEGATION OF AO THAT ASSESSEE BEING A GOVERNMENT SERVANT, CANNOT INDULGE IN BUSINESS ACTIVITIES IS NOT CORRECT AS HUF AND INDIVIDUAL ARE THE TWO DIFFERENT TAXABLE ENTITIES UNDER THE INCOME TAX ACT. THE ADDITION MADE AND CONFIRMED BY THE AO AND LD. CIT(A) FOR INCOME OF DE EPAK ASAI HUF IS BAD - IN - LAW AND BE QUASHED. 138 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 139 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE HAVE GONE THROUGH TH E ORDERS OF THE LOWER AUTHORITIES. WE HAVE ALSO SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 1 22 : - PERUSED THE COMPUTATION OF INCOME AS WELL AS CAPITAL ACCOUNT FOR ASSESSMENT YEAR 2008 - 09 FILED BY DEEPAK ASAI HUF, WHICH IS PLACED AT PAGES 68 7 AND 68 8 . WE F IND THAT ALL THE ENTRIES ARE REFLECTING IN THE CAP ITAL ACCOUNT . WE ALSO FIND THAT THE RETURN WAS FILED PRIOR TO DATE OF SEARCH. WE HAVE ALSO GONE THROUGH THE RETURN IN WHICH MARUTI RENT IS SHOWN AT RS. 72,000/ - AND THE GIFT AT RS. 1,50,000/ - , WHICH WAS RECEIVED FROM SHRI RAMBHAU ASAI ON 01.08.2007. WE DO NOT FIND ANY BASIS IN THE ALLEGATIONS MADE BY THE AO AND CONFIRMED BY THE LD. CIT(A) THAT THESE RETURNS WERE FILED TO PROVE VARIOUS UNDISCLOSED RECEIPTS AND INVESTMENTS OF THE ASSESSEE THROUGH ADVANCES AND GIFTS ETC. , PARTICULARLY THE RETURNS WERE FILED MUCH PRIOR TO THE DATE OF SEARCH. WE, THEREFORE, DIRECT THE AO TO DELETE THE ADDITION OF RS. 83,043/ - . GROUND NO. 3 IS ALLOWED. 140 . GROUND NO. 4 RELATES TO ADDITION OF RS. 22,595/ - TOWARDS THE WATERPROOFING TREATMENT. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 123 : - 141 . THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT RS. 40,909/ - WAS TAKEN BY THE AO, BUT THE CORRECT AMOUNT WAS RS. 22,595/ - . THE LD. CIT(A) ACCEPTED THE CONTENTION OF THE ASSESSEE AND CORRECTED THE SAME AT RS. 22,595/ - . THE WATER PROOFING WAS BEING DONE BY M/S. ANANT ASSOCIATES AND THE BIL L DATED 22.09.2006 WAS SUBMITTED. THE LD. COUNSEL FOR THE ASSESSEE STATED THAT THE SAME AMOUNT IS ALSO REFLECTED IN THE CASH FLOW STATEMENT OF DEEPAK ASAI FOR FINANCIAL YEAR 2006 - 07. ON APPEAL, THE LD. CIT(A) MADE THE ADDITION OF RS. 22,595/ - . 142 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 143 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE HAVE GONE THROUGH THE ORDERS OF THE LOWER AUTHORITIES. WE FIND THAT THE LD. CIT(A ) HAS DEALT WITH THIS ISSUE ON PAGE 35 OF HIS ORDER. WE FIND THAT THE BILL DATED 22.09.2006 OF M/S. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 124 : - ANANT ASSOCIATES FOR WATERPROOFING TREAT MENT DONE AT ASSESSEES RESIDENCE WAS SUBMITTED. WE HAVE PERUSED THE WATERPROOFING TREATMENT BILL OF RS. 22,595/ - WHICH IS PLACED AT PAGE 326 OF THE P.B. II. WE HAVE ALSO PERUSED THE CASH FLOW STATEMENT SUBMITTED FOR DEEPAK ASAI AND THE AMOUNT IS REFLECTED IN CASH FLOW ALSO. WE, THEREFORE, DIRECT THE AO TO DELETE THE ADDITION OF RS. 22,595/ - . GROUND NO. 4 IS ALLOWED. 144 . GROUND NO. 5 RELATES TO ADDITION OF RS. 4,17,390/ - 145 . T HE ABOVE AMOUNT WAS INVESTED FOR ASSESSMENT YEAR 2007 - 08 IN ICICI PRUDENTIAL , THE DETAILS OF WHICH ARE AS UNDER : - CHART 6 : INVESTMENTS IN ICICI POLICIES SR. NO A.Y. PARTICULAR PAN NO. AMOUNT TOTAL ADDED IN AO FINALLY ENHANCED/ (DELETED) BY CIT(A) IN APPEAL TO ITAT 1 2 3 4 2007 - 08 JYOTI ASAI AFHPA4045D 1,76,000 1,00,000 40,000 1,01,390 4,17,390 9,65,363 (5,47,973) 4,17,390 R. G. ASAI ABCPA4131D KAMLA BANPK7711G DEEPAK ASAI A BGPA5291C SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 125 : - 146 . FACTS OF THE CASE ARE THAT A S PER THE LD AO, DURING THE COURSE OF SEARCH AND SUBSEQUENT INQUIRIES, THE ASSESSEE WAS FOUND TO HAVE MANY POLICIES OF ICICI AND OTHERS. THE INFORMATION OBTAINED FROM ICICI REFLECTS INVESTMENT IN NAME OF AS SESSEE, HIS WIFE SMT. JYOTI ASAI AND OTHER FAMILY MEMBERS. THE ADDRESS ON THE POLICY DOCUMENT WAS OF ASSESSEES RESIDENCE I.E E - 8, COMFORT GARDEN, CHUNNA BHATTI. IT WAS ALSO FOUND THAT SMT. JYOTI ASAI WAS WORKING AS AN AGENT OF ICICI PRUDENTIAL. THE DETAIL S OF INVESTMENT MADE BY SHRI DEEPAK ASAI & HIS FAMILY MEMBERS ARE GIVEN BY THE AO AS PER TABLE ON AOS ORDER PG. NO 71. (AMOUNT TOTAL RS. 67,57,547/ - ). IT WAS ALSO ALLEGED THAT SMT. SEEMA JAISWAL WHO EARLIER WORKED AS AGENT AND LATER ON BECAME EMPLOYEE O F THE ICICI SINCE COULD NOT EARN COMMISSION INCOME AS PER ICICI NORMS MADE SMT. JYOTI ASAI AS DUMMY AGENT OF ICICI PRUDENTIAL. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 126 : - A SURVEY U/S 133A WAS ALSO CARRIED OUT AT THE OFFICE PREMISES OF ICICI PRUDENTIAL, M.P NAGAR, BHOPAL ON 04.02.2010. THE PROCEDUR AL ASPECTS OF ICICI INVESTMENT WERE RECORDED BY BRANCH MANAGER. THE DETAILS OF INVESTMENT MADE BY ASSESSEE AND HIS FAMILY MEMBERS ARE AS PER CHART ON AO PG. NO. 71. THE DATE - WISE & POLICY - WISE DETAILS OF INVESTMENT BY ASAI FAMILY IS GIVEN ON CHART AT PG. N O. 73 - 91 OF THE ASSESSMENT ORDER. THE AO MADE THE ALLEGATION S THAT T HE INVESTMENT IN NAME OF FAMILY MEMBERS AND OTHER RELATIVES ARE UNDISCLOSED INCOMES OF ASSESSEE (SHRI DEEPAK ASAI) AND THE LD AO ON THE BASIS OF FOLLOWING ALLEGATION S CONCLUDED THAT: - S TATEMENT OF SMT. SEEMA JAISWAL WHO ADMITTED THAT ASSESSEE APPROACHED HER FOR VARIOUS POLICIES OF HIS FAMILY MEMBERS AND RELATIVES, ALSO ADMITTED THAT SHE RECEIVED CASH FROM SMT. JYOTI ASAI. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 127 : - ASSESSEE PROVIDED HIS ADDRESS FOR INVESTMENT IN POLICIES OF RELATI VES. ASSESSEE AND HIS WIFE INVESTED RS. 5 LAKHS FOR THE POLICY IN N AME OF SMT. MONY (MOTHER OF SEEMA JAISWAL. SEEMA JAISWAL ADMITTED THAT SHE LOOKED AFTER AFFAIRS OF SMT. JYOTI ASAI. SEEMA JAISWAL ADMITTED THAT INVESTMENT IN POLICIES OF DEEPAK ASAI GROUP W ERE FACILITATED BY HER THROUGH USING HER, HUSBANDS AND MEERAJ ALIS BANK ACCOUNT. SUMMONS WERE ISSUED TO 19 AGENTS, OUT OF WHICH 12 ADMITTED THAT CASH WAS DEPOSITED IN THEIR BANK ACCOUNT AND DDS WERE ISSUED FOR POLICIES OF VARIOUS CLIENTS AS PER INSTRUCT ION OF SEEMA JAISWAL. SMT JYOTI ASAI HAS NO SOURCE OF INCOME. SMT JYOTI ASAI NOMINATED DEEPAK ASAI TOWARDS THE INVESTMENT IN ICICI PRUDENTIAL, THUS HE WAS THE BENEFICIARY. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 128 : - SHRI R.G ASAI AND SMT. URMILA ASAI (PARENTS OF DEEPAK ASAI) HAVE NO SOURCE OF INCOM E EXCEPT PENSION INCOME OF SHRI R. G ASAI. IN THE POLICY DOCUMENT OF SHRI R. G ASAI AND URMILA ASAI, THE GRANDSON AND GRAND DAUGHTER ARE MADE NOMINEES. (CHILDREN OF ASSESSEE). THE PREMIUM RECEIPT IN NAME OF PARENTS WERE FOUND AND SEIZED FROM PREMISES OF AS SESSEE. (LPS D1, PG. NO. 59, 61; LPS D2, PG NO 100 - 101,104 LPS - D2, PG. NO. 117,144) INVESTMENT IN NAME OF SHRI K.C PARATE (BROTHER IN LAW OF ASSESSEE) IS BENAMI INVESTMENT OF ASSESSEE AS: TWO OF HIS BANK ACCOUNTS WERE FOUND FROM PREMISES OF ASSESSEE. THE POLICY DOCUMENT OF K.C PARATE SHOWS RESIDENTIAL ADDRESS OF ASSESSEE. THE INVESTMENT IS MOSTLY IN CASH. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 129 : - INVESTMENT IN NAME OF SMT.VANWASI BAI PARATE (MOTHER IN LAW OF ASSESSEE) IS BENAMI INVESTMENT OF ASSESSEE AS: - HAVING NO SOURCE OF INCOME, FILED TAX RETURN WITH BOGUS INCOME AND FALSE ADDRESS. THE INVESTMENT POLICY DOCUMENTS SHOWS ASSESSEE AND HIS WIFE SMT. JYOTI ASAI AS NOMINEES, THUS THEY ARE BENEFICIARY. INVESTMENT IN NAME OF SMT. KAMLA KUMBHARE & R.R. KUMBHARE (SISTER AND BROTHER IN LAW OF SMT. JY OTI ASAI RESPECTIVELY.) IS BENAMI INVESTMENT OF ASSESSEE AS INVESTMENT ARE IN CASH OR DD MADE OUT OF CASH. INVESTMENT DETAILS IN THE POLICY OF SMT. KAMLA KUMBHARE REVEALS THAT SMT. JYOTI ASAI IS NOMINEE. INVESTMENT IN NAME OF SMT. MONY. S (MOTHER OF SEEMA JAISWAL) IS BENAMI INVESTMENT OF ASSESSEE AS: - SEEMA JAISWAL ADMITTED THAT IN LIEU OF PROVIDING CLIENT, SMT, JYOTI ASAI INVESTED RS. 5 LAC IN HER MOTHERS NAME. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 130 : - THE INVESTMENT DOCUMENT SHOWS THAT THE RESIDENTIAL ADDRESS IS OF ASSESSES. ON THE BASIS OF DISC USSIONS IN PARA 9 OF THE ORDER OF THE AO, THE INVESTMENT S WERE ADDED TO THE TOTAL INCOME OF THE ASSESSEE SUBSTANTIALLY AND PROTECTIVELY IN THE HANDS OF RESPECTIVE RELATIVE. THE LD . CIT(A) CONFIRMED THE ADDITION MADE BY LD AO FOR THE A.Y. 200 7 - 0 8 AS PER ABO VE TABLE, ON THE BASIS OF FOLLOWING ALLEGATIONS: - ASSESSEE FAILED IN APPEAL TO GIVE ANY EVIDENCE IN SUPPORT CONTESTING AOS DETAILED AVERMENTS. VARIOUS DOCUMENTS WERE FOUND FROM RESIDENTIAL PREMISES OF APPELLANT INDICATING THAT: - INVESTMENTS WERE MADE IN NAME OF VARIOUS FAMILY MEMBERS THROUGH SMT. JYOTI ASAI. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 131 : - SMT JYOTI ASAI CARRYING ON ADVISORY WORK FOR ICICI PRUDENTIAL THROUGH SMT. SEEMA JAISWAL (WORKING AS MANAGER) SEIZED DOCUMENTS RELATING TO POLICIES WERE CORROBORATED BY ICICI PRUDENTIAL ALSO. INVESTME NT IN NAME OF FAMILY MEMBERS MADE BY DEPOSITING CASH OR USING BANK ACCOUNT OF SANTOSH JAISWAL, SEEMA JAISWAL AND SHRI MEERAJ ALI. ALL DDS MADE BELOW RS. 50,000/ - AND MOSTLY IN SAME HANDWRITING. THE VARIOUS FAMILY MEMBERS DO NOT HAVE SUBSTANTIATED AND COMM ENSURATE SOURCE OF INCOME AND FINANCIAL CAPACITY JUSTIFYING AND EXPLAINING THE MAGNITUDE OF INVESTMENT. THUS, THE LD CIT(A) HELD THAT THE LD AOS ACTION OF SIMPLY DIVIDING THE TOTAL AMOUNT OF INVESTMENT MADE IN NUMBER OF YEARS INVOLVED IS UNJUSTIFIED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 132 : - LD C IT(A) AFTER ANALYZING THE ENTIRE MATERIAL ON RECORD ADDED THE YEAR WISE ADDITION . 147 . THE LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS AS MADE IN WRITTEN SUBMISSIONS : - SUBMISSIONS INVESTMENTS WERE SHOWN IN BALANCE SHEET BEFORE SEARCH WHEREVER BALANCE SHEETS WERE FILED. PB 739, 773 ETC. THE STATEMENTS OF SMT. SEEMA JAISWAL ALONG WITH HER HUSBAND SANTOSH JAISWAL AND OTHER AGENTS WERE NEVER PROVIDED TO ASSESSEE NOR WERE HE GIVEN THE OPPORTUNITY OF CROSS EXAMINING THEM. THIS FACT IS GIVEN IN CIT(A ) ORDER PG. NO. 95, PARA 11.2 ALSO, THE APPLICATION FOR PROVIDING THE STATEMENT OF SEEMA JAISWAL ALONG WITH OTHER AGENTS WERE MADE ON 20.12.2017. THE APPLICATION WAS REJECTED AND THE STATEMENTS WERE NOT PROVIDED . (PB 533 - 534) THE ASSESSEE FURTHER APPEALED T O DY. COMMISSIONER IN THE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 133 : - SAID MATTER, AND THE EXTRACT OF THE STATEMENTS WERE PROVIDED TO THE ASSESSEE, VIDE ORDER DATED 11.04.2018. (PB 535). IT IS ONLY AT THIS STAGE BEFORE YOUR HONOURS, THE STATEMENTS HAVE BEEN PROVIDED AFTER A LAPSE OF 8 YEARS. IT IS F URTHER IMPORTANT THAT THE ENTIRE COPY OF STATEMENTS OF SMT. SEEMA JAISWAL AND SHRI SANTOSH JAISWAL HAVE NOT BEEN PROVIDED. ONLY EXTRACTS HAVE BEEN PROVIDED FOR THE REASONS BEST KNOWN TO THEM. HOW SUCH STATEMENTS OF A THIRD PERSON, WHICH HAS NOT BEEN PROVID ED FOR 8 YEARS, AND NOW ONLY EXTRACT WAS PROVIDED, CAN BE USED AGAINST THE ASSESSEE. FURTHER, THE STATEMENTS INFACT ARE IN THE FAVOUR OF ASSESSEE. HOWEVER, IF THE DEPARTMENT CONSIDERS THEM TO BE AGAINST THE ASSESSEE, CROSS - EXAMINATION SHOULD HAVE BEEN PRO VIDED. A STATEMENT WHICH WAS NOT ALLOWED TO SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 134 : - BE CROSS - EXAMINE CANNOT BE USED AGAINST THE ASSESSEE. KISHINCHAND CHELLARAM 125 ITR 713 (SC). CONTRADICTIONS IN STATEMENT OF SMT. SEEMA JAISWAL. PB 536 IF HER STATEMENT IS READ, SHE HAS STATED SHE WAS MENTALLY AND PHYSICAL TIRED. IT WAS STATED IN QUESTION 2 THAT SHE WAS A BRANCH MANAGER SINCE JUNE 2006. WHEREAS IN HER LATER STATEMENT ON PB 545 - 546, SHE STATED THAT SHE WORKED IN VARIOUS CAPACITIES AND BECAME BRANCH MANAGER SINCE 2009. PB 538, IN REPLY TO QUEST ION 16, AT ONE STAGE SHE STATED THAT POLICY OF MOTHER SMT. MONI S. WAS MADE BY SMT. JYOTI ASAI, WHEREAS AT ANOTHER STAGE IT WAS STATED THAT IT WAS ACCEPTED AS UNACCOUNTED INCOME OF SMT. SEEMA JAISWAL. HOWEVER, PB 548, SHE EXPLAINED THE REASON WHY ADDRESS O F JYOTI ASAI WAS WRITTEN IN POLICY. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 135 : - NO PART OF STATEMENT OF MIRAJ ALI (PB 557 - 561) IS AGAINST ASSESSEEE. SIMILARLY STATEMENTS OF NONE OF THE AGENTS ARE AGAINST ASSESSEE AND NO ONE HAS EVERY STATED OR WAS QUESTIONED THAT THIS WAS ASSESSEES UNACCOUNTED MON EY. PB 573, 576, 577, 581, 583 - 584 WOULD BE VERY RELEVANT. ON PB 573 - 574, STATEMENT OF YASIR ZAHEER KHAN WAS RECEIVED. HE DENIED TO HAVE MADE ANY DD BY DEPOSITING CASH ON BEHALF OF DEEPAK ASAI.B. ON PB 575 - 576, STATEMENT OF RASHMI AGRAWAL. IN REPLY TO QUE 3, SHE STATED THAT SHE WAS NOT AWARE OF DEEPAK ASAI GROUP. WHATEVER CASH WERE DEPOSITED IN HER ACCOUNT FOR MAKING D.D.S ARE ONLY FOR FULFILLING SALES TARGETS. ON PB 577 - 578, STATEMENT OF RA KESH JAIN. HE STATED THAT HE WA S NOT AWARE OF DEEPAK ASAI GROUP, HIS BANK ACCOUNT WAS USED FOR DEPOSITING CASH AND MAKING D.D. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 136 : - FOR CUSTOMER. ON PB 579 - 580, STATEMENT OF RUPESH JAIN. HE STATED THAT HE USED TO MAKE D.D. FOR JOSHI GROUP. ALL THE AGENTS DENIED TO KNOW DEEPAK ASAI ETC. THEIR BANK ACCOUNT WAS USED TO DEPOSIT CASH AND MAKE D.D. TO FULFILL SALES TARGET. NO SPECIFIC RULES/ INCOME - TAX PROVISION WAS POINTED TO SHOW HOW THERE WAS DEFAULT OF LAW. THERE MAY BE LATCHES ON PART OF ICICI PRUDENTIAL OR ITS STAFF IN MAKING D.D./ POLICIES. HOWEVER, THE FACT WAS THAT POLI CIES WERE MADE IN NAMES OF RESPECTIVE FAMILY MEMBERS WHO DID INVESTMENT. FOR THE LATCHES ON PART OF THIRD PERSON, ASSESSEE CANNOT BE BLAMED. NO EVIDENCE WAS EVER BROUGHT ON RECORD TO PROVE EARNING OF UNACCOUNTED MONEY BY ASSESSEE. NO ONE CONFIRMED THAT IT WAS UNACCOUNTED MONEY, WHICH WAS DEPOSITED. THE PRESUMPTION OF THE DEPARTMENT MIGHT ME THAT SOME PERSONS MIGHT HAVE DEPOSITED UNACCOUNTED MONEY BY SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 137 : - GIVING AMOUNT IN CASH AND THEN BUYING POLICIES. BUT SUCH AN ALLEGATION IN THE CASE OF ASSESSEE NEEDS TO BE P ROVED. THE VERY BASIS WHICH HAS BEEN QUOTED BY THE LD AO IS THE STATEMENTS OF SEEMA JAISWAL AND AGENTS OF ICICI. NONE OF THE STATEMENTS PROVE THAT THE STAND OF THE DEPARTMENT. THE STATEMENT OF SMT JYOTI ASAI (PB 183 (BACK)) STATES THAT SHE IS EARNING FROM COMMISSION AS AGENT IN ICICI PRUDENTIAL AND FROM BANK DEPOSITS AND HER MANAGER IS SMT. SEEMA JAISWAL. THIS STATEMENT AT LENGTH EXPLAINS HER AWARENESS OF THE BUSINESS. SHE HAD DENIED ALL ALLEGATIONS THAT SHE WAS DUMMY AGENT. SHE WAS AWARE OF THE BUSINESS. SHE INFACT STATED THAT THE ADDRESS OF ASSESSEE WAS GIVEN FOR CONVENIENCE. AGAIN STATEMENT PB 205 - 236. THE ALLEGATION THAT THE INVESTMENT IN POLICIES HAVE NAME OF SHRI DEEPAK ASAI (ASSESSEE) AS NOMINEE, IS NOT SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 138 : - JUSTIFIED AS IT IS BUT NATURAL THAT HUSBAND WI FE NOMINATE EACH OTHER IN ALL THE INVESTMENT THEY MAKE. IT IS IN CASE OF DEATH, THE NOMINEE HAS A RIGHT. FURTHER, THE NOMINEE CAN BE CHANGED AT ANY TIME. THE RESIDENTIAL ADDRESS OF ASSESSEE WAS GIVEN IN THE POLICY DOCUMENT OF FAMILY MEMBERS FOR THE SAKE O F OPERATIONAL AND ADMINISTRATIVE EASE. IT IS ALSO NORMAL THAT IN OLD AGE, GRAND SONS AND DAUGHTERS ARE MADE THE NOMINEES FOR ALL INVESTMENT PURPOSE. THUS, LD AO WAS NOT JUSTIFIED IN CONSIDERING THEM TO BE BASIS OF ADDITION IN HANDS OF ASSESSEE. IT WAS QUOT ED AND ADMITTED BY LD CIT(A) IN ITS ORDER, PARA 11.2 PAGE NO 95 THAT - QUOTE THERE MAY HAVE BEEN VARIOUS CERTAIN LACUNAS IN THE INVESTIGATION CARRIED OUT IN THAT THE APPELLANT HAS NOT BEEN SUPPLIED COPIES OF STATEMENTS OF SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 139 : - VARIOUS AGENTS AND CONNECTED PER SONS VIZ SMT. SEEMA JAISWAL WHO HAS WORKED IN VARIOUS CAPACITIES IN ICICI PRUDENTIAL, SHRI SANTOSH JAISWAL - HUSBAND OF SMT. SEEMA JAISWAL, SHRI MIRAJ ALI - RELATIVE OF SMT. SEEMA JAISWAL NOR HE HAS BEEN GIVEN ANY OPPORTUNITY TO CROSS EXAMINE THEM UNQUOTE THE POLICIES WERE TAKEN IN CASH, THE SOURCE OF WHICH WAS PAID BY THE POLICY HOLDERS ONLY. ALL THE INVESTORS/ POLICY HOLDERS ARE INCOME TAX ASSESSEES AND RETURN OF INCOME WERE FILED BEFORE THE DATE OF SEARCH. THEY HAVE THEIR OWN SOURCES. NONE OF THEM EVER STATED THAT INVESTMENT WAS MADE BY DEEPAK ASAI. NO EVIDENCE TO PROVE THAT MONEY WENT FROM THE COFERS OF DEEPAK ASAI WAS FOUND IN SEARCH. NO EVIDENCE OF BRIBE WAS FOUND. NO ADDITION FOR SAME CAN BE MADE. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 140 : - THE ADDITION IS PURELY BASED ON CONJUNCTURES AND SUR MISES, BASED ON CERTAIN SUSPICION OF THE DEPARTMENT. THE SAME WAS NOT PROVED BY ANY EVIDENCE AT ANY TIME. 148 . THE LD. DEPARTMENTAL REPRESENTATIVE RE LIED UPON THE ORDERS OF THE LOWER AUTHORITIES. 149 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE OBSERVE THAT R EGARDING INVESTMENT IN POLICIES, IT IS OBSERVED THAT THE AO HAS ATTRIBUTED INVESTMENTS MADE IN THE INSURANCE POLICIES IN THE NAME OF THE ASSESSEE, HIS FAMILY MEMBERS AND RELATIVES, AS THE INVESTM ENTS MADE OUT OF UNDISCLOSED INCOME OF THE ASSESSEE. IT IS OBSERVED WHILE MAKING THE ADDITION, THE AO MADE DISALLOWANCE OF COMMISSION AND OTHER RECEIPTS RECEIVED BY THE WIFE OF THE ASSESSEE FROM THE INSURANCE COMPANY AND THE AO TAXED SUCH COMMISSION INCOM E ALSO IN THE HANDS OF THE ASSESSEE. IN OUR VIEW, THE AO OUGHT TO HAVE GIVEN SET - OFF OF THESE RECEIPTS AGAINST THE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 141 : - INVESTMENTS. FURTHER, IT IS NOT NOTICED THAT THE ALLEGED INVESTMENT MADE IN THE NAME OF UN - RELATED PERSON AND THE AO HAS NOT COMMENTED UPON THE SOURCE OF SUCH PERSON AND HAS TREATED MECHANICAL INVESTMENT AS OF THE ASSESSEE. IN THE CASE OF WIFE OF THE ASSESSEE , SMT JYOTI ASAI , MAJOR INVESTMENT IN INSURANCE POLICIES IS MADE OF RS. RS. 1,76,000/ - , RS. 1,00,000/ - IS MADE IN THE NAME OF R.G.ASAI , RS. 40,000/ - IS MADE IN THE NAME OF KAMLA AND RS. 1,01,390/ - IS MADE IN THE NAME OF DEEPAK ASAI. THE AO HAS ADDED THE ENTIRE INVESTMENT IN THE HANDS OF THE ASSESSEE WITHOUT CONSIDERING INDEPENDENT SOURCE OF SUCH PERSON. IT IS ALSO NOTICED THAT DURING THIS PERIOD, WIFE OF THE ASSESSEE RECEIVED COMMISSION FROM THE INSURANCE COMPANY AS AN AGENT. EVEN IF IT IS ASSUMED THAT IT WAS THE ASSESSEE WHO HAD INVESTED MONEY IN THE POLICY IN THE NAME OF VARIOUS OTHER PERSONS, BUT WE FAIL TO UNDERSTAND IF SUCH PERSONS WER E HAVING SOME INDEPENDENT SOURCE OF INCOME, SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 142 : - WHY SUCH SOURCE IS NOT ACCEPTABLE FOR MAKING SUCH INVESTMENT. THE AO TREATED ALL THE TRANSACTIONS AS A DEVICE TO CONVERT ILLEGAL MONEY INTO LEGAL MONEY. WE ARE OF THE VIEW THAT THE AO FAILED TO APPRECIATE THAT TH ERE ARE TWO ASPECTS OF THE MATTER, ONE IS THE INVESTMENT IN POLICIES, ANOTHER SOURCE OF SUCH INVESTMENT. WE FIND THAT THE AO HAS OBSERVED THAT THE HUGE COMMISSION WAS CREDITED IN THE BANK ACCOUNTS OF WIFE OF THE ASSESSEE, NAMELY, SMT. JYOTI ASAI. THE CREDI TED AMOUNT UTILIZED FOR INVESTMENT IN ICICI LIFE PRUDENTIAL FOR TRANSFER TO FDR ETC. THE COMMISSION SO PAID TO THE WIFE OF THE ASSESSEE IS TREATED AS BOGUS BY THE AO. THERE IS NO DISPUTE WITH REGARD TO THE FACT THAT THE PAYMENT MADE BY THE INSURANCE COMP ANIES SUBJECTED TO VARIOUS REGULATIONS FROM UNDER THE IRDA ACT. IN OUR VIEW, SO FAR AS THE INCOME TAX IS CONCERNED, THE COMMISSION SO RECEIVED RIGHTLY OR WRONGLY OUGHT TO HAVE BEEN TREATED AS INFLOW OF THE FUNDS AND FOR THIS, THE AO SHOULD HAVE GIVEN SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 143 : - SET - O FF IN RESPECT OF THE INVESTMENTS MADE BY THE WIFE OF THE ASSESSEE. THE LAW DOES NOT EMPOWER THE AO TO TAX BOTH INFLOW AND OUT - FLOW OF THE FUNDS. IT IS FURTHER OBSERVED THAT THE ADDITIONS HAVE BEEN MADE IN VARIOUS HEADS, NAMELY, BANK DEPOSITS IN THE NAME O F FAMILY MEMBERS, RELATIVES AND OTHER PERSONS ARE ATTRIBUTED TO THE ASSESSEE. THE REASONING GIVEN BY THE AUTHORITIES BELOW IS THAT THE PERSONS WERE NOT HAVING SUFFICIENT MEANS TO MAKE SUCH DEPOSIT. WE FIND THAT IN THE CASE OF FATHER OF THE ASSESSEE, THE A O HAS OBSERVED THAT HE HAS NO MEANS, BUT IT IS ON RECORD THAT FATHER OF THE ASSESSEE IS A PENSIONER, WHO RETIRED FROM THE GOVERNMENT SERVICE AS VETERINARY DOCTOR. IT IS THE CASE OF THE ASSESSEE THAT AFTER RETIREMENT FATHER OF THE ASSESSEE IS HAVING THREE S OURCES OF INCOME, NAMELY, PENSION, PROFESSIONAL RECEIPTS FROM VETERINARY PRACTICE AND THE RENTAL INCOME. THE AUTHORITIES HAVE ACCEPTED PENSION AND RENTAL INCOME, BUT HAVE NOT CONSIDERED THE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 144 : - PROFESSIONAL RECEIPTS FROM VETERINARY PRACTICE. IT IS ALSO, A FACT THAT WHEN A PERSON IS RETIRED FROM THE GOVERNMENT SERVICE, HE NORMALLY HAS RETIREMENT BENEFITS AND IT IS ALSO A FACT THAT A SMALL SAVING IS MADE EVERY MONTH FROM THE EARNING SO MADE, WHETHER IT MAY BE SALARY OR ANY OTHER SOURCE. IT IS ALSO OBSERVED THAT I NVESTMENT BY BROTHER IN LAW OF THE ASSESSEE IS ALSO ATTRIBUTED TO THE ASSESSEE ON THE SAME GROUND. WE FIND THAT THE BROTHER IN LAW OF THE ASSESSEE HAS BEEN SERVING IN A COOPERATIVE BANK AND HAVING SALARY AND RENTAL INCOME. IT IS ALSO OBSERVED THAT THE INVE STMENTS BY SISTER AND BROTHER OF THE ASSESSEE, NAMELY, SHRI R. B. KUMBHARE AND SMT. KAMLA KUMBHARE. THE AO HAS NOT COMMENTED UPON THEIR SOURCE OF INCOME. THAT DEMONSTRATES THAT THE ADDITIONS HAVE BEEN MADE IN A PREJUDICIAL MANNER. UNDER THESE FACTS, WE ARE OF THE VIEW THAT EACH ADDITION NEEDS TO BE TESTED ON ITS MERIT OF EACH SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 145 : - CASE AND CANNOT BE SUSTAINED IN A MECHANICAL FASHION. G ROUND NO. 5 IS ALLOWED FOR STATISTICAL PURPOSES. 150 . GROUND NO. 6 RELATES TO ADDITION OF RS. 80,743/ - MADE AS PER NO.10B BY THE AO AND CONFIRMED BY THE LD. CIT(A). 151 . THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED R EGARDING THE A MOUNT OF RS. 80,743/ - THAT THIS WAS CASH DEPOSIT IN F. Y.2006 - 07 , WHICH WAS LATER ON USED FOR INVESTMENT IN ULIP ON 05.09.07 AMOUNTING TO RS. 1,00,000/ - AND IN ANY CASE, IT WOULD BE DOUBLE ADDITION, AS THE INVESTMENTS ARE ADDED SEPARATELY. THE RETURN OF INCOME IS ON P.B. NO.684 - 685 P. B. III. THE CASH DEPOSIT AMOUNTING TO RS. 80,000 / - WAS OUT OF CAR RENTAL. INTEREST OF RS. 43/ - WAS OFFERED IN RETURN P. B. NO.685/III. THE ADDITION MADE BE HELD TO BE BAD AND UNJUSTIFIED AND BE QUASHED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 146 : - 152 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 153 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILA BLE ON RECORD. IT IS THE CASE OF THE ASSESSEE THAT CASH DEPOSITS AMOUNTING TO RS. 80,000/ - WAS OUT OF CAR RENTAL AND INTEREST OF RS. 43/ - WAS OFFERED IN RETURN. SO FAR AS THE CAR RENTAL IS CONCERNED, WE ARE OF THE VIEW THAT THE ASSESSEE HAS NOT FURNISHED A NY CONCLUSIVE EVIDENCE AS TO CAR WAS GIVEN ON RENT. THUS, THIS ADDITION IS SUSTAINED AND THE REST ABOUT INTEREST AMOUNTING TO RS. 43/ - WHICH WAS OFFERED IN RETURN IS DIRECTED TO BE DELETED. GROUND NO. 6 IS PARTLY ALLOWED. 154 . GROUND NO. 7 RELATES TO ADDIT ION OF RS. 71,460/ - MADE AS PER PARA NO.10E TOWARDS THE CREDITS IN ICICI BANK ACCOUNT NO. 028301500684. 155 . THE LD. COUNSEL FOR THE ASSESSEE STATED THAT THIS AMOUNT WAS DEPOSITED IN ICICI BANK, NEW MARKET , BHOPAL SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 147 : - A/C NO.028301500684 . THIS IS REFLECTED AT PAGE 34 OF SUBMISSIONS. THIS ACCOUNT BELON GS TO HIS BROTHER IN LAW SHRI KAILASH CHAND PARATE, WHO IS WORKING AS REGIONAL MANAGER WITH MADHYA PRADESH CENTRAL GRAMIN BANK, CHINDWARA. THE AFFIDAVIT IN THIS REGARD IS ON ( PB 595 - 596/ III) . HE IS SEPARATELY ASSESSED TO TAX. HIS INCOME TAX RETURNS FROM A.Y. 2003 - 04 TO 2010 - 11 ARE ON (PB 597 - 604/ III) . HIS BANK STATEMENTS WERE NOT FOUND FROM THE RESIDENCE OF ASSESSEE DURING SEARCH AS CONTENDED BY AO, BUT SUBMITTED SUBSEQUENTLY. THE DEPOSIT IN HIS BANK ACCOUNT D OES NOT BELONG TO ASSESSEE. THE LD. COUNSEL FOR THE ASSESSEE STATED THAT THIS ACCOUNT BELONGED TO SHRI K AILASH CHAND PARATE AND THE ADDITION BE HELD TO BE UNREASONABLE, BAD , UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 156 . THE LD. DEPARTMENTAL R EPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES . SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 148 : - 157 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IT IS OBSERVED THAT THE HOLDER OF THE ACCOUNT OWNED UP THE ACCOUNTS AND THE TRANSACTION S WERE MA DE THEREIN. THE ADDITIONS HAVE BEEN MADE IN THE HANDS OF THE ASSESSEE PURELY ON SUSPICION, WHICH IN OUR VIEW, IS NOT JUSTIFIABLE HOWEVER, THE AO WILL BE AT LIBERTY TO CONSIDER THIS ADDITION IN THE HANDS OF THE BROTHER - IN - LAW, WHO IS THE HOLDER OF THE ACCOU NT. THE AO IS DIRECTED TO DELETE THE ADDITION. GROUND NO. 7 IS ALLOWED. 158 . GROUND NO. 8 RELATES TO ADDITION OF RS. 1,03,000/ - MADE AS PER PARA NO.10G TOWARDS CASH DEPOSITS IN ICICI BANK ACCOUNT NO.005501004458. 159 . THE LD. COUNSEL FOR THE ASSESSEE SUBMITTE D THAT T H IS ACCOUNT BELONGED TO SHRI DEEPAK ASAI. THIS AMOUNT IS ALSO REFLECTED IN CASH FLOW STATEMENT IN FINANCIAL YEAR 2006 - 07 , AT PAGE 7 OF CASH FLOW STATEMENT OF THE ASSESSEE DEEPAK ASAI , WHICH WAS SUBMITTED BEFORE THE AO. THE AO TREATED SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 149 : - THE CASH CREDI T AS UNDISCLOSED AND ADDED TO HIS INCOME FOR ASSESSMENT YEAR 2007 - 08 , WHICH WAS CONFIRMED BY THE LD. CIT(A). THE ADDITION MAY PLEASE BE QUASHED AS IT IS DULY EXPLAINED. 160 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHOR ITIES. 161 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND FROM THE CASH FLOW STATEMENT THAT SHRI DEEPAK ASAI WAS HAVING SUFFICIENT FUNDS TO MAKE THESE DEPOSITS. WE, THEREFORE, DIRECT THE AO TO DE LETE THE ADDITION OF RS. 1,03, 000/ - GROUND NO. 8 IS ALLOWED. 162 . GROUND NO. 9 RELATES TO ADDITION OF RS. 13,000/ - AS PER PARA 10H TOWARDS THE CREDITS IN PPF ACCOUNT NO.1006464552 2 WITH STATE BANK OF INDIA, SHIV AJI NAGAR, BHOPAL. 163 . THE LD. COUNSEL FO R THE ASSESSEE DREW OUR ATTENTION TO HIS SUBMISSION AT PAGE 35 AND SUBMITTED THAT SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 150 : - THIS ACCOUNT NO.10064645522 IS OF STATE BANK OF INDIA, SHIVAJI NAGAR, BHOPAL AND BELONGED TO KU. ANKITA. THE LD. COUNSEL STATED THAT INTEREST ON PPF ACCOUNT WAS RS. 30,959/ - AND THE AMOUNT OF RS. 13,000/ - WAS DEPOSITED BY CHEQUE. THE AMOUNT IS WELL ESTABLISHED AND THE SAME MAY BE QUASHED. 164 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 165 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND FROM THE CASH FLOW STATEMENT THAT THE ASSESSEE WAS HAVING SUFFICIENT FUNDS TO MAKE THESE DEPOSITS. WE, THEREFORE, DIRECT THE AO TO DELETE THE ADDITION OF RS. 13, 000/ - . GROUND NO. 9 IS ALLOWED. 166 . GROUND NO. 10 RELATES TO ADDITION OF RS. 500/ - AS PER PARA NO.10 - I TOWARDS THE CREDITS IN PPF ACCOUNT NO.100 64642350. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 151 : - 167 . THE LD. COUNSEL FOR THE ASSESSEE TOOK US AT PAGE 35 OF HIS SUBMISSIONS AND STATED THAT THE ACCOUNT NO.10064642350 BELONGED TO SHRI R. G. ASAI. THE INTEREST ON PPF WAS RS. 12, 554/ - AMOUNT OF RS. 500/ - WAS DEPOSITED IN CASH. THE AMOUNT OF RS. 500/ - BE DELETED. 168 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 169 . WE HAVE CONSIDE RED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IT IS OBSERVED THAT THE HOLDER OF THE ACCOUNT OWNED UP THE ACCOUNT AND THE TRANSACTION WAS MADE THEREIN. THE ADDITION HAS BEEN MADE IN THE HANDS OF THE ASSESSEE PURELY ON SUSPIC ION, WHICH IN OUR VIEW, IS NOT JUSTIFIABLE HOWEVER, THE AO WOULD BE AT LIBERTY TO CONSIDER THIS ADDITION IN THE HANDS OF THE SHRI R. G. ASAI, WHO IS THE HOLDER OF THE ACCOUNT. THE AO IS DIRECTED TO DELETE THE ADDITION OF RS. 500/ - . GROUND NO. 10 IS ALLOWED . SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 152 : - 170 . GROUND NO. 11 RELATES TO ADDITION OF RS. 10,054/ - MADE AS PER PARA NO.10K TOWARDS THE CREDITS IN A/C NO.10064562621 WITH STATE BANK OF INDIA SHIVAJI NAGAR, BHOPAL. 171 . THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ABOVE ACCOUNT BELONGED T O SHRI RAMJBHAU GHANSHYAM ASAI. THE LD. COUNSEL FOR THE ASSESSEE DREW OUR ATTENTION TO PAGE NO. 36 OF HIS SUBMISSION AND SUBMITTED THAT THIS THE AMOUNT OF RS. 10,000 / - WAS DEPOSITED IN CASH AND RS. 54/ - WAS THE INTEREST AND WAS ELIGIBLE U/S SECTION 80L OF RS. 10, 0 54/ - MAY BE DELETED, AS THIS DOES NOT BELONG TO SHRI DEEPAK ASAI. 172 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 173 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAI LABLE ON RECORD. THE ACCOUNT BELONGS TO FATHER OF THE ASSESSEE, WHO IS HAVING SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 153 : - INDEPENDENT SOURCE OF INCOME AND HAS OWNED UP THIS ACCOUNT. AS PER OUR VIEW, THE AO WAS NOT JUSTIFIED IN MAKING THE ADDITION IN THE HANDS OF THE ASSESSEE. HOWEVER, THE AO WILL BE AT LIBERTY TO EXAMINE THE ADDITION IN THE HANDS OF THE ASSESSEES FATHER. WE, THEREFORE, DIRECT THE AO TO DELETE THE ADDITION. GROUND NO. 11 IS ALLOWED. 174 . GROUND NO. 12 RELATES TO ADDITION OF RS. 30,000/ - MADE BY THE AO AS PER PARA NO.10M AND CONFIRMED BY THE LD. CIT(A) FOR CASH CREDITS IN ACCOUNT NO. 530207 03267 OF STATE BANK OF INDORE, SHAHPUR, BHOPAL, BELONGING TO SMT. JYOTI ASAI. 175 . THE LD. COUNSEL FOR THE ASSESSEE DREW OUR ATTENTION TO PAGE NO.36 OF HIS SUBMISSIONS A ND SUBMITTED THAT THIS ACCOUNT BELONGED TO SMT. JYOTI ASAI AND THE AMOUNT OF RS. 30,000/ - WAS THE CASH DEPOSIT AND REFLECTED IN CASH FLOW . THE ADDITION BE DELETED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 154 : - 176 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 177 . WE HAVE CONSIDERED THE FAC TS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE HOLDER OF THE ACCOUNT HAVING INDEPENDENT SOURCE OF INCOME AND HAS OWNED UP THIS BANK ACCOUNT. AS PER OUR VIEW, THE AO WAS NOT JUSTIFIED IN MAKING THE ADDITION IN THE HANDS OF THE ASSES SEE. HOWEVER, THE AO WILL BE AT LIBERTY TO EXAMINE THE ADDITION IN THE HANDS OF THE SMT. JYOTI ASAI. THE AO IS DIRECTED TO DELETE THE ADDITION OF RS. 30,000/ - . GROUND NO. 12 IS ALLOWED. 178 . GROUND NO. 1 3 RELATES TO ADDITION OF RS. 3,89,701/ - MADE AS PER PARA NO.10P TOWARDS THE CREDITS IN ACCOUNT NO.900210100014831 WITH BANK OF INDIA, ARERA COLONY, BHOPAL . 179 . THE LD. COUNSEL FOR THE ASSESSEE STATED THAT THE ABOVE ACCOUNT BELONGED TO SHRI RAMBHAU GHANSHYAM SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 155 : - ASAI. THE LD. COUNSEL FOR THE ASSESSEE TOOK US A T PAGE 36 OF HIS SUBMISSION AND STATED THAT THE AGRICULTURAL LAND BELONG ED TO SMT URMILA ASAI . HER LAND WAS 0.90 HECTARE, PATWARI HALKA NO 28 KHASRA NO 94. T OTAL CONSIDERATION : RS. 5 LAKH WAS RECEIVED. THE SALE DEED IS PLACED ON PB 744 - 770. THE RECEIP T FROM SALE OF AGRICULTURAL LAND WAS DEPOSITED IN THE JOINT ACCOUNT OF SMT. URMILA ASAI AND SHRI R.G ASAI VIDE CHQ DATED 19.02.2007 AM OUNT RS. 1,00,000/ - AND NSC MATURITY RS. 40,000 AND CASH OF RS. 1,38,700 , WHICH WAS RECEIVED O UT OF INCOME FROM VETERIN ARY PRACTICE . THE AMOUNT IS WELL ESTABLISHED. THE ADDITION BE DELETED. 180 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 181 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON R ECORD. WE FIND THAT THE HOLDER OF THE JOINT ACCOUNT IS FATHER AND MOTHER OF THE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 156 : - ASSESSEE. THE SOURCE WAS STATED TO BE SALE OF AGRICULTURAL LAND , MATURITY OF NSC AND PROFESSIONAL RECEIPTS. WE ARE OF THE VIEW THAT THE AO WAS NOT JUSTIFIED IN MAKING THE ADDIT ION IN THE HANDS OF THE ASSESSEE. HOWEVER, HE WOULD BE AT LIBERTY TO MAKE ENQUIRY IN THE CASE OF SHRI R.G.ASAI AND SMT. URMILA ASAI . THE AO IS DIRECTED TO DELETE THE ADDITION. GROUND NO. 13 IS ALLOWED. 182 . GROUND NO. 14 RELATES TO THE ADDITION OF RS. 10,000/ - MADE AS PER PARA N O.10U TOWARDS THE CASH CREDITS IN A/C NO.10064563147 WITH STATE BANK OF INDIA, AKBARPUR, BELONGING TO SMT. JYOTI ASAI. 183 . THE LD. COUNSEL FOR THE ASSESSEE TOOK US TO PAGE NO. 37 OF HIS SUBMISSIONS AND STATED THIS AMOUNT OF RS.10,000/ - WA S OUT OF CASH WITHDRAWAL FROM IDBI BANK AND THE SAME WAS ALSO REFLECTED IN CASH FLOW. THE LD. COUNSEL FOR THE ASSESSEE DREW OUR ATTENTION TO PAGE NO.9 OF CASH FLOW STATEMENT OF SMT. JYOTI ASAI AND THE AMOUNT OF RS.10,000/ - WAS REFLECTED IN FINANCIAL YEAR 2 006 - 07. THE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 157 : - LD. COUNSEL FOR THE ASSESSEE STATED THAT THE AMOUNT BELONGED TO SMT. JYOTI ASAI AND IT IS REFLECTED IN HER CASH FLOW STATEMENT. THE ADDITION MADE BE QUASHED 184 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES . 185 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE HOLDER OF THE ACCOUNT HAVING INDEPENDENT SOURCE OF INCOME AND HAS OWNED UP THIS BANK ACCOUNT. AS PER OUR VIEW, THE AO WAS NOT JUSTIFIED IN MAKING THE ADD ITION IN THE HANDS OF THE ASSESSEE. HOWEVER, THE AO WILL BE AT LIBERTY TO EXAMINE THE ADDITION IN THE HANDS OF THE SMT. JYOTI ASAI. THE AO IS DIRECTED TO DELETE THE ADDITION OF RS. 1 0,000/ - . GROUND NO. 1 4 IS ALLOWED. 186 . GROUND NO. 15 RELATES TO ESTI MATED ADDITION OF RS. 90,900/ - CONFIRMED BY THE LD. CIT(A) AS PER PARA NO. 11 OF THE ASSESSMENT ORDER FOR HOUSE HOLD EXPENSES AND E DUCATIONAL EXPENSES. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 158 : - 187 . WE HAVE ALREADY DEALT WITH THIS ISSUE IN DETAIL IN GROUND NO.6 (PARAS NO.20 23 ) OF THE AS SESSEES APPEAL IN I.T.(SS)A.NO. 152/IND/2015 FOR ASSESSMENT YEAR 2004 - 05. THE SAME ARGUMENTS WERE ADOPTED AS WERE TAKEN IN ASSESSMENT YEAR 2004 - 05. THE ADDITION MADE WAS PURELY BASED ON THE CONJECTURES AND SURMISES. FOLLOWING THE SAME REASONING, WE DIRECT THE AO TO DELETE THE ADDITION OF RS. 90,900/ - . GROUND NO. 15 IS ALLOWED. 188 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IN I.T.(SS)A.NOS. 155/IND/2015 FOR THE ASSESSMENT YEAR 2007 - 08 IS PARTLY ALLOWED. I.T.(SS)A.NOS. 156/IND/2015 A.Y. 2008 - 09 : 189 . THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : - 1 . THAT THE ASSESSMENT MADE U/S 153A R.W.S.143(3) OF THE INCOME - TAX ACT BE HELD TO BE BAD IN LAW AND ON FACTS AND BE QUASHED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 159 : - 2 . THAT THE ADDITION OF RS.8,43,000/ - MADE AS PER PARA 6.2 OF THE ASSESS MENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR PROFESSIONAL INCOME, AGRICULTURAL INCOME AND ADVANCE RECEIVED AGAINST PLOT AT INDORE SHOWN IN THE CASH FLOW STATEMENT OF SMT. JYOTI ASAI BE HELD TO BE BAD, UNLAWFUL AND UNJUSTIFIED WHEN SMT. JYOTI ASAI IS S EPARATELY ASSESSED TO TAX AND HAD BEEN FILING HER INCOME TAX RETURNS SINCE LONG. THE ADDITION OF RS.8,43,000/ - MADE BE THEREFORE QUASHED AND DELETED. 3 . THAT THE ADDITION OF RS.7,03,377/ - MADE AS PER PARA NO.7A OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CI T (APPEALS) FOR CAPITAL OF DEEPAK ASAI HUF BE HELD TO BE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 160 : - BAD, UNJUSTIFIED AND UNLAWFUL AND BE QUASHED. 4 . THAT THE ADDITION OF RS.1,75,300/ - MADE AS PER PARA NO.7A OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR VARIOUS HOUSE HOLD ITEMS BE HEL D TO BE BAD, UNJUSTIFIED AND UNLAWFUL AND BE QUASHED. 5 . THAT THE ADDITION OF RS.9,65,363/ - MADE AS PER PARA NO.9 OF THE ASSESSMENT ORDER AND REPLACED BY THE CIT (APPEALS) AT RS.17,89,682/ - BE HELD TO BE OUT OF CONTEXT AND WITHOUT ANY BASIS. THE ADDITION MAD E BE HELD TO BE BAD AND UNJUSTIFIED AND BE QUASHED. 6 . THAT THE ADDITION OF RS. 2,40,145/ - MADE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 161 : - AS PER PARA NO.10 OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR CREDITS IN SB ACCOUNT NO.1470/127 WITH M.P. RAJYA SAHAKARI BANK, BHOPAL BELONGING TO DEEPAK ASAI HUF BE HELD TO BE BAD, UNJUSTIFIED AND UNLAWFUL AND BE QUASHED. 7 . THAT THE ADDITION OF RS. 8,24,769/ - MADE AS PER PARA NO.10B OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR CREDITS IN ICICI BANK ACCOUNT NO. 028301508839 BELON GING TO SMT. JYOTI ASAI BE HELD TO BE BAD AND UNJUSTIFIED AND BE QUASHED. 8 . THAT THE ADDITION OF RS. 50,216/ - MADE AS PER PARA NO.10E OF THE ASSESSMENT ORDER SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 162 : - AND CONFIRMED BY THE CIT (APPEALS) FOR CREDITS IN ICICI BANK ACCOUNT NO.028301500684 BELONGING TO S HRI KAILASHCHAND PARATE BE HELD TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 9 . THAT THE ADDITION OF RS.69,000/ - MADE AS PER PARA NO.10G OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR CASH DEPOSITS IN ICIC I BANK ACCOUNT NO.005501004458 BELONGING TO SHRI DEEPAK ASAI BE HELD TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 10 . THAT THE ADDITION OF RS.500/ - CONFIRMED BY THE CIT (APPEALS) AS PER PARA NO.10H OF SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 163 : - THE ASSESSMENT ORDER F OR CREDITS IN PPF ACCOUNT NO.10064645522 WITH STATE BANK OF INDIA, SHIVAJI NAGAR, BHOPAL BELONGING TO KU. ANKITA ASAI BE HELD TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 11 . THAT THE ADDITION OF RS. 500/ - CONFIRMED BY THE CIT (APPEALS) AS PER PARA NO.10 - I OF THE ASSESSMENT ORDER FOR CREDITS IN PPF ACCOUNT NO.10064642350 WITH STATE BANK OF INDIA, SHIVAJI NAGAR, BHOPAL BELONGING TO LATE SHRI R.G. ASAI BE HELD TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MAD E BE QUASHED. 12 . THAT THE ADDITION OF RS.1,15,856/ - MADE AS PER PARA NO.10K OF THE ASSESSMENT SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 164 : - ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR CREDITS IN ACCOUNT NO.10064562621 WITH STATE BANK OF INDIA, SHIVAJI NAGAR, BHOPAL BELONGING TO RAMBHAU GHANSHYAM ASAI B E HELD TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 13 . THAT THE ADDITION OF RS. 500/ - MADE AS PER PARA NO.10L OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR CASH CREDITS IN PPF ACCOUNT NO.10064645511 WITH S TATE BANK OF INDIA, SHIVAJI NAGAR, BHOPAL BELONGING TO SMT. JYOTI ASAI BE HELD TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 165 : - 14 . THAT THE ADDITION OF RS.90,000/ - MADE AS PER PARA NO.10M OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR CASH CREDITS IN ACCOUNT NO.53020703267 WITH STATE BANK OF INDORE, SHAHPURA, BHOPAL BELONGING TO SMT. JYOTI ASAI BE HELD TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 15 . THAT THE ADDITION OF RS. 8,58 ,978/ - MADE AS PER PARA NO.10P OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR CREDITS IN ACCOUNT NO.900210100014831 WITH BANK OF INDIA, ARERA COLONY, BHOPAL BELONGING TO SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 166 : - RAMBHAU GHANSHYAM ASAI BE HELD TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 16 . THAT THE ESTIMATED ADDITION OF RS. 98,400/ - CONFIRMED BY THE CIT (APPEALS) AS PER PARA NO.11 OF THE ASSESSMENT ORDER FOR HOUSE HOLD EXPENSES AND EDUCATIONAL EXPENSES BE HELD TO BE BAD AND UNJUSTIFIED. THE ADDITI ON MADE BEING BASED ON ESTIMATE AND CONJECTURES BE QUASHED AND DELETED. 17 . THAT THE ESTIMATED ADDITION OF RS.1,80,000/ - CONFIRMED BY THE CIT (APPEALS) AS PER PARA NO.14 OF THE ASSESSMENT ORDER FOR APPROXIMATE COST OF SYDNEY TOUR UNDER TAKEN BY ASSESSEE, HIS SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 167 : - WIFE AND HIS MINOR SON BE HELD TO BE BAD AND UNJUSTIFIED. THE ADDITION MADE BEING BASED ON ESTIMATE AND CONJECTURES BE QUASHED AND DELETED. 190 . GROUND NO. 1 IS NOT PRESSED BY THE LD. COUNSEL FOR THE ASSESSEE. HENCE, GROUND NO.1 IS DISMISSED AS NOT PRESSED. 191 . GROUND NO. 2 RELATES TO THE ADDITION OF RS. 8,43,000/ - MADE AS PER PARA 6.2 OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT(A) FOR PROFESSIONAL INCOME , AGRICULTURAL INCOME AND ADVANCE RECEIVED AGAINST PLOT AT INDORE SHOWN IN THE CASH FLOW STATEMENT OF SMT. JYOTI ASAI. 192 . THE LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSION WHICH HE MADE FOR GROUND NO. 3 OF THE ASSESSEE FOR ASSESSMENT YEAR 2004 - 05. 193 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 168 : - 194 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE HAVE ALREADY DEALT WITH THIS ISSUE IN DETAIL WHILE DEALING GROUND NO. 3 OF THE ASSESSEE FOR ASSESSMENT YEAR 2004 - 05. THE SAME ARGUMENTS WERE ADOPTED AS TAKE N BEFORE US IN GROUND NO.3 OF THE ASSESSEE FOR ASSESSMENT YEAR 2004 - 05. FOLLOWING THE SAME REASONING, WE DIRECT THE AO TO DELETE THIS ADDITION OF RS. 8,43,000/ - . HOWEVER, IT IS CLARIFIED THAT THE AO WOULD BE AT LIBERTY TO CONSIDER THIS ADDITION IN THE HAND S OF SMT. JYOTI ASAI . GROUND NO. 2 IS ALLOWED. 195 . GROUND NO. 3 RELATES TO ADDITION OF RS. 7,03,377/ - FOR CAPITAL OF DEEPAK ASAI HUF BE HELD TO BE BAD, UNJUSTIFIED AND UNLAWFUL AND BE QUASHED. 196 . WE HAVE ALREADY DEALT WITH THIS ISSUE IN DETAI L IN GROUND NO. 3 OF I.T.(SS)A.NO.155/IND/2015 FOR ASSESSMENT YEAR 2007 - 08. SAME ARGUMENTS WERE ADOPTED AS TAKEN BEFORE US IN APPEAL FOR ASSESSMENT YEAR 2007 - 08. FOLLOWING SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 169 : - THE SAME REASONING, WE DIRECT THE AO TO DELETE THE ADDITION OF RS. 7,03,377/ - . SINC E THE HUF IS SEPARATE ENTITY, THE AO WOULD CONSIDER THIS ADDITION IN THE HANDS OF HUF. GROUND NO. 3 IS ALLOWED. 197 . GROUND NO. 4 RELATES TO ADDITION OF RS. 1,75,300/ - FOR VARIOUS HOUSE HOLD ITEMS. 198 . FACTS APROPOS THIS GROUND ARE THAT T HE VARIOUS BILLS W ERE FOUND AND SEIZED DURING SEARCH AND SEIZURE OPERATION FROM THE RESIDENTIAL PREMISES OF THE ASSESSEE. LATER ON, IN QUESTIONNAIRE U/S 142(1) Q.NO 10, THE ASSESSEE REPLIED THAT ALL THESE ARE REFLECTED IN THE CASH FLOW SUBMITTED. THE AO REJECTED THE CASH FL OW AND ADDED THE FOLLOWING PAYMENTS MADE. AO ALLEGED THAT THE CASH WAS USED FOR DISPOSING OFF THE UNDISCLOSED INCOME OF THE ASSESSEE. THE ADDITION TO INCOME FOR VARIOUS ITEMS FOR ASSESSMENT YEAR 2008 - 09 ARE TABULATED BELOW: - SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 170 : - 2008 - 09 1,75,300 S.B.I INSURA NCE POLICY OF DEEPAK RAM BHAU ASAI HUF DATED 30.09.07 (POLICY NO. 23017219309) 1,00,000 BILL FOR PURCHASE OF SONY VIO INTEL COMPUTER FROM M/S NOTEBOOK PLANET DATED 30.07.07 IN NAME OF R.G ASAI. 53,800 BILL FOR PURCHASE OF VIDEOCON AC FROM NEXT RETAIL SHO P DATED 04.04.07 BY JYOTI ASAI 21,500 TOTAL 1,75,300 LPS D - 2, PG NO 67 - 79 LPS D - 2, PG NO 125 LPS D - 2, PG NO 137 - 138 PB 328 - 339 PB 340 PB 341 199 . THE LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS AS PER THE WRI TTEN SUBMISSIONS SUBMITTED, WHICH IS PLACED ON RECORD. THE WRITTEN SUBMISSION IS REPRODUCED AS UNDER : - SUBMISSIONS: - A . INVESTMENT IN SBI LIFE INSURANCE POLICY AMOUNT RS. 1,00,000/ - (PB 328 - 339) FACTS POLICY BELONGS TO DEEPAK RAMBHAU ASAI HUF. THE SAID HUF APPLIED FOR THIS POLICY ON 01 - 09 - 2007 AND THE FIRST PREMIUM OF RS. 1,00,000/ - WAS REMITTED BY THE SAID HUF THROUGH CHEQUE NO. 917001 DATED 01 - 09 - SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 171 : - 2007 DRAWN ON SB ACCOUNT NO. 1407/127 WITH MPRS BANK MYDT., BHOPAL. SUBMISSIONS: 1 . THE PAYMENT OF POLICY PRE MIUM WAS MADE THROUGH SB ACCOUNT NO 1407/127 OF MPRS BANK, THE SAME IS APPEARING IN THE BALANCE SHEET OF HUF AS ON 31.03.08.(PB 409/ II) 2 . THE PAYMENT IS THROUGH CHEQUE AND IS REFLECTED IN THE BANK STATEMENT (REFER AO PG NO 118 - 119) 3 . THE POLICY DOCUMENTS WERE SEIZED FROM THE RESIDENCE OF THE ASSESSEE SHOULD NOT MEAN THAT THE INCOME OF THE HUF TO BE ONE BELONGING TO THE ASSESSEE. 4 . DEEPAK ASAI (HUF) IS A SEPARATE INCOME - TAX ASSESSE AND RETURN FOR SAME WERE FILED PRIOR TO SEARCH. PB 684 - 691/ III . DEDUCTION U/S. 8 0C WERE ALREADY CLAIMED ON SAID INVESTMENT. PB 687/ III . BILL FOR PURCHASE OF SONY VIO INTEL COMPUTER FROM M/S NOTEBOOK PLANET DATED 30.07.07 IN NAME OF R.G ASAI. (PB 340) SUBMISSIONS: SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 172 : - THIS INVOICE WAS FOUND AT THE RESIDENCE OF THE ASSESSEE AND IS SEIZ ED IN LPS - D2 (PAGE NO. 125). ( PB 340/ II ) THE LAPTOP WAS NOT FOUND AT THE RESIDENCE AT THE TIME FOR SEARCH, AS IT BELONGS TO MR. R.G ASAI. MR. R.G ASAI HAS SUITABLY ANSWERED THE QUERY IN HIS ASSESSMENT PROCEEDINGS DATED 18.03.14 REGARDING THE SOURCE OF P URCHASING THE SAID LAPTOP.(PB 529 - 530/ III). HE STATED TO HAVE PURCHASED IT FROM HIS OWN SOURCES. NO ADDITION ON THE BASIS OF SUSPICION CAN BE MADE AND THE ADDITION ON BASIS OF PRESUMPTION AND ASSUMPTIONS IS NOT JUSTIFIED. DR. R.G. ASAI WAS AN INCOME - TA X ASSESSEE. HE RETIRED AS VETERINARY DOCTOR WITH GOVERNMENT OF M.P. ANY INQUIRY INTO HIS SOURCE SHOULD HAVE BEEN DONE IN HIS OWN CASE. BILL FOR PURCHASE OF VIDEOCON AC FROM NEXT RETAIL SHOP DT. 04.04.07 BY JYOTI ASAI. (PB 341) SUBMISSIONS: THE AC WAS AC QUIRED BY SMT. JYOTI ASAI FROM NEXT RETAIL SHOP, BHOPAL. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 173 : - THE SAME IS DULY REFLECTED IN THE CASH FLOW STATEMENT OF SMT. JYOTI ASAI, SUBMITTED AND MARKED AS CHART 5. THE ADDITION ON BASIS OF SUSPICION AND PRESUMPTIONS IN HANDS OF ASSESSEE, WHEN THE DOCUME NTS ARE IN SUPPORT OF THE ASSESSEES WIFE IS UNJUSTIFIED. 200 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 201 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. 202 . THE IMPUGN ED ADDITIONS ARE IN RESPECT OF THREE ITEMS, NAMELY, INVESTMENT IN INSURANCE POLICIES IN THE NAME OF HUF , SONY VIO INTEL COMPUTER OF RS. 53,800/ - IN THE NAME OF SHRI R.J. ASAI AND VIDEOCON A C. PURCHASED BY SMT. JYOTI ASAI FOR RS. 21,500/ - . THE CONTENTION O F THE ASSESSEE THAT THESE INVESTMENTS CANNOT BE ATTRIBUTED TO HIM AS THE PERSONS, WHO HAD PURCHASED/INVESTED , HAVE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 174 : - THEIR OWN SOURCE OF INCOME. THE ASSESSEE HAS NOTHING TO DO WITH THESE INVESTMENTS. WE FIND IN RESPECT OF PURCHASES MADE BY SHRI R. G. ASAI AN D SMT. JYOTI A SAI , THEY HAVE INDEPENDENT SOURCE OF INCOME . THE AO WOULD BE AT LIBERTY TO CONSIDER THESE INVESTMENTS IN THEIR RESPECTIVE HANDS. SO FAR AS THE INVESTMENT OF HUF IN WHICH THE ASSESSEE IS A KARTA IS CONCERNED, ONUS IS ON THE ASSESSEE TO PROVE T HAT THE INVESTMENT HAS BEEN MADE OUT OF THE FUNDS OF THE HUF. WE, THEREFORE, DIRECT THE AO TO EXAMINE THE SOURCE OF INCOME OF HUF. IF IT IS FOUND THAT THE HUF HAD NO SOURCE OF INCOME TO MAKE SUCH INVESTMENT, THE AO WOULD CONSIDER MAKING THE ADDITION AS PER RULES IN THE HANDS OF KARTA OF HUF . GROUND NO. 4 IS ALLOWED FOR STATISTICAL PURPOSES. 203 . GROUND NO. 5 RELATES TO, ADDITION OF RS. 9,65,363/ - MADE AS PER PARA NO.9 OF THE ASSESSMENT ORDER AND REPLACED BY THE LD. CIT(A) AT RS. 17,89,682/ - . SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 175 : - 204 . THE ABOVE AMOUNT WAS INVESTED FOR ASSESSMENT YEAR 2008 - 09 IN ICICI PRUDENTIAL, THE DETAILS OF WHICH ARE AS UNDER : - CHART 6 : INVESTMENTS IN ICICI POLICIES A.Y. PARTICULAR PAN NO. AMOUNT TOTAL ADDED IN AO FINALLY ENHANCED/ (DELETED) BY CIT(A) IN APPEAL TO I TAT 2008 - 09 JYOTI ASAI AFHPA4045D 6,45,621 15,000 3,01,000 5,08,061 1,80,000 40,000 50,000 50,000 17,89,682 9,65,363 8,24,319 17,89,682 MR. RAKESH ADYPA4113D R. G. ASAI ABCPA4131D URMILA ASAI AKCPA0276E R.B KUMBHARE ACWPK7600C KAMLA BANPK7711G K.C. PARATE AEOPP9784N DEEPAK ASAI ABGPA5291C 205 . WE HAV E ALREADY DEALT WITH THIS ISSUE IN DETAIL WHILE DEALING WITH GROUND NO. 5 OF ASSESSEES APPEAL IN I.T.(SS)A.NO 155/IND/2015 FOR THE ASSESSMENT YEAR 2007 - 08. FACTS BEING SAME, THE SAME ARGUMENTS WERE ADVANCED BEFORE US AS WERE TAKEN BY THE ASSESSEE FOR ASSESSMENT YEAR 2007 - 08. HOWEVER, THE AO WOULD BE FREE TO EXAMINE THE SOURCE OF INCOME IN THE HANDS OF RESPECTIVE INDIVIDUALS, WHO HAVE MADE INVESTMENT IN IC ICI POLICIES. FOLLOWING THE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 176 : - SAME REASONING IN VIEW OF OUR OBSERVATIONS GIVEN IN PARA 149 ABOVE, GROUND NO. 5 IS ALLOWED FOR STATISTICAL PURPOSES. 206 . GROUND NO. 6 RELATES TO THE ADDITION OF RS. 2,40,145/ - MADE AS PER PARA NO. 10 FOR CREDITS IN S.B. ACCO UNT NO1470/127 WITH M.P. RAJYA SAHAKARI BANK, BHOPAL, BELONGING TO DEEPAK ASAI, HUF . 207 . THE AO FOUND THAT THE ASSESSEE HAS DEPOSITED AMOUNT TO ISSUE CHEQUES FOR CLEARING. THERE ARE VARIOUS CHEQUES DEPOSITS WHICH HAVE BEEN LATER ISSUED FOR SOME INVESTMEN T. SINCE THE ASSESSEE SHRI DEEPAK ASAI WAS A SALARIED CLASS EMPLOYEE AND HIS DEPOSITS DID NOT COMMENSURATE WITH THAT OF THE INCOME RECEIVED , HE MADE THE ADDITION OF RS. 2,40,145/ - FOR THE ASSESSMENT YEAR 2008 - 09. ON APPEAL, T HE SAME WAS CONFIRMED BY THE L D. CIT(A). 208 . THE LD. COUNSEL FOR THE ASSESSEE DREW OUR ATTENTION TO PAGE NO. 33 OF HIS SUBMISSIONS AND SUBMITTED SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 177 : - THAT C ASH DEPOSIT OF RS. 87,000/ - WAS MADE IN THE ABOVE ACCOUNT , OUT OF WHICH RS. 72,000 WAS FOR THE MARUTI CAR RENTAL , WHICH WAS ALSO SHO WN IN THE RETURN OF INCOME , OF SHRI DEEPAK RAMBHAU ASAI (HUF) , WHICH IS PLACED IN PB 687/III . A G IFT FROM R.G. ASAI VIDE CHQ NO 255875 AMOUNTING TO RS. 1,50,000/ - WAS ALSO RECEIVED AND IS ALSO REFLECTED IN RETURN OF DEEPAK RAMBHAU ASAI (HUF) . THE GIFT DE ED IS PLACED ON PB 626/ III . 209 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES . 210 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE HAVE GONE THROUGH THE ORDERS OF THE LOW ER AUTHORITIES. WE HAVE ALSO PERUSED THE COMPUTATION OF INCOME AS WELL AS CAPITAL ACCOUNT FOR ASSESSMENT YEAR 2008 - 09 FILED BY DEEPAK ASAI HUF, WHICH IS PLACED AT PAGES 687 AND 688. WE FIND THAT C ASH DEPOSIT OF RS. 87,000/ - WAS MADE IN THE ABOVE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 178 : - ACCOUNT , O UT OF WHICH RS. 72,000 / - WAS FOR THE MARUTI CAR RENTAL , WHICH WAS ALSO SHOWN IN THE RETURN OF INCOME , OF SHRI DEEPAK RAMBHAU ASAI (HUF),WHICH IS PLACED IN PB 687/III . A G IFT FROM R.G. ASAI VIDE CHQ NO 255875 AMOUNTING TO RS. 1,50,000/ - WAS ALSO RECEIVED AND IS ALSO REFLECTED IN RETURN OF DEEPAK RAMBHAU ASAI (HUF). THE GIFT DEED IS PLACED ON PB 626/ III . WE FIND THAT ALL THE ENTRIES ARE REFLECTING IN THE CAPITAL ACCOUNT. WE HAVE ALSO TAKEN THE SAME VIEW WHILE DECIDING THE GROUND NO. 3 FOR ASSESSMENT YEAR 2007 - 08 ABOVE . WE HAVE ALSO GIVEN A FINDING THAT, HOWEVER, THE CLAIM OF THE ASSESSEE THAT THE HUF HAD EARNED RENTAL INCOME FROM MARUTI CAR, THERE IS NO EVIDENCE SUBMITTED BY THE ASSESSEE. THEREFORE, THE SOURCE OF DEPOSIT CLAIMED TO BE OUT OF RENTAL INCOME IS NOT ACCEPTED. THE ADDITION MADE BY THE AO IS SUSTAINED TO THAT EXTENT. GROUND NO. 6 IS PARTLY ALLOWED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 179 : - 211 . GROUND NO. 7 RELATES TO THE ADDITION OF RS. 8,24,769/ - FOR CREDITS IN ICICI BANK A/C NO.028301508839 BELONGING TO SMT. JYOTI ASAI. 212 . THE LD. COUNS EL FOR THE ASSESSEE DREW OUR ATTENTION TO PAGE 34 OF HIS SUBMISSION AND SUBMITTED THAT T HIS ACCOUNT BELONG ED TO SMT. JYOTI ASAI, WH O IS SEPARATELY ASSESSED TO TAX. THE E NTIRE CREDITS IN THE BANK ACCOUNT WERE ADDED INCLUDING C OMMISSION INCOME AT RS. 8,14,50 0 / - AND T HE LIC COMMISSION OF RS. 9,31,501 / - WHICH IS OFFERED IN RETURN OF INCOME ON ACCRUAL BASIS AND PACED AT PB 286 - 287, D IVIDEND I NCOME AT RS. 6,000 / - THE DIVIDEND WARRANT IS PLACED AT PAPER BOOK PAGE PB 653 - 654 AND I NTEREST INCOME AT RS. 4,269 / - . INT EREST IS OFFERED IN R ETURN OF SMT. JYOTI ASAI, WHICH IS PLACED AT PAPER BOOK II AT PAGE NO.286. THE LD. COUNSEL FOR THE ASSESSEE FURTHER CONTENDED THAT SMT. JYOTI ASAI IS FILING HER RETURN EVEN BEFORE THE SEARCH AND SHOWING COMMISSION INCOME IN THE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 180 : - RETURN FILED U/S 139 ALSO. NO MATERIAL WAS POINTED OUT IN THE RETURN TO DISREGARD HER CLAIM. 213 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THAT T HIS ACCOUNT BELONG ED TO SMT. JYOTI ASAI, WH O WAS SEPARATELY ASSESSED TO TAX. WE ALSO FIND THAT T HE E NTIRE CREDITS IN THE BANK ACCOUNT WERE ADDED INCLUDING I NCOME FROM COMMISSION WHICH IS OFFERED FOR TAX IN THE RETURN OF I NCOME ON ACCRUAL BASIS . THE D IVIDEND I NCOME WAS SHOWN FOR WHICH DIVIDEND WARRANT W AS PLACED ON RECORD . THE INTEREST INCOME WAS SHOWN IN THE RETURN AND WAS PLACED ON RECORD. WE FIND THAT THE I NTEREST IS OFFERED IN R ETURN OF SMT. JYOTI ASAI, WHICH IS PLACED AT PAPER BOOK II AT PAGE NO.286. WE FIND THAT SMT. JYOTI ASAI WAS FILING HER RETU RN EVEN BEFORE THE SEARCH AND SHOWING COMMISSION INCOME IN HER RETURN FILED U/S 139 ALSO. NO CONTRARY MATERIAL WAS ALSO EVER FILED TO DISREGARD HER CLAIM. THE HOLDER OF THE ACCOUNT SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 181 : - HAVING INDEPENDENT SOURCE OF INCOME AND HAS OWNED UP THIS BANK ACCOUNT. AS PER OUR VIEW, THE AO WAS NOT JUSTIFIED IN MAKING THE ADDITION IN THE HANDS OF THE ASSESSEE. HOWEVER, THE AO WILL BE AT LIBERTY TO EXAMINE THE ADDITION IN THE HANDS OF THE SMT. JYOTI ASAI. THE AO IS DIRECTED TO DELETE THE ADDITION OF RS. 8,24,769/ - . GROUND NO. 7 IS ALLOWED. 214 . GROUND NO. 8 RELATES TO ADDITION OF RS. 50,216/ - MADE AS PER PARA NO.10E FOR CREDITS IN ICICI BANK ACCOUNT NO.028301500684 BELONGING TO SHRI KAILASHCHAND PARATE. 215 . THE LD. COUNSEL FOR THE ASSESSEE STATED THAT THIS AMOUNT WAS DEPOS ITED IN ICICI BANK, NEW MARKET, BHOPAL A/C NO.028301500684. THE LD. COUNSEL FOR THE ASSESSEE DREW OUR ATTENTION TO PAGE 34 OF HIS SUBMISSIONS AND SUBMITTED THAT T HIS ACCOUNT BELONGS TO HIS BROTHER IN LAW SHRI KAILASH CHAND PARATE, WHO IS WORKING AS REGIO NAL MANAGER WITH MADHYA PRADESH CENTRAL GRAMIN BANK, SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 182 : - CHINDWARA. THE AFFIDAVIT IN THIS REGARD IS ON ( PB 595 - 596/ III). HE IS SEPARATELY ASSESSED TO TAX. HIS INCOME TAX RETURNS FROM A.Y. 2003 - 04 TO 2010 - 11 ARE ON (PB 597 - 604/ III). HIS BANK STATEMENTS WERE NOT FOUND FROM THE RESIDENCE OF ASSESSEE DURING SEARCH AS CONTENDED BY AO, BUT SUBMITTED SUBSEQUENTLY. THE DEPOSIT IN HIS BANK ACCOUNT DOES NOT BELONG TO ASSESSEE. THE LD. COUNSEL FOR THE ASSESSEE STATED THAT THIS ACCOUNT BELONGED TO SHRI KAILASH CHAND PAR ATE AND THE ADDITION BE HELD TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 216 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES . 217 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PE RUSED THE MATERIAL AVAILABLE ON RECORD. WE HAVE ALREADY DEALT WITH THE SIMILAR GROUND AS GROUND NO. 7 OF ASSESSMENT YEAR 2007 - 08. IT IS OBSERVED THAT THE HOLDER OF SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 183 : - THE ACCOUNT OWNED UP THE ACCOUNTS AND THE TRANSACTIONS WERE MADE THEREIN. THE ADDITIONS HAVE BEEN MADE IN THE HANDS OF THE ASSESSEE PURELY ON SUSPICION, WHICH IN OUR VIEW, IS NOT JUSTIFIABLE HOWEVER, THE AO WILL BE AT LIBERTY TO CONSIDER THIS ADDITION IN THE HANDS OF THE BROTHER - IN - LAW, WHO IS THE HOLDER OF THE ACCOUNT. THE AO IS DIRECTED TO DELE TE THE ADDITION OF RS. 50,216/ - . GROUND NO. 8 IS ALLOWED. 218 . GROUND NO. 9 RELATES TO THE ADDITION OF RS. 69,000/ - FOR CASH DEPOSITS IN ICICI BANK A/C NO.0055 01004458 BELONGING TO SHRI DEEPAK ASAI. 219 . THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THIS ACCOUNT BELONGED TO SHRI DEEPAK ASAI. THIS AMOUNT IS ALSO REFLECTED IN CASH FLOW STATEMENT IN FINANCIAL YEAR 200 7 - 0 8 , AT PAGE 7 OF CASH FLOW STATEMENT OF THE ASSESSEE DEEPAK ASAI, WHICH WAS SUBMITTED BEFORE THE AO. THE AO TREATED THE CASH CREDIT AS UNDISCL OSED AND ADDED TO HIS SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 184 : - INCOME FOR ASSESSMENT YEAR 2008 - 0 9 , WHICH WAS CONFIRMED BY THE LD. CIT(A). THE ADDITION MAY PLEASE BE QUASHED AS IT IS DULY EXPLAINED. 220 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 221 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND FROM THE CASH FLOW STATEMENT THAT SHRI DEEPAK ASAI WAS HAVING SUFFICIENT FUNDS TO MAKE THESE DEPOSITS. WE, THEREFORE, DIRECT THE AO TO DELETE THE ADD ITION OF RS. 69,000/ - . 222 . G ROUND NO. 10 RELATES TO THE ADDITION OF RS. 500/ - FOR CREDITS IN PPF ACCOUNT NO.10064645522 WITH STATE BANK OF INDIA, SHIVAJI NAGAR, BHOPAL, BELONGING TO KU. ANKITA ASAI. 223 . THE LD. COUNSEL FOR THE ASSESSEE DREW OUR ATTENTION T O HIS SUBMISSION AT PAGE 35 AND SUBMITTED THAT THIS ACCOUNT NO.10064645522 IS OF STATE BANK OF INDIA, SHIVAJI SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 185 : - NAGAR, BHOPAL AND BELONGED TO KU. ANKITA. THE LD. COUNSEL STATED THAT INTEREST ON PPF ACCOUNT WAS RS. 3 3 ,959/ - AND THE AMOUNT OF RS. 500/ - WAS D EPOSITED IN CASH . THE AMOUNT IS WELL ESTABLISHED AND THE SAME MAY BE QUASHED. 224 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 225 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL A VAILABLE ON RECORD. WE FIND FROM THE CASH FLOW STATEMENT THAT THE ASSESSEE WAS HAVING SUFFICIENT FUNDS TO MAKE THESE DEPOSITS. WE, THEREFORE, DIRECT THE AO TO DELETE THE ADDITION OF RS. 500/ - . GROUND NO. 10 IS ALLOWED. 226 . GROUND NO. 11 RELATES TO ADDITIO N OF RS. 500/ - FOR CREDITS IN PPF ACCOUNT NO.10064642350 WITH STATE BANK OF INDIA, SHIVAJI NAGAR, BHOPAL, BELONGING TO LATE SHRI R. G. ASAI. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 186 : - 227 . THE LD. COUNSEL FOR THE ASSESSEE TOOK US AT PAGE 35 OF HIS SUBMISSIONS AND STATED THAT THE ACCOUNT NO.10064642 350 BELONGED TO SHRI R. G. ASAI. THE INTEREST ON PPF WAS RS. 13,591/ - AND AMOUNT OF RS. 500/ - WAS DEPOSITED IN CASH. THE AMOUNT OF RS. 500/ - BE DELETED. 228 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 229 . WE HAVE CON SIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IT IS OBSERVED THAT THE HOLDER OF THE ACCOUNT OWNED UP THE ACCOUNT AND THE TRANSACTION WAS MADE THEREIN. THE ADDITION HAS BEEN MADE IN THE HANDS OF THE ASSESSEE PURELY ON SU SPICION, WHICH IN OUR VIEW, IS NOT JUSTIFIABLE HOWEVER, THE AO WOULD BE AT LIBERTY TO CONSIDER THIS ADDITION IN THE HANDS OF THE SHRI R. G. ASAI, WHO IS THE HOLDER OF THE ACCOUNT. THE AO IS DIRECTED TO DELETE THE ADDITION OF RS. 500/ - . GROUND NO. 10 IS ALL OWED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 187 : - 230 . GROUND NO. 12 RELATES TO ADDITION OF RS. 1,15,856/ - M ADE AS PER PARA NO.10K FOR CRED ITS IN A/C NO. 10064562621 WITH STATE BANK OF INDIA, SHIVAJI NAGAR, BHOPAL, BELONGING TO RAMBHAU GHANSHYAM ASAI . 231 . THE LD. COUNSEL FOR THE ASSESSEE SUBMITTE D THAT THE ABOVE ACCOUNT BELONGED TO SHRI RAMJBHAU GHANSHYAM ASAI. THE LD. COUNSEL FOR THE ASSESSEE DREW OUR ATTENTION TO PAGE NO. 36 OF HIS SUBMISSION AND SUBMITTED THAT THIS THE AMOUNT OF RS. 1,15,856/ - WAS THE AMOUNT OF MATURITY OF SIDBI BONDS. THE BON DS WERE PURCHASED IN ASSESSMENT YEAR 2004 - 05 AT RS. 1,00,000/ - . THE AMOUNT WAS GIVEN BY CHEQUE. THE SAME MAY BE DELETED, AS THIS DOES NOT BELONG TO SHRI DEEPAK ASAI. 232 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORIT IES. 233 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE ACCOUNT SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 188 : - BELONG ED TO FATHER OF THE ASSESSEE, WHO WAS HAVING INDEPENDENT SOURCE OF INCOME AND HAS OWNED UP THIS ACCOUNT. AS PER OUR VIEW, THE AO WAS NOT JUSTIFIED IN MAKING THE ADDITION IN THE HANDS OF THE ASSESSEE. HOWEVER, THE AO WILL BE AT LIBERTY TO EXAMINE THE ADDITION IN THE HANDS OF THE ASSESSEES FATHER. WE, THEREFORE, DIRECT THE AO TO DELETE THE ADDITION. GROUND NO. 12 IS ALLOWED. 234 . GROUND NO.13 RELATES TO ADDITION OF RS. 500/ - MADE AS PER PARA NO.10 L FOR CASH CREDITS IN PPF ACCOUNT NO.10064645511 WITH STATE BANK OF INDIA, SHIVAJI NAGAR, BHOPAL, BELONGING TO SMT. JYOTI ASAI. 235 . THE LD. COUNSEL FOR THE ASSESSEE DREW OUR ATTENTION TO PAGE N O.36 OF HIS SUBMISSIONS AND SUBMITTED THAT THIS ACCOUNT BELONGED TO SMT. JYOTI ASAI AND THE AMOUNT OF RS. 500/ - WAS THE CASH DEPOSIT AND REFLECTED IN CASH FLOW. THE ADDITION BE DELETED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 189 : - 236 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 237 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE HOLDER OF THE ACCOUNT HAVING INDEPENDENT SOURCE OF INCOME AND HAS OWNED UP THIS BANK ACCOUNT. AS PER OUR VIEW, THE AO WAS NOT JUSTI FIED IN MAKING THE ADDITION IN THE HANDS OF THE ASSESSEE. HOWEVER, THE AO WILL BE AT LIBERTY TO EXAMINE THE ADDITION IN THE HANDS OF THE SMT. JYOTI ASAI. THE AO IS DIRECTED TO DELETE THE ADDITION OF RS. 500/ - . GROUND NO. 1 3 IS ALLOWED. 238 . GROUND NO. 14 REL ATES TO ADDITION OF RS. 90,000/ - MADE AS PER PARA NO.10M FOR CASH CREDITS IN A/C NO.53020703267 WITH STATE BANK OF INDORE, SHAHPURA, BHOPAL , BELONGING TO SMT. JYOTI ASAI. 239 . THE LD. COUNSEL FOR THE ASSESSEE DREW OUR ATTENTION TO PAGE NO.36 OF HIS SUBMISS IONS AND SUBMITTED SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 190 : - THAT THIS ACCOUNT BELONGED TO SMT. JYOTI ASAI AND THE AMOUNT OF RS. 9 0,000/ - WAS THE CASH DEPOSIT AND REFLECTED IN CASH FLOW. THE ADDITION BE DELETED. 240 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITI ES. 241 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE HOLDER OF THE ACCOUNT HAVING INDEPENDENT SOURCE OF INCOME AND HAS OWNED UP THIS BANK ACCOUNT. AS PER OUR VIEW, THE AO WAS NOT JUSTIFIED IN MAKING T HE ADDITION IN THE HANDS OF THE ASSESSEE. HOWEVER, THE AO WILL BE AT LIBERTY TO EXAMINE THE ADDITION IN THE HANDS OF THE SMT. JYOTI ASAI. THE AO IS DIRECTED TO DELETE THE ADDITION OF RS. 9 0,000/ - . GROUND NO. 1 4 IS ALLOWED. 242 . GROUND NO. 15 RELATES TO AD DITION OF RS. 8,58,978/ - MADE AS PER PARA 10P FOR CREDITS IN A/C SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 191 : - NO.900210100014831 WITH BANK OF INDIA, ARERA COLONY, BHOPAL, BELONGING TO RAMBHAU GHANSHYAM ASAI. 243 . THE LD. COUNSEL FOR THE ASSESSEE STATED THAT THE ABOVE ACCOUNT BELONGED TO SHRI RAMBHAU GHANSHYAM ASAI. THE LD. COUNSEL FOR THE ASSESSEE TOOK US AT PAGE 36 - 37 OF HIS SUBMISSION AND STATED THAT THE AMOUNT OF RS. 78,800 / - WAS RECEIVED OUT OF INCOME FROM VETERINARY PRACTICE . RS. 4 LAKH WAS RECEIVED OUT OF SALE OF PLOT. THE SALE DEED IS PLACED A T PAPER BOOK PAGES 744 TO 7 7 0 . AN AMOUNT OF RS. 41,361/ - WAS TOWARDS FD MATURITY. THE AMOUNT OF RS. 1,47,507/ - WAS OUT OF RBI BOND MATURITY AND RS. 50,000/ - WAS THE CHEQUE OF SON. THE AMOUNT IS WELL ESTABLISHED. THE ADDITION BE DELETED. 244 . THE LD. DEPA RTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 245 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 192 : - THE HOLDER OF THE JOINT ACCOUNT IS RAMBHAU GHANSYAM ASAI FATHER OF THE ASSESSEE. THE SOURCE WAS STATED TO BE INCOME FROM PRACTICE, SALE OF PLOT, F.D. MATURITY , RBI BOND MATURITY AND CHEQUE OF SON. WE ARE OF THE VIEW THAT THE AO WAS NOT JUSTIFIED IN MAKING THE ADDITION IN THE HANDS OF THE ASSESSEE. HOWEVER, HE WOULD BE AT LIB ERTY TO MAKE ENQUIRY. THE AO IS DIRECTED TO DELETE THE ADDITION. GROUND NO. 1 5 IS ALLOWED. 246 . GROUND NO. 16 RELATES TO ADDITION OF RS. 98,400/ - AS PER PARA 11 FOR HOUSE HOLD EXPENSES AND EDUCATIONAL EXPENSES. 247 . WE HAVE ALREADY DEALT WITH THIS ISSUE IN D ETAIL IN GROUND NO.6 (PARAS NO.20 23 ) OF THE ASSESSEES APPEAL IN I.T.(SS)A.NO. 152/IND/2015 FOR ASSESSMENT YEAR 2004 - 05. THE SAME ARGUMENTS WERE ADOPTED AS WERE TAKEN IN ASSESSMENT YEAR 2004 - 05. THE ADDITION MADE WAS PURELY BASED ON THE CONJECTURES AN D SURMISES. FOLLOWING THE SAME SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 193 : - REASONING, WE DIRECT THE AO TO DELETE THE ADDITION OF RS. 98,400/ - . GROUND NO. 16 IS ALLOWED. 248 . GROUND NO.17 RELATES TO THE ADDITION OF RS. 1,80,000/ - AS PER PARA 14 FOR APPROXIMATE COST OF SYDNEY TOUR UNDERTAKEN BY THE A SSESSEE, HIS WIFE AND HIS MINOR SON. 249 . DURING THE COURSE OF ASSESSMENT PROCEEDINGS, MR. DEEPAK ASAI & JYOTI ASAI WAS ASKED TO JUSTIFY THE SOURCE OF INVESTMENT IN VARIOUS FOREIGN TRAVEL WHICH HAS BEEN UNDERTAKEN BY THEM. THEY HAD UNDERTAKEN FOLLOWING TRIP S ABROAD DURING THE PERIOD RELEVANT TO ASSESSMENT YEAR 2004 - 05 TO 2009 - 10 : - S.NO. PLACE DATE OF DEPARTURE DATE OF ARRIVAL TRAVELLER 1 MALAYSIA AND SINGAPORE 21.11.2004 12.12.2004 DEEPAK ASAI 2 SYDNEY 14.12.2007 19.12.2007 JYOTI ASAI, DEEPAK ASAI , SHO BHIT ASAI 3. BEIJING 01.07.2009 06.07.2009 JYOTI ASAI, DEEPAK ASAI , SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 194 : - SHOBHIT ASAI ANKITA ASAI DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THEY WERE ASKED TO JUSTIFY THE DETAILS OF EXPENDITURE FOR THE ABOVE MENTIONED TRIPS AS WELL AS SOURCE OF ABOV E MENTIONED EXPENDITURE ALONGWITH PROOF. REGARDING THE TRIP TO SYDNEY FOR THREE PEOPLE, IT WAS CLAIMED THAT MRS. JYOTI ASAI WAS SPONSORED BY ICICI WHILE EXPENDITURE OF RS. 60,000/ - EACH FOR DEEPAK ASAI AND SHOBHIT ASAI WAS BORNE BY SELF. NO SOURCE OF EXPEN DITURE IN ABOVE MENTIONED FOREIGN TRIPS WAS PROVIDED FOR ALL THE THREE MEMBERS. NO PROOF OF THE TRIP REGARDING SPONSORSHIP FROM ICICI WAS GIVEN. THE AO REQUESTED THE RATES FROM TRAVEL AGENCY FOR TRAVEL AND STAY FOR SAME AMOUNT OF DURATION AND PERIOD. ACCOR DING TO THE RATES GIVEN A TRIP TO SYDNEY WOULD COST RS. 58,300/ - PER PERSON. THE AIR FARE WOULD COST RS. 50,000/ - PER PERSON. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 195 : - SINCE NO JUSTIFICATION FOR THE TRIP WAS GIVEN, THE AO WAS FORCED TO APPROXIMATE THE RATES BASED ON THE APPROXIMATIONS GIVEN BY TRA VEL AGENCY. FURTHER THE COST OF SYDNEY TRIP FOR 3 PEOPLE IS BEING APPROXIMATED AT RS. 3,24,900/ - . THIS AMOUNT WAS BEING ADDED SUBSTANTIVE TO THE INCOME OF MR. DEEPAK ASAI AND PROTECTIVELY TO THE INCOME OF MRS. JYOTI ASAI FOR ASSESSMENT YEAR 2008 - 09 . 250 . ON APPEAL, THE LD. CIT(A) CONFIRMED THE AMOUNT OF RS. 1, 80,000/ - TOWARDS THE SYDNEY TRIP. 251 . THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT THE ADDITION OF RS. 1,80,000/ - MADE AS PER PARA NO. 14 OF THE ASSESSMENT ORDER AN D CONFIRMED BY THE CIT(A) FOR APPR OXIMATE COST OF SYDNEY TOUR UNDER TAKEN BY THE ASSESSEE , HIS WIFE AND SON WAS ON BEHALF OF ICICI FOR HIS WIFE. THE TOUR UNDER TAKEN WAS FREE OF COST TO THE ASSESSEE . THE ADDITION MADE WAS, THEREFORE , HIGHLY DISPUTED AND IS REQUESTED TO BE DELETED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 196 : - 252 . THE LD. DEPARTMENTAL REPRESENTATIVE OPPOSED THE SUBMISSIONS AND RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 253 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IN THE YEAR UNDER APPEAL, IT IS THE CASE OF THE ASS ESSEE THAT THIS TRIP WAS SPONSORED BY THE ICICI . THIS FACT NEEDS EXAMINATION IN THE CASE OF ASSESSEES WIFE. WE, THEREFORE, DIRECT THE AO TO DELETE THIS ADDITION IN THE HANDS OF THE ASSESSEE. WE OBSERVE THAT AS PER THESE LETTERS, THE EXPENSES WERE BORNE BY THE GOVERNMENT. THEREFORE, WE DIRECT THE AO TO DELETE THE ADDITION. 254 . IN THE RESULT, THE ASSESSEES APPEAL I.T.(SS)A.NO. 156/IND/2016 FOR ASSESSMENT YEAR 2008 - 09 IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. I.T.(SS)A.NO. 157/IND/2015 A.Y. 2009 - 1 0 : SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 197 : - 255 . THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEAL : - 1 . THAT THE ASSESSMENT MADE U/S 153A R.W.S.143(3) OF THE INCOME - TAX ACT BE HELD TO BE BAD IN LAW AND ON FACTS AND BE QUASHED. 2 . THAT THE ADDITION OF RS.11,72,000/ - MADE AS PER PARA 6.2 OF THE A SSESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR PROFESSIONAL INCOME, AGRICULTURAL INCOME, ADVANCE RECEIVED AGAINST PLOT AT INDORE AND ADVANCE RECEIVED AGAINST SALE OF AGRICULTURAL LAND SHOWN IN THE CASH FLOW STATEMENT OF SMT. JYOTI ASAI BE HELD TO B E BAD, UNLAWFUL AND UNJUSTIFIED WHEN SMT. JYOTI ASAI IS SEPARATELY ASSESSED TO TAX AND HAD BEEN FILING HER INCOME TAX RETURNS SINCE LONG. THE ADDITION OF RS.11 ,72,000/ - MADE BE THEREFORE QUASHED AND DELETED. 3 . THAT THE ADDITION OF RS.10,45,094/ - MADE AS PER PARA NO.7A OF THE ASSESSMENT ORDER AND CONFIRMED BY THE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 198 : - CIT (APPEALS) FOR CAPITAL OF SMT. URMILA ASAI BE HELD TO BE BAD, UNJUSTIFIED AND UNLAWFUL AND BE QUASHED. 4 . THAT THE ADDITION OF RS.13,34,850/ - MADE AS PER PARA NO.7A OF THE ASSESSMENT ORDER AND CONFI RMED BY THE CIT (APPEALS) FOR CAPITAL OF SMT. VANVASI PARATE BE HELD TO BE BAD, UNJUSTIFIED AND UNLAWFUL AND BE QUASHED. 5 . THAT THE ADDITION OF RS.1,93,100/ - MADE AS PER PARA NO.7A OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR VARIOUS HOUSE HOLD ITEMS BE HELD TO BE BAD, UNJUSTIFIED AND UNLAWFUL AND BE QUASHED. 6 . THAT THE ADDITION OF RS.12,500/ - CONFIRMED BY THE CIT (APPEALS) AS PER PARA NO.8B OF THE ASSESSMENT ORDER FOR PAYMENTS MADE AGAINST FLAT AT AKRITI GREENS, BHOPAL BE HELD TO BE BAD, UN JUSTIFIED AND UNLAWFUL AND BE QUASHED. 7 . THAT THE ADDITION OF RS.5,30,000/ - MADE AS PER PARA NO.8C OF THE ASSESSMENT ORDER AND CONFIRMED BY THE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 199 : - CIT (APPEALS) FOR PAYMENTS MADE AGAINST PURCHASE OF SHOP AT BHANDARA (MAHARASHTRA) BE HELD TO BE BAD, UNJUSTIFIED AND UNLAWFUL AND BE QUASHED. 8 . THAT THE ADDITION OF RS.9,65,363/ - MADE AS PER PARA NO.9 OF THE ASSESSMENT ORDER AND REPLACED BY THE CIT (APPEALS) AT RS.15,11,670/ - BE HELD TO BE OUT OF CONTEXT AND WITHOUT ANY BASIS. THE ADDITION MADE BE HELD TO BE BAD AND UNJUSTIFIED AND BE QUASHED. 9 . THAT THE ADDITION OF RS.1,02,027/ - MADE AS PER PARA NO.10 OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR CREDITS IN SB ACCOUNT NO.1470/127 WITH MP RAJYA SAHAKARI BANK, BHOPAL BELONGING TO DEEPAK ASAI HUF BE HELD TO BE BAD, UNJUSTIFIED AND UNLAWFUL AND BE QUASHED. 10 . THAT THE ADDITION OF RS.8,36,153/ - MADE AS PER PARA NO.10B OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR CREDITS IN ICICI BANK ACCOUNT NO.028301508839 BELONGING TO SMT. JYOTI SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 200 : - ASAI BE HE LD TO BE BAD AND UNJUSTIFIED AND BE QUASHED. 11 . THAT THE ADDITION OF RS.83,864/ - MADE AS PER PARA NO.10E OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR CREDITS IN ICICI BANK ACCOUNT NO.028301500684 BELONGING TO SHRI KAILASHCHAND PARATE BE HEL D TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 12 . THAT THE ADDITION OF RS.15,000/ - MADE AS PER PARA NO.10G OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR CASH DEPOSITS IN ICICI BANK ACCOUNT NO.005501004458 BELONGING TO SHRI DEEPAK ASAI BE HELD TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 13 . THAT THE ADDITION OF RS.62,750/ - CONFIRMED BY THE CIT (APPEALS) AS PER PARA NO.10H OF THE ASSESSMENT ORDER FOR CREDITS IN PPF ACCOUNT NO .10064645522 WITH STATE BANK OF INDIA, SHIVAJI NAGAR, BHOPAL SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 201 : - BELONGING TO KU. ANKITA ASAI BE HELD TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 14 . THAT THE ADDITION OF RS.500/ - CONFIRMED BY THE CIT (APPEALS) AS PER PARA NO. 10 - 1 OF THE ASSESSMENT ORDER FOR CREDITS IN PPF ACCOUNT NO.10064642350 WITH STATE BANK OF INDIA, SHIVAJI NAGAR, BHOPAL BELONGING TO LATE SHRI R.G. ASAI BE HELD TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 15 . THAT THE ADDIT ION OF RS.500/ - MADE AS PER PARA NO.10L OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR CASH CREDITS IN PPF ACCOUNT NO.10064645511 WITH STATE BANK OF INDIA, SHIVAJI NAGAR, BHOPAL BELONGING TO SMT. JYOTI ASAI BE HELD TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 16 . THAT THE ADDITION OF RS.10,000/ - MADE AS PER PARA SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 202 : - NO.10M OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR CASH CREDITS IN ACCOUNT NO.53020703267 WITH STATE BANK OF INDORE, SHAHPURA, BHO PAL BELONGING TO SMT. JYOTI ASAI BE HELD TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 17 . THAT THE ADDITION OF RS.3,46,746/ - MADE AS PER PARA NO.10P OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR CREDITS IN ACCOUNT NO.900210100014831 WITH BANK OF INDIA, ARERA COLONY, BHOPAL BELONGING TO RAMBHAU GHANSHYAM ASAI BE HELD TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 18 . THAT THE ESTIMATED ADDITION OF RS.1,08,000/ - CONFIRMED BY THE C IT (APPEALS) AS PER PARA NO.11 OF THE ASSESSMENT ORDER FOR HOUSE HOLD EXPENSES AND EDUCATIONAL EXPENSES BE HELD TO BE BAD AND UNJUSTIFIED. THE ADDITION MADE BEING BASED ON SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 203 : - ESTIMATE AND CONJECTURES BE QUASHED AND DELETED. 19 . THAT THE ADDITION OF RS.70,000/ - M ADE AS PER PARA NO.13 OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR GIFT RECEIVED BY DEEPAK ASAI HUF THROUGH ACCOUNT PAYEE CHEQUE RECEIVED FROM RAMBHAU ASAI BE HELD TO BE BAD, UNJUSTIFIED AND UNREASONABLE AND BE QUASHED. 256 . GROUND NO. 1 IS NOT PRESSED BY THE LD. COUNSEL FOR THE ASSESSEE. HENCE, GROUND NO.1 IS DISMISSED AS NOT PRESSED. 257 . GROUND NO. 2 RELATES TO THE ADDITION OF RS. 11,72,000/ - MADE AS PER PARA 6.2 OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT(A) FOR PROFESSIONAL IN COME, AGRICULTURAL INCOME AND ADVANCE RECEIVED AGAINST PLOT AT INDORE SHOWN IN THE CASH FLOW STATEMENT OF SMT. JYOTI ASAI. 258 . THE LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSION WHICH HE MADE FOR GROUND NO. 3 OF THE ASSESSEE FOR ASSESSMENT YEAR 2 004 - 05. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 204 : - 259 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 260 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE HAVE ALREADY DEALT WITH THIS ISSUE IN DETAIL WHILE DEA LING GROUND NO. 3 OF THE ASSESSEE FOR ASSESSMENT YEAR 2004 - 05. THE SAME ARGUMENTS WERE ADOPTED AS TAKEN BEFORE US IN GROUND NO.3 OF THE ASSESSEE FOR ASSESSMENT YEAR 2004 - 05. FOLLOWING THE SAME REASONING, WE DIRECT THE AO TO DELETE THIS ADDITION OF RS. 11,7 2,000/ - . GROUND NO. 2 IS ALLOWED. 261 . GROUND NO. 3 RELATES TO ADDITION OF RS. 10,45,094/ - MADE AS PER PARA NO.7A FOR CAPITAL OF SMT. URMILA ASAI. 262 . FACTS APROPOS THIS GROUND ARE THAT D URING THE COURSE OF SEARCH PROCEEDINGS , SEVERAL DOC UMENTS WERE FO UND AND IMPOUNDED. O NE SUCH DOCUMENT LPS - D1 PG. NO 9 TO 10 CONTAINING THE COMPUTATION OF RETURN FOR A.Y. 2009 - 10 OF SMT. URMILA ASAI (MOTHER OF ASSESSEE) WAS FOUND. THE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 205 : - RETURN SHOW ED INCOME FROM MONEY - LENDING BUSINESS AND THE ADDRESS WAS GIVEN OF ONE CHART ERED ACCOUNTANT OF UJJAIN. ON ENQUIRY, IT WAS FOUND THAT ASSESSEES MOTHER WAS 80 Y EA RS OLD LADY RESIDING AT BHOPAL. THE CAPITAL ACCOUNT SHOW ED OPENING BALANCE OF RS. 9,29,439/ - AND NET INCOME OF RS. 1,14,800/ - . SINCE THE ASSESSEE COULD NOT PROVIDE ANY DOC UMENT, THE AO TREATED THE TOTAL CAPITAL AS UNDISCLOSED INCOME OF ASSESSEE AND ADDED TO HIS TOTAL INCOME FOR A.Y. 2009 - 10. THE LD CIT(A) CONFIRMED THE ADDITIONS MADE CONTENDING THAT THE RETURNS WERE FILED SHOWING UNSUBSTANTIATED BUSINESS AND OTHER INCOMES O NLY TO EXPLAIN AND JUSTIFY THE UNACCOUNTED INCOME OF THE ASSESSEE HIMSELF. 263 . THE LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS AS PER WRITTEN SUBMISSION SUBMITTED, WHICH IS PLACED ON RECORD. THE WRITTEN SUBMISSION IS REPRODUCED AS UNDER : - SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 206 : - S UBMISSIONS: 1 . SMT. URMILA ASAI IS A SEPARATE INCOME TAX ASSESSEE UNDER INCOME TAX ACT. ONLY BECAUSE HER COMPUTATION FOR A.Y. 2008 - 09 AND A.Y. 2009 - 10 WERE FOUND FROM THE RESIDENCE OF ASSESSEE, IT CANNOT BE PRESUMED THAT HER CAPITAL BELONGS TO THE ASSESSEE. 2 . ASSESSEES MOTHER WAS FILING HER RETURN OF INCOME, MUCH BEFORE THE SEARCH. HER RETURNS WERE VALIDLY ACCEPTED BY THE DEPARTMENT. MONEY LENDING INCOME WAS ALREADY OFFERED EARLIER. A.Y. FILED ON PB 2008 - 09 24.04.2009 737 - 738 2009 - 10 06.06.2009 740 - 742 3 . JUST BECAUSE, THESE COMPUTATION CONTAINING MONEY LENDING BUSINESS INCOME WERE FOUND DURING SEARCH, THE LD AO PRESUMED IT TO BE ASSESSEES UNACCOUNTED SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 207 : - INCOME. WE TAKE SUPPORT FROM THE DECISION OF DHAKESWARI COTTON MILLS LTD. V. CIT [1954] 26 ITR 775 (SC), WHERE IN IT WAS HELD THAT THE INCOME - TAX OFFICER IS NOT ENTITLED TO MAKE A PURE GUESS AND MAKE AN ASSESSMENT WITHOUT REFERENCE TO ANY EVIDENCE OR ANY MATERIAL AT ALL. THERE MUST BE SOMETHING MORE THAN BARE SUSPICION TO SUPPORT THE ASSESSMENT UNDER SECTION 23( 3). 4 . THE THEORY OF TAXING THE RIGHT PERSON AS PER THE HONBLE S.C IN CASE OF ITO VS ATCHIACH (CH) (1996) 218 ITR 239 DOES NOT HOLD GOOD HERE BECAUSE THE LD AO ONLY ON THE BASIS OF SUSPICION AND PRESUMPTION, ADDED THE CAPITAL IN HANDS OF ASSESSEE. IT IS NO T ESTABLISHED BY THE LD AO AS HOW ASSESSEE IS THE RIGHT PERSON. 5 . NOTHING INCRIMINATING WAS FOUND TO SHOW THAT THIS IS UNACCOUNTED INCOME OF ASSESSEE. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 208 : - 6 . OPENING CAPITAL OF SMT. URMILA ASAI AS ON 01.04.2007 WAS ACCEPTED BY DEPARTMENT. NO DISALLOWANCE FOR SA ME WAS DONE. PB 739/ III. IT IS THEREFORE PRAYED THAT THE ADDITION BEING PURELY BASED ON SUSPICION AND NO EVIDENCE AT ALL, DESERVES TO BE DELETED . 264 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 265 . WE HAVE CONSID ERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE ISSUE IS WHETHER OPENING CAPITAL OF RS. 9,29,439/ - WAS THE INCOME OF THE ASSESSEE RELATED TO SMT. URMILA ASAI, MOTHER OF THE ASSED. AUTHORITIES BELOW HAVE NOT ACCEPTED THIS OPENING BALANCE ON THE BASIS THAT SMT. URMILA ASAI HAD NO INDEPENDENT SOURCE OF INCOME. THERE IS NO DISPUTE WITH REGARD TO THE FACT THAT SMT. URMILA ASAI IS NOT DEPENDING UPON THE ASSESSEE AS PER MATERIAL AVAILABLE ON RECORD. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 209 : - FATHER OF THE ASSESSEE RETIR ED AS A VETERINARY DOCTOR . IT IS A COMMON PRACTICE IN INDIAN HOUSE - HOLD THAT HOUSE LADY ALWAYS MAKES SMALL SAVINGS OUT OF THE SALARY OF HER HUSBAND AND GIFTS RECEIVED DURING HER LIFE TIME. THEREFORE, IN OUR VIEW, REJECTING THE CLAIM OF OPENING CAPITAL BY THE REVENUE AUTHORITIES IS NOT JUSTIFIED. THE QUANTUM OF SAVING MAY DIFFER FROM INDIVIDUAL TO INDIVIDUAL HAVING REGARD TO THE FAMILY BACKGROUND AND SOURCE OF INCOME. THESE ASPECTS HAVE NOT BEEN EXAMINED BY THE REVENUE AUTHORITIES. WE, THEREFORE, DIRECT T HE AO TO DELETE THIS ADDITION AND THE AO WOULD BE AT LIBERTY TO EXAMINE ADDITION OF THIS AMOUNT IN THE HANDS OF THE MOTHER OF THE ASSESSEE. HOWEVER, THE AO WOULD EXAMINE THE QUANTUM OF OPENING CAPITAL AND DECIDE ACCORDINGLY TO MAKE ADDITION IN THE HANDS OF THE MOTHER OF THE ASSESSEE, WHO BEING A SEPARATE ENTITY. THIS GROUND OF APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 210 : - 266 . GROUND NO. 4 RELATES TO THE ADDITION OF RS. 13,34,850/ - FOR CAPITAL OF SMT. VANVASI PARATE . 267 . FACTS APROPOS THIS GROUND ARE THAT D URING THE COURSE OF SEARCH PROCEEDINGS , SEVERAL DOCUMENTS WERE FOUND AND IMPOUNDED. O NE SUCH DOCUMENT LPS - D3 PG. NO 44 CONTAIN ED THE COMPUTATION OF RETURN FOR A.Y. 2009 - 10 OF SMT. VANVASI PRATE (MOTHER IN LAW OF ASSESSEE) . RETURN OF SMT. VANVASI PARATE WA S FILED PRIOR TO SEARCH ON 17.09.2009 , WHICH IS PLACED ON PAPER BOOK PAGES 771 - 774 OF P.B.III . INCOME FROM MONEY - LENDING AND IMITATION JEWELLERY BUSINESS WAS ALREADY OFFERED PRIOR TO SEARCH. THE RETURN SHOW ED INCOME FROM MONEY LENDING BUSINESS AND TRADING OF IMITATION JEWELLERY AND THE ADDRESS WAS GIVEN OF ONE CHARTERED ACCOUNTANT OF UJJAIN. THE AO O N ENQUIRY FOUND THAT ASSESSEES MOTHER - IN - LAW WA S A N 80 Y EA RS OLD LADY RESIDING AT BALAGHAT. THE CAPITAL ACCOUNT SHOW ED OPENING BALANCE OF RS. 11,13,400/ - AND NET INCOME SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 211 : - OF RS. 2,21,450/ - . SINCE THE ASSESSEE COULD NOT PROVIDE ANY DOCUMENT, THE AO TREATED THE TOTAL CAPITAL AS UNDISCLOSED INCOME OF ASSESSEE AND ADDED TO HIS TOTAL INCOME FOR A.Y. 2009 - 10. ON APPEAL, T HE LD CIT(A) CONFIRMED THE ADDITION MADE CONTEN DING THAT THE RETURNS WERE FILED SHOWING UNSUBSTANTIATED BUSINESS AND OTHER INCOMES ONLY TO EXPLAIN AND JUSTIFY THE UNACCOUNTED INCOME OF THE ASSESSEE HIMSELF. 268 . THE LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS BEFORE THIS BENCH AS SUBMITTED, W HICH IS ON RECORD. FOR THE SAKE OF CLARITY, WE ARE REPRODUCING THE WRITTEN SUBMISSIONS AS BELOW : - SUBMISSIONS: 1 . RETURN OF SMT. VANVASI PARATE WAS FILED PRIOR TO SEARCH ON 17.09.2009. PB 771 - 774. INCOME FROM MONEY LENDING AND IMITATION JEWELLERY BUSINES S WAS ALREADY OFFERED PRIOR TO SEARCH. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 212 : - 2 . SMT. VANVASI PARATE IS A SEPARATE INCOME TAX ASSESSEE UNDER INCOME TAX ACT. RETURN OF SMT. VANVASI PARATE WAS FILED PRIOR TO SEARCH ON 17.09.2009. PB 771 - 774. INCOME FROM MONEY LENDING AND IMITATION JEWELLERY BUSINESS WAS ALREADY OFFERED PRIOR TO SEARCH. DETAILS OF LOAN GIVEN AND IMITATION JEWELLERY BUSINESS ARE AT PB 777 - 784/ III . 3 . ONLY BECAUSE HER COMPUTATION FOR A.Y. 2009 - 10 WAS FOUND FROM THE RESIDENCE OF ASSESSEE, IT CANNOT BE PRESUMED THAT HER INCOME BELONGS TO T HE ASSESSEE. 4 . SHE WAS FILING HER RETURN OF INCOME, MUCH BEFORE THE SEARCH AND HER RETURNS WERE VALIDLY ACCEPTED BY THE DEPARTMENT. JUST BECAUSE, THESE COMPUTATION CONTAINING MONEY LENDING BUSINESS/TRADING OF IMITATION JEWELLERY INCOME WERE FOUND DURING SEAR CH, THE LD AO PRESUMED IT TO BE ASSESSEES UNACCOUNTED INCOME. WE TAKE SUPPORT FROM THE DECISION OF DHAKESWARI COTTON SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 213 : - MILLS LTD. V. CIT [1954] 26 ITR 775 (SC), WHEREIN IT WAS HELD THAT THE INCOME - TAX OFFICER IS NOT ENTITLED TO MAKE A PURE GUESS AND MAKE AN ASSESSMENT WITHOUT REFERENCE TO ANY EVIDENCE OR ANY MATERIAL AT ALL. THERE MUST BE SOMETHING MORE THAN BARE SUSPICION TO SUPPORT THE ASSESSMENT UNDER SECTION 23(3). 5 . THE THEORY OF TAXING THE RIGHT PERSON AS PER THE HONBLE S.C IN CASE OF ITO VS ATCHIA CH (CH) (1996) 218 ITR 239 DOES NOT HOLD GOOD HERE BECAUSE THE LD AO ONLY ON THE BASIS OF SUSPICION AND PRESUMPTION, ADDED THE CAPITAL IN HANDS OF ASSESSEE. IT IS NOT ESTABLISHED BY THE LD AO AS HOW ASSESSEE IS THE RIGHT PERSON. 6 . NOTHING INCRIMINATING WA S FOUND IN SEARCH TO ESTABLISH THAT THIS IS UNACCOUNTED INCOME OF ASSESSEE. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 214 : - IT IS THEREFORE PRAYED THAT THE ADDITION BEING PURELY BASED ON SUSPICION AND NO EVIDENCE AT ALL, DESERVES TO BE DELETED. 269 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORD ERS OF THE LOWER AUTHORITIES. 270 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THIS ADDITION RELATES TO THE CAPITAL OPENING ACCOUNT SHOWN BY THE MOTHER IN LAW OF THE ASSESSEE. IT IS THE CASE OF THE ASSES SEE THAT MOTHER - IN - LAW OF THE ASSESSEE IS A SEPARATE ENTITY, WHO HAS BEEN FILING INCOME TAX RETURNS. THE OPENING BALANCE SO DISCLOSED BY SMT. VANVASI PARATE CANNOT BE ATTRIBUTED TO THE ASSESSEE. THERE IS NO DISPUTE WITH REGARD TO THE FACT THAT MOTHER - IN - LA W OF THE ASSESSEE WAS NOT RESIDING WITH THE ASSESSEE. SHE IS NOT DEPENDENT UPON THE ASSESSEE. THERE IS NO MATERIAL ON RECORD SUGGESTING THAT THE ASSESSEE WAS HAVING COMPLETE CONTROL OVER THE AFFAIRS OF THE MOTHER - SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 215 : - IN - LAW OF THE ASSESSEE. THIS BEING THE POSI TION, THE ADDITION MADE IN THE HANDS OF THE ASSESSEE CANNOT BE SUSTAINED. HOWEVER, THE REVENUE WOULD BE AT LIBERTY TO MAKE ADDITION AT APPROPRIATE HAND OF THE MOTHER - IN - LAW IF IT IS FOUND THAT THE OPENING CAPITAL ACCOUNT IS NOT SUPPORTED WITH SOURCE. THIS GROUND OF THE ASSESSEES APPEAL IS ALLOWED IN THE TERMS INDICATED HEREINABOVE. 271 . GROUND NO. 5 RELAT E S TO ADDITION OF RS. 1,93,100/ - FOR VARIOUS HOUSE HOLD ITEMS. 272 . FACTS APROPOS THIS GROUND ARE THAT T HE VARIOUS BILLS WERE FOUND AND SEIZED DURING SEARC H AND SEIZURE OPERATION FROM THE RESIDENTIAL PREMISES OF THE ASSESSEE. LATER ON, IN QUESTIONNAIRE U/S 142(1) Q.NO 10, THE ASSESSEE REPLIED THAT ALL THESE ARE REFLECTED IN THE CASH FLOW SUBMITTED. THE AO REJECTED THE CASH FLOW AND ADDED THE FOLLOWING PAYMEN TS MADE. AO ALLEGED THAT THE CASH WAS USED FOR DISPOSING OFF THE UNDISCLOSED INCOME OF THE ASSESSEE. THE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 216 : - ADDITION TO INCOME FOR VARIOUS ITEMS FOR ASSESSMENT YEAR 200 9 - 10 ARE TABULATED BELOW: - 2009 - 10 1,93,100 ASSESSEE BILL FOR PURCHASE OF LCD 40 FROM GA LAXY DIGITAL DATED 10.01.09. (PB 342 - 343) 67,900 PAYMENT RECEIPT FROM GUPTA SONS FOR PURCHASE OF JEWELLERY DATED 06.12.09 AND 03.01.08 (PB 344 - 345) 1,25,200 TOTAL 1,93,100 LPS D - 2, PG NO 121 TO 122 LPS D3 PG NO 107 TO 108 273 . THE LD. COUNSEL FOR TH E ASSESSEE REITERATED THE SUBMISSIONS AS PER THE WRITTEN SUBMISSIONS SUBMITTED, WHICH IS PLACED ON RECORD. THE WRITTEN SUBMISSION IS REPRODUCED AS UNDER : - SUBMISSIONS 1 . BILL FOR LCD 40 IS IN THE NAME OF SMT. JYOTI ASAI ADVISOR IN ICICI PRUDENTIAL. 2 . THE LC D 32 WORTH RS. 46,662/ - RECEIVED FROM ICICI WAS UPGRADED WITH 40 AND THE DIFFERENCE AMOUNT OF RS. 30,000/ - WAS PAID IN CASH. FACT IS MENTIONED IN LPS D2 - PG. NO. 122. ( PB 343/ II ) SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 217 : - 3 . THE PAYMENT IN CASH OF RS. 30,000/ - IS DULY REFLECTED IN THE CASH FLOW S TATEMENT SUBMITTED BY SMT. JYOTI ASAI. (REFER CHART - 5). 4 . THE INVOICE ITSELF STATES JYOTI ASAI (ADVISOR) ICICI PRUDENTIAL . A . PAYMENT RECEIPT FROM GUPTA SONS FOR PURCHASE OF JEWELLERY DATED 06.12.09 AND 03.01.08 (PB 344 - 345) 1 . THE ADDITION IS ON THE BASIS OF L PS - D3 (PG. NO. 107 & 108). PG NO. 107 & 108 ARE THE ADVANCE RECEIPT FOR RS. 25,200/ - DATED 03.01.2010 AND RS. 1,00,000/ - DATED 06.12.09 ISSUED BY M/S. GUPTA SONS TO SMT. JYOTI ASAI. 2 . THE CASH PAYMENT OF RS. 76,000/ - WAS PAID IN CASH AND RS. 24,000/ - WAS PA ID THROUGH GIFT CARD OF ICICI BANK. (REFER CASH FLOW CHART 5) 3 . THE JEWELLERY BELONGS TO WIFE SMT. JYOTI ASAI AND EARNED FROM HER SOURCES. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 218 : - IT IS UNJUSTIFIED TO ADD THE SAME IN HANDS OF ASSESSEE ON THE BASIS OF SUSPICION AND PRESUMPTIONS. 274 . THE LD. DEPAR TMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 275 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE IMPUGNED ADDITION RELATES TO THE PURCHASE OF LCD FROM GALAXY DIGITAL AT RS. 67,900/ - , PAYMENT IN RESPECT OF PURCHASE OF JEWELLERY OF RS. 1,25,200/ - . IT IS THE CASE OF THE ASSESSEE THAT LCD 32 WAS WORTH RS. 46,662/ - WAS RECEIVED FROM ICICI AND THE SAME WAS UPGRADED TO THE LCD 40 BY MAKING PAYMENT OF RS. 30,000/ - . FOR THIS, WIFE OF THE AS SESSEE WAS HAVING SUFFICIENT FUNDS TO MAKE SUCH PAYMENT. IN RELATION TO PURCHASE OF JEWELLERY ALSO, THE PAYMENT WAS MADE BY THE WIFE OF THE ASSESSEE. SO, IT IS STATED THAT BOTH THESE INVESTMENTS CANNOT BE ATTRIBUTED TO THE ASSESSEE. WE HAVE GIVEN OUR THOU GHTFUL CONSIDERATION SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 219 : - TO THE SUBMISSION OF THE ASSESSEE. FROM THE RECORDS, IT IS SEEN THAT PURCHASE OF ITEM IS IN THE NAME OF WIFE OF THE ASSESSEE, WHO HAVE INDEPENDENT SOURCE OF INCOME AND INCOME TAX PAYEE. IN OUR VIEW, THESE PAYMENTS CANNOT BE ATTRIBUTED TO THE ASSESSEE, AS THERE IS NO MATERIAL SUGGESTING THAT THE ASSESSEE HAD MADE PAYMENT OF THESE ITEMS. THEREFORE, THIS ADDITION CANNOT BE SUSTAINED. HOWEVER, THE AO WOULD BE FREE TO EXAMINE SUCH ADDITIONS IN THE HANDS OF THE ASSESSEE. 276 . GROUND NO .6 RE LATES TO THE ADDITION OF RS. 12,500/ - FOR PAYMENTS MADE AGAINST FLAT AT AKRITI GREENS, BHOPAL. 277 . FACTS APROPOS THIS GROUND ARE THAT T HE ASSESSEE DURING ASSESSMENT PROCEEDINGS SUBMITTED THAT SMT. JYOTI ASAI HAS BOOKED A FLAT NO 601 , HIG BLOCK AT AAKRITI G REENS , BHOPAL. THE LEDGER ACCOUNT FROM THE BUILDER AAKRITI DWELLINGS PVT. LTD WAS VERIFIED AND THE DETAILS OF THE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 220 : - AMOUNT PAID TILL 31.03.2010 WERE ALSO FILED. THE DETAILS OF THE PAYMENTS MADE ARE TABULATED BELOW: - SR. NO DATE AMOUNT PAID BY ACCOUNT NO. 1. 20.12.08 20,000 DEEPAK ASAI (IDBI BANK A/C 3134) 2. 10.01. 09 12,500 JYOTI ASAI (ICICI BANK 8839) 3. 13.04.09 2,46,750 JYOTI ASAI (ICICI BANK 8839) 4. 30.07.09 1,98,750 JYOTI ASAI (ICICI BANK 8839) 5. 27.08.09 10,000 JYOTI ASAI SB I PBB BANK SHAHPURA, BHOPAL 4,88,000 DETAILS OF INVESTMENT WERE STATED IN THE SEARCH ITSELF, BOTH BY ASSESSEE AND WIFE. PB 178 (BACK) QUE. 8 DISCLOSED BY ASSESSEE. ALSO PB 182 QUE 26. PB 173 (BACK) AND PB 175 QUE 16 BY WIFE. 1 . THE LD AO ON THE BAS IS OF FOLLOWING ALLEGATIONS ADDED RS. 32,500/ - IN A.Y. 2009 - 10 AND RS. 4,55,500/ - OUT OF THE TOTAL PAYMENT MADE TO BUILDER: - A . THE MAJOR PAYMENTS MADE FROM THE BANK ACCOUNT OF SMT. JYOTI ASAI WAS OUT OF AGENCY COMMISSION, CASH AND MATURITY OF ICICI PRUDENTI AL. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 221 : - B . THE CLAIM THAT SMT JYOTI ASAI WAS EARNING FROM MEDICAL PROFESSION AND COMMISSION INCOME OF SMT. JYOTI ASAI WAS ALLEGEDLY FOUND TO BE UNTRUE. C . THE HOUSE LOAN FROM SBI WAS TAKEN AFTER MORE THAN HALF OF THE PAYMENT FOR PURCHASE OF PROPERTY WAS ALREADY MADE . THE LD CIT(A) DELETED THE PAYMENT MADE FROM THE BANK ACCOUNT OF SHRI DEEPAK ASAI AMOUNTING TO RS. 20,000/ - AND SUSTAINED THE REMAINING ADDITION. 278 . THE LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS AS SUBMITTED, WHICH IS REPRODUCED HEREUNDER - SUBMISSIONS: 1 . DETAILS OF INVESTMENT WERE STATED IN THE SEARCH ITSELF, BOTH BY ASSESSEE AND WIFE. PB 178 (BACK) QUE. 8 DISCLOSED BY ASSESSEE. ALSO PB 182 QUE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 222 : - 26. PB 173 (BACK) AND PB 175 QUE 16 BY WIFE. IT CANNOT BE SAID TO BE AN AFTERTHOUGHT. 2 . THE DE TAILS OF THE AMOUNT PAID TO THE BUILDER ARE TABULATED BELOW: - AMOUNT DETAILS RS. 20,000 THROUGH CHQ NO . 446444 DATED 24.12.08 DRAWN ON DEEPAK ASAIS SAVING BANK A/C NO 030104000143134 WITH IDBI BANK, BHOPAL RS. 12,500 THROUGH CHQ NO 632887 DATED 13.01.09 DRAWN ON SMT. JYOTI ASAIS SAVING BANK A/C NO 028301508839 WITH ICICI BANK RS. 2,46,750 THROUGH CHQ NO 106429 DATED 15.04.09 DRAWN ON SMT. JYOTI ASAIS SAVING BANK A/C NO 028301508839 WITH ICICI BANK RS. 1,98,750 THROUGH CHQ NO 106437 DATED 01.08.09 DRAW N ON SMT. JYOTI ASAIS SAVING BANK A/C NO 028301508839 WITH ICICI BANK RS. 10,000 THROUGH CHQ NO 364359 DATED 18.08.09 DRAWN IN SMT. JYOTI ASAIS LOAN ACCOUNT WITH STATE BANK OF INDIA, SPECIAL PERSONAL BANKING BRANCH, SHAHPURA, BHOPAL. FOR THE PURPOSE OF ACQUIRING THE FLAT SMT. JYOTI ASAI HAS OBTAINED LOAN FROM THE SAID BANK. THIS IS THE FIRST CHEQUE GIVEN FROM THE LOAN ACCOUNT. 3 . SMT. JYOTI ASAI IS REGISTERED MEDICAL PRACTITIONER AND ALSO ADVISOR WITH ICICI PRUDENTIAL LIFE INSURANCE CO. THE DOCUMENTS IN SUPPORT ARE: - SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 223 : - I . APPOINTMENT LETTER FROM ICICI PRUDENTIAL (PB 314 - 315/ II) . II . ADVISORY LICENSE FROM ICICI PRUDENTIAL LIFE INSURANCE. (PB 318/ II) III . LICENSE FROM IRDA. (PB 318/ II) AS DISCUSSED EARLIER, SHE COULD AMPLY ESTABLISH HER INCOME. 4 . HER INCOME TAX RETURN SUMMARY IS IN CHART - 3 , AND THE RETURNS U/S 153A ARE IN PB 492 - 512/ III. 5 . NO EVIDENCE WAS FOUND DURING SEARCH TO SHOW THAT THE SAME IS UNACCOUNTED INVESTMENT OF ASSESSEE. IT IS UNJUSTIFIED TO ADD THE SAME IN HANDS OF ASSESSEE ON THE BASIS OF SUSPICION A ND PRESUMPTIONS. 279 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 224 : - 280 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE ASSESSEE HAS SUBMITTED DETAILS OF PAYMENT BY CHEQUE, WHERE FROM IT IS CLEAR THAT OUT OF THE TOTAL PAYMENT OF RS. 4,55,500/ - , THE ONLY AMOUNT INVESTED OUT OF ASSESSEES ACCOUNT WAS RS. 20,000/ - . REST OF THE PAYMENT WAS MADE FROM THE SAVING ACCOUNT AND LOAN ACCOUNT OF WIFE OF THE ASSESSEE. IT IS EV IDENT FROM THE RECORD THAT WIFE OF THE ASSESSEE IS SEPARATELY FILING HER RETURN OF INCOME FOR THE LAST MANY YEARS. THEREFORE, IN OUR CONSIDERED VIEW, THIS INVESTMENT RELATES TO WIFE OF THE ASSESSEE AND CANNOT BE SUSTAINED IN THE HANDS OF THE ASSESSEE. HOWE VER, THE AO WOULD BE AT LIBERTY TO CONSIDER THIS ADDITION AFTER EXAMINING THE SOURCE IN THE HANDS OF THE WIFE OF THE ASSESSEE. GROUND NO. 6 IS ALLOWED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 225 : - 281 . GROUND NO. 7 RELATES TO ADDITION OF RS. 5,30,000/ - FOR PAYMENTS MADE AGAINST PURCHASE OF SHOP AT BHANDARA (MAHARASHTRA). 282 . FACTS APROPOS RELATING TO THIS GROUND ARE D URING THE COURSE OF SEARCH PROCEEDINGS, DOCUMENTS AT PAGES . NO 22 TO 24 OF LPS - D3 WAS FOUND CONTAINING RENT AGREEMENT DATED 16.10.09 BETWEEN MRS. JYOTI ASAI AND MOHIT PARAMDEEP SHARM A. THIS WAS FOR THE SHOP NO. 3 AT DALAL CAMP, BHANDARA, MAHARASHTRA. THE RENTAL AMOUNT IS RS. 6500 / - P.M . (PB 372 - 378) . IN THE ASSESSMENT PROCEEDINGS, SMT JYOTI ASAI SUBMITTED THAT THE REGISTRY OF ABOVE PROPERTY DATED 30.03.09, WAS BOUGHT IN CASH FOR RS. 5,30,000/ - . THE C ASH A MOUNT WAS DULY REFLECTED IN THE CASH FLOW STATEMENT OF SMT. JYOTI ASAI IN CHART NO.5 . THE AO ON THE BASIS OF FOLLOWING ALLEGATIONS ADDED THE PAYMENT MADE BY SMT . JYOTI ASAI TOWARDS THE PURCHASE OF THE SAID PROPERTY AS THE UNDISCLOSE D INCOME OF T HE ASSESSEE : - SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 226 : - A . DESPITE MAINTAINING SEVERAL BANK ACCOUNTS, THE PAYMENT WAS MADE IN CASH. B . THE ASSESSEE COULD NOT PRODUCE THE SELLERS TO VERIFY THE AMOUNT OF PAYMENT CLAIMED. C . SMT. JYOTI ASAI WAS ALLEGEDLY CONSIDERED TO HAVE NO SOURCE OF INCOME . THE LD CIT(A), SUSTAINED THE ADDITION AND HELD THAT THE CASH FLOW OF SMT. JYOTI ASAI IS A SELF SERVING DOCUMENT, AND NO SUPPORTING DOCUMENTS WERE PROVIDED TO PROVE THE SAID CASH PAYMENT. 283 . THE LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS AS P ER WRITTEN SUBMISSIONS, CONTENDED THAT T HE E NTIRE COST OF ACQUISITION WAS PAID BY SMT. JYOTI ASAI IN CASH. THE CASH P AYMENT OF RS. 5,30,000 WAS COVERED IN THE CASH FLOW STATEMENT OF SMT. JYOTI ASAI. THE FACTS REGARDING ACQUISITION OF SAID PROPERTY WAS PROV ED BY THE REGISTERED DEED EXECUTED ON 30.03.09. THE COST OF ACQUISITION OF THE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 227 : - SHOP (INCLUDING STAMP DUTY, REGISTRATION CHARGES ETC) WAS AT RS. 5,30,000/ - . THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT THE ADDITION BE DELETED AS IT IS WELL EXPLAINED. 284 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 285 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THERE IS NO DISPUTE WITH REGARD TO THE FACT THAT THE SHOP HAS BEEN PUR CHASED BY THE WIFE OF THE ASSESSEE. THE ENTIRE AMOUNT WAS PAID IN CASH . THE CONTENTION OF THE ASSESSEE IS THAT THE INVESTMENT IN THIS PROPERTY CANNOT BE ATTRIBUTED TO THE ASSESSEE AS THE WIFE OF THE ASSESSEE IS HAVING INDEPENDENT SOURCE OF INCOME. IN SUPP ORT OF THIS, THE CASH SHOW OF THE ASSESSEES WIFE IS FILED. THERE IS NO DISPUTE WITH REGARD TO THE FACT THAT WIFE OF THE ASSESSEE IS FILING HER RETURN OF INCOME CLAIMING EARNING INCOME FROM COMMISSION, SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 228 : - PROFESSIONAL SOURCES AND GIFTS ETC. WE HAVE ACCEPTED T HE CONTENTION OF THE ASSESSEE THAT WIFE OF THE ASSESSEE HAS BEEN EARNING INCOME FROM PROFESSION. IT IS ALSO FACTUALLY CORRECT THAT THE INSURANCE COMPANY HAS MADE CERTAIN PAYMENTS TO THE WIFE OF THE ASSESSEE IN THE FORM OF COMMISSION. THE CASE OF THE DEPART MENT HAS BEEN THAT THE WIFE OF THE ASSESSEE HAS NOT EARNED ANY COMMISSION INCOME WHETHER IT IS A DEVICE TO CONVERT UNDISCLOSED INCOME OF THE ASSESSEE INTO DISCLOSED INCOME OF THE WIFE. IT IS UNDISPUTED FACT THAT CERTAIN INVESTMENTS HAVE BEEN MADE IN THE IN SURANCE POLICIES SHOWING WIFE OF THE ASSESSEE AS AN AGENT. INSURANCE COMPANY HAS PAID COMMISSION ON SUCH INSURANCE POLICIES TO WIFE OF THE ASSESSEE. THUS, IT CANNOT BE INFERRED THAT THERE WAS NO SOURCE OF EARNING I NCOME BY THE WIFE OF THE ASSESSEE. UNDER THESE FACTS, WE ARE UNABLE TO SUSTAIN THE FINDING OF THE AUTHORITIES BELOW. HOWEVER, THE AO WOULD BE AT LIBERTY TO EXAMINE THE SOURCE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 229 : - OF INVESTMENT IN THE HANDS OF THE WIFE OF THE ASSESSEE. THIS GROUND IS ALLOWED IN T HE TERMS INDICATED ABOVE. 286 . GR OUND NO. 8 RELATES TO ADDITION OF RS. 9,65,363/ - AS PER PARA NO.9 OF THE ASSESSMENT ORDER AND REPLACED BY THE LD. CIT(A) AT RS. 15,11,670/ - . 287 . THE ABOVE AMOUNT WAS INVESTED FOR ASSESSMENT YEAR 2009 - 10 IN ICICI PRUDENTIAL, THE DETAILS OF WHICH ARE AS UNDER : - CHART 6 : INVESTMENTS IN ICICI POLICIES A.Y. PARTICULAR PAN NO. AMOUNT TOTAL ADDED IN AO FINALLY ENHANCED/ (DELETED) BY CIT(A) IN APPEAL TO ITAT 2009 - 10 JYOTI ASAI AFHPA4045D 3,66,670 1,65,000 50,000 1,80,000 1,00,000 5,50000 1,00,000 15,1 1,670 9,65,363 5,46,307 15,11,670 VANWASI BAI BCRPP473OQ R. G. ASAI ABCPA4131D R.B. KUMBHARE ACWPK7600C K.C. PARATE AEOPP9784N MONY. S DEEPAK ASAI ABGPA5291C 288 . WE HAV E ALREADY DEALT WITH THIS I SSUE IN DETAIL WHILE DEALING WITH GROUND NO. 5 OF ASSESSEES APPEAL IN SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 230 : - I.T.(SS)A.NO155/IND/2015 FOR THE ASSESSMENT YEAR 2007 - 08. FACTS BEING SAME, THE SAME ARGUMENTS WERE ADVANCED BEFORE US AS WERE TAKEN BY THE ASSESSEE FOR ASSESSMENT YEAR 2007 - 08. FOLLOWI NG THE SAME REASONING IN VIEW OF OUR OBSERVATIONS GIVEN IN PARA 149 ABOVE, GROUND NO. 5 IS ALLOWED FOR STATISTICAL PURPOSES. 289 . GROUND NO. 9 RELATES TO ADDITION OF RS. 1,02,027/ - MADE FOR CREDITS IN S.B. ACCOUNT NO.1470/127 WITH M.P.RAJYA SAHAKARI BANK, BHOPAL, BELONGING TO SHRI DEEPAK ASAI, HUF. 290 . THE AO FOUND THAT THE ASSESSEE HAS DEPOSITED AMOUNT TO ISSUE CHEQUES FOR CLEARING. THERE ARE VARIOUS CHEQUES DEPOSITS WHICH HAVE BEEN LATER BEEN ISSUED FOR SOME INVESTMENT. SINCE THE ASSESSEE SHRI DEEPAK ASAI WAS A SALARIED CLASS EMPLOYEE AND HIS DEPOSITS DID NOT COMMENSURATE WITH THAT OF THE INCOME RECEIVED, HE MADE THE ADDITION OF RS. 1,02,027/ - FOR THE ASSESSMENT YEAR SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 231 : - 200 9 - 10 . ON APPEAL, THE SAME WAS CONFIRMED BY THE LD. CIT(A). 291 . THE LD. COUNSEL FOR THE ASSESSEE DREW OUR ATTENTION TO PAGE NO. 33 OF HIS SUBMISSIONS AND SUBMITTED THAT THERE WAS CASH CREDIT OF RS. 30,000/ - (OUT OF RENTAL INCOME OF MARUTI CAR , AS PER RETURN OF INCOME , WHICH IS PLACED ON PAPER BOOK PAGE NO. 690. THERE WAS CHEQUE CREDI T OF RS. 70,000/ - , WHICH WAS A G IFT FROM R.G. ASAI , WHICH IS PLACED ON PAPER BOOK PAGE 359/II. AN AMOUNT OF RS. 1,634/ - WAS CREDITED AS INTEREST. 292 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 293 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE HAVE GONE THROUGH THE ORDERS OF THE LOWER AUTHORITIES. WE FIND THAT THE C ASH CREDIT OF RS. 30,000/ - WAS MADE IN THE ABOVE ACCOUNT , WAS OUT OF MARUTI CAR RENTAL , WHICH WAS ALSO SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 232 : - S HOWN IN THE RETURN OF INCOME , OF SHRI DEEPAK RAMBHAU ASAI (HUF),WHICH IS PLACED IN PB 6 90 /III . THE AMOUNT OF RS. 70,000/ - WAS CHEQUE CREDITED , WHICH WAS GIFT RECEIVED FROM R. G. ASAI, PAPER BOOK P.B.359/II. THE AMOUNT OF RS. 1634/ - WAS CREDITED TOWARDS I NTEREST. THIS WAS LATER ON UTILIZED FOR TRANSFER TO, OTHER ACCOUNTS OR FOR INVESTMENT IN POLICIES OF ICICI. WE HAVE ALSO DEALT WITH THE SAME ISSUE WHILE DECIDING GROUND NO. 3 FOR ASSESSMENT YEAR 2007 - 08 AND FOLLOWING THE SAME REASONING, WE DIRECT THE AO T O DELETE THE ADDITION OF RS. 1,02,027/ - . GROUND NO. 9 IS ALLOWED. 294 . GROUND NO. 10 RELATES TO ADDITION OF RS. 8,36,153/ - FOR CREDITS IN ICICI BANK ACCOUNT NO. 028301508839 BELONGING TO SMT. JYOTI ASAI. 295 . THE LD. COUNSEL FOR THE ASSESSEE DREW OUR A TTENTION TO PAGE 34 OF HIS SUBMISSION AND SUBMITTED THAT T HIS ACCOUNT BELONG ED TO SMT. JYOTI ASAI, WH O IS SEPARATELY SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 233 : - ASSESSED TO TAX. THE E NTIRE CREDITS IN THE BANK ACCOUNT WERE ADDED INCLUDING C OMMISSION INCOME AT RS. 7,51,914/ - AND T HE LIC COMMISSION OF RS. 9, 93,311 / - WHICH IS OFFERED IN RETURN OF INCOME ON ACCRUAL BASIS AND PACED AT PB 28 9 , CASH DEPOSIT OF RS. 49,000/ - , WHICH WAS REFLECTED IN CASH FLOW CHART 4, INTEREST INCOME OF RS. 7,110/ - , WHICH WAS OFFERED IN RETURN, WHICH IS PLACED ON PAPER BOOK PAG E NO.289. T HE LD. COUNSEL FOR THE ASSESSEE FURTHER CONTENDED THAT SMT. JYOTI ASAI IS FILING HER RETURN EVEN BEFORE THE SEARCH AND SHOWING COMMISSION INCOME IN THE RETURN FILED U/S 139 ALSO. NO MATERIAL WAS POINTED OUT IN THE RETURN TO DISREGARD HER CLAIM . 296 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THAT T HIS ACCOUNT BELONG ED TO SMT. JYOTI ASAI, WH O WAS SEPARATELY ASSESSED TO TAX. WE ALSO FIND THAT T HE E NTIRE CREDITS IN THE BANK ACCOUNT WERE ADDED INCLUDING I NCOME SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 234 : - FROM COMMISSION WHICH IS OFFERED FOR TAX IN THE RETURN OF I NCOME ON ACCRUAL BASIS . THE INTEREST INCOME WAS SHOWN IN THE RETURN AND WAS PLACED ON RECORD. WE FIND THAT THE I NTEREST IS OFFERED IN R ETURN OF SMT. JYOTI ASAI, WHICH IS PLACED AT PAPER BOOK II AT PAGE NO.28 9 . WE FIND THAT SMT. JYOTI ASAI WAS FILING HER RETURN EVEN BEFORE THE SEARCH AND SHOWING COMMISSION INCOME IN HER RETURN FILED U/S 139 ALSO. NO CONTRARY MATERIAL WAS ALSO EVER FILED TO DISREGARD HER CLAIM. THE HOLDER OF THE ACCOUNT HAVING INDEPENDENT SOURCE OF INCOME AND HAS OWNED UP THIS BANK ACCOUNT. AS PER OUR VIEW, THE AO WAS NOT JUSTIFIED IN MAKING THE ADDITION IN THE HANDS OF THE ASSESSEE. HOWEVER, THE AO WILL BE AT LIBERTY TO EXAMINE THE ADDITION IN THE HANDS O F THE SMT. JYOTI ASAI. THE AO IS DIRECTED TO DELETE THE ADDITION OF RS. 8,36,153/ - . GROUND NO. 10 IS ALLOWED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 235 : - 297 . GROUND NO. 11 RELATES TO ADDITION OF RS. 83,864/ - FOR CREDITS IN ICICI BANK A/C NO.028301500684 BELONGING TO SHRI KAILASHCHAND PARATE . 298 . THE LD. COUNSEL FOR THE ASSESSEE STATED THAT THIS AMOUNT WAS DEPOSITED IN ICICI BANK, NEW MARKET, BHOPAL A/C NO.028301500684. THE LD. COUNSEL FOR THE ASSESSEE DREW OUR ATTENTION TO PAGE 34 OF HIS SUBMISSIONS AND SUBMITTED THAT THIS ACCOUNT BELONG ED TO HIS BROTH ER IN LAW SHRI KAILASH CHAND PARATE, WHO IS WORKING AS REGIONAL MANAGER WITH MADHYA PRADESH CENTRAL GRAMIN BANK, CHINDWARA. THE AFFIDAVIT IN THIS REGARD IS ON ( PB 595 - 596/ III). HE IS SEPARATELY ASSESSED TO TAX. HIS INCOME TAX RETURNS FROM A.Y. 2003 - 04 TO 2010 - 11 ARE ON (PB 597 - 604/ III). HIS BANK STATEMENTS WERE NOT FOUND FROM THE RESIDENCE OF ASSESSEE DURING SEARCH AS CONTENDED BY AO, BUT SUBMITTED SUBSEQUENTLY. THE DEPOSIT IN HIS BANK ACCOUNT DOES NOT BELONG TO ASSESSEE. THE LD. COUNSEL FOR SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 236 : - THE ASSESSEE STATED THAT THIS ACCOUNT BELONGED TO SHRI KAILASH CHAND PARATE AND THE ADDITION BE HELD TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 299 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES . 300 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE HAVE ALREADY DEALT WITH THE SIMILAR GROUND AS GROUND NO. 7 OF ASSESSMENT YEAR 2007 - 08. IT IS OBSERVED THAT THE HOLDER OF THE ACCOUNT OWNED UP THE ACCOUNT S AND THE TRANSACTIONS WERE MADE THEREIN. THE ADDITIONS HAVE BEEN MADE IN THE HANDS OF THE ASSESSEE PURELY ON SUSPICION, WHICH IN OUR VIEW, IS NOT JUSTIFIABLE HOWEVER, THE AO WILL BE AT LIBERTY TO CONSIDER THIS ADDITION IN THE HANDS OF THE BROTHER - IN - LAW, WHO IS THE HOLDER OF THE ACCOUNT. THE AO IS DIRECTED TO SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 237 : - DELETE THE ADDITION OF RS. 83,864 / - . GROUND NO. 11 IS ALLOWED. 301 . GROUND NO. 12 RELATES TO THE ADDITION OF RS. 15,000/ - FOR CASH DEPOSIT IN ICICI BANK ACCOUNT NO.005501004458 BELONGING TO SHRI DEEPAK ASAI. 302 . THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THIS ACCOUNT BELONGED TO SHRI DEEPAK ASAI. THIS AMOUNT WAS RECEIVED BY CHEQUE FROM LIC MONEY. THE AO TREATED THE CASH DEPOSIT AS UNDISCLOSED AND ADDED TO HIS INCOME FOR ASSESSMENT YEAR 200 9 - 10, WHIC H WAS CONFIRMED BY THE LD. CIT(A). THE ADDITION MAY PLEASE BE QUASHED AS IT IS DULY EXPLAINED. 303 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 304 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUS ED THE MATERIAL AVAILABLE ON RECORD. WE FIND FROM THE ACCOUNT STATEMENT THAT THE AMOUNT WAS RECEIVED BY SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 238 : - CHEQUE FROM LIC. WE, THEREFORE, DIRECT THE AO TO DELETE THE ADDITION OF RS. 15,000/ - . 305 . GROUND NO.13 RELATES TO ADDITION OF RS. 62,750/ - FOR CREDIT S IN PPF ACCOUNT NO.1006464522 WITH STATE BANK OF INDIA, SHIVAJI NAGAR, BHOPAL, BELONGING TO KU. ANKITA ASAI. 306 . THE LD. COUNSEL FOR THE ASSESSEE DREW OUR ATTENTION TO HIS SUBMISSION AT PAGE 35 AND SUBMITTED THAT THIS ACCOUNT NO.10064645522 IS OF ST ATE BANK OF INDIA, SHIVAJI NAGAR, BHOPAL AND BELONGED TO KU. ANKITA. THE LD. COUNSEL STATED THAT INTEREST ON PPF ACCOUNT WAS RS. 3 9 , 119/ - AND THE AMOUNT OF RS. 37000/ - ,RS. 3750/ - AND RS. 22,000/ - DEPOSITED BY CHEQUE. (RS. 37,000/ - WAS. R. D.). THE AMOUNT IS WELL ESTABLISHED AND THE SAME MAY BE QUASHED. 307 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 239 : - 308 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND T HAT THE AMOUNTS DEPOSITED BY CHEQUE AND WELL ESTABLISHED. WE, THEREFORE, DIRECT THE AO TO DELETE THE ADDITION OF RS. 5 62,750/ - . GROUND NO. 1 3 IS ALLOWED. 309 . GROUND NO. 14 RELATES TO ADDITION OF RS. 500/ - FOR CREDITS IN PPF ACCOUNT NO.100646 42350 WITH ST ATE BANK OF INDIA, SHIVAJI NAGAR, BHOPAL, BELONGING TO LATE SHRI R. G. ASAI. 310 . THE LD. COUNSEL FOR THE ASSESSEE TOOK US AT PAGE 35 OF HIS SUBMISSIONS AND STATED THAT THE ACCOUNT NO.10064642350 BELONGED TO SHRI R. G. ASAI. THE INTEREST ON PPF WAS RS. 14,718/ - AND AMOUNT OF RS. 500/ - WAS DEPOSITED IN CASH. THE AMOUNT OF RS. 500/ - BE DELETED. 311 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 240 : - 312 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IT IS OBSERVED THAT THE HOLDER OF THE ACCOUNT OWNED UP THE ACCOUNT AND THE TRANSACTION WAS MADE THEREIN. THE ADDITION HAS BEEN MADE IN THE HANDS OF THE ASSESSEE PURELY ON SUSPICION, WHICH IN OUR VIEW, IS NOT JUSTIFIABLE HOWEVER, THE A O WOULD BE AT LIBERTY TO CONSIDER THIS ADDITION IN THE HANDS OF THE SHRI R. G. ASAI, WHO IS THE HOLDER OF THE ACCOUNT. THE AO IS DIRECTED TO DELETE THE ADDITION OF RS. 500/ - . GROUND NO. 1 4 IS ALLOWED. 313 . GROUND NO.15 RELATES TO ADDITION OF RS. 500/ - MADE F OR CASH CREDIT IN PPF A/C NO.10064645511 WITH STATE BANK OF INDIA, SHIVAJI NAGAR, BHOPAL, BELONGING TO SMT. JYOTI ASAI. 314 . THE LD. COUNSEL FOR THE ASSESSEE DREW OUR ATTENTION TO PAGE NO.36 OF HIS SUBMISSIONS AND SUBMITTED THAT THIS ACCOUNT BELONGED TO SM T. JYOTI ASAI AND THE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 241 : - AMOUNT OF RS. 500/ - WAS THE CASH DEPOSIT AND REFLECTED IN CASH FLOW. THE ADDITION BE DELETED. 315 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 316 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISS IONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE HOLDER OF THE ACCOUNT HAVING INDEPENDENT SOURCE OF INCOME AND HAS OWNED UP THIS BANK ACCOUNT. AS PER OUR VIEW, THE AO WAS NOT JUSTIFIED IN MAKING THE ADDITION IN THE HANDS OF THE ASSESSEE. HOWEVER, THE AO WILL BE AT LIBERTY TO EXAMINE THE ADDITION IN THE HANDS OF THE SMT. JYOTI ASAI. THE AO IS DIRECTED TO DELETE THE ADDITION OF RS.500/ - . GROUND NO. 15 IS ALLOWED. 317 . GROUND NO.16 RELATES TO ADDITION OF RS. 10,000/ - FOR CASH CREDIT IN A/C NO. 53020703267 WITH STATE BANK OF INDORE, SHAHPURA, BHOPAL, BELONGING TO SMT. JYOTI ASAI. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 242 : - 318 . THE LD. COUNSEL FOR THE ASSESSEE DREW OUR ATTENTION TO PAGE NO.36 OF HIS SUBMISSIONS AND SUBMITTED THAT THIS ACCOUNT BELONGED TO SMT. JYOTI ASAI AND THE AMOUNT OF RS. 10,000/ - WAS THE CASH DEPOSIT AND REFLECTED IN CASH FLOW. THE ADDITION BE DELETED. 319 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 320 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE HOLDER OF THE ACCOUNT HAVING INDEPENDENT SOURCE OF INCOME AND HAS OWNED UP THIS BANK ACCOUNT. AS PER OUR VIEW, THE AO WAS NOT JUSTIFIED IN MAKING THE ADDITION IN THE HANDS OF THE ASSESSEE. HOWEVER, THE AO WILL BE AT LIBERTY TO EXAMINE THE AD DITION IN THE HANDS OF THE SMT. JYOTI ASAI. THE AO IS DIRECTED TO DELETE THE ADDITION OF RS. 10,000/ - . GROUND NO. 1 6 IS ALLOWED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 243 : - 321 . GROUND NO. 17 RELATES TO ADDITION OF RS. 3,46,746/ - FOR CREDITS IN A/C NO.900210100014831 WITH BANK OF INDIA, ARERA COLONY, BHOPAL, BELONGING TO RAMBHAU GHANSHYAM ASAI. 322 . THE LD. COUNSEL FOR THE ASSESSEE STATED THAT THE ABOVE ACCOUNT BELONGED TO SHRI RAMBHAU GHANSHYAM ASAI. THE LD. COUNSEL FOR THE ASSESSEE TOOK US AT PAGE 37 OF HIS SUBMISSION AND STATED THAT THE AMOUNT OF RS. 88551/ - WAS TOWARDS FD. M ATURITY , RS. 36,430/ - WAS TOWARDS NSC MATURITY, RS. 50,500/ - WAS CHEQUE OF SON AND AMOUNT OF RS. 1,68,900 / - WAS DEPOSITED IN CASH. THE AMOUNT IS WELL ESTABLISHED. THE ADDITION BE DELETED. 323 . THE LD. DEPARTMENTAL REPRESENTATIV E RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 324 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE HOLDER OF THE JOINT ACCOUNT IS RAMBHAU GHANSYAM ASAI SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 244 : - FATHER OF THE ASSESSEE. THE SOURCE WAS STATED TO BE F.D. MATURITY, NSC MATURITY , CHEQUE OF SON AND CASH DEPOSIT . WE ARE OF THE VIEW THAT THE AO WAS NOT JUSTIFIED IN MAKING THE ADDITION IN THE HANDS OF THE ASSESSEE. HOWEVER, HE WOULD BE AT LIBERTY TO MAKE ENQUIRY IN THE CASE OF R. G. ASAI. T HE AO IS DIRECTED TO DELETE THE ADDITION. GROUND NO. 1 7 IS ALLOWED. 325 . GROUND NO.18 RELATES TO ADDITION OF RS. 1,08,000/ - FOR HOUSE HOLD EXPENSES AND EDUCATIONAL EXPENSES. 326 . WE HAVE ALREADY DEALT WITH THIS ISSUE IN DETAIL IN GROUND NO.6 (PARAS NO.20 23 ) OF THE ASSESSEES APPEAL IN I.T.(SS)A.NO. 152/IND/2015 FOR ASSESSMENT YEAR 2004 - 05. THE SAME ARGUMENTS WERE ADOPTED AS WERE TAKEN IN ASSESSMENT YEAR 2004 - 05. THE ADDITION MADE WAS PURELY BASED ON THE CONJECTURES AND SURMISES. FOLLOWING THE SAME REASONI NG, WE DIRECT THE AO TO DELETE THE ADDITION OF RS. 1,08,000/ - . GROUND NO. 1 8 IS ALLOWED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 245 : - 327 . GROUND NO. 19 RELATES TO ADDITION OF RS. 70,000/ - FOR GIFT RECEIVED BY DEEPAK ASAI HUF THROUGH A/C PAYEE CHEQUE RECEIVED FROM RAMBHAU ASAI. 328 . WE HAVE DEALT WIT H THIS ISSUE WHILE DEALING WITH GROUND NO. 7 FOR THE ASSESSMENT YEAR 2004 - 05 I.T.(SS)A.NO. 152/IND/201 5 IN PARAS 25 TO 28 . FOLLOWING THE SAME REASONING GIVEN IN VIEW OF OUR OBSERVATIONS MADE IN ABOVE PARAS, WE DIRECT THE AO TO DELETE THE ADDITION OF RS. 70 ,000/ - . GROUND NO.19 IS ALLOWED. 329 . IN THE RESULT, THE APPEAL IN I.T.(SS)A.NO. 157/IND/2015 FOR ASSESSMENT YEAR 2009 - 10 IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. I.T.A.NO. 426/IND/201 5 A.Y. 2010 - 11 : 330 . THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL : - 1 . THAT THE ADDITION OF RS. 6,75,500/ - MADE AS PER PARA 6.2 OF THE ASSESSMENT ORDER AND CONFIRMED BY THE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 246 : - CIT(APPEALS) FOR PROFESSIONAL INCOME, AGRICULTURAL INCOME, ADVANCE RECEIVED AGAINST PLOT AT INDORE, GIFT RECEIVED FROM SMT. URMILA ASAI AND RENTAL INCOME SHOWN IN THE CASH FLOW STATEMENT OF SMT. JYOTI ASAI BE HELD TO BE BAD, UNLAWFUL AND UNJUSTIFIED WHEN SMT. JYOTI ASAI IS SEPARATELY ASSESSED TO TAX AND HAD BEEN FILING HER INCOME TAX RETURNS SINCE LONG. THE ADDITION OF RS. 6,75,500/ - MADE BE THEREFORE QUASHED AND DELETED. 2 . THAT THE ADDITION OF RS.2,92,283/ - CONFIRMED BY THE CIT (APPEALS) AS PER PARA NO.7A OF THE ASSESSMENT ORDER FOR VARIOUS HOUSE HOLD ITEMS BE HELD TO BE BAD, UNJUSTIFIED AND UNLAWFUL AND BE QUASHED. 3 . THAT THE ADDITION OF RS. 2,00,000/ - MADE AS PER PARA NO.8A OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR RENOVATION OF HOUSE BE HELD TO BE BAD, UNJUSTIFIED AND UNLAWFUL AND BE QUASHED. 4 . THAT THE ADDITION OF RS.4,55,500/ - MADE AS PER PARA SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 247 : - NO.8B OF THE ASSESS MENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR PAYMENTS MADE AGAINST FLAT AT AKRITI GREENS, BHOPAL BE HELD TO BE BAD, UNJUSTIFIED AND UNLAWFUL AND BE QUASHED. 5 . THAT THE ADDITION OF RS.9,65,363/ - MADE AS PER PARA NO.9 OF THE ASSESSMENT ORDER AND REPLACED BY THE CIT (APPEALS) AT RS.14,74,005/ - BE HELD TO BE OUT OF CONTEXT AND WITHOUT ANY BASIS. THE ADDITION MADE BE HELD TO BE BAD AND UNJUSTIFIED AND BE QUASHED. 6 . THAT THE ADDITION OF RS.1,89,175/ - MADE AS PER PARA NO.10 OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR CREDITS IN SB ACCOUNT NO.1470/127 WITH MP RAJYA SAHAKARI BANK, BHOPAL BELONGING TO DEEPAK ASAI HUF BE HELD TO BE BAD, UNJUSTIFIED AND UNLAWFUL AND BE QUASHED. 7 . THAT THE ADDITION OF RS.12,74,264/ - MADE AS PER PARA NO.10B OF THE ASS ESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR CREDITS IN ICICI BANK SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 248 : - ACCOUNT NO.028301508839 BELONGING TO SMT. JYOTI ASAI BE HELD TO BE BAD AND UNJUSTIFIED AND BE QUASHED. 8 . THAT THE ADDITION OF RS.90,555/ - MADE AS PER PARA NO.10E OF THE ASSESSMENT OR DER AND CONFIRMED BY THE CIT (APPEALS) FOR CREDITS IN ICICI BANK ACCOUNT NO.028301500684 BELONGING TO SHRI KAILASHCHAND PARATE BE HELD TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 9 . THAT THE ADDITION OF RS.10,200/ - MADE A S PER PARA NO.10F OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR CASH DEPOSIT IN ICICI BANK ACCOUNT NO.028301520633 BELONGING TO KU. ANKITA ASAI BE HELD TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 10 . THAT THE ADDITION OF RS.16,000/ - MADE AS PER PARA NO.10G OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR CASH DEPOSITS IN ICICI BANK SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 249 : - ACCOUNT NO.005501004458 BELONGING TO SHRI DEEPAK ASAI BE HELD TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 11 . THAT THE ADDITION OF RS.12,410/ - MADE AS PER PARA NO.10 - J OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR CREDITS IN ACCOUNT' NO.20004935555 WITH STATE BANK OF INDIA, SHIVAJI NAGAR, BHOPAL BELONGING TO KU. ANKI TA ASAI BE HELD TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 12 . THAT THE ADDITION OF RS.10,000/ - MADE AS PER PARA NO.10M OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR CASH CREDITS IN ACCOUNT NO.53020703267 WITH STATE BANK OF INDORE, SHAHPURA, BHOPAL BELONGING TO SMT. JYOTI ASAI BE HELD TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 2 50 : - 13 . THAT THE ADDITION OF RS.1,000/ - MADE AS PER PARA NO.10 - 0 OF THE ASSESSMENT ORDER AND CONFIRM ED BY THE CIT (APPEALS) FOR CASH DEPOSIT IN ACCOUNT NO.63051699883 WITH STATE BANK OF INDORE, KOLAR ROAD, BHOPAL BELONGING TO SMT. JYOTI ASAI BE HELD TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 14 . THAT THE ADDITION OF RS. 4,56,290/ - MADE AS PER PARA NO.10P OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR CREDITS IN ACCOUNT NO.900210100014831 WITH BANK OF INDIA, ARERA COLONY, BHOPAL BELONGING TO RAMBHAU GHANSHYAM ASAI BE HELD TO BE UNREASONABLE, BAD, UNJUSTIFI ED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 15 . THAT THE ADDITION OF RS.2,500/ - MADE AS PER PARA NO.10R OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FOR CASH DEPOSIT IN ACCOUNT NO.20039628862 WITH STATE BANK OF INDIA, AKBARPUR, SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 251 : - BHOPAL BELONGI NG TO DEEPAK ASAI BE HELD TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. 16 . THAT THE ESTIMATED ADDITION OF RS.1,20,000/ - CONFIRMED BY THE CIT (APPEALS) AS PER PARA NO.11 OF THE ASSESSMENT ORDER FOR HOUSE HOLD EXPENSES AND ED UCATIONAL EXPENSES BE HELD TO BE BAD AND UNJUSTIFIED. THE ADDITION MADE BEING BASED ON ESTIMATE AND CONJECTURES BE QUASHED AND DELETED. 17 . THAT THE ADDITION OF RS.1,24,250/ - MADE AS PER PARA NO.12 OF THE ASSESSMENT ORDER AND CONFIRMED BY THE CIT (APPEALS) FO R CASH FOUND DURING THE COURSE OF SEARCH BE HELD TO BE BAD AND UNJUSTIFIED WHEN THE AVAILABILITY OF CASH HAD BEEN EXPLAINED THROUGH THE CASH FLOW STATEMENT OF THE ASSESSEE AND HIS WIFE. THE ADDITION MADE BE QUASHED AND DELETED. 18 . THAT THE ADDITION OF RS.50, 081/ - CONFIRMED BY THE CIT (APPEALS) AS PER PARA NO.12 OF THE ASSESSMENT ORDER SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 252 : - FOR JEWELLERY FOUND DURING THE COURSE OF SEARCH BE HELD TO BE BAD AND UNJUSTIFIED WHEN THE ENTIRE JEWELLERY FOUND HAD BEEN EXPLAINED BY THE ASSESSEE AND HIS WIFE. THE ADDITION M ADE BE QUASHED AND DELETED. 19 . THAT THE ESTIMATED ADDITION OF RS.3,36,960/ - CONFIRMED BY THE CIT (APPEALS) AS PER PARA NO.14 OF THE ASSESSMENT ORDER FOR APPROXIMATE COST OF BEIJING TOUR UNDER TAKEN BY ASSESSEE, HIS WIFE AND CHILDREN BE HELD TO BE BAD AND UNJ USTIFIED. THE ADDITION MADE BEING BASED ON ESTIMATE AND CONJECTURES BE QUASHED AND DELETED 331 . GROUND NO. 1 RELATES TO THE ADDITION OF RS. 6,75,500/ - MADE AS PER PARA 6.2 OF THE ASSESSMENT ORDER AND CONFIRMED BY THE LD. CIT(A) FOR PROFESSIONAL INCOME, AG RICULTURAL INCOME. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 253 : - 332 . THE LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSION WHICH HE MADE FOR GROUND NO. 3 OF THE ASSESSEE FOR ASSESSMENT YEAR 2004 - 05. 333 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 334 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE HAVE ALREADY DEALT WITH THIS ISSUE IN DETAIL WHILE DEALING GROUND NO. 3 OF THE ASSESSEE FOR ASSESSMENT YEAR 2004 - 05. THE SAME ARGUMENTS WERE ADOPTED AS TAKEN BEFORE US IN GROUND NO.3 OF THE ASSESSEE FOR ASSESSMENT YEAR 2004 - 05. FOLLOWING THE SAME REASONING, WE DIRECT THE AO TO DELETE THIS ADDITION OF RS. 6,75,500/ - . GROUND NO. 1 IS ALLOWED. 335 . GROUND NO.2 RELATES TO ADDITION OF RS. 2,92,283/ - AS PER PARA NO .7A FOR VARIOUS HOUSE HOLD ITEMS. 336 . FACTS APROPOS THIS GROUND ARE THAT T HE VARIOUS BILLS WERE FOUND AND SEIZED DURING SEARCH AND SEIZURE OPERATION SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 254 : - FROM THE RESIDENTIAL PREMISES OF THE ASSESSEE. LATER ON, IN QUESTIONNAIRE U/S 142(1) Q.NO 10, THE ASSESSE E REPLIED THAT ALL THESE ARE REFLECTED IN THE CASH FLOW SUBMITTED. THE AO REJECTED THE CASH FLOW AND ADDED THE FOLLOWING PAYMENTS MADE. AO ALLEGED THAT THE CASH WAS USED FOR DISPOSING OFF THE UNDISCLOSED INCOME OF THE ASSESSEE. THE ADDITION TO INCOME FOR V ARIOUS ITEMS FOR ASSESSMENT YEAR 2010 - 11 ARE TABULATED BELOW: - 2010 - 11 3,19,844 PURCHASE OF MATRESSES 10,758 PURCHASE OF JEWELLERY 18,200 PURCHASE OF LAPTOP COMPUTER 38,000 DONATION TO ADIVASI HALBA SAMAJ 20,320 PURCHASE OF MAHENDRA SCOOTER 42,000 PURCHASE OF JEWELLERY 15,936 RECEIPT OF M/S STAR GEMS 15,000 BILL OF M/S STAR GEMS 1,22,680 BILL FOR PASHMINA SHAWL 3,250 SLIP FOR DD TO KANPUR 33,700 TOTAL 3,19,844 LPS D - 2, PG NO 123 LPS D - 2, PG NO 124 LPS D - 2, PG NO 135 & 136 LPS D - 2, PG NO 14 0 LPS D - 3, PG NO 97 & 98 LPS D - 3, PG NO 109 LPS D - 3, PG NO 110 LPS D - 3, PG NO 111 LPS D - 3, PG NO 112 LPS D - 3, PG NO 121 PB 346 PB 347 PB 348 PB 350 PB 351 - 352 PB 353 PB 354 PB 355 PB356 PB 357 SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 255 : - THE LD CIT(A), BRUSHED ASIDE THE SUBMISSIONS AND IN A SLIPSHOT MANNER DECIDED THE GROUND AT PG. 34 - 35. HE CONFIRMED THE ADDITION OF RS. 2,92,283/ - , OUT OF RS. 3,19,844/ - FOR ASSESSMENT YEAR 2010 - 11. 337 . THE LD. COUNSEL FOR THE ASSESSEE REITERATED TH E SUBMISSIONS AS MADE IN WRITTEN SUBMISSIONS, WHICH IS ALSO ON RECORD. FOR CLARIFY, WE REPRODUCE HIS SUBMISSIONS, WHICH ARE AS UNDER : - SUBMISSIONS: - SR. NO. PARTICULARS AMOUNT LPS&PB REF SUBMISSIONS: 1. PURCHASE OF MATRESSES PB 346 10,758 ASSESSEE LPS D - 2, PG NO 123 BILL DATED 23.10.09 OF M/S SUPERIOR HOME COLLECTION, BHOPAL. COVERED IN CASH FLOW OF ASSESSEE (REFER CHART - 4) 2. PURCHASE OF JEWELLERY PB 347 18,200 ASSESSEE LPS D - 2, PG NO 124 BILL DATED 26.10.08 OF M/S GUPTA SONS. A . JEWELLERY WAS PURCH ASED BY SMT. JYOTI ASAI. B . PURCHASED UNDER MONTHLY DEPOSIT SCHEME OF RS. 1000/MONTH. C . CASH FLOW OF SMT. JYOTI ASAI SHOWS SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 256 : - RS. 3000/ - IN F.Y. 2007 - 08 AND RS. 13200/ - IN F.Y. 2008 - 09. D . THE VENDOR UNDER THE SCHEME WAIVED TWO INSTALLMENT OF RS. 1000/ - EACH. THUS, THE TOTAL PAYMENT OF RS. 3000+13200+2000(WA IVED) IS EXPLAINED. 3. PURCHASE OF LAPTOP COMPUTER PB 348 - 349 38,000 ASSESSEE LPS D - 2, PG NO 135 & 136 BILL DATED 17.06.09 OF M/S PIRELLI COMPUTERS (INDIA) PVT LTD FOR COMPAQ LAPTOP COMPUTER. A . THE BILL IS IN NAM E OF SMT. JYOTI ASAI. B . THE PAYMENT WAS DONE BY ICICI PRUDENTIAL AGAINST COMMISSION INCOME. C . NO CASH PAYMENT WAS MADE BY ASSESSEES WIFE. D . ADDITION IN HANDS OF ASSESSEE ON BASIS OF PRESUMPTIONS WHEN THERE IS NO SUPPORTING DOCUMENT IN SUPPORT OF THE ADDITION IS UNJUSTIFIED. 4. DONATION TO ADIVASI HALBA SAMAJ PB 350 20,320 ASSESSEE LPS D - 2, PG NO 140 A. RECEIPT DATED 17.01.2010 FOR DONATION PAID TO ADIVASI HALBA SAMAJ, BHOPAL. B. THE DONATION WAS PAID IN CASH BY THE ASSESSEE AND SAME IS REFLECTED IN THE CASH F LOW STATEMENT IN CHART - 4. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 257 : - 5. PURCHASE OF MAHENDRA SCOOTER PB 351 - 352 42,000 ASSESSEE LPS D - 3, PG NO 97 & 98 A . INVOICE AND DELIVERY CHALLAN DATED 02.09.09 ISSUED BY M/S RAFTAR MOTORS AGAINST PURCHASE OF FLYTE SYM 125CC MAHINDRA SCOOTER. B . THE INVOICE IS N AME OF SMT. JYOTI ASAI AND NOT ASSESSEE. C . THE PAYMENT FOR THE SAME IS SHOWN IN THE CASH FLOW STATEMENT AT CHART - 5. D . NO ADDITION ON BASIS OF SUSPICION AND PRESUMPTION IS JUSTIFIED WHEN THE DOCUMENTARY EVIDENCE ARE IN SUPPORT OF THE ASSESSEE. 6. PURCHASE OF JEWELLERY PB 353 15,936 CROSS APPEAL CONFIRME D RS. 7,735 BY LD CIT(A) LPS D - 3, PG NO 109 A . BILL DATED 16.05.09 OF M/S SAJAVAT JEWELLERS, BHOPAL FOR PURCHASE OF ONE BRACELET. B . WEIGHT OF GOLD IS 10.380 GM AND OLD ORNAMENT WEIGHING 7.020 GM WAS GIVEN IN EXCH ANGE. C . THE BALANCE AMOUNT OF RS. 7,735/ - WAS ONLY PAID IN CASH. D . THE CASH PAYMENT IS COVERED IN THE CASH FLOW OF SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 258 : - SMT. JYOTI ASAI AT CHART - 5. E . NO ADDITION ON BASIS OF SUSPICION AND PRESUMPTION IS JUSTIFIED WHEN THE DOCUMENTARY EVIDENCE ARE IN SUPPORT OF THE ASSESSEE. 7. RECEIPT OF M/S STAR GEMS PB 354 15,000 LPS D - 3, PG NO 110 A . LD CIT(A) CONFIRMED RS. 1,02,680. B . RCPT. NO. 356 DATED 18.04.09 ISSUED BY M/S STAR GEMS AGAINST BILL NO 283 (LPS 110) TO SMT. JYOTI ASAI. AND BILL NO 346 DATED 26.04.09. (LPS 111) C . CHE QUE PAYMENT OF RS. 35,000/ - FROM ICICI BANK A/C NO 028301508839 IN F.Y. 2008 - 09. .) D . CASH INSTALLMENT PAYMENT OF RS. 1,02,680/ - IN F.Y. 2008 - 09 AND 2009 - 10. REFLECTED IN CASH FLOW OF SMT. JYOTI ASAI. E . THE TOTAL PAYMENT MADE IS RS. 1,37,680/ - WHICH IS COVERE D IN BILL NO 283 AND BILL NO . 346 FOR RS. 15,000/ - AND RS. 1,22,680/ - RESPECTIVELY. F . BELONGS TO SMT. 8. BILL OF M/S STAR GEMS PB 355 1,22,680 LPS D - 3, PG NO 111 SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 259 : - JYOTI ASAI, AND NOT ASSESSEE. IN ANY CASE, ADDITION COLD HAVE BEEN MADE IN HER HANDS. 9. BILL FOR PASHMINA SHAWL PB 356 3,250 DEPTT LPS D - 3, PG NO 112 THE BILL DATED 10.05.09 OF M/S SULTAN SONS FOR PURCHASE OF PASHMINA SHAWL IS IN NAME OF SMT. JYOTI MEHRA AND SIGNED BY SMT. SUMEDHA AS CUSTOMER . BOTH THESE LADIES ARE FRIEND OF SMT. JYOTI AS AI. THEY FORGOT THE BILL AT ASSESSEES RESIDENCE BY MISTAKE AND IT DOES NOT BELONG TO ASSESSEE. 10. SLIP FOR DD TO KANPUR PB 357 33,700 ENHANCED RS. 52,590. ASSESSEE LPS D - 3, PG NO 121 A . BANK COUNTERFOIL DATED 27.12.09 FOR DD OF RS. 33,700/ - B . ASSESSEES D AUGHTER ANKITA ASAI WAS ADMITTED IN IIT KANPUR. C . THE DD WAS SEND TO IIT KANPUR TO MEET HER HOSTEL AND EDUCATION EXPENSES. D . THE TOTAL BANK DRAFT SENT AMOUNTS TO RS. 67,659/ - ; (RS. 15,069 FROM SB A/C NO 0301040005143 134 AND CASH AMOUNTING TO RS. 52,590). E . THE C ASH PAYMENT OF RS. 52,590/ - IS SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 260 : - COVERED IN CASH FLOW STATEMENT OF ASSESSEE. TOTAL 3,19,844/ - THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ADDITION OF RS. 2,92,283/ - BE QUASHED , AS ALL THE ITEMS WERE EXPLAINED AND ESTABLISHED . 338 . THE LD . DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES . 339 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE ISSUE IN THIS GROUND IS RELATED TO PURCHASE OF VARIOUS ITEMS. IT IS STATED THAT OUT OF ADDITION OF RS. 3,19,844/ - , THE ADDITION OF RS. 2,92,823/ - IS SUSTAINED. IT IS IN MOST OF THE ITEMS, THE INVOICE IS IN THE NAME OF WIFE OF THE ASSESSEE, WHO IS AN INCOME TAX PAYEE AND HAVE BEEN DECLARING HER INCOME. THE AO HAS NOT BROUGHT ANY MATERIAL SUGGESTING THAT THESE INVESTMENTS WERE MADE BY THE ASSESSEE. THE BANK DRAFTS MADE ON ACCOUNT OF EDUCATION OF THE DAUGHTER OF THE ASSESSEE I.E. RS. 52,590/ - , THE ASSESSEE WAS HAVING SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 261 : - SUFFICIENT FUNDS TO MAKE SUCH PAYMENTS, AS PER THE CASH FLOW. THU S, WE DIRECT THE AO TO DELETE THIS ADDITION. GROUND NO.2 IS ALLOWED. 340 . GROUND NO. 3 RELATES TO ADDITION OF RS. 2,00,000/ - FOR RENOVATION OF HOUSE. 341 . THE AO MADE THE ADDITION OF RS. 2 LAKHS, WHICH WAS BASED ON THE DECLARATION W.R.T. RENOVATION OF HOUSE MADE BY SMT. JYOTI ASAI DURING THE COURSE OF SEARCH. IT WAS SUBMITTED THAT THE DECLARATION WAS SUBMITTED BY SMT. JYOTI ASAI DURING THE COURSE OF ASSESSMENT PROCEEDINGS IN HER CASE. HER STATEMENT WAS ALSO RECORDED. THE DOCUMENTS WERE FOUND AND SEIZED FROM THE ASSESSEES POSSESSION IN RESPECT OF THE HOUSE SITUATED AT E - 8 COMFORT GARDEN, CHUNABHATTI, BHOPAL, WHICH IS THE RESIDENCE OF THE ASSESSEE AND HIS FAMILY. DURING THE ASSESSMENT PROCEEDINGS , IT WAS CONCLUSIVELY HELD BY THE AO THAT SHRI K. C. PARATE WAS NOT ABLE TO SATISFACTORILY EXPLAIN THE SOURCE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 262 : - OF INVESTMENT AND THE ALLEGED HOUSING LOAN TAKEN FROM ICICI BANK AT BHOPAL AND MADE THE ADDITION IN THE HANDS OF THE ASSESSEE . ON APPEAL, THE LD. CIT(A) CONFIRMED THE ADDITION OF RS. 2 LAKHS FOR ASSESSMENT YEAR 2010 - 11. 342 . THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT THE AFFIDAVIT OF SHRI KAILASH CHAND PARATE HAS BEEN SUBMITTED WHICH IS ON RECORD STATING ON OATH THAT HE PURCHASED THE PROPERTY VIZ. E - 8 COMFORT GARDEN, CHUNA BHATTI, KOLAR ROAD, BHOPAL FOR A TOTAL CONSIDERATION OF RS. 11 LAKHS FROM M/S. V.K. BUILDERS, NEAR CAPITAL PETROL PUMP, RAISEN ROAD, BHOPAL AND RS. 5 LAKHS WAS PAID TO THE SELLER FROM BANK LOAN OBTAINED FOR RS. 5 LAKHS. THE ADDITION OF RS. 2 LAKHS MADE IN THE HANDS OF THE ASSESSEE BE QU ASHED. 343 . LD. DEPARTMENTAL REPRESENTATIVE RELIEF ON THE ORDERS OF THE LOWER AUTHORITIES. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 263 : - 344 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE SAID PROPERTY BELONGED TO SHRI K. C. PARATE. WE HAVE PERUSED THE AFFIDAVIT SWORN BY SHRI K. C PARATE, WHICH IS PLACED ON RECORD. SHRI DEEPAK ASAI AND MRS. JYOTI ASAI WERE LIVING IN THE HOUSE. WE HAVE DEALT WITH THIS ISSUE W HILE DEALING GROUND NO. 4 FOR ASSESSMENT YEAR 2005 - 06 IN I.T.(SS)A.NO. 153/IND/2 015 IN PARA 40 TO 44 AND WE HAVE HELD THAT THE PROPERTY BELONGED TO SHRI K. C. PARATE. SHRI DEEPAK ASAI AND MRS. JYOTI ASAI WERE LIVING AS TENANTS AND PAYING RENT FOR THE HOUSE. SHRI K. C. PARATE WAS BROTHER IN LAW OF THE ASSESSEE. WE DIRECT THE AO TO DEL ETE THE ADDITION. HOWEVER, IT IS CLARIFIED THAT THE REVENUE WOULD BE AT LIBERTY TO EXAMINE THE ISSUE IN THE CASE OF SHRI K. C. PARATE AND IN CASE IF THE SOURCE IS NOT EXPLAINED, THE AUTHORITIES WOULD BE AT LIBERTY TO MAKE THE ADDITION IN THE HANDS OF SHRI K. C. PARATE. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 264 : - 345 . GROUND NO. 4 RELATES TO THE ADDITION OF RS. 4,55,500/ - FOR PAYMENTS MADE AGAINST FLAT AT AKRITI GREENS, BHOPAL. 346 . WE HAVE DEALT WITH THIS ISSUE IN DETAIL, WHILE DEALING WITH GROUND NO.6 FOR ASSESSMENT YEAR 2009 - 10 IN I.T.(SS)A.NO. 157/ IND/2015 IN PARA 276 TO 280 ABOVE. THIS ISSUE WE HAVE ALREADY DEALT WITH. FOR THE SAME REASONING, THE AO IS DIRECTED TO DELETE THE SAME IN THE HANDS OF THE ASSESSEE. HOWEVER, THE AO WOULD BE FREE TO CONSIDER THE ADDITION IN THE HANDS OF THE WIFE OF THE AS SESSEE. 347 . GROUND NO. 5 RELATES TO THE ADDITION OF RS. 9,65,363/ - MADE AS PER PARA 9 AND REPLACED BY THE LD. CIT(A) AT RS. 14,74,005/ - . 348 . THE ABOVE AMOUNT WAS INVESTED FOR ASSESSMENT YEAR 2010 - 11 IN ICICI PRUDENTIAL, THE DETAILS OF WHICH ARE AS UND ER : - CHART 6 : INVESTMENTS IN ICICI POLICIES A.Y. PARTICULAR PAN NO. AMOUNT TOTAL ADDED IN AO ENHANCED/ (DELETED) IN APPEAL TO ITAT SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 265 : - FINALLY BY CIT(A) 2010 - 11 JYOTI ASAI AFHPA4045D 9,19,050 50,000 2,00,000 1,40,000 1,00,000 64,955 14,74,005 9,65,363 5 ,08,642 14,74,005 R. G. ASAI ABCPA4131D URMILA ASAI AKCPA0276E KAMLA BANPK7711G K.C. PARATE AEOPP9784N DEEPAK ASAI ABGPA5291C 349 . WE HAV E ALREADY DEALT WITH THIS ISSUE IN DETAIL WHILE DEALING WITH GROUND NO. 5 OF ASSESSEES APPEAL IN I.T.(SS)A.NO155/IND/2015 FOR THE ASSESSMENT YEAR 2007 - 08. FACTS BEING SAME, THE SAME ARGUMENTS WERE ADVANCED BEFORE US AS WERE TAKEN BY THE ASSESSEE FOR ASSESSMENT YEAR 2007 - 08. FOLLOWING THE SAME REASONING IN VIEW OF OUR OBSERVATIO NS GIVEN IN PARA 149 ABOVE, GROUND NO. 5 IS ALLOWED FOR STATISTICAL PURPOSES. 350 . GROUND NO. 6 RELATES TO ADDITION OF RS. 1,89,175/ - MADE AS PER PARA 10 FOR CREDITS IN S.B. ACCOUNT NO.1470/127 WITH M.P. RAJYA SAHAKARI BANK, BHOPAL, BELONGING DEEPAK ASAI, HU F. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 266 : - 351 . THE AO FOUND THAT THE ASSESSEE HAS DEPOSITED AMOUNT TO ISSUE CHEQUES FOR CLEARING. THERE ARE VARIOUS CHEQUES DEPOSITS WHICH HAVE BEEN LATER BEEN ISSUED FOR SOME INVESTMENT. SINCE THE ASSESSEE SHRI DEEPAK ASAI WAS A SALARIED CLASS EMPLOYEE AND HIS D EPOSITS DID NOT COMMENSURATE WITH THAT OF THE INCOME RECEIVED, HE MADE THE ADDITION OF RS. 1,89,175/ - FOR THE ASSESSMENT YEAR 2010 - 11. ON APPEAL, THE SAME WAS CONFIRMED BY THE LD. CIT(A). 352 . THE LD. COUNSEL FOR THE ASSESSEE DREW OUR ATTENTION TO PAGE NO. 33 OF HIS SUBMISSIONS AND SUBMITTED THAT THERE WAS CASH CREDIT OF RS. 3 5 ,000/ - . THERE WAS CHEQUE CREDIT OF RS. 1,53,525/ - , WHICH WAS MATURITY VALUE OF R.B.I. BOND, WHICH IS PLACED AT PAPER BOOK PAGES 634 - 636/III . 353 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 267 : - 354 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE HAVE GONE THROUGH THE ORDERS OF THE LOWER AUTHORITIES. WE FIND THAT THE C ASH CREDIT OF RS. 3 5 ,000/ - WAS MAD E IN THE ABOVE ACCOUNT . THE AMOUNT OF RS. 11,53,525/ - WAS THE MATURITY VALUE OF RBI BOND, WHICH IS PLACED AT P B 634 - 636. WE HAVE ALSO PERUSED THE SAME. WE, THEREFORE, DIRECT THE AO TO DELETE THE ADDITION OF RS. 1, 89,175/ - . GROUND NO. 6 IS ALLOWED. 355 . GRO UND NO. 7 RELATES TO ADDITION OF RS. 12,74,264/ - FOR CREDITS IN ICICI BANK A/C NO. 028301508839 BELONGING TO SMT. JYOTI ASAI. 356 . THE LD. COUNSEL FOR THE ASSESSEE DREW OUR ATTENTION TO PAGE 34 OF HIS SUBMISSION AND SUBMITTED THAT T HIS ACCOUNT BELONG ED TO SMT. JYOTI ASAI, WH O IS SEPARATELY ASSESSED TO TAX. THE E NTIRE CREDITS IN THE BANK ACCOUNT WERE ADDED INCLUDING C OMMISSION INCOME AT RS. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 268 : - 8,93,136.33 AND T HE LIC COMMISSION OF RS. 11,93,515/ - WHICH IS OFFERED IN RETURN OF INCOME ON ACCRUAL BASIS AND P L ACED AT PB 2 92 , INTEREST INCOME OF RS. 3,520/ - , WHICH WAS OFFERED IN RETURN, WHICH IS PLACED ON PAPER BOOK PAGE NO. 292 . THE LD. COUNSEL FOR THE ASSESSEE FURTHER CONTENDED THAT SMT. JYOTI ASAI IS FILING HER RETURN EVEN BEFORE THE SEARCH AND SHOWING COMMISSION I NCOME IN THE RETURN FILED U/S 139 ALSO. NO MATERIAL WAS POINTED OUT IN THE RETURN TO DISREGARD HER CLAIM. 357 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THAT T HIS ACCOUNT BELONG ED TO SMT. J YOTI ASAI, WH O WAS SEPARATELY ASSESSED TO TAX. WE ALSO FIND THAT T HE E NTIRE CREDITS IN THE BANK ACCOUNT WERE ADDED INCLUDING I NCOME FROM COMMISSION WHICH IS OFFERED FOR TAX IN THE RETURN OF I NCOME ON ACCRUAL BASIS . THE INTEREST INCOME WAS SHOWN IN THE RE TURN AND WAS PLACED ON RECORD. WE FIND THAT THE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 269 : - I NTEREST IS OFFERED IN R ETURN OF SMT. JYOTI ASAI, WHICH IS PLACED AT PAPER BOOK II AT PAGE NO.2 92 . WE FIND THAT SMT. JYOTI ASAI WAS FILING HER RETURN EVEN BEFORE THE SEARCH AND SHOWING COMMISSION INCOME IN HE R RETURN FILED U/S 139 ALSO. NO CONTRARY MATERIAL WAS ALSO EVER FILED TO DISREGARD HER CLAIM. THE HOLDER OF THE ACCOUNT HAVING INDEPENDENT SOURCE OF INCOME AND HAS OWNED UP THIS BANK ACCOUNT. AS PER OUR VIEW, THE AO WAS NOT JUSTIFIED IN MAKING THE ADDITION IN THE HANDS OF THE ASSESSEE. HOWEVER, THE AO WILL BE AT LIBERTY TO EXAMINE THE ADDITION IN THE HANDS OF THE SMT. JYOTI ASAI. THE AO IS DIRECTED TO DELETE THE ADDITION OF RS. 12,74,264 / - . GROUND NO. 7 IS ALLOWED. 358 . GROUND NO. 8 RELATES TO ADDITION OF RS. 9 0,555/ - FOR CREDITS IN ICICI BANK A/C NO.028301500684 BELONGING TO SHRI KAILASHCHAND PARATE. 359 . THE LD. COUNSEL FOR THE ASSESSEE STATED THAT THIS AMOUNT WAS DEPOSITED IN ICICI BANK, NEW MARKET, BHOPAL SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 270 : - A/C NO.028301500684. THE LD. COUNSEL FOR THE ASSESSEE DREW OUR ATTENTION TO PAGE 34 OF HIS SUBMISSIONS AND SUBMITTED THAT THIS ACCOUNT BELONGED TO HIS BROTHER IN LAW SHRI KAILASH CHAND PARATE, WHO IS WORKING AS REGIONAL MANAGER WITH MADHYA PRADESH CENTRAL GRAMIN BANK, CHINDWARA. THE AFFIDAVIT IN THIS REGARD IS ON ( PB 595 - 596/ III). HE IS SEPARATELY ASSESSED TO TAX. HIS INCOME TAX RETURNS FROM A.Y. 2003 - 04 TO 2010 - 11 ARE ON (PB 597 - 604/ III). HIS BANK STATEMENTS WERE NOT FOUND FROM THE RESIDENCE OF ASSESSEE DURING SEARCH AS CONTENDED BY AO, BUT SUBMITTED SUBS EQUENTLY. THE DEPOSIT IN HIS BANK ACCOUNT DOES NOT BELONG TO ASSESSEE. THE LD. COUNSEL FOR THE ASSESSEE STATED THAT THIS ACCOUNT BELONGED TO SHRI KAILASH CHAND PARATE AND THE ADDITION BE HELD TO BE UNREASONABLE, BAD, UNJUSTIFIED AND UNLAWFUL. THE ADDITION MADE BE QUASHED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 271 : - 360 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES . 361 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE HAVE ALREADY DEALT WITH THE SIMILAR GROUND AS GROU ND NO. 7 OF ASSESSMENT YEAR 2007 - 08. IT IS OBSERVED THAT THE HOLDER OF THE ACCOUNT OWNED UP THE ACCOUNTS AND THE TRANSACTIONS WERE MADE THEREIN. THE ADDITIONS HAVE BEEN MADE IN THE HANDS OF THE ASSESSEE PURELY ON SUSPICION, WHICH IN OUR VIEW, IS NOT JUSTIF IABLE . HOWEVER, THE AO WILL BE AT LIBERTY TO CONSIDER THIS ADDITION IN THE HANDS OF THE BROTHER - IN - LAW, WHO IS THE HOLDER OF THE ACCOUNT. THE AO IS DIRECTED TO DELETE THE ADDITION OF RS. 90,555/ - . GROUND NO. 8 IS ALLOWED. 362 . GROUND NO. 9 RELATES TO THE ADDITION OF RS. 10,200/ - FOR CASH DEPOSIT IN ICICI BANK ACCOUNT NO.028301520633 BELONGING TO KU. ANKITA ASAI. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 272 : - 363 . THE LD. COUNSEL FOR THE ASSESSEE TOOK US THROUGH HIS SUBMISSION AT PAGE 35 AND SUBMITTED THAT THE CASH DEPOSIT DATED 10.07.2009 IS FOR OPENI NG THE ACCOUNT. THIS WAS GIFTED BY HER GRANDFATHER SHRI R. G. ASAI WHEN SHE GOT ADMISSION IN IIT, KANPUR. THIS AMOUNT BELONGED TO KU. ANKITA ASAI. 364 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 365 . WE HAVE CONSIDERE D THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE AMOUNT WAS GIFTED BY HER GRAND FATHER , SHRI R. G. ASAI. WE ALSO FIND THAT THE ACCOUNT BELONGED KU. ANKITA ASAI. WE, THEREFORE, DIRECT THE AO TO DELETE THE ADDITION OF RS. 10,200/ - . GROUND NO. 9 IS ALLOWED. 366 . GROUND NO. 10 RELATES TO ADDITION OF RS. 16,000/ - FOR CASH DEPOSITS IN ICICI BANK A/C NO. 005501004458 BELONGING TO SHRI DEEPAK ASAI. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 273 : - 367 . THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THIS ACCOUNT BELONGED T O SHRI DEEPAK ASAI. THIS AMOUNT WAS CASH DEPOSIT JUSTIFIED OUT OF PAST SAVINGS . THE AO TREATED THE CASH DEPOSIT AS UNDISCLOSED AND ADDED TO HIS INCOME FOR ASSESSMENT YEAR 20 10 - 11 , WHICH WAS CONFIRMED BY THE LD. CIT(A). THE ADDITION MAY PLEASE BE QUASHED A S IT IS DULY EXPLAINED. 368 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 369 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND FROM THE ACCOUNT STATEMENT THAT THE AMOUNT WAS CASH DEPOSIT ED OUT OF PAST SAVINGS. WE, THEREFORE, DIRECT THE AO TO DELETE THE ADDITION OF RS. 16000/ - . GROUND NO.10 IS ALLOWED. 370 . GROUND NO. 11 RELATES TO THE ADDITION OF RS. 12,410/ - FOR CREDITS IN ACCOUNT NO. 20004935555 WITH SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 274 : - STATE BANK OF INDIA, SHIVAJI NAGAR, BHOPAL, BELONGING TO KU. ANKITA ASAI. 371 . THE LD. COUNSEL FOR THE ASSESSEE TOOK US TO PAGE 35 OF HIS SUBMISSION AND CONTENDED THAT AN AMOUNT OF RS. 1,008/ - WAS GIFTED BY SBI, INTEREST WAS RS. 149/ - AND THERE WAS CHEQUE DEPOSI T OF RS. 11,250/ - . THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE AMOUNT IS EXPLAINED AND THE ADDITION BE DELETED. 372 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 373 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSI ONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE ACCOUNT BELONGED TO KU. ANKITA ASAI AND THE ENTRIES ARE WELL ESTABLISHED. WE, THEREFORE, DIRECT THE AO TO DELETE THE ADDITION OF RS. 12,410/ - SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 275 : - 374 . GROUND NO.12 RELATES TO THE ADDITION OF 10,0 00/ - FOR CASH CREDITS IN ACCOUNT NO. 53020703267 WITH STATE BANK OF IND ORE, SHAHPURA, BHOPAL, BELONGING TO SMT. JYOTI ASAI. 375 . THE LD. COUNSEL FOR THE ASSESSEE DREW OUR ATTENTION TO PAGE NO.36 OF HIS SUBMISSIONS AND SUBMITTED THAT THIS ACCOUNT BELONGED TO SMT. JYOTI ASAI AND THE AMOUNT OF RS. 10,000/ - WAS THE CASH DEPOSIT AND REFLECTED IN CASH FLOW. THE ADDITION BE DELETED. 376 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 377 . WE HAVE CONSIDERED THE FACTS, RIVAL S UBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE HOLDER OF THE ACCOUNT HAVING INDEPENDENT SOURCE OF INCOME AND HAS OWNED UP THIS BANK ACCOUNT. AS PER OUR VIEW, THE AO WAS NOT JUSTIFIED IN MAKING THE ADDITION IN THE HANDS OF THE ASSESSEE. HOWEVE R, THE AO WILL BE AT LIBERTY TO EXAMINE THE ADDITION IN THE HANDS OF THE SMT. JYOTI ASAI. THE AO IS SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 276 : - DIRECTED TO DELETE THE ADDITION OF RS. 10,000/ - . GROUND NO. 1 2 IS ALLOWED. 378 . GROUND NO. 13 RELATES TO THE ADDITION OF RS. 1,000/ - FOR CASH DEPOSIT IN A/C NO. 63051699883 WITH STATE BANK OF INDORE, KOLAR ROAD, BHOPAL, BELONGING TO SMT. JYOTI ASAI. 379 . THE LD. COUNSEL FOR THE ASSESSEE TOOK US THROUGH HIS SUBMISSION AT PAGE 36 AND SUBMITTED THAT THE AMOUNT OF RS. 1000/ - WAS CASH DEPOSITED FOR ACCOUNT OPENING. IT IS ALSO REFLECTED IN CASH FLOW STATEMENT CHART 5. THE ADDITION BE DELETED, AS IT IS WELL ESTABLISHED. 380 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 381 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AN D PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE AMOUNT OF RS. 1,000/ - WAS DEPOSITED FOR OPENING THE ACCOUNT AND THE SAME IS ALSO REFLECTED IN CASH FLOW SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 277 : - STATEMENT OF SMT. JYOTI ASAI. WE, THEREFORE, DIRECT THE AO TO DELETE THE ADDITION OF RS. 1 ,000/ - . GROUND NO. 13 IS ALLOWED. 382 . GROUND NO. 13 RELATES TO ADDITION OF RS. 4,56,290/ - FOR CREDITS IN ACCOUNT NO.900210100014831 WITH BANK OF INDIA, ARERA COLONY, BHOPAL BELONGING TO SHRI RAMBHAU GHANSHYAM ASAI. 383 . THE LD. COUNSEL FOR THE ASSESSEE DRE W OUR ATTENTION TO PAGE NO. 37 OF HIS SUBMISSIONS AND SUBMITTED THAT IT HAS NO CONNECTION WITH THE ASSESSEE. THE AMOUNT OF RS. 1,94,126/ - WAS TOWARDS F.D. MATURITY, INTEREST CHEQUE OF SON WAS OF RS. 2,00,000/ - AND CASH DEPOSIT WAS OF RS. 50,000/ - . THIS IS ALSO REFLECTED IN CASH FLOW. THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT THE ENTRIES ARE WELL ESTABLISHED AND THE ADDITION BE DELETED. 384 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 278 : - 385 . WE HAVE CONSIDERED THE FA CTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE AMOUNT OF RS. 1,94,126/ - WAS OF F.D. MATURITY, INTEREST CHEQUE OF SON OF RS. 2,00,000/ - AND CASH DEPOSIT OF RS. 50,000/ - . HENCE, THE EXPLANATION OF THE ASSESSEE IS SUPPO RTED WITH EVIDENCE. WE, THEREFORE, DIRECT THE AO TO DELETE THE ADDITION OF RS. 4,56,290/ - . GROUND NO. 14 IS ALLOWED. 386 . GROUND NO. 15 RELATES TO THE ADDITION OF RS. 2500/ - FOR CASH DEPOSIT IN ACCOUNT NO.20039628862 WITH STATE BANK OF INDIA, AKBARPUR, BH OPAL, BELONGING TO DEEPAK ASAI. 387 . THE LD. COUNSEL FOR THE ASSESSEE TOOK US THROUGH PAGE NO. 37 OF HIS SUBMISSION AND SUBMITTED THAT THE AMOUNT OF RS. 1,500/ - WAS DEPOSITED IN CASH FOR OPENING ACCOUNT AND RS. 1,000/ - WAS DEPOSITED IN CASH. THE SAME IS REF LECTED IN CASH FLOW CHART 4. 388 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 279 : - 389 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE AMOUNT OF RS. 1,500/ - WAS DEPOSITED IN CASH FOR OPENING ACCOUNT AND RS. 1,000/ - WAS DEPOSITED IN CASH. THE ENTRIES ARE ESTABLISHED. WE, THEREFORE, DIRECT THE AO TO DELETE THE ADDITION OF RS. 2,500 / - . GROUND NO. 15 IS ALLOWED. 390 . GROUND NO. 16 RELATES TO THE ESTIMATED ADDITION O F RS. 1,20,000/ - FOR HOUSE HOLD EXPENSES AND EDUCATIONAL EXPENSES. 391 . WE HAVE ALREADY DEALT WITH THIS ISSUE IN DETAIL IN GROUND NO.6 (PARAS NO.20 23 ) OF THE ASSESSEES APPEAL IN I.T.(SS)A.NO. 152/IND/2015 FOR ASSESSMENT YEAR 2004 - 05. THE SAME ARGUMENT S WERE ADVANCED AS WERE MADE IN ASSESSMENT YEAR 2004 - 05. THE ADDITION MADE WAS PURELY BASED ON THE CONJECTURES AND SURMISES. FOLLOWING THE SAME REASONING, WE DIRECT THE AO TO DELETE THE ADDITION OF RS. 1,20,000/ - . GROUND NO. 1 6 IS ALLOWED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 280 : - 392 . GROUND NO. 17 RELATES TO ADDITION OF RS. 1,24,250/ - FOR CASH FOUND DURING THE COURSE OF SEARCH , WHEN THE AVAILABILITY OF CASH HAD BEEN EXPLAINED THROUGH THE CASH FLOW STATEMENT OF THE ASSESSEE AND HIS WIFE. 393 . BRIEFLY STATED THE FACTS OF THE CASE ARE THAT D UR ING THE COURSE OF SEARCH AT RESIDENCE AND LOCKER OF ASSESSEE AND FAMILY, CASH WERE FOUND AS PER TABLE BELOW: - SR. NO PARTICULARS AMOUNT 1. CASH FROM RESIDENCE, E - 8, COMFORT GARDEN CHUNNA BHATTI, KOLAR ROAD 48,950/ - (PB 242) 2. LOCKER NO. 231 STATE BA NK OF INDIA, SHIVAJI NAGAR, BHOPAL 29,500/ - (PB 243) 3. LOCKER NO. 13 M.P. RAJYA SAHKARI BANK 36,000 4. LOCKER NO. 164, STATE BANK OF INDIA , AKBARPURA, BHOPAL 9,800/ - (PB 256) 1,24,250 ON ENQUIRY, IT WAS SUBMITTED THAT ALL THE CASH FOUND, IS REFL ECTED IN THE CASH FLOW STATEMENT OF ASSESSEE AND HIS WIFE. THE LD AO ON THE BASIS OF FOLLOWING ALLEGATIONS, TREATED THE TOTAL CASH AMOUNTING TO RS. 1,24,250/ - AS UNEXPLAINED AND ADDED TO TOTAL INCOME SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 281 : - OF THE ASSESSEE FOR F.Y. 2010 - 11. NO SPECIFIC REPLY ON SO URCE OF CASH FOUND, MERELY STATING THAT IT STANDS EXPLAINED BY HIS AND WIFES RETURN OF INCOME . ALSO THAT, CASH FLOW STATEMENT, CAPITAL ACCOUNT, BALANCE SHEET AND RETURN OF INCOME OF WIFE ARE NOTHING BUT UNDISCLOSED INCOME OF ASSESSEE. IN SEARCH, JYOTI AS AI SAID THAT CASH BELONG TO CLIENT AND SERVANT, HOWEVER DURING ASSESSMENT PROCEEDINGS; NO AMOUNT WAS CLAIMED BELONGING TO CLIENT OR SERVANT. THE LD CIT(A) CONCLUDED THAT THE ONLY EVIDENCE FILED FOR CASH FOUND IS THE CASH FLOW STATEMENT, WHICH WAS PREPARED AFTER DATE OF SEARCH AND IS A SELF SERVING DOCUMENT, HENCE SUSTAINED THE ADDITION. 394 . THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE CASH FLOW STATEMENT OF ASSESSEE AND WIFE SHOWS THAT THERE ARE SUFFICIENT AND REQUISITE CASH BALANCE ON THE DATE OF SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 282 : - S EARCH. IN ANY CASE, IT CANNOT BE PRESUMED THAT A PERSON WOULD POSSESS NO CASH IN HAND A T ALL. THE AMOUNT IS NOT A BIG AMOUNT LOOKING TO THE FAMILY STATUS. THE SAME MAY BE DELETED. 395 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUT HORITIES. 396 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IT IS EVIDENT FROM THE CASH FLOW THAT WIFE OF THE ASSESSEE WAS HAVING SUFFICIENT AMOUNT TO EXPLAIN THIS MONEY. WE, THEREFORE, DIRECT THE AO TO DELET E THE ADDITION . GROUND NO. 17 IS ALLOWED. 397 . GROUND NO. 18 RELATES TO ADDITION OF RS. 50,081/ - FOR JEWELLERY FOUND DURING THE COURSE OF SEARCH WHEN THE ENTIRE JEWELRY FOUND WAS EXPLAINED BY THE ASSESSEE AND HIS WIFE. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 283 : - 398 . FACTS OF THE CASE ARE THAT D URI NG THE COURSE OF SEARCH AT RESIDENCE AND LOCKER OF ASSESSEE AND FAMILY, JEWELLERY WERE FOUND AS PER TABLE BELOW: - SR. NO PARTICULARS AMOUNT 1. R ESIDENCE SILVER UTENSILS GOLD ORNAMENTS 830.00 GRAMS 267.85 GRAMS 2. LOCKER NO. 164 STATE BANK OF INDIA, KOLAR ROAD, BHOPAL SILVER COIN GOLD ORNAMENT & COIN DIAMOND ORNAMENT 84.81 GRAMS 278.93 GRAMS RS. 14,500/ - 3. LOCKER NO. 231 STATE BANK OF INDIA SILVER UTENSILS & COINS GOLD ORNAMENTS & COINS 511.85 GRAMS 222.53 GRAMS THE GOLD, SILVER AND D IAMOND JEWELLERY FOUND WERE VALUED BY DEPARTMENT VALUER AS UNDER: - GOLD ORNAMENT AND COINS 12,47,296 (769.310 GRMS) SILVER 35,581 (1426.660 GRMS) DIAMOND 14,500 12,97,377 SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 284 : - THE LD AO ON THE BASIS OF FOLLOWING OBSERVATIONS AND ALL EGATIONS, CONTENDED THAT SINCE ASSESSEE COULD NOT REPLY SPECIFICALLY TO THE SOURCE OF CASH AND JEWELLERY FOUND AND MERELY STATED THAT IT EXPLAINED BY RETURN OF INCOME, CAPITAL ACCOUNT AND BALANCE SHEET OF ASSESSEE AND WIFE. THUS, IT WAS ALSO HELD THAT THE CASH FLOW, CAPITAL AND BALANCE SHEET RETURNS OF SMT. JYOTI ASAI HAVE THEIR SOURCE IN THE UNDISCLOSED INCOME OF SHRI DEEPAK ASAI, HENCE THE ADDITION OF RS. 12,41,341/ - WAS MADE. 399 . THE LD CIT(A) CONTENDED THAT: ( I ) NEITHER THE ASSESSEE NOR HIS WIFE HAVE FILED W EALTH TAX RETURNS. ( II ) FEW PURCHASE BILLS OF JEWELLERY FOUND DURING SEARCH, WERE SEPARATELY ADDED IN ASSESSEES HAND. AS PER INSTRUCTION NO 1916 DATED 11.05.1994: - A . GOLD JEWELLERY AND ORNAMENTS TO THE EXTENT OF 500 GRMS PER MARRIED LADY, 250 GRMS PER UNMAR RIED LADY AND 100 GRMS PER MALE MEMBER OF FAMILY NEED NOT BE SEIZED. THUS, IN THE ASAI FAMILY SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 285 : - JYOTI ASAI 500 GRAMS DEEPAK ASAI 100 GRAMS ANKITA ASAI 250 GRAMS SHOBHIT ASAI 100 GRAMS -------------- 950 GRAMS THUS, THE GOLD FOUND D URING SEARCH IS 760.310 GRAMS ONLY IS REASONABLE AND HENCE NO ADDITION MADE IN RESPECT OF GOLD JEWELLERY VALUED AT RS. 12,47,296/ - HOWEVER THE SOURCE OF ACQUISITION OF SILVER AN DIAMOND JEWELLERY AMOUNTING TO RS. 50,081/ - COULD NOT BE EXPLAINED AND THUS A DDITION SUSTAINED. 400 . THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT - A . WE RELY ON THE FINDINGS OF CIT(A) WITH REGARD TO DELETION OF GOLD JEWELLERY FOUND DURING SEARCH. B . THE QUANTITY OF SILVER AND DIAMOND FOUND IS NOMINAL LOOKING TO THE FAMILY STATUS OF T HE ASSESSEE; WHERE THE ASSESSEE WAS A SENIOR OFFICE OF THE STATE GOVERNMENT. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 286 : - C . SILVER & DIAMOND FOUND DURING SEARCH: - FOUND FROM WEIGHT AND VALUE REMARKS RESIDENCE 830 GRAMS CONSISTING OF ONE TRAY, GLASS AND 4 KATORIS THE SILVER UTENSILS ARE THE ONES R ECEIVED BY ASSESSEE AND HIS WIFE ON THE OCCASION OF THEIR MARRIAGE. THE ASSESSEE BEING A GOVT EMPLOYEE WAS REQUIRED TO PROVIDE SUCH INFORMATION TO HIS DEPARTMENT. COPY OF SUCH INFORMATION UNDER THE SERVICE RULES IS AT PB LOCKER NO 164 NAME OF JYOTI ASAI SILVER COIN - 84 GRMS DIAMOND ORNAMENT - 14,500 A . THE LOCKER BELONGS TO SMT JYOTI ASAI ONLY. B . THE SILVER COINS WERE RECEIVED FROM ICICI PRUDENTIAL , SHE WORKED AS INSURANCE ADVISOR AND THE VALUE OF GOLD AND SILVER COINS WERE INCLUDED IN THE COMMISSION INCO ME. C . THE DIAMOND JEWELLERY WERE ACQUIRED BY SMT JYOTI ASAI FROM M/S GUPTA SONS , M/S STAR GEMS AND SAJAVAT JEWELLERS, WHOSE BILLS AND VOUCHERS WERE FOUND AND SEIZED AT TIME OF SEARCH. LOCKER NO 231 NAME OF DEEPAK ASAI AND JYOTI ASAI 511.850 GRAMS GLASS 201.52 GRMS THALI 191.250 GRMS) FIVE COINS - 119.080 GRMS IN REPLY TO STATEMENT RECORDED DURING SEARCH, THE ASSESSEE STATED THAT THE GOLD AND SILVER ORNAMENTS FOUND FROM LOCKER NUMBER 231 WERE RECEIVED ON THE OCCASION OF MARRIAGE OF ASSESSEE AND HIS W IFE. D . THE STATEMENT OF ASSETS AND LIABILITIES SUBMITTED TO THE PWD DEPARTMENT SHOWS VARIOUS JEWELLERY AND OTHER ARTICLES. PB 792 - 793. THESE ITEMS WERE AMPLY DISCLOSED. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 287 : - IN ANY CASE, SILVER (1425 GRAMS) AND DIAMOND (WORTH RS. 14,500) FOUND, ARE NOT SUBSTA NTIAL LOOKING TO THE FAMILY STATUS OF THE ASSESSEE. THE ADDITION OF RS. 50,081/ - AS THE ENTIRE JEWELLERY FOUND HAD BEEN EXPLAINED BY THE ASSESSEE AND HIS WIFE. 401 . THE LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. 402 . W E HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE ASSESSEE HAS EXPLAINED THE SOURCE OF INVESTMENT FROM THE CASH FLOW. WE, THEREFORE, DIRECT THE AO TO DELETE THE ADDITION. 403 . GROUND NO. 19 RELATES TO THE ESTI MATED ADDITION OF RS. 3,38,960/ - FOR APPROXIMATE COST OF BEIJING TOUR UNDERTAKEN BY THE ASSESSEE, HIS WIFE AND CHILDREN. 404 . DURING THE COURSE OF ASSESSMENT PROCEEDINGS, MR. DEEPAK ASAI & JYOTI ASAI WAS ASKED TO JUSTIFY THE SOURCE OF INVESTMENT IN VAR IOUS FOREIGN TRAVEL WHICH HAS BEEN SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 288 : - UNDERTAKEN BY THEM. THEY HAD UNDERTAKEN FOLLOWING TRIPS ABROAD DURING THE PERIOD RELEVANT TO ASSESSMENT YEAR 2004 - 05 TO 2009 - 10 : - S.NO. PLACE DATE OF DEPARTURE DATE OF ARRIVAL TRAVELLER 1 MALAYSIA AND SINGAPORE 21.11 .2004 12.12.2004 DEEPAK ASAI 2 SYDNEY 14.12.2007 19.12.2007 JYOTI ASAI, DEEPAK ASAI , SHOBHIT ASAI 3. BEIJING 01.07.2009 06.07.2009 JYOTI ASAI, DEEPAK ASAI , SHOBHIT ASAI ANKITA ASAI DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THEY WERE ASKED TO JUST IFY THE DETAILS OF EXPENDITURE FOR THE ABOVE MENTIONED TRIPS AS WELL AS SOURCE OF ABOVE MENTIONED EXPENDITURE ALONGWITH PROOF. REGARDING THE COST OF BEIJING TRIP FOR 4 PEOPLE WAS BEING APPROXIMATED AT RS. 5,00,000/ - . THIS AMOUNT WAS BEING ADDED SUBSTANTIVE LY TO THE INCOME OF MR. DEEPAK ASAI AND PROTECTIVELY TO THE INCOME OF MRS SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 289 : - JYOTI ASAI FOR ASSESSMENT YEAR 2010 - 11. SINCE NO JUSTIFICATION FOR THE TRIP WAS GIVEN, THE AO WAS FORCED TO APPROXIMATE THE RATES BASED ON THE APPROXIMATIONS GIVEN BY TRAVEL AGENCY. THE AO MADE THE ADDITION OF RS. 3,36,960/ - FOR APPROXIMATE COST OF BEIJIING TOUR , WHICH, ON APPEAL THE LD. CIT(A) CONFIRMED. 405 . THE LD. COUNSEL FOR THE ASSESSEE CONTENDED THAT THE ADDITION OF RS. 3,36,960/ - MADE AS PER PARA NO. 14 OF THE ASSESSMENT ORDE R AN D CONFIRMED BY THE CIT(A) FOR APPROXIMATE COST OF BEIJING TOUR UNDER TAKEN BY THE ASSESSEE , HIS WIFE AND SON WAS ON BEHALF OF HIS DE PARTMENT . THE TOUR UNDER TAKEN WAS FREE OF COST TO THE ASSESSEE . THE ADDITION MADE WAS, THEREFORE , HIGHLY DISPUTED AND I S REQUESTED TO BE DELETED. 406 . THE LD. DEPARTMENTAL REPRESENTATIVE OPPOSED THE SUBMISSIONS AND RELIED ON THE ORDERS OF THE LOWER AUTHORITIES. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 290 : - 407 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IN THE YEAR UND ER APPEAL, IT IS THE CASE OF THE ASSESSEE THAT THIS TRIP WAS SPONSORED BY THE GOVERNMENT OF MADHYA PRADESH. IN SUPPORT OF THIS, THE ASSESSEE HAS FURNISHED ORDER OF THE PUBLIC WORKS DEPARTMENT, WHICH IS ENCLOSED AT P. B. PAGE NO. 406 AND THE LETTER FROM M. P. ROAD DEVELOPMENT CORPORATION, WHICH IS PLACED AT PAPER BOOK PAGE NO. 619. SO FAR AS THE EXPENDITURE RELATED TO MALYASIA AND SYDNEY ARE CONCERNED, THE SAME WERE BORNE BY THE GOVERNMENT OF MADHYA PRADESH. HOWEVER, THE TRIP BY THE FAMILY MEMBERS OF THE A SSESSEE AT SYDNEY AND BEIJING, IT IS THE CASE OF THE ASSESSEE THAT WIFE OF THE ASSESSEE HAS OUT OF HER SOURCE OF INCOME INCURRED THE EXPENDITURE OF THIS TRIP. IN SUPPORT OF THIS , CASH FLOW IS RELIED. WE DIRECT THE AO TO EXAMINE THIS IN THE CASE OF THE WIFE OF THE ASSESSEE. SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 291 : - 408 . IN THE RESULT, THE APPEAL FILED IN I.T.A.NO. 426/IND/2015 FOR ASSESSMENT YEAR 2010 - 11 IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. 409 . CONSEQUENTLY, ALL THE APPEALS IN I.T.(SS)A.NOS. 152 TO 157 /IND/2015 & I.T.A.NO. 426/IND/201 5 ARE PARTLY ALLOWED FOR STATISTICAL PURPOSES. I.T.(SS)A.NOS. 322 TO 327/IND/2017 : (A.YS. 2004 - 05 TO 2009 - 10) : SMT. JYOTI ASAI : 410 . THIS BUNCH OF SIX APPEALS IS DIRECTED AGAINST THE COMMON ORDER OF LD. COMMISSIONER OF INCOME - TAX (APPEALS), BHOPAL - 2, DATED 10 TH MARCH, 2015. 411 . AT THE OUT - SET THE LD. DEPARTMENTAL REPRESENTATIVE POINTED OUT THAT THESE APPEALS ARE BARRED BY TIME. HE SUBMITTED THAT THERE IS A DE L AY OF 920 DAYS IN FILING THE APPEAL S. 412 . THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THE APPLIC ATION ALONG WITH AFFIDAVIT FILED BY THE ASSESSEE FOR SEEKING CONDONATION OF DELAY. THE LD. COUNSEL FOR THE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 292 : - ASSESSEE REITERATED THE SUBMISSION AS MADE IN THE APPLICATION. THE SUBMISSIONS OF THE ASSESSEE ARE AS UNDER : - I SUBMIT THAT THE ORDER OF THE LD. CI T(A) WAS RECEIVED ON 09.04.2015. I WAS REQUIRED TO FILE APPEAL BY 08.06.2015. HOWEVER, THE APPEAL COULD NOT BE FILED IN TIME FOR THE REASONS MENTIONED HEREIN. THAT THE PROTECTIVE ADDITIONS WERE MADE IN MY HANDS AND SUBSTANTIVE ADDITIONS WERE MADE IN HANDS OF MY HUSBAND SHRI DEEPAK ASAI. I WAS LIVING IN BHOPAL, WHEN RECEIVED THE CIT(A) ORDER DELETING THE PROTECTIVE ADDITION S IN MY HANDS, SINCE I COULD NOT UNDERSTAND THE LEGAL CONSEQUENCES OF THE ORDER THE EARLIER ADV/AR WHO WAS ATTENDING THE PROCEEDINGS BEFO RE THE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 293 : - LD. CIT(A), DID NOT GIVE PROPER ADVICE IN THIS MATTER. THUS, APPEAL COULD NOT BE FILED. ON DISCUSSING THE HUSBANDS CASE WITH THE NEW COUNSEL, IT CAME TO MY KNOWLEDGE THAT I WAS DEPRIVED OF JUSTICE AS THE TIME LIMIT FOR APPEARING THE CIT(A) ORDER DA TED 10.03.2015 HAS EXPIRED. THERE IS A DELAY OF 920 DAYS IN FILING THE APPEAL. IF THE DELAY IS NOT CONDONED , I SHALL BE DEPRIVED OF JUSTICE FOR NO FAULT ON MY PART. FURTHER A CAUSED OF SUBSTANTIAL JUSTICE SHALL BE DEFEATED. IT IS SUBMITTED THAT THERE WAS NO NEGLIGENCE, INACTION OR W ANT OF BONA FIDE. RELYING ON THE JUDGEMENT IN THE CASE OF (2017) 86 TAXMANN.COM 98 (BOMBAY) VIJAY VISHIN MEGHANI V. DCIT - 23(2) , MUMBAI, WHERE IT WAS HELD THAT WHERE ASSESSEE FILED APPEAL BEFORE SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 294 : - TRIBUNAL WITH A DELAY OF 2984 DAY S BY TAKING THE PLEA THAT HE WAS WRONGLY ADVISED BY HIS CHARTERED ACCOUNTANT EARLIER NOT TO FILE APPEAL, THE TRIBUNAL WAS NOT JUSTIFIED IN REFUSING TO CONDONE DELAY IN FILING APPEAL. ALSO TAKE SUPPORT FROM THE CASE OF CONCORD OF INDIA INSURANCE CO.LTD. V. SMT. NIR MALA DEVI, AIR 1979 SC 1666, IN WHICH THE SUPREME COURT HAS HELD THAT A LEGAL ADVICE TENDERED BY A PROFESSIONAL AND THE LITIGANT ACTING UPON IT ONE WAY OR THE OTHER COULD BE A SUFFICIENT CAUSE TO SEEK CONDONATION OF DELAY AND COUPLED WITH THE OTHER CIRCUMSTANCES AND FACTORS FOR APPLYING LIBERAL PRINCIPLES AND THEN SAID DELAY CAN BE CONDONED. IT IS FURTHER SUBMITTED THAT NO LITIGANT BENEFITS BY HIS OWN DELAY. IT WAS ONLY ON ACCOUNT OF SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 295 : - LACK OF KNOWLEDGE AND WRONG LEGAL ADVISE THAT THE DELAY WAS CAUSE. THE DELAY MAY THEREFORE KINDLY BE CONDONED LOOKING TO THE GRIEVOUS INJURY WHICH SHALL BE CAUSED TO THE ASSESSEE, IN CASE THE DELAY IS NOT CONDONED. I SHALL EVER REMAIN OBLIGED. 413 . THE LD. DEPARTMENTAL REPRESENTATIVE OPPOSED THE SUBMISSIONS. 414 . WE HAV E HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IN THE LIGHT OF THE CASE LAWS RELIED UPON BY THE LD. COUNSEL FOR THE ASSESSEE COUPLED WITH THE AFFIDAVIT FILED BY SHRI ASHWIN RINWA S/O LATE SHRI R. A. RINWA, WHO APPEARED BEFORE THE LD. CIT(A) IN QUANTUM APPEALS OF THE ASSESSEE APPELLANT , WE CONSIDER THE SAME AS A REASONABLE CAUSE , CONDONE THE DELAY AND TAKE UP THE APPEALS FOR HEARING . SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 296 : - 415 . SINCE COMMON FACTS AND GROUNDS ARE INVOLVED , ALL THESE APPEALS ARE BEING DISPOSED OF BY WAY OF CONSOLIDATED ORDER. THUS, WE TAKE I.T.(SS)A.NO. 320/IND/2017 FOR THE ASSESSMENT YEAR 2004 - 05 AS A LEAD CASE. THE FACTS GIVING RISE TO THE PRESENT APPEALS AS RECORDED BY THE LD. CIT(A) AT PAGE 2 OF HIS ORDER ARE AS UNDER : - THE BRIEF FACTS OF T HE CASE ARE THAT THE ASSESSEE IS A SUPERINTENDING ENGINEER EMPLOYED WITH P.W.D. DEPARTMENT, M.P. A SEARCH AND SEIZURE OPERATION U/S 132(1) OF THE INCOME - TAX ACT, 1961, WAS CARRIED OUT ON 04.02.2010 AND 05.02.2010 AT THE RESIDENTIAL PREMISES OF THE APPELLAN T AND HER FAMILY MEMBERS SITUATED AT E - 8, COMFORT GARDEN, KOLAR ROAD, BHOPAL. AT THE TIME OF SEARCH, SHRI DEEPAK ASAI WAS ON DEPUTATION AS GM IN MADHYA PRADESH ROAD DEVELOPMENT CORPORATION (MPRDC) . THE APPELLANTS FAMILY CONSISTS OF HER HUSBAND SHRI SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 297 : - DEEPAK ASAI , D AUGHTER ( MS. ANKITA ASAI ) AND SON ( MASTER SHOBHIT ASAI ) . THE APPELLANT HAS CLAIMED HERSELF TO BE A MEDICAL PRACTITIONER EARLIER AND THEN WORKING AS AN ADVISOR WITH ICICI PRUDENTIAL LIFE INSURANCE SINCE THE YEAR 2005. DURING THE COURSE OF THESE SE ARCH OPERATIONS, TOTAL CASH OF RS. 1,24,250/ - , TOTAL JEWELLERY OF RS. 12,97,377/ - AND NSCS OF RS. 1,50,000/ - HAVE BEEN FOUND FROM HER RESIDENCE AND LOCKERS ALONG WITH VARIOUS DOCUMENTS. ACCORDINGLY, PROCEEDINGS U/S 153A HAVE BEEN INITIATED IN THE CASE OF T HE APPELLANT AND H ER HUSBAND . RETURNS U/S 153A HAVE BEEN FILED ON 30.05.2011. DETAILS OF RETURNS FILED IN DUE COURSE , RETURNS NOW FILED U/S 153A AND ASSESSED INCOME OF THE APPELLANT FOR THE ASSESSMENT YEARS 2004 - 05 TO 2010 - 11 ARE AS UNDER : - ASSESSMENT YEAR. ORIGINAL RETURN DETAILS RETURNED INCOME U/S 153A ASSESSED INCOME SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 298 : - DT OF RETURN INCOME (RS.) (RS.) (RS.) 2004 - 05 29.07.2004 1,25,000 1,40,000 14,40,360 2005 - 06 26.08.2005 2,08,770 1,11,200 14,18,900 2006 - 07 17.07,2006 1,02,680 40,830 13,27,890 2007 - 08 27.09.2007 79,120 1,31,740 12,60,100 2008 - 09 06.10.2008 4,90,670 9,65,370 40,13,900 2009 - 10 05.09.2009 8,91,970 10,41,970 45,88,490 2010 - 11 30.05.2011 13,53,560 NA 54,33,190 LD. CIT(A) AFTER CONSIDERING THE SUBMISSIONS PARTLY ALLOWED THE A PPEALS. THE LD. CIT(A) OBSERVED THAT THE AO HAS MADE ALL THE IMPUGNED ADDITIONS AS CONTESTED IN THE APPEALS BEFORE HIM IN THE HANDS OF THE ASSESSEE ON PROTECTIVE BASIS. 416 . AGGRIEVED AGAINST THE ORDER OF LD. CIT(A), THE ASSESSEE IS IN APPEALS BEFORE THIS TRIBUNAL. 417 . AT THE OUT - SET ,THE LD. COUNSEL FOR THE ASSESSEE AND THE LD. DEPARTMENTAL REPRESENTATIVE ADOPTED THE SAME ARGUMENTS . 418 . WE HAVE CONSIDERED THE FACTS, RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IN THE CASE OF HUSBAND OF THE ASSESSEE IN FOREGOING PARAGRAPHS OF THIS ORDER, WE HAVE DECIDED THE ISSUE IN DIFFERENT ASSESSMENT SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 299 : - YEARS AND HAVE ALSO OBSERVED THAT IN RESPECT OF THE EARNING OF PROFESSION AL INCOME, COMMISSION AND INVESTMENT IN VARIOUS ITEMS, WE HAVE GIVEN LIBERTY TO THE ASSESSING OFFICER TO EXAMINE AND CONSIDER IN THE HANDS OF THE APPELLANT ASSESSEE ON SUBSTANTIVE BASIS. WE, THEREFORE, HEREBY SET - ASIDE THE IMPUGNED ORDER AND RESTORE THE ISSUE TO THE FILE OF AO TO FRAME ASSES SMENT IN THE LIGHT OF OUR OBSERVATIONS/FINDING MADE IN THE CASE OF SHRI DEEPAK ASAI. 419 . IN THE RESULT, APPEALS IN I.T.(SS)A.NOS. 322 TO 327/IND/2017 FOR ASSESSMENT YEARS 2004 - 05 TO 2009 - 10 IN THE CASE OF SMT. JYOTI ASAI ARE ALLOWED FOR STATISTICAL PURPOS ES. THE ORDER PRONOUNCED IN THE OPEN COURT ON . 30. 0 7 .2018 . SD/ - ( ) SD/ - ( ) (MANISH BORAD) (KUL BHARAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER INDORE; DATED : 30 /0 7 /2018 CPU * / SPS SHRI. DEEPAK ASAI & SMT. JYOTI ASAI - : 300 : - COPY TO: ASSESSEE/AO/PR. CIT/ CIT (A)/ITAT (DR)/GUARD FILE. BY ORDER PRIVATE SECRETARY/DDO, INDORE