SHRADDHA BORA,PUNE vs. INCOME TAX OFFICE, WARD-13 (1), PUNE

ORDER

PER D. KARUNAKARA RAO, AM:

by the assessee are as under :- “1. On the facts and in the circumstances of the case, the assessment order passed by the Assessing Officer, Wd. 13 (1) Pune, and confirmed by the CIT (Appeals) - 8 Pune, may be held as bad in law for violating the principles of natural justice and quashed.

2. On the facts and in the circumstances of the case, the addition of Rs 14,24,700, u/s 68 of the Act, made by the A.O., Wd. 13 (1) Pune, and confirmed by the CIT (Appeals) - 8 Pune, may be deleted.

3. On the facts and in the circumstances of the case, it may be held that addition u/s 68 of the IT Act, is not warranted and the same may be vacated or such other appropriate order giving relief passed.

and fresh additional evidence at the time of hearing.”

3. Briefly stated the relevant facts include that the assessment was made in this case u/s 143(3) of the Act. Against the returned income of Rs.6,74,573/-, the Assessing Officer made an addition of Rs.14,24,700/- on account of unexplained cash credits u/s 68 of the Act. These amounts are the actual cash deposits in the bank account of the assessee.

4. During the assessment proceedings, it was submitted that the assessee’s bank account was misused by her mother, Smt. Shruti Daulatrao More and her brother, Shri Sankalp More. After collecting money from the friends and relatives for their business desires, the said amount was deposited in the assessee’s bank account. Narrating the developments relating to the ownership of operation of the said bank account, ld. Counsel for the assessee submitted that after mobilization of loans and advances from friends and relatives, the said cash was deposited by the brother with a view to conduct share business activities. The facts about the mobilizing or collecting money, depositing money in her account, leaving the house without informing the parents, non-repayment of the aforesaid money to the creditors, the failures of the brother in this regard, ultimate death of brother due to pressures from the creditors etc, were narrated. The details of FIR are on record. Further, referring to page 48A and 49A of the Paper Book etc, ld. Counsel for the assessee demonstrated that the fact of loaning of money from the friends and relatives by her brother and ownership of the cash deposits in the bank account etc were