GEETHA MEHRA,CHENNAI vs. DCIT CEN CIR 44, MUMBAI

PER OM PRAKASH KANT, AM PER OM PRAKASH KANT, AM These appeals by the assessee have been preferred These appeals by the assessee have been preferred These appeals by the assessee have been preferred against separate orders of even date for assessment year 2002-03 to separate orders of even date for assessment year 2002 separate orders of even date for assessment year 2002 assessment year 2007 assessment year 2007-08, passed by the Ld.Commissioner Commissioner of Income-tax (Appeals) tax (Appeals)-8, Mumbai [in short ‘the Ld. CIT(A) the Ld. CIT(A)’]. Being common issue in dispute involved in these appeals, same were common issue in dispute involved in these appeals, same were common issue in dispute involved in these appeals, same were heard together and disposed off by way of this consolidated order rd together and disposed off by way of this consolidated order rd together and disposed off by way of this consolidated order for convenience and avoid repetition of facts. for convenience and avoid repetition of facts.

Geetha Mehra 3 & Five Ors and consequently notice and consequently notices under section 153A of the under section 153A of the Act were issued for assessment years s 2002-03 to 2007-08, which were complied. , which were complied. The assessee filed return of income for each of the assessment year The assessee filed return of income for each of the assessment year The assessee filed return of income for each of the assessment year within the period covered under search assessment period covered under search assessment period covered under search assessments and declared income accordingly. The assessment income accordingly. The assessments under section 153A read with under section 153A read with section 143(3) 143(3) of of the the Act,were completed on were completed on 30/11/2009 30/11/2009 determining total income after making various additions. The determining total income after making various additions. The determining total income after making various additions. The assessment year wise income declared in the return of income and assessment year wise income declared in the return of income assessment year wise income declared in the return of income assessed under section 153A assessed under section 153A of the Act for the search assessment for the search assessment period is summarized as under ed as under:

Assessment year essment year Returned Income(Rs.) Assessed Income(Rs.) Assessed Income 2002-03 2,25,169/- 4,65,170/ 4,65,170/- 2003-04 3,62,065/- 20,74,570/ 20,74,570/- 2004-05 4,96,751/- 7,96,750/ 7,96,750/- 2005-06 4,04,042/- 7,54,040/ 7,54,040/- 2006-07 14,26,833/- 18,26,830/ 18,26,830/- 2007-08 22,19,815/- 1,02,42,370/ 1,02,42,370/- 4. On further appeal by the assessee, the Ld. CIT(A) adjudicated further appeal by the assessee, the Ld. CIT(A) adjudicated further appeal by the assessee, the Ld. CIT(A) adjudicated appeals for relevant assessment years. On further appeal against appeals for relevant assessment years. On further appeal appeals for relevant assessment years. On further appeal the order of Ld. CIT(A) the order of Ld. CIT(A), the Income-Tax Appellate Tribunal (ITAT) Tax Appellate Tribunal (ITAT) passed a combined order on 31/07/2012 for assessment year passed a combined order on 31/07/2012 for assessment year passed a combined order on 31/07/2012 for assessment year 2002-03 to 2007-08 and 200 08 and 2008-09. In the said order, the 09. In the said order, the Geetha Mehra 4 & Five Ors ITATrestored the issue of addition on account of the low drawings to the issue of addition on account of the low drawings to the issue of addition on account of the low drawings to the record of the Assessing Officer to consider the details, evidences the record of the Assessing Officer to consider the details, evidences the record of the Assessing Officer to consider the details, evidences and the electricity and telephone bills and then decide the issue and the electricity and telephone bills and then decide the issue and the electricity and telephone bills and then decide the issue afresh.In compliance to iance to the direction of the ITAT, the Assessing the direction of the ITAT, the Assessing Officer , after considering the submission of the assessee, passed fter considering the submission of the assessee, passed fter considering the submission of the assessee, passed assessment order for various years under reference. On further assessment order for various years under reference. On further assessment order for various years under reference. On further appeal, the Ld. CIT(A) upheld the finding of the Assessing Officer in appeal, the Ld. CIT(A) upheld the finding of the Assessing appeal, the Ld. CIT(A) upheld the finding of the Assessing various years. Aggrieved, the assessee is in appeal grieved, the assessee is in appeal grieved, the assessee is in appeal before the ITAT by way of raising grounds in respective appeals. rounds in respective appeals.

5.1 In assessment year 2002 year 2002-03, all the grounds (Ground Nos. 1 03, all the grounds (Ground Nos. 1 to 6) raised are in respect of addition of low withdrawal of in respect of addition of low withdrawal of in respect of addition of low withdrawal of ₹ 2 lakhs. In assessment year 2003 ear 2003-04, ground numbers 1 to 4 relate to 04, ground numbers 1 to 4 relate to addition of low withdrawal addition of low withdrawal of ₹ 2.50 lakhs. The ground No. . The ground No.5 relate to addition of ₹14,65, 65,500/-. The Ground Nos. 6 to 8 are general in . 6 to 8 are general in Geetha Mehra 5 & Five Ors nature. In assessment ye nature. In assessment year 2004-05, all the grounds (Ground 05, all the grounds (Ground No. 1 to 6 ) relate to sole issue of addition for low household withdrawals te to sole issue of addition for low household withdrawals te to sole issue of addition for low household withdrawals of ₹3.00 lakhs. In assessment year 2005 . In assessment year 2005-06, the Ground Ground No. 1 to 6 relate to addition of ₹ ₹3,50,000/-for the low household withdrawals. for the low household withdrawals. In assessment year 2006 In assessment year 2006-07, all the grounds (No. 1 to 6 l the grounds (No. 1 to 6) relate to addition of ₹4.00 l 4.00 lakhs for low household withdrawals. In akhs for low household withdrawals. In assessment year 2007 assessment year 2007-08, the ground No. 1 to 4 relate to addition 1 to 4 relate to addition of ₹3 lakhs for low household withdrawal. The low household withdrawal. The Ground Ground No. 5 and 6 relate to addition of the 60.15 lakhs against unexplained capital relate to addition of the 60.15 lakhs against unexplained ca relate to addition of the 60.15 lakhs against unexplained ca accretion.

6. The ground of low household withdrawal is common in all the round of low household withdrawal is common in all the round of low household withdrawal is common in all the assessment years involved and therefore same is taken first for assessment years involved and therefore same is taken first for assessment years involved and therefore same is taken first for adjudication.

7. The ITAT while adjudicating AT while adjudicating ITA No. 5018 to 5021 of 2011 18 to 5021 of 2011 and ITA No. 360 & 361 of 2012 has su 361 of 2012 has summarized, the facts in respect of ed, the facts in respect of addition of low drawings as under: addition of low drawings as under:

“8.1 From the bank statement of the assessee, it was found “8.1 From the bank statement of the assessee, it was found “8.1 From the bank statement of the assessee, it was found by the Assessing Officer that the assessee have no cash by the Assessing Officer that the assessee have no cash by the Assessing Officer that the assessee have no cash

Geetha Mehra 6 & Five Ors withdrawal even for personal expenses. The Assessing withdrawal even for personal expenses. The Assessing withdrawal even for personal expenses. The Assessing Officer also notice Officer also noticed that the assessee have not shown any d that the assessee have not shown any withdrawals; therefore, he proposed to make an addition of withdrawals; therefore, he proposed to make an addition of withdrawals; therefore, he proposed to make an addition of ₹ 2 lakhs for the assessment year 2002-03, ₹ 2.5 lakhs for the 2 lakhs for the assessment year 2002 2.5 lakhs for the assessment year 2003–04, ₹ 3 lakh for assessment year assessment year 2003 3 lakh for assessment year 2004-05, Rs. 3.5 lakhs for the assessment year 2005 05, Rs. 3.5 lakhs for the assessment year 2005-06, ₹4 05, Rs. 3.5 lakhs for the assessment year 2005 lacs for the assessment year 2006–07, ₹4.5 lakhs for the lacs for the assessment year 2006 4.5 lakhs for the assessment year 2007 assessment year 2007-08 and Rs.. 5 Lacs for the 08 and Rs.. 5 Lacs for the assessment year 2008 assessment year 2008-09 under section 69C as unexplained 09 under section 69C as unexplained expenditure ture ture for for for the the the respective respective respective years years years on on on account account account of of of unaccounted personal household expenses. Accordingly, the unaccounted personal household expenses. Accordingly, the unaccounted personal household expenses. Accordingly, the Assessing Officer made an addition of ₹2 lakh for the Assessing Officer made an addition of 2 lakh for the 03 and further increment of ₹ assessment year 2002 assessment year 2002-03 and further increment of 50,000/- each for subsequent years and added the each for subsequent years and added the same to each for subsequent years and added the the income of the assessee as unexplained expenditure on the income of the assessee as unexplained expenditure on the income of the assessee as unexplained expenditure on account of personal household expenses under section 69C. account of personal household expenses under section 69C. account of personal household expenses under section 69C. 8.2 On appeal, the CIT(A) held that the social status of the 8.2 On appeal, the CIT(A) held that the social status of the 8.2 On appeal, the CIT(A) held that the social status of the assessee indicates that ₹40,000/- to ₹50,000/- per month is assessee indicates that per month is a reasonable personal expenses and accordingly, sustained e personal expenses and accordingly, sustained e personal expenses and accordingly, sustained the addition made by the Assessing Officer. the addition made by the Assessing Officer. 9 Before us, the learned A.R. of the assessee has submitted 9 Before us, the learned A.R. of the assessee has submitted 9 Before us, the learned A.R. of the assessee has submitted that the Assessing Officer has mentioned that a sum of that the Assessing Officer has mentioned that a sum of that the Assessing Officer has mentioned that a sum of ₹4,36,555/- spent through credit card is paid by Synergy spent through credit card is paid by Synergy Arts Foundations towards restaurant and hotel bills. The Arts Foundations towards restaurant and hotel bills. The Arts Foundations towards restaurant and hotel bills. The Assessing Officer having linked the credit card payments to Assessing Officer having linked the credit card payments to Assessing Officer having linked the credit card payments to the question of drawings, did not proceed further to find out the question of drawings, did not proceed further to find out the question of drawings, did not proceed further to find out as to how much thereo as to how much thereof was debited in the books of M/s f was debited in the books of M/s Synergy Art foundations Ltd to project the entire credit card Synergy Art foundations Ltd to project the entire credit card Synergy Art foundations Ltd to project the entire credit card

Geetha Mehra 7 & Five Ors payment out of context. The ld AR of the assessee has payment out of context. The ld AR of the assessee has payment out of context. The ld AR of the assessee has further submitted that the total expenditure through credit further submitted that the total expenditure through credit further submitted that the total expenditure through credit card is ₹2,95,168/ 2,95,168/- and not ₹4,36,555/- as alleged in the eged in the assessment order. He has further submitted that out of the assessment order. He has further submitted that out of the assessment order. He has further submitted that out of the total payment of ₹2,95,168/-, a sum of ₹93,376/- total payment of - represents card payment towards personal drawings such as clothes card payment towards personal drawings such as clothes card payment towards personal drawings such as clothes books and payments to departmental store etc., which would books and payments to departmental store etc., which would books and payments to departmental store etc., which would more than s more than suffice for the assessee to explain her status as uffice for the assessee to explain her status as single individual without encumbrances. He has further single individual without encumbrances. He has further single individual without encumbrances. He has further pointed out that the assessee had balance out of rental pointed out that the assessee had balance out of rental pointed out that the assessee had balance out of rental income received from property let out at Chennai to the extent income received from property let out at Chennai to the extent income received from property let out at Chennai to the extent of ₹72,000/- - which is duly disclosed in the original return of sed in the original return of income filed for the assessment year 2002 income filed for the assessment year 2002-03 and this is 03 and this is available for personal drawings also. available for personal drawings also. 9.1 Thus, the learned A.R. of the assessee has submitted 9.1 Thus, the learned A.R. of the assessee has submitted 9.1 Thus, the learned A.R. of the assessee has submitted that the addition, on account of unexplained personal that the addition, on account of unexplained personal that the addition, on account of unexplained personal expenses due to low expenses due to low drawings is unwarranted and made drawings is unwarranted and made without due regard to the facts on record. He has further without due regard to the facts on record. He has further without due regard to the facts on record. He has further submitted that the addition on this account is not based on submitted that the addition on this account is not based on submitted that the addition on this account is not based on any seized material or sworn statement or any other material any seized material or sworn statement or any other material any seized material or sworn statement or any other material pursuant to the search to show that the dra pursuant to the search to show that the drawings estimated wings estimated in the assessment is sustainable. He has referred the details in the assessment is sustainable. He has referred the details in the assessment is sustainable. He has referred the details of drawings made by the assessee at page number 30 to 35 of drawings made by the assessee at page number 30 to 35 of drawings made by the assessee at page number 30 to 35 of the paper book and submitted that for all the years, the of the paper book and submitted that for all the years, the of the paper book and submitted that for all the years, the actual drawings of the assessee are more than the addition actual drawings of the assessee are more than the addition actual drawings of the assessee are more than the addition made by the Assessing Officer on estimate basis. The de by the Assessing Officer on estimate basis. The de by the Assessing Officer on estimate basis. The learned A.R. has also relied upon the decision of Special learned A.R. has also relied upon the decision of Special learned A.R. has also relied upon the decision of Special Bench of this Tribunal in the case of M/s All Cargo Global Bench of this Tribunal in the case of M/s All Cargo Global Bench of this Tribunal in the case of M/s All Cargo Global

Geetha Mehra 8 & Five Ors

Logistics Ltd DCIT dated 6 July 2012 and submitted that no Logistics Ltd DCIT dated 6 July 2012 and submitted that no Logistics Ltd DCIT dated 6 July 2012 and submitted that no addition can be made under se addition can be made under section 153A without any ction 153A without any incriminating material found in the course of search.” incriminating material found in the course of search.” incriminating material found in the course of search.”

10 We have considered the rival submissions as well as 10 We have considered the rival submissions as well as 10 We have considered the rival submissions as well as relevant material on record. On the legal issue as raised by relevant material on record. On the legal issue as raised by relevant material on record. On the legal issue as raised by the learned A.R, there is no quarrel that only pending the learned A.R, there is no quarrel that only pending the learned A.R, there is no quarrel that only pending assessments are abated by the virtue of section 153A and assessments are abated by the virtue of section 153A and assessments are abated by the virtue of section 153A and not the completed ass not the completed assessment. Thus, in the assessment essment. Thus, in the assessment proceedings under section 153A, theAssessing Officer can proceedings under section 153A, theAssessing Officer can proceedings under section 153A, theAssessing Officer can proceed like a regular assessment with respect to the proceed like a regular assessment with respect to the proceed like a regular assessment with respect to the assessments, which are pending. assessments, which are pending. 10.1 As regards the completed assessment, the addition to 10.1 As regards the completed assessment, the addition to 10.1 As regards the completed assessment, the addition to the income that has a the income that has already been assessed, the assessment lready been assessed, the assessment under section 153A will be made on the basis of under section 153A will be made on the basis of under section 153A will be made on the basis of incriminating material found during the search; but not incriminating material found during the search; but not incriminating material found during the search; but not produced in the course of original assessment or undisclosed produced in the course of original assessment or undisclosed produced in the course of original assessment or undisclosed income or property discovered in the course of search income or property discovered in the course of search income or property discovered in the course of search and seizure operation. seizure operation. 10.2 In the case in hand, it is not clear from the record 10.2 In the case in hand, it is not clear from the record 10.2 In the case in hand, it is not clear from the record available whether the original assessment was completed in available whether the original assessment was completed in available whether the original assessment was completed in any of the assessment years under consideration. Further, in any of the assessment years under consideration. Further, in any of the assessment years under consideration. Further, in view of the details of withdrawals filed by the assess view of the details of withdrawals filed by the assess view of the details of withdrawals filed by the assessee

Geetha Mehra 9 & Five Ors except the rental receipts, which have already been except the rental receipts, which have already been except the rental receipts, which have already been considered by the CIT(A) for deleting the addition on account considered by the CIT(A) for deleting the addition on account considered by the CIT(A) for deleting the addition on account of cash deposited in the assessee’s bank for the assessment of cash deposited in the assessee’s bank for the assessment of cash deposited in the assessee’s bank for the assessment year 2002-03, the issue requires a proper verification and 03, the issue requires a proper verification and 03, the issue requires a proper verification and examination at examination at the level of Assessing Officer. 10.3 As regards the estimate of personal expenditure at 10.3 As regards the estimate of personal expenditure at 10.3 As regards the estimate of personal expenditure at ₹40,000/- to to ₹50,000/- per month by the CIT(A) , the per month by the CIT(A) , the assessee is directed to produce the electricity bill and assessee is directed to produce the electricity bill and assessee is directed to produce the electricity bill and telephone bills for the relevant period before the Assessing telephone bills for the relevant period before the Assessing telephone bills for the relevant period before the Assessing Officer in this respect. Accordingly, we set aside this issue fficer in this respect. Accordingly, we set aside this issue fficer in this respect. Accordingly, we set aside this issue for all the assessment years to the record of the Assessing for all the assessment years to the record of the Assessing for all the assessment years to the record of the Assessing Officer. to consider the details, evidences and the electricity Officer. to consider the details, evidences and the electricity Officer. to consider the details, evidences and the electricity and telephone bills and then decide the issue afresh except and telephone bills and then decide the issue afresh except and telephone bills and then decide the issue afresh except for the assessment year 2008 essment year 2008–09 for which the additio 09 for which the addition made by the Assessing Officer made by the Assessing Officer has been deleted by the has been deleted by the CIT(A) and revenue has not challenged the same. CIT(A) and revenue has not challenged the same.” ”

8.1 In compliance to the direction of the ITAT, the Assessing In compliance to the direction of the ITAT, the Assessing In compliance to the direction of the ITAT, the Assessing Officer asked the assessee to file the necessar asked the assessee to file the necessary evidence to support y evidence to support the household withdrawals along with copy of electricity and the household withdrawals along with copy of electricity and the household withdrawals along with copy of electricity and telephone bills. The assessee has filed a common reply for all the telephone bills. The assessee has filed a common reply for all the telephone bills. The assessee has filed a common reply for all the assessment years involved. assessment years involved. For ready reference said said reply of the assessee reproduced assessee reproduced in assessment order for assess or assessment year 2007-08, is extracted , is extracted as under:

Geetha Mehra 10 & Five Ors

"1. Family Members Family Members

I was staying gions as a paying guest at Sea View, Napearsea Road, I was staying gions as a paying guest at Sea View, Napearsea Road, I was staying gions as a paying guest at Sea View, Napearsea Road, Mumbai until April 2002 and the expenses jor stay and food was Mumbai until April 2002 and the expenses jor stay and food was Mumbai until April 2002 and the expenses jor stay and food was taken care of by the landlady at a consolidated sum of taken care of by the landlady at a consolidated sum of Rs.5000/ Rs.5000/ - per month.

……

5. Telephone expenses: 5. Telephone expenses:

As regards telephone expenses, by virtue of my being whole time As regards telephone expenses, by virtue of my being whole time As regards telephone expenses, by virtue of my being whole time director of Synergy art Foundation Ltd., the landline telephone is director of Synergy art Foundation Ltd., the landline telephone is director of Synergy art Foundation Ltd., the landline telephone is maintained by the company and so are the mobile telephone bill. maintained by the company and so are the mobile telephone bill. maintained by the company and so are the mobile telephone bill.

As regards expenses incurred for subsequent years the following are xpenses incurred for subsequent years the following are xpenses incurred for subsequent years the following are submitted:

I was an unmarried lady during the aforesaid period and the I was an unmarried lady during the aforesaid period and the I was an unmarried lady during the aforesaid period and the following personal expenses have been incurred by cash, cheques following personal expenses have been incurred by cash, cheques following personal expenses have been incurred by cash, cheques and credit cards.

Particulars 2002-3 2002 2003-04 2004-05 2005-06 2006-07 2006 2007-08 Total personal 93376 93376 126957 111875 76955 73788 73788 174586 expenses through credit chards Out of cash 10000 10000 75000 135000 237000 190000 190000 371800 withdrawal Out of cheque 35850 35850 65450 58500 41385 141832 141832 706780 payment Rental income 72000 72000 -- -- -- -- -- -- received on property let out at Chennai by cash The above expenses form part of the details already submitted vide The above expenses form part of the details already submitted vide The above expenses form part of the details already submitted vide reply dated 02/09/2013. reply dated 02/09/2013.

Geetha Mehra 11 & Five Ors б. Entertainment Expenses Entertainment Expenses

As regards entertainment expenses, being an unmarried lady, I had As regards entertainment expenses, being an unmarried lady, I had As regards entertainment expenses, being an unmarried lady, I had no scope there for whatever expenses incurred on hotels etc. are in for whatever expenses incurred on hotels etc. are in for whatever expenses incurred on hotels etc. are in the discharge of my duties as a director of Synergy Art Foundation the discharge of my duties as a director of Synergy Art Foundation the discharge of my duties as a director of Synergy Art Foundation Limited etc.

With reference to medical expenses, by God's grace, there were no With reference to medical expenses, by God's grace, there were no With reference to medical expenses, by God's grace, there were no major ailments affecting me and no caus major ailments affecting me and no cause for expenses being made e for expenses being made there under.

8. Purchase of T.V etc. Purchase of T.V etc.

There is purchase of Television for Rs. 1,00,000/ There is purchase of Television for Rs. 1,00,000/- which is part of which is part of seized record' no. Loose Paper file, 203, Deeraj,Annesure A-3 page seized record' no. Loose Paper file, 203, Deeraj,Annesure A seized record' no. Loose Paper file, 203, Deeraj,Annesure A No. 2 and the expenses incurred is pard andduly accounted for. No. 2 and the expenses incurred is pard andduly accounted No. 2 and the expenses incurred is pard andduly accounted

It is submitted that the above details are germane only to the extent of It is submitted that the above details are germane only to the extent of It is submitted that the above details are germane only to the extent of the illegal directions of the ITA.T.. which are subject matter of appeal the illegal directions of the ITA.T.. which are subject matter of appeal the illegal directions of the ITA.T.. which are subject matter of appeal before Bombay High Court and the larger issue of making additions before Bombay High Court and the larger issue of making additions before Bombay High Court and the larger issue of making additions on a search assessments, de hors seized mate on a search assessments, de hors seized materials is to be addressed rials is to be addressed by you in fairness as a quasi judicial authority to render a fair by you in fairness as a quasi judicial authority to render a fair by you in fairness as a quasi judicial authority to render a fair assessment.”

Geetha Mehra 12 & Five Ors

5.5 The explanation of the assessee has been considered and The explanation of the assessee has been considered and The explanation of the assessee has been considered and found the same to be untenable. The Honble ITAT in para 10.3 of its found the same to be untenable. The Honble ITAT in para 10.3 of its found the same to be untenable. The Honble ITAT in para 10.3 of its order directed the assessee to produce the electricity bills and order directed the assessee to produce the electricity bills and order directed the assessee to produce the electricity bills and telephone bills for the rel telephone bills for the relevant period before the Assessing Officer. evant period before the Assessing Officer. The assessee has failed to furnish the same even after affording The assessee has failed to furnish the same even after affording The assessee has failed to furnish the same even after affording sufficient time. In this regard, the assessee except for submitting a sufficient time. In this regard, the assessee except for submitting a sufficient time. In this regard, the assessee except for submitting a photo copy of ledger of drawings account for different years and not photo copy of ledger of drawings account for different years and not photo copy of ledger of drawings account for different years and not pertaining to year under consideration. Further even assessee's claim g to year under consideration. Further even assessee's claim g to year under consideration. Further even assessee's claim of personal expenditure made through credit cards is also not of personal expenditure made through credit cards is also not of personal expenditure made through credit cards is also not acceptable as on analysis of the credit card statement furnished by acceptable as on analysis of the credit card statement furnished by acceptable as on analysis of the credit card statement furnished by the assessee, it was seen that most of the expenses incurred were the assessee, it was seen that most of the expenses incurred were the assessee, it was seen that most of the expenses incurred were related to hotel expenses, travelling expenses etc.The assessee has related to hotel expenses, travelling expenses etc.The assessee has related to hotel expenses, travelling expenses etc.The assessee has even failed tofurnish the details as per the directions given by the even failed tofurnish the details as per the directions given by the even failed tofurnish the details as per the directions given by the Honble ITAT.Further, the assessee has not brought any documentary Honble ITAT.Further, the assessee has not brought any documentary Honble ITAT.Further, the assessee has not brought any documentary evidence to prove that cheque amount of Rs. 7,06,780 evidence to prove that cheque amount of Rs. 7,06,780/- were incurred toward household expenses. It was also submitted that no electricity toward household expenses. It was also submitted that no electricity toward household expenses. It was also submitted that no electricity or telephone bill is incurred by the assessee. No copy of bill of or telephone bill is incurred by the assessee. No copy of bill of or telephone bill is incurred by the assessee. No copy of bill of telephone installed at the residence by the company, and no Paying telephone installed at the residence by the company, and no Paying telephone installed at the residence by the company, and no Paying Guest House bill is submitted by the Guest House bill is submitted by the assessee. During the search & assessee. During the search & seizure action, warrant of authorization was issued in the name of seizure action, warrant of authorization was issued in the name of seizure action, warrant of authorization was issued in the name of assessee at her residence i.e. 203, Dheeraj Vally, Tower-I, Sai Baba assessee at her residence i.e. 203, Dheeraj Vally, Tower assessee at her residence i.e. 203, Dheeraj Vally, Tower Complex, Mohan Gokhale Path, Goregaon(E), Mumbai Complex, Mohan Gokhale Path, Goregaon(E), Mumbai-400063. At the 400063. At the time of search and even no time of search and even now also, assessee is unable to produce any w also, assessee is unable to produce any supporting documents that she was staying in the Guest House and supporting documents that she was staying in the Guest House and supporting documents that she was staying in the Guest House and not at her own residence. not at her own residence.

5.6 Considering the above facts and circumstances, it is hereby Considering the above facts and circumstances, it is hereby Considering the above facts and circumstances, it is hereby held that assessee's withdrawals. for household expenses are very held that assessee's withdrawals. for household expenses ar held that assessee's withdrawals. for household expenses ar low. The assessee's contention that the household and other low. The assessee's contention that the household and other low. The assessee's contention that the household and other

Geetha Mehra 13 & Five Ors expenses are met by M/s. Synergy Art. Foundation Ltd. on behalf of expenses are met by M/s. Synergy Art. Foundation Ltd. on behalf of expenses are met by M/s. Synergy Art. Foundation Ltd. on behalf of her is not supported with any evidences. Considering the above, sum her is not supported with any evidences. Considering the above, sum her is not supported with any evidences. Considering the above, sum of Rs. 4,50,000/- is added to the total income of the is added to the total income of the assessee as unexplained expenditure on account of houschold expenses u/s 69C. unexplained expenditure on account of houschold expenses u/s unexplained expenditure on account of houschold expenses u/s Penalty proceedings w/s 27 Penalty proceedings w/s 271(1)(c)is initiated for furnishing inaccurate initiated for furnishing inaccurate particulars of income. particulars of income.”

9.1 The Assessing Officer has noted that the assessee failed to The Assessing Officer has noted that the assessee failed to The Assessing Officer has noted that the assessee failed to produce electricity bills and telephone bills for the relevant period. y bills and telephone bills for the relevant period. y bills and telephone bills for the relevant period. The claim of the assessee of personal expenditure through credit The claim of the assessee of personal expenditure through credit The claim of the assessee of personal expenditure through credit card was also rejected because most of the expenses incurred card was also rejected because most of the expenses incurred card was also rejected because most of the expenses incurred through credit card related through credit card related to Hotel expenses, travelling expenses expenses, travelling expenses and not related to household withdrawals.The assessee further lated to household withdrawals.The assessee further lated to household withdrawals.The assessee further failed to substantiate that amount claim to be incurred through failed to substantiate that amount claim to be incurred through failed to substantiate that amount claim to be incurred through cheque were incurred for household expenses. In its submission cheque were incurred for household expenses. In its submission cheque were incurred for household expenses. In its submission assessee claim that she was staying in a paying guest house, assessee claim that she was staying in a paying guest house, assessee claim that she was staying in a paying guest house, however bills of the same were not submitted before the Assessing the same were not submitted before the Assessing the same were not submitted before the Assessing Officer. The Assessing Officer has noted that during the course of Officer. The Assessing Officer has noted that during the course of Officer. The Assessing Officer has noted that during the course of the search action, the assessee was staying at her residence only the search action, the assessee was staying at her residence the search action, the assessee was staying at her residence and no evidence to support that she was staying in paying guest and no evidence to support that she was staying in paying guest and no evidence to support that she was staying in paying guest house were submitted either during the course of the search action e submitted either during the course of the search action e submitted either during the course of the search action

Geetha Mehra 14 & Five Ors or during the assessment proceedings. The contention of the or during the assessment proceedings. The contention of the or during the assessment proceedings. The contention of the assessee that household expenses were met assessee that household expenses were met partly by Company M/s by Company M/s Synergy Art foundation Ltd Synergy Art foundation Ltd.was also rejected in absence of any was also rejected in absence of any documentary evidence. documentary evidence.

“3.4 In response to the same the appellant made submission which In response to the same the appellant made submission which In response to the same the appellant made submission which was considered by the assessing officer but found the same was considered by the assessing officer but found th was considered by the assessing officer but found th untenable. The assessing officer as per the directions of ITAT order, untenable. The assessing officer as per the directions of ITAT order, untenable. The assessing officer as per the directions of ITAT order, asked the appellant whether any scrutiny assessment was completed asked the appellant whether any scrutiny assessment was completed asked the appellant whether any scrutiny assessment was completed earlier in respect of this assessment year. The appellant did not reply earlier in respect of this assessment year. The appellant did not reply earlier in respect of this assessment year. The appellant did not reply and, therefore, the assessing officer con and, therefore, the assessing officer concluded that he was unable to cluded that he was unable to hold that any assessment was completed in respect of this year prior hold that any assessment was completed in respect of this year prior hold that any assessment was completed in respect of this year prior to proceedings under section 153A completed on 30.11.2009. to proceedings under section 153A completed on 30.11.2009. to proceedings under section 153A completed on 30.11.2009. Accordingly in the absence of any details submitted by the appellant Accordingly in the absence of any details submitted by the appellant Accordingly in the absence of any details submitted by the appellant the A concluded that the asses the A concluded that the assessment for the year had not sment for the year had not beencompleted.

3.5 Further as per the directions of the Hon'ble ITAT the appellant 3.5 Further as per the directions of the Hon'ble ITAT the appellant 3.5 Further as per the directions of the Hon'ble ITAT the appellant was asked to produce electricity bills and telephone bills for the was asked to produce electricity bills and telephone bills for the was asked to produce electricity bills and telephone bills for the relevant period. The appellant failed to furnish the same and relevant period. The appellant failed to furnish the same and relevant period. The appellant failed to furnish the same and submitted a photo copy of Ledger of drawings upon for different years copy of Ledger of drawings upon for different years and not pertaining to the year under consideration. Also the and not pertaining to the year under consideration. Also the and not pertaining to the year under consideration. Also the appellant's claim of personal expenditure made through credit cards appellant's claim of personal expenditure made through credit cards appellant's claim of personal expenditure made through credit cards is also not acceptable as on analysis most of the credit card is also not acceptable as on analysis most of the credit card is also not acceptable as on analysis most of the credit card

Geetha Mehra 15 & Five Ors statement furnished by the appellant was regarding the expenses rnished by the appellant was regarding the expenses rnished by the appellant was regarding the expenses incurred relating to hotel expenses, travelling expenses, etc. The incurred relating to hotel expenses, travelling expenses, etc. The incurred relating to hotel expenses, travelling expenses, etc. The appellant also failed to furnish the details as per the directions given appellant also failed to furnish the details as per the directions given appellant also failed to furnish the details as per the directions given by the Hon'ble ITAT. by the Hon'ble ITAT.

Further, the appellant did not bring any do Further, the appellant did not bring any documentary evidence to cumentary evidence to prove that cheque amount of Rs. 7,06,780/ prove that cheque amount of Rs. 7,06,780/-were incurred towards were incurred towards household expenses. It was also submitted that no electricity household expenses. It was also submitted that no electricity household expenses. It was also submitted that no electricity telephone bill is incurred py the appellant. During the search and telephone bill is incurred py the appellant. During the search and telephone bill is incurred py the appellant. During the search and seizure action warrant of authorisation w seizure action warrant of authorisation was issued in the name of the as issued in the name of the appellant at the residence. At the time of search and even during appellant at the residence. At the time of search and even during appellant at the residence. At the time of search and even during assessment proceedings the appellant was unable to produce any assessment proceedings the appellant was unable to produce any assessment proceedings the appellant was unable to produce any supporting documents that she was staying in the guesthouse and supporting documents that she was staying in the guesthouse and supporting documents that she was staying in the guesthouse and not at her own residence. not at her own residence.

3.6 Thus, the assessing officer concluded that the appellant's , the assessing officer concluded that the appellant's , the assessing officer concluded that the appellant's withdrawals for household expenses were very low and the withdrawals for household expenses were very low and the withdrawals for household expenses were very low and the contention of the appellant that the household and other expenses contention of the appellant that the household and other expenses contention of the appellant that the household and other expenses were made by Mis. Synergy Art Foundation Ltd., onbehalf of her, was were made by Mis. Synergy Art Foundation Ltd., onbehalf of her, was were made by Mis. Synergy Art Foundation Ltd., onbehalf of her, was not supported with any evidences. Therefore, the assessing officer ted with any evidences. Therefore, the assessing officer ted with any evidences. Therefore, the assessing officer added a sum of Rs. 4,50,000/ added a sum of Rs. 4,50,000/- to the total income of the appellant as to the total income of the appellant as unexplained expenditure on account of household expenses u/s. unexplained expenditure on account of household expenses u/s. unexplained expenditure on account of household expenses u/s. 69C.”

10.1 Similar finding ha have been given by the lower authorities authorities on the issue in dispute in respect of the other assessment years. issue in dispute in respect of the other assessment years. issue in dispute in respect of the other assessment years.

Geetha Mehra 17 & Five Ors wise analysis of expenses incurred through credit has been placed wise analysis of expenses incurred through credit has been placed wise analysis of expenses incurred through credit has been placed by the assessee on P/B 115 to 127. On perusal of the analysis of by the assessee on P/B 115 to 127. On perusal of by the assessee on P/B 115 to 127. On perusal of credit card expenses credit card expenses before us, we concur with the find with the finding of the Assessing Officer that same relate mainly to Assessing Officer that same relate mainly to “Hotel and travel Hotel and travel’ expenses. Some expenses are . Some expenses are for dining out at Hotels and very dining out at Hotels and very nominal amount on personal items nominal amount on personal items and not in relation to day and not in relation to day-to-day household expenses including electricity & telephon including electricity & telephone. The source of the cash withdrawals has also not been explained properly by the the cash withdrawals has also not been explained properly by the the cash withdrawals has also not been explained properly by the assessee. The Ld. Counsel has referred to P/B 149 to 154 to explain The Ld. Counsel has referred to P/B 149 to 154 to explain The Ld. Counsel has referred to P/B 149 to 154 to explain 03, cash of ₹10,000/- has cash availability. We find that in AY 2002 cash availability. We find that in AY 2002-03, cash of been claimed as withdrawn on 17.01.2002 from HDFC Bank (P/B been claimed as withdrawn on 17.01.2002 from HDFC Bank (P/B been claimed as withdrawn on 17.01.2002 from HDFC Bank (P/B 149) via cheque No. 713426, whereas on perusal of HDFC Bank 149) via cheque No. 713426, whereas on perusal of HDFC Bank 149) via cheque No. 713426, whereas on perusal of HDFC Bank statement placed on P/B 128, we find that cheque No. 713426 on statement placed on P/B 128, we find that cheque No. 713426 on statement placed on P/B 128, we find that cheque No. 713426 on 17.01.2002 has been issued to 17.01.2002 has been issued to ‘Sandoz House’. Similarly, in . Similarly, in AY 04, three cheques of ₹25,000/- each have been claimed as 2003-04, three cheque been claimed as withdrawn in cash (P/B 150), but on verification from Bank withdrawn in cash (P/B 150), but on verification from Bank withdrawn in cash (P/B 150), but on verification from Bank statement available on P/B 128, those cheques have been paid to statement available on P/B 128, those cheques have been paid to statement available on P/B 128, those cheques have been paid to ‘Sandoz House’. Similarly, in other years also cheques have been . Similarly, in other years also cheques have been . Similarly, in other years also cheques have been found to issued to ‘Sandoz House’ as against claim of cash nd to issued to ‘Sandoz House’ as against claim of cash nd to issued to ‘Sandoz House’ as against claim of cash

Geetha Mehra 18 & Five Ors withdrawal from Bank. withdrawal from Bank. As far as contribution of household As far as contribution of household withdrawal by way of cheque is concerned, the assessee has not withdrawal by way of cheque is concerned, the assessee has not withdrawal by way of cheque is concerned, the assessee has not explained whether those expenses have been incurred on day-to- explained whether those expenses have been incurred on day explained whether those expenses have been incurred on day day household expenses. Regarding the rental income of enses. Regarding the rental income of enses. Regarding the rental income of ₹72,000/-, is concerned the Tribunal Tribunal (supra) has noted that said recei (supra) has noted that said receipt was considered against cash deposits in assessment year 2002-03. considered against cash deposits in assessment year 2002 considered against cash deposits in assessment year 2002 12.1 In view of the detailed finding by the Assessing Officer In view of the detailed finding by the Assessing Officer In view of the detailed finding by the Assessing Officer regarding the inability of the assessee in bility of the assessee in justifying justifying source of household expenses and upholding of the same by the Ld. CIT(A), household expenses and upholding of the same by the Ld. CIT(A), household expenses and upholding of the same by the Ld. CIT(A), we do not find any error in the order of the Ld. CIT(A) for relevant we do not find any error in the order of the Ld. CIT(A) for relevant we do not find any error in the order of the Ld. CIT(A) for relevant assessment years and accordingly we uphold the same. assessment years and accordingly we uphold the same. assessment years and accordingly we uphold the same.

14. The Ground No. No. 5 in assessment year 2003 in assessment year 2003-04 relate to addition of ₹14,65,500/ 500/-. The Assessing Officer on page 2 of the . The Assessing Officer on page 2 of the impugned assessment order has mentioned that addition of ssment order has mentioned that addition of ssment order has mentioned that addition of ₹14,62,500/-is an unexplained investment under section 69 of is an unexplained investment under section 69 of is an unexplained investment under section 69 of Act

Geetha Mehra 19 & Five Ors king the convertible rate of ₹ 45 for for acquiring the paintings by ta for acquiring the paintings by taking the convertible rate of a dollar and ₹ 75 forGBP 75 forGBP, is concerned, the Tribunal Tribunal (supra)had upheld the order of the Ld. CIT(A) on the issue. We find the upheld the order of the Ld. CIT(A) on the issue. We find the upheld the order of the Ld. CIT(A) on the issue. We find the Tribunal(supra) in Para 11 of the order has mentioned the ground (supra) in Para 11 of the order has mentioned the ground (supra) in Para 11 of the order has mentioned the ground raised against the addition of raised against the addition of ₹14,62,500/-. This issue has been . This issue has been finally adjudicated by the finally adjudicated by the Tribunal in para 18.2 observing as in para 18.2 observing as under:

“18.2 Even before us, nothing has been produced to show the name 18.2 Even before us, nothing has been produced to show the name 18.2 Even before us, nothing has been produced to show the name and details of the costumers on whose behalf the purchases were and details of the costumers on whose behalf the purchases were and details of the costumers on whose behalf the purchases were allegedly made by the assessee. The assessee has not disputed the allegedly made by the assessee. The assessee has not disputed the allegedly made by the assessee. The assessee has not disputed the purchases of the paintings in question; but has taken a plea that purchases of the paintings in question; but has taken purchases of the paintings in question; but has taken these paintings were purchased on behalf of the prospective buyers these paintings were purchased on behalf of the prospective buyers these paintings were purchased on behalf of the prospective buyers and the actual bill is on the company who was received the and the actual bill is on the company who was received the and the actual bill is on the company who was received the commission in the transaction. When nothing has been produced to commission in the transaction. When nothing has been produced to commission in the transaction. When nothing has been produced to show that the paintings were ultimately sold to such show that the paintings were ultimately sold to such and such person and such person and who has made the balance payment, then we do not find any and who has made the balance payment, then we do not find any and who has made the balance payment, then we do not find any reason to interfere with the order of CIT(A) for the assessment year reason to interfere with the order of CIT(A) for the assessment year reason to interfere with the order of CIT(A) for the assessment year 2003 – 04 on this issue. 04 on this issue.”

Geetha Mehra 20 & Five Ors

18. Regarding the Regarding the ground No. 5 and 6 of the appeal 5 and 6 of the appeal for assessment year 2007 assessment year 2007-08 is concerned, same are are reproduced as under:

“5. The learned Commissioner of Income Tax (Appeals) is not justified 5. The learned Commissioner of Income Tax (Appeals) is not justified 5. The learned Commissioner of Income Tax (Appeals) is not justified in sustaining the addition of Rs.60.15 lakhs as alleged unexplained in sustaining the addition of Rs.60.15 lakhs as alleged unexplained in sustaining the addition of Rs.60.15 lakhs as alleged unexplained capital accretion based on alleged false capital accretion based on alleged false return.

Geetha Mehra 21 & Five Ors gain on sale of paintings. The ITAT (supra), in the first round of gain on sale of paintings. The ITAT (supra), in the firs gain on sale of paintings. The ITAT (supra), in the firs proceedings restored the matter back to the file of the Assessing proceedings restored the matter back to the file of the Assessing proceedings restored the matter back to the file of the Assessing Officer for verifying the correctness of purchase and sale of the Officer for verifying the correctness of purchase and sale of the Officer for verifying the correctness of purchase and sale of the paintings by the assessee. In the consequent assessment paintings by the assessee. In the consequent assessment paintings by the assessee. In the consequent assessment proceedings, before the Assessing Officer, it was claimed that those proceedings, before the Assessing Officer, it was claimed proceedings, before the Assessing Officer, it was claimed paintings were received by way of gifts. However paintings were received by way of gifts. However, the assessee filed the assessee filed only list of the persons from whom the said paintings were alleged list of the persons from whom the said paintings were alleged list of the persons from whom the said paintings were alleged to be received by way of gift therefore the Assessing Officer treated to be received by way of gift therefore the Assessing to be received by way of gift therefore the Assessing the sum of ₹60,15,000/ 15,000/-as unexplained increase in capital account increase in capital account on account of alleged sale of paintings. The Assessing Officer also on account of alleged sale of paintings. The Assessing Officer also on account of alleged sale of paintings. The Assessing Officer also held the claim of regular return of income filed along with balance held the claim of regular return of income filed along with balance held the claim of regular return of income filed along with balance sheet by the assessee as false as the return filing acknowledgement sheet by the assessee as false as the return filing acknowledgement sheet by the assessee as false as the return filing acknowledgement No. claimed by the asses No. claimed by the assessee as proof for filing the regular of income see as proof for filing the regular of income, was pertaining to return filed by another person. The relevant part was pertaining to return filed by another person. The relevant part was pertaining to return filed by another person. The relevant part of the order of the Assessing Officer is reproduced as under: of the order of the Assessing Officer is reproduced as under: of the order of the Assessing Officer is reproduced as under:

“7.5 During the course of set aside assessment proceedings, During the course of set aside assessment proceedings, During the course of set aside assessment proceedings, assessee was asked assessee was asked to furnish details of source of acquisition of to furnish details of source of acquisition of paintings which have been sold and accordirgly short term and long paintings which have been sold and accordirgly short term and long paintings which have been sold and accordirgly short term and long term gains were realized on the same. Assessee was also asked to term gains were realized on the same. Assessee was also asked to term gains were realized on the same. Assessee was also asked to furnish details of return of income filed for the year under furnish details of return of income filed for the year under furnish details of return of income filed for the year under Geetha Mehra 22 & Five Ors consideration and submit copy of computation of long term & short nd submit copy of computation of long term & short nd submit copy of computation of long term & short term capital gains respectively and also' file copy of revised term capital gains respectively and also' file copy of revised term capital gains respectively and also' file copy of revised return.The assessee was further asked to give the details of return.The assessee was further asked to give the details of return.The assessee was further asked to give the details of purchaser of paintings and the mode of receipt of payment of the purchaser of paintings and the mode of receipt of payment of the purchaser of paintings and the mode of receipt of payment of the same. Purther, on being specifically asked to furnish names and n being specifically asked to furnish names and n being specifically asked to furnish names and addresses of the persons from whom the said purchases were made, addresses of the persons from whom the said purchases were made, addresses of the persons from whom the said purchases were made, the other details viz. description, amount, date, details of payment, the other details viz. description, amount, date, details of payment, the other details viz. description, amount, date, details of payment, copies of bills etc. and justification for the values assigned to those copies of bills etc. and justification for the values assigned to those copies of bills etc. and justification for the values assigned to those paintings with regard to long term capitaland short term capital gain aintings with regard to long term capitaland short term capital gain aintings with regard to long term capitaland short term capital gain of Rs.46,15,000/- - and Rs. 14,00,000/- in all totaling to Rs. in all totaling to Rs. 60,15,000/-.Assessee except for furnishing a list of persons from .Assessee except for furnishing a list of persons from .Assessee except for furnishing a list of persons from whom the said alleged purchases were made had furnished no other whom the said alleged purchases were made had furnished no o whom the said alleged purchases were made had furnished no o details.

7.6 in response to the same, assessee vide letter dated 02.09.2013 in response to the same, assessee vide letter dated 02.09.2013 in response to the same, assessee vide letter dated 02.09.2013 submitted in this office on 03.09.2013 has contended as under: submitted in this office on 03.09.2013 has contended as under: submitted in this office on 03.09.2013 has contended as under:

7.7.1 The explanation of the assessee has been considered and the 7.7.1 The explanation of the assessee has been considered and the 7.7.1 The explanation of the assessee has been considered and the same is found to be not acceptable. It can be seen that assessee did same is found to be not acceptable. It can be seen that assessee did same is found to be not acceptable. It can be seen that assessee did not offer any specific expla not offer any specific explanation with regard to purchase of nation with regard to purchase of paintings.The assessee failed to satisfactorily explain the return of paintings.The assessee failed to satisfactorily explain the return of paintings.The assessee failed to satisfactorily explain the return of Geetha Mehra 23 & Five Ors income filed with DCIT income filed with DCIT-7(2), Mumbai. Further, it is worth mentioning 7(2), Mumbai. Further, it is worth mentioning here that assessee all along was filing return of income at Chennai here that assessee all along was filing return of income at Chennai here that assessee all along was filing return of income at Chennai and even return for the year under consideration are filed there only for the year under consideration are filed there only for the year under consideration are filed there only disclosing salary and rent income. Assessee, as an afterthought, tried disclosing salary and rent income. Assessee, as an afterthought, tried disclosing salary and rent income. Assessee, as an afterthought, tried to furnish a false claim that gifts were received long back from to furnish a false claim that gifts were received long back from to furnish a false claim that gifts were received long back from various artistsbefore search by claiming to have filed return for A.V. various artistsbefore search by claiming to have filed return for various artistsbefore search by claiming to have filed return for 2005-06Further, the return register for F.Y. 2006 06Further, the return register for F.Y. 2006-07 bearing receipt 07 bearing receipt No. 0720000316 dated 23.11.2006 shows that return was filed in the No. 0720000316 dated 23.11.2006 shows that return was filed in the No. 0720000316 dated 23.11.2006 shows that return was filed in the name of Mr. Chedda Haresh Nagji and does not pertains to name of Mr. Chedda Haresh Nagji and does not pertains to name of Mr. Chedda Haresh Nagji and does not pertains to assessee.No return of income for the year under consideration was assessee.No return of income for the year under considera assessee.No return of income for the year under considera filed as per Return Register of DCIT filed as per Return Register of DCIT-7(2), Mumbai. • Further, assessee 7(2), Mumbai. • Further, assessee has not brought any documentary evidence in the form of bank has not brought any documentary evidence in the form of bank has not brought any documentary evidence in the form of bank statement where such sale proceeds had been credited and to show statement where such sale proceeds had been credited and to show statement where such sale proceeds had been credited and to show that the same were reflected in the balance sheet. that the same were reflected in the balance sheet. It is pertinent to It is pertinent to mention here that assessee till A.Y. 2005 mention here that assessee till A.Y. 2005-06 had shown only salary 06 had shown only salary income and rental income and how gifts of earlier years had come income and rental income and how gifts of earlier years had come income and rental income and how gifts of earlier years had come into the balance sheet for the year under consideration had not been into the balance sheet for the year under consideration had not been into the balance sheet for the year under consideration had not been properly explained. Hence, it is cl properly explained. Hence, it is clear that assessee was claiming ear that assessee was claiming alleged tax free receipts from purported sale of paintings to artificially alleged tax free receipts from purported sale of paintings to artificially alleged tax free receipts from purported sale of paintings to artificially inflate the capital account to balance the insertion of bogus figures on inflate the capital account to balance the insertion of bogus figures on inflate the capital account to balance the insertion of bogus figures on asset side representing value of paintings owned by the assessee. In asset side representing value of paintings owned by the assessee. In asset side representing value of paintings owned by the assessee. In the nutshell, it can be said that assessee has not been able to hell, it can be said that assessee has not been able to hell, it can be said that assessee has not been able to satisfactorily explain the filing of return of incorne at Mumbai and satisfactorily explain the filing of return of incorne at Mumbai and satisfactorily explain the filing of return of incorne at Mumbai and explain the source of investment in the painting by correlating the explain the source of investment in the painting by correlating the explain the source of investment in the painting by correlating the purchases and payments made. purchases and payments made.

.In view of the above, the sum of .In view of the above, the sum of Rs. 60,15,000/- being unexplained being unexplained increase in capital account on account of alleged sales of paintings is increase in capital account on account of alleged sales of paintings is increase in capital account on account of alleged sales of paintings is added to the total income. added to the total income.”

Geetha Mehra 24 & Five Ors

Geetha Mehra 25 & Five Ors

“5.5.1 These grounds are against alleged unexplained increase in 5.5.1 These grounds are against alleged unexplained increase in 5.5.1 These grounds are against alleged unexplained increase in capital Rs. 60.15 lakhs. As regards the addition of Rs. 60.15 lakhs capital Rs. 60.15 lakhs. As regards the addition of Rs. 60.15 lakhs capital Rs. 60.15 lakhs. As regards the addition of Rs. 60.15 lakhs added as unexplained capital accretion and the assessing officer's added as unexplained capital accretion and the assessing added as unexplained capital accretion and the assessing conclusion that the appellant has tampered with the department conclusion that the appellant has tampered with the department conclusion that the appellant has tampered with the department records to file a false return, I find that the matter has been laid to records to file a false return, I find that the matter has been laid to records to file a false return, I find that the matter has been laid to rest by the order of Hon'ble ITAT in para 27.5 wherein it is clearly rest by the order of Hon'ble ITAT in para 27.5 wherein it is clearly rest by the order of Hon'ble ITAT in para 27.5 wherein it is clearly stated that the impugned return filed by t stated that the impugned return filed by the appellant cannot be he appellant cannot be taken into account. Therefore, the findings of facts made by the taken into account. Therefore, the findings of facts made by the taken into account. Therefore, the findings of facts made by the assessing officer in the instant set aside assessment have to be relied assessing officer in the instant set aside assessment have to be relied assessing officer in the instant set aside assessment have to be relied upon. In his regard, the assessing officer at para 7.7.1 has observed, upon. In his regard, the assessing officer at para 7.7.1 has observed, upon. In his regard, the assessing officer at para 7.7.1 has observed, "Further, assessee has no "Further, assessee has not brought any documentary evidence in the t brought any documentary evidence in the form of bank statement whereas such sale proceeds had been form of bank statement whereas such sale proceeds had been form of bank statement whereas such sale proceeds had been credited and to show that the same were reflected in the balance credited and to show that the same were reflected in the balance credited and to show that the same were reflected in the balance sheet......... In the nutshell, it can be said that assessee has notbeen sheet......... In the nutshell, it can be said that assessee has notbeen sheet......... In the nutshell, it can be said that assessee has notbeen able to satisfactorily explain the filing of return of income at Mumbai orily explain the filing of return of income at Mumbai orily explain the filing of return of income at Mumbai and explainthe source of investment in the painting by correlating the the source of investment in the painting by correlating the the source of investment in the painting by correlating the purchases and payments purchases and payments.

5.5.2 During the course of appellate proceedings, the appellant did 5.5.2 During the course of appellate proceedings, the appellant did 5.5.2 During the course of appellate proceedings, the appellant did not offer any specific records details not offer any specific records details that would counter the above that would counter the above unambiguous observation made by the assessing officer. Accordingly, unambiguous observation made by the assessing officer. Accordingly, unambiguous observation made by the assessing officer. Accordingly, the addition of Rs. 60.15 lakhs made by the assessing officer is the addition of Rs. 60.15 lakhs made by the assessing officer is the addition of Rs. 60.15 lakhs made by the assessing officer is sustained. This ground of appeal is dismissed. sustained. This ground of appeal is dismissed.”

Geetha Mehra 26 & Five Ors and short-term capital gain and term capital gain and accretion of capital of of capital of ₹60,15,000/- . Except, reiteration of arguments made before the lower . Except, reiteration of arguments made before the . Except, reiteration of arguments made before the authorities, no new evidence in support of purchase of the paintings authorities, no new evidence in support of purchase of the paintings authorities, no new evidence in support of purchase of the paintings were filed before us, therefore we were filed before us, therefore we don’t have any alternative other don’t have any alternative other than upholding the finding of the Ld. CIT(A) on the issue in the finding of the Ld. CIT(A) on the issue in the finding of the Ld. CIT(A) on the issue in dispute. We accordingly hold so. We accordingly hold so. The ground No. 5 of the appeal of the assessee is accordingly dismissed. As far as g the assessee is accordingly dismissed. As far as grounds rounds related to observation of the Assessing Officer in relation to return of income observation of the Assessing Officer in relation to return observation of the Assessing Officer in relation to return filed by the assessee held as false by the assessee held as falsereturn of income,is concerned we is concerned we find that in view of our finding on ground No. five adjudicated in view of our finding on ground No. five adjudicated in view of our finding on ground No. five adjudicated above, issue is rendered only academic in nature, Therefore issue is rendered only academic in nature, Therefore issue is rendered only academic in nature, Therefore, the ground Nos.6 and 7 of the appeal of the assessee and 7 of the appeal of the assessee and 7 of the appeal of the assessee are dismissal infructuous.

Geetha Mehra 27 & Five Ors

Order pronounced under Rule 34(4) of the ITAT Rules, 1963 under Rule 34(4) of the ITAT Rules, 1963 under Rule 34(4) of the ITAT Rules, 1963, on 21.11.2022.