Alok Anand Vs ITO (ITAT Bangalore)
ITAT Bangalore: CIT(A) cannot travel beyond Reopening Reasons – Additions on Share Trading Deposits Quashed
Assessee, a UK-based professional, had not filed returns for AYs 2011-12 & 2012-13. Based on information from the Investigation Wing, AO reopened assessments u/s 147/148 alleging Cash deposits in bank accounts & Large investments in mutual funds. As Assessee did not respond to statutory notices, AO completed the reassessment u/s 144 r.w.s. 147, treating ₹2.08 lakh as unexplained cash deposits& ₹1.41 crore (AY 2011-12) & ₹85.73 lakh (AY 2012-13) as unexplained investments in mutual funds.
On appeal, CIT(A) obtained a remand report from AO & also bank confirmations. It was found that Assessee had not invested in mutual funds. But CIT(A) thereafter got the details of the Bank statements & worked out the cash deposits & transfer credits which was utilised for share trading & treated the both as unexplained cash credit & unexplained transfer credits. CIT(A) arrived the quantum of such deposits at Rs. 43,15,000/- & concluded the said sum was used in the investment of shares which was not explained..CIT(A) finally deducted this unexplained investments in shares from the total unexplained investments made in the mutual funds of Rs. 1,41,60,440/- & granted relief of Rs. 99,45,440/-. CIT(A) had also computed the net profit from share trading & bank interest & added the said amount of Rs1,42,852/ as income from Business & Profession. CIT(A) further directed AO to add the commission received from the Insurance company as income. Insofar as the cash deposit of Rs. 2,08,000/-, CIT(A) had granted a relief of Rs 1,58,000/ & confirmed the balance of Rs 91,000/. CIT(A) had not accepted the other grounds raised by the assessee.
