S. MUTHUKUMAR Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) The following substantial questions of law are raised by the assessees seeking admission of the present Tax Case Appeals, preferred as against the orders of the Income Tax Appellate Tribunal, Chennai 'D' Bench dated 30.01.2013 in Appeal Nos.2067 & 2068 (MDS)/2012.

(2.) The assessees herein are Civil Engineers. In the course of scrutiny of assessment, it was found that the assessees made cash deposit to the tune of Rs.50,75,000/- in savings bank account. It is matter of fact that the assessee in TC(A).No.375 of 2013, along with Stanley Rajan (Assessee in TC(A).No.376 of 2013), constituted a partnership firm. The assessees explained that these monies belonged to various people who had entrusted the same with them for getting various civil works done in respect of their house properties; they were providing artisans, carpenters, masons and other skilled workers to all the needy people in the neighbourhood for renewal and renovation of house properties and also for constructing new buildings; thus, the money, in fact, did not belong to them. The assessees finally offered 5% of the cash deposits for taxation, which amounted to Rs.2,50,000/- in each of the assessee's cases.

(3.) The Joint Commissioner of Income Tax, Range-IV, Chennai, after examining the case of the assessees under Section 144 of the Income Tax Act, 1961 (hereinafter called as the "Act") held that the assessee could not establish that the money, in fact, belonged to the neighbours, who had made payments for carrying out the work relating to interior decoration etc. However, the Joint Commissioner of Income Tax directed the Assessing Officer to give one more opportunity to the assessees to substantiate their version.