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2016 (1) TMI 1339 - ITAT CHANDIGARHAddition on account of 'Istridhan' under section 68 - Held that:- The assessee explained that this amount was received from his wife and filed affidavit of Smt. Mukhtiar Kaur, wife of Shri Basant Singh (assessee) (PB-117) in which she has merely stated that ₹ 10,000/- have been saved annually out of the money given by her husband i.e. by the assessee, but the counsel for assessee pleaded before the ld. CIT(Appeals) that such amount was accumulated by wife of the assessee on different occasions by way of gift etc. from their parent and in- laws side at different regular occasions. The affidavit of wife of the assessee is thus, contradictory as against submissions made by the assessee before ld. CIT(Appeals). Further, the affidavit of wife of the assessee is not supported by any evidence or material on record. Thus, assessee failed to prove credit worthiness of his wife and the genuineness of the transaction in the matter. - Decided against assessee Unexplained credit under section 68 - Held that:- Even if there are certain contradictions in the statement of Shri Jeet Singh and Shri Hari Singh, the same would not be significant as is required under the Criminal Law, therefore, the judgements relied upon by ld. counsel for the assessee clearly apply to the facts of the case in support of the assessee. We, therefore, do not find any justification to sustain the orders of authorities below. The initial onus upon assessee has thus, been discharged to prove genuine credits in the matter. The Assessing Officer has not brought any evidence against the assessee to contradict or rebut the material on record. We, therefore, set aside the orders of authorities below and delete the addition As regards the credit in the name of Shri Gurdiwan Singh, assessee, however, submitted that subsequent to the statement recorded on 06.11.2008, Shri Gurdiwan Singh filed his affidavit before ld. CIT(Appeals) on 16.05.2009 confirming giving of loan to the assessee. Such an affidavit filed at the subsequent stage without making retraction to the earlier statement given to Assessing Officer would not serve any purpose. Further affidavit of Shri Gurdiwan Singh has not been supported by any evidence or material on record, therefore, authorities below were justified in making and confirming the addition of ₹ 10 lacs. Thus, assessee failed to explain genuineness of the credits in respect of ₹ 10 lacs. Addition shown to have been given by Shri Iqbal Singh, assessee has not produced any evidence before authorities below to explain even his identity, what to say of credit worthiness and genuineness of the transaction in the matter. He was also not produced before Assessing Officer for examination. Therefore, in the absence of any evidence or material on record, authorities below were justified in making and confirming addition. This ground of appeal of the assessee is accordingly dismissed. Unexplained cash credit - Held that:- CIT(Appeals) on one of the issue has already noted that the Enforcement Directorate have intimated that the matter is under investigation and in progress, therefore, this issue could be decided by the Enforcement Directorate. Since issue before authorities below was addition under section 68 of the Act, therefore, the issue shall have to be decided on the basis of the parameters prescribed for genuineness of the transaction under section 68 of the Act which, in our opinion, assessee has been able to prove that he has received the money in question from Shri Pritam Singh through genuine transaction. We, therefore, do not find any justification for the authorities below to make and sustain the addition of ₹ 20 lacs. Disallowance on account of use of telephone and motor vehicle for personal purposes - Held that:- No merit in this ground of appeal of the assessee. The assessee has not produced any evidence before us to contradict the finding of fact recorded by the authorities below. Since the expenses were not subjected to verification and no log-book or details have been maintained and the assessee submitted before ld. CIT(Appeals) that non-business use of vehicles cannot be ruled out, would clearly support the findings of authorities below that these expenses were not subject to verification and were not supported by the vouchers. The disallowance was, therefore, justified. Addition on account of household withdrawals - Held that:- No merit in this ground of appeal of the assessee. The assessee has failed to produce details of household expenses as per requirement of the family. Therefore, authorities below were left with no alternate except to estimate the household expenditure. Before us, no sufficient evidence or material is produced to justify the withdrawal Levy of penalty under section 271(1)(c) - Held that:- As assessee did not produce any evidence before the authorities below to explain the addition to the capital account and on part of unexplained credit penalty imposed is confirmed.
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