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2016 (6) TMI 732 - ITAT KOLKATAAddition on account of unexplained gift - amount received from the mother - Held that:- The mother of the assessee was not having any independent source of income and she was fully dependent for her maintenance on her four sons including the assessee. The said lady thus has no capacity to give the gift to the assessee and in the absence of any satisfactory explanation offered by her about immediate source from which the amount in question was claimed to be given to the assessee in cash, find myself in agreement with the authorities below that the amount of gift claimed to be received by the assessee from his mother is not satisfactorily explained by the assessee. Addition confirmed - Decided in favour of revenue Unexplained cash credits - addition u/s 68 - Held that:- There is nothing brought on record by the assessee to establish that the amount in question actually represented the trade advances. By assessee’s own submissions, the amounts in question represented loans and the primary onus, therefore was on the assessee to establish the identity and capacity of the concerned creditors as well as the genuineness of the relevant transaction. As rightly contended by the ld. DR in this regard, the assessee has however failed to discharge this onus. Keeping in view the adverse findings of the enquiry conducted by the AO, which the assessee has failed to explain. Thus the amount in question stated to be loans received by the assessee is rightly treated by the authorities below as unexplained cash credits which is liable to be added to the total income of the assessee under section 68. - Decided in favour of revenue Addition made on account of low withdrawals - Held that:- The estimate of personal and household expenses of the assessee as made by the AO, after taking into consideration the family size of the assessee, cost of living etc., is quite fair and reasonable. Therefore find no justifiable reason to interfere with the impugned order of the ld. CIT(A) confirming the addition made by the AO on account of low withdrawals and confirming the addition made on this issue - Decided in favour of revenue Addition on account of unexplained investment - Held that:- As rightly contended by the ld. Counsel for the assessee by relying on section 45 of the Transfer of Property Act, 1882, 50% of the investment in land, therefore is to be presumed as having made by the wife of the assessee and if there is a failure to explain satisfactorily the source of the said investment in the hands of the wife, the addition on account of such unexplained investment is liable to be made in her hands who is an independent individual separately assessed to tax and not in the hands of the assessee. Therefore delete the addition made by the AO and confirmed by the ld. CIT(A) on this issue - Decided in favour of assessee
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