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2013 (1) TMI 134 - AT - Income TaxUnexplained cash deposits - Genuineness and source of cash creditor Held that:- The assessee has received Rs. 1.59 crore from Praful L. Shah for which written submission made by the assessee on 14.03.2002 and explain the source. The assessee filed a copy of ITR for A.Y. 98-99 before CIT(A). Shri Praful L. Shah was cash creditor in the book of account of the assessee who is assessed to tax with ITO Ward 1 (6), Palanpur. Shri Hemendra L. Shah has given cash to assessee Rs. 45 lakh but source of cash in the hand of cash creditor was Rs. 20 lakh from Parth Mercantile Inc. and Rs. 25 lakh from Shri Dilip Atmaram Modi HUF. The cash creditor is the book account of the assessee is Hemendra L. Shah who had explained cash deposited up to Rs.25 lakh remaining amount had been shown from Parth Mercantile Inc. Therefore, cash credit to the tune of Rs.20 lakh has not explained. We have considered view that genuineness and source of cash creditor has not proved by the assessee in case of Hemendra L. Shah. Accordingly, confirm the addition of Rs.20 lakh. Addition u/s 68 - Identity of the party - Genuineness of the transaction - Source of the deposit Held that:- assessee had submitted the confirmation and payments are account payee cheques, therefore, the assessee has discharged his primary onus to prove the genuineness of transaction, identity of person in above cash creditors. Cash credit of Rs.70000/- in case of Speedwell Properties Ltd. including interest has not been disclosed by the cash creditor in its balance sheet. No confirmation of Rs. 21,397/-. Therefore, (70000 + 21397) addition of Rs. 91397/- is confirmed by the CIT (A), is justified. Addition on account of bank charges and commission Held that:- As concluding from the facts of the case debit entries as mentioned in books of accounts pertained to interest not bank charges and commission. The CIT(A) has not given any opportunity to the A.O. before admitting the evidence. Remand back to AO. Addition on account of bills discounting charges Expense not explained Held that:- Assessee has given details of discounting charges and claimed that total turnover was Rs. 12.07 crore and gross profit was at Rs. 25.25lacs. The bills discounting charges were pertained to Banks. The CIT(A) has not given any opportunity to the A.O. Therefore matter remand back to AO
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