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2013 (11) TMI 176 - AT - Income TaxUnexplained cash credit u/s 68 of the Income Tax Act – Onus of proof on the assessee to explain the case credit – Held that:- Appellant did not receive the gift amounts through banking channel as claimed by the learned counsel for the appellant in the first written submissions. The gift amounts have been received by the appellant by way of DDs and no nexus has been established between the source of funds for procuring these DDs by the donor and his earnings in the NRE bank account - Whether the above amounts received were applied for the purpose of making gift to the appellant, is not established as relevant bank account has not been furnished and no nexus between the receipt of above amounts and procurement of DDs for making gifts to the appellant has been established - No Balance Sheet or financial statement or cash flow statement of the donor has been placed on record to indicate exhaustive resources of funds of the donor and the corresponding investments - Authenticity of the certificate given by the M/s Palm General Trading LLC(a firm of assessee’s brother, who is the donor) has not been established by the assessee - In the absence of supporting documents, the said certificate can only be considered as a self serving and bald certificate. Further the donor has failed to establish the nexus between the funds, if any, received by him from M/s Palm General Trading LLC and the impugned gifts – Decided against the Assessee. Addition of Rs.2.00 lakhs made to cover up the deficiencies noticed in the books of account relating to the contract business – Held that:- It was also an admitted position that substantial expenses were not supported by independent cross verifiable vouchers and therefore, the disallowance out of the same was justified for the reason that the appellant failed to establish genuineness of all expenses and establish identity of payees - Assessing Officer was justified in making the disallowance which was also reasonable considering the total claim of the appellant - Assessee failed to furnish any material or explanation to contradict the findings of the tax authorities – Decided against the Assessee.
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