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2014 (2) TMI 311 - AT - Income TaxUnexplained credit entries - Held that:- Loan from Smt. Damyanti S. Jain - The lender deposited cash on 08/05/2003 and issued cheque to the issue on 09/05/2003. No details of the source of cash available with the assessee have been placed on record - The income of lender was only Rs.32,210 - Assessee has not been able to prove her creditworthiness – The amount has rightly been considered as income of the assessee from undisclosed sources. In respect of loan from Shri Nalinbhai A. Shah – The loan of Rs.1,50,000/- which was given out of cash deposit in the bank account of the loan creditor cannot be considered as genuine loan as the assessee has not placed any document on record to prove the creditworthiness of the loan creditor - In respect of loan of Rs.1,00,000/- which was given to the assessee on 29/03/2004, the said loan was given by Shri Nalinbahi A. Shah to the assessee after transferring of two amounts of Rs.50,000/- from another account and therefore the assessee cannot be expected to go into the origin of origin of the transfer. The assessee has established that the transaction is genuine and has established the creditworthiness of the loan creditor, in respect of giving loan of Rs.1,00,000/- to the assessee as there was a sufficient credit balance in the bank account of the loan creditor to give loan to the assessee – The addition of Rs. 1,50,000/- is confirmed by the Tribunal. In respect of loan from Shri Kantibhai C. Shah - The said loan was given to the assessee not out of the cheque deposited in his bank account by his loan debtors - Since, the assessee has established that there was sufficient balance in the account of Shri Kirtibhai C.Shah to give loan of Rs.2,50,000/- to the assessee, the assessee has established not only the identity of the loan creditor but also the genuineness of the transactions - The said addition of Rs.2,50,000/- is deleted as the assessee has given requisite explanation with documentary evidence to establish not only the creditworthiness and identity of the loan creditor but has also established the genuineness of the transaction. In respect of loan of 4,00,000/- from Smt. Renudevi Makharia – The lender received the cheque and it was deposited in her account and thereafter loan was given to the assessee by account payee cheque - The Assessing Officer has not disputed the above facts nor the Assessing Officer has brought any material on record that the said cheque of Rs.4,00,000/- received by her and deposited in her account was not genuine cheque - She has also confirmed of giving loan to the assessee and the said loan was stated to be returned by the assessee by account payee cheque - The said addition of Rs. 4,00,000/- is deleted as the said loan is genuine loan. Cash expenses such as checking charges, Hamali and Mukadami charges, Travelling expenses and office expenses - Held that:- The expenses have been incurred by the assessee in cash and there is no independent vouchers to enable the Assessing Officer to verify that all the expenses were incurred by the assessee wholly and exclusively for the purpose of business - It will be reasonable to make an adhoc disallowance of Rs.50,000/- as against Rs.2,24,3740/- confirmed by the ld. CIT(A) - partly allowed in favour of assessee.
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