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2014 (7) TMI 419 - AT - Income TaxAssessment of Gift amount Proof of source of the gift - Held that:- The AO in the original assessment proceedings had assessed the gift only for the reason the donor did not explain the source for making the gift. In the present proceedings - the AO assessed the gift amount again for the reason that there is contradiction in the dates of making gift - the assessee had received loans from the donor in the earlier years and the said loan was converted into the gift - If that is so, the sources for making gift stands explained - the necessity of receiving gifts from specified relatives have been introduced into the Act only from the succeeding assessment year thus, there was no reason to assess the gift receipt during the year - for the limited purpose of verifying the claim the matter is remitted back to the AO - Decided in favour of Assessee. Assessment of Loan receipt Held that:- The assessee has repaid a sum of ₹ 4.00 lakhs to Shri Vikram G Menda on 03.11.2003 the cheque was realised on 06.11.2003 and he has used the proceeds to give a sum of ₹ 3,50,000/- to the assessee on 09.11.2003 - the source of the amount stands explained - In respect of the amount of ₹ 3,20,000/-, the lender Shri Deepak G Menda has encashed the mutual fund units and realised a sum of ₹ 3,19,141/- and the same was credited into his bank account on 25- 08-2003 - the lender has used the amount to make a deposit of ₹ 3,20,000/- into Fixed deposit - Shri Vikram G Menda has used the proceeds to advance a sum of ₹ 3,20,000/- to the assessee - the sources for giving the loan of ₹ 3,20,000/- also stands explained - Shri Vikram D Menda is also assessed to Income tax and he has been filing return of income for the past several years - there is no reason to suspect the credit worthiness of Shri Vikram D Mehta thus, the order of CIT(A) is set aside Decided in favour of Assessee. Assessment of loan amount - Held that:- The identity of the creditor stands proved since he happens to the son of the assessee and the details of his name, address, bank details, confirmation obtained from him etc. have been furnished - The genuineness of the transaction is also stands proved since the funds were received through banking channels - With regard to the credit worthiness, the assessee has furnished only copies of income tax return filed by the creditor - the lender was only 29 years old and the possibility of earning tuition income is remote - the assessee has failed to prove the credit worthiness of this creditor - the contentions of the assessee cannot be accepted that the receipt of money by way of cheque proves the credit worthiness of the creditor - the level of income declared in his return of income, thus, the order of the CIT(A) is upheld that the assessee has failed to prove credit worthiness of this creditor Decided against Assessee. Assessment of Car Loan Held that:- There was a closing balance of ₹ 1,84,811/- as at 31.3.2004 - the assessee has furnished a copy of ICICI bank statement - the AO has made the addition only on the reasoning that the assessee has failed to furnish necessary details - the relevant details have been furnished in the paper book requires examination thus, the order of the CIT(A) is set aside and the matter is to be remitted back to the AO for fresh examination Decided in favour of Assessee. Assessment of Sundry creditors balance Held that:- There is no reason to suspect the remaining two purchases - In respect of M/s Gayatri Textiles, the assessee did not furnish the ledger account copy and hence we are unable to analyse the same assessee submitted that the AO has made the addition without affording necessary opportunity to the assessee the matter is remitted back to the AO Decided in favour of Assessee. Addition relating to the difference in the cost of Flat Held that:- The addition has been made only for want of reconciliation of the investment cost with sources - The explanations and details furnished by the assessee explains the sources - they require examination at the end of the AO thus, the matter is remitted back to the AO for fresh examination Decided in favour of Assessee. Unexplained source in purchase of flat Held that:- Since the issue relating to Tridev Flats has been remitted back to the AO, thus, this matter is also liable to be remitted back to the AO Decided in favour of Assessee.
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