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2014 (10) TMI 258 - AT - Income TaxUnexplained cash credits u/s 68 – Held that:- Out of the 23 parties, notices received back unserved in case of 22 parties, because of the reason that the persons were not available at the said addresses - The assessee had claimed before the AO that the said persons were his business partners, but, despite given sufficient opportunities by the AO, the assessee could not produce them for examination before the AO - all the facts on the file prove beyond doubt that the evidences have been managed by the assessee to conceal the truth and to justify the genuineness of the transactions - The AO has observed from the balance sheet of two persons that the total capital of the parties was a little more than the amounts claimed to have been paid for subscription to the share capital of the assessee - She has also noticed that both the parties owed more than ₹ 1,00,000/- plus as labour charges - the ways and means of sustenance of the persons for the period under consideration was a big mystery - The balance sheet indicated that the said persons had no creditworthiness to carry out the transactions. The explanation of the assessee to the effect that the subscribers were away to their work when the summons were sent to them does not seem to be justified or probable - It is hardly possible that all the persons were away and no one was present at their addresses to receive the summons during the period - It is not a case where summons were served on some persons and could not be served upon other persons - Thereafter the evidences/ affidavits submitted by the assessee, as observed above, are also found to be managed and even the transactions, though claimed to be done through banking channel, but, the circumstances showing the opening of the account in a particular branch on a particular date, issuance of cheque books of the same series and the payment through first leaf of the cheque book of every person, reveals that all the transactions were stage managed - the assessee had failed to establish the creditworthiness of the subscribers and the genuineness of the transactions – thus, the CIT(A) was not justified in deleting the additions made by the AO – Decided in favour of revenue.
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