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2016 (6) TMI 41 - AT - Income TaxAddition u/s 68 - Held that:- From bare perusal of the observations made by CIT(A) it is evident that he has not at all examined the creditworthiness of the lender particularly with reference to the documents showing agricultural holding and produce thereon. Ld. CIT(A) has not given any cogent reasons for confirming the addition to the extent of ₹ 1,15,000/-. Considering the entirety of facts and circumstances and the detailed documents submitted by lender, we are of the opinion that the addition deserves to be deleted as lender has been able to establish its identity, genuineness of the transaction and the capacity to advance the loan. Accordingly, this ground is allowed in favour of assessee Undisclosed cash deposit in the bank account - Held that:- There was cash deposit amounting to ₹ 50,000/- in the bank account of the assessee on 16.6.2005. the source of the said cash was explained as ₹ 17,000/-each received from Manoj Kumar, Mohd. Saffique and Mohd. Aslam. He observed that in response to notice u/s 133(6), which were received back it transpired that there was no such person. Assessee also could not produce them before the AO. Accordingly, addition of ₹ 50,000/- was made, which was confirmed by CIT(A).After hearing both the parties we do not find any reason to interfere on this count as the assessee miserably failed to explain the basic three ingredients in respect of these three loans. In the result, this ground is dismissed against assessee
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