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2016 (8) TMI 458 - AT - Income TaxAddition u/s 68 - undisclosed cash credits and investments - Held that:- Most of the withdrawals from the Bank of Baroda and other banks were held to be available for investment in the land and accordingly, the deposits made in Vijaya Bank were accepted by the Ld. CIT(A). With regard to hand loans taken from 14 persons, the assessee has not even given PAN etc., and in the absence of maintenance of books of account it was difficult for the tax authorities to crossverify the genuineness of the loans. Even before us, no material whatsoever was filed by the assessee to prove the availability of the loan amounts from 14 parties. We are therefore, of the view that the Ld. CIT(A) was justified in confirming the addition to the extent of the amount referable to the alleged loans taken from 14 parties. However, personal savings to the tune of ₹ 13,000, having regard to the value of transactions carried out by the assessee, it could not have been disputed by the Ld. CIT(A). Similarly, separate addition of ₹ 3,84,400 is also not warranted since it is a running account having cash deposits. No doubt there are some instances which prove that some of the amounts were utilised for monthly credit card bills or repayment of loans but in the absence of any proof that assessee utilised the entire income earned from the business only for payment towards credit cards bills etc., it is not a fit case for making separate addition of ₹ 3,84,400. As regards the unexplained investment in the land, the Ld. CIT(A) has confirmed the addition of ₹ 1,35,644 for which the assessee could not furnish any evidence. Under these circumstances, we are of the view that the addition of ₹ 1,35,644 sustained by the Ld. CIT(A) is in accordance with law. In short, the cash loans taken from 14 persons were rightly added by the A.O. and confirmed by the CIT(A).
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