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2016 (9) TMI 458 - AT - Income TaxUnexplained investment in land, residential flat & shop, etc. - Held that:- It is seen from the material available on record that in the order of assessment, the AO has not disputed the datewise transactions maintained in the cash book by the Assessee. Therefore there should not be any difficulty in calculating the availability of cash on any given day. There were deposits and withdrawals in this cash book. The AO has come to the conclusion here that cash book was not properly maintained. This conclusion of the AO was not based on any discrepancy in the cash book but rather on surmises. The AO does not mention any gaps occurring in the cash book. The AO has not also disputed the source of cash as one from the sale proceeds of business. Therefore rejection of cash book by the AO was not proper. The circumstance that the Assessee is the owner of a retail cloth shop and in that line of business all transactions are wholly in cash cannot also be disputed. The AO has himself noted in the assessment order that the Assessee’s business turnover for the year was ₹ 2,67,54,866/- and that he had no debtors. Therefore, availability of cash with the Assessee does not appear to be in doubt. The correlation between the cash book and the deposit in the bank account has also been accepted by the CIT(A). The source of funds in so far as it relates to the Assessee’s wife has also been given but the same was neither examined nor rejected by the AO. Therefore the conclusion that the Assessee invested the entire funds including the share of the Assessee’s wife was rightly held by the CIT(a) to be incorrect. The fact that the Assessee had taken a loan from M/s. ICICI Bank, is clear from the evidence on record but in his conclusion the AO did not give credit to this loan as funds explained by the Assessee. The above findings of the CIT(A) have not been shown before us to be incorrect based on material available on record. In the given circumstances, we are of the view that the addition made by the AO was rightly deleted by the CIT(a) - Decided in favour of assessee. Addition on account of gift received - failure to prove the creditworthiness of the donors from the party of the assessee - Held that:- As seen from the Record that the AO himself has admitted that the Assessee has submitted the name of the donor, the amount of gift and the mode of transaction which, admittedly, is through cheque. Therefore the CIT(A) has rightly concluded that the initial onus on the party of the Assessee was discharged. Thereafter the onus has shifted onto him once these basic details have been submitted by the Assessee. He is not seen to have conducted any enquiries on these issues. Without an enquiry, the action of the AO bases itself on surmises and cannot be held to be correct. Besides, no adverse comments are seen to have been made by the AO on any of the details submitted. Under the circumstances, we uphold the order of the CIT(A) in this regard and dismiss Gr.No.2 of the Revenue.- Decided in favour of assessee. Addition on account of liabilities for failing to substantiate the same - Held that:- There was no evidence for the AO to come to a conclusion that liability in question was not genuine. On the other hand, the payment to the above said party by the assessee in the subsequent year by cash and the availability of cash to make payment were satisfactorily explained by the assessee - Decided in favour of assessee. Unexplaned loans - Held that:- As far as the loan of ₹ 3 lakhs received from Aparna Banerjee is concerned, the loan in question was given on 15-4-2008 and therefore, no addition could have been made in AY 2008-09, because the credit in question cannot be said to be a credit in the books of account of the assessee for the AY 2008-09. The addition, therefore, is directed to be deleted. As far as, the loan received from Swapan Das is concerned it is seen from the bank account of Sri Swapan Kumar Das that there was cash deposit of ₹ 2 lakhs on 25-03-2008. Immediately, thereafter on 27-28 March 2008 four cheques of ₹ 50,000/- each ws issued to the assessee by Swapan Kumar das. Prior to deposit of cash, Mr. Swapan Kr. Das had a balance of ₹ 2,50,000/- in his bank account. In these circumstances, we are of the view that the assessee failed to satisfactorily explain the loan taken from Swapan Kumar Das. We, therefore, confirm this addition.- Decided against assessee.
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