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2018 (1) TMI 77 - AT - Income TaxRe-opening of assessment u/s 147 - addition u/s 68 - Held that:- Re-opening of assessment under section 147 of the Income Tax Act, 1961, and (b) the ld.CIT(A) has erred in confirming addition of ₹ 7,21,000/- which was added by the AO with the aid of section 68 - Held that:- We are satisfied that the AO was possessing sufficient information for harping a belief that taxable income has escaped assessment, and therefore, he has rightly reopened the assessment. It has been observed that the lenders are silent to status of loan as well as rate of interest. Lenders have bank account and they have given loan in cash. It is pertinent to observe that these are not transactions in day-to-day business of assessee. This is to be appreciated with back ground of the assessee, who is a blind person; who has some relationship with lenders. This way loans were taken by him in personal relation capacity. Whenever any small amounts are being taken from near-and-dear one, then interest and other terms and conditions are not negotiated. It is only on the basis of mutual faith and requirement of particular person. They have confirmed advancement of loans. They appeared before the AO in support of such advancement; they have submitted details of land holding and others source of earnings. To my mind, the ld.CIT(A) has erred in rejecting the explanation of the assessee. We are satisfied with the kind of evidence produced by the assessee that has discharged his onus as contemplated under section 68 of the Act. Similarly, the assessee is in service getting salary income. He used to manufacture cane furniture i.e. weaving/interlacing of cane in chairs etc. Savings at his end to the extent of ₹ 2.60,000/- cannot be doubted. - Decided partly in favour of assessee.
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