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2020 (7) TMI 334 - AT - Income TaxAddition u/s 68 or 69A - assessee failed to prove the source of income in the hands of the persons who gave DD in favour of the Excise Commissioner on behalf of the assessee - no pan numbers were given in their confirmation letters - HELD THAT:- If we go through the observations of the Tribunal, it is very clear that the Tribunal has concluded the issue of applicability of provisions of sec.68 or 69A of the Act, without allowing further scope to challenge the issue. Therefore, we are of the considered view that, there is no merit in the arguments of the ld. AR of the assessee that the provisions of sec.68 or 69A of the Act has no application to the impugned amounts. As regards the additions made towards the DDs taken from certain parties, on perusal of confirmation letters filed by the assessee before the AO, the copies of which are made available to us in paper book, we find M/s Sangameshwara Enterprises from whom a sum of ₹ 5.00 lakh has been taken by the assessee was confirmed that they have issued DD in favour of the assessee and said DD has been taken from M/s Vysya Bank, Bidar Branch. We further noted that M/s Sangameshwara Enterprises is also assessed to income tax at Gulbarga. Therefore, we are of the considered view that, no additions could be made in respect of DD taken from M/s Sangameshwara Enterprises. As regards amount received from Sheri. Negara, although the assessee has filed confirmation letter along with affidavit from the person who gave the DD, but fact remains that the details of pan numbers and income tax assessment of Shri Nagaraj has not been furnished so as to ascertain whether Shri Nagaraj is having sufficient source of income to explain the DD issued on behalf of assessee. From the above, it is clear that addition made towards DD taken from Shri. Nagaraj to the extent of ₹ 5.00 lakhs remains unexplained. There is no error in the findings recorded by the AO as well as the ld.CIT (A) to confirm the addition. Addition made for DD received from Shri V.B.Manik Rao - As explained in the light of the findings of the Tribunal Therefore, we are of the considered opinion that once the assessee has given the details of income tax assessment of person who gave the DD, merely for the reason that pan number is not furnished, no addition could be made. Hence, we direct the AO to delete the addition made towards DD taken in the name of Shri V.B.Manik Rao. Out of additions sustained by the ld. CIT (A) of ₹ 22.00 lakhs, the assessee gets a relief to the extent of ₹ 15.00 lakhs towards Demand Drafts received from M/s Sangameshwaran Enterprises, Shri N.R.Veerappa and Shri V.B,Manik Rao. The balance amount of ₹ 7.00 lakhs being amount received from Shri Nagaraj and Shri U.G.Rohit is still unexplained and hence, we confirm the additions made by the AO towards Demand Drafts claimed to have received from above two parties. Appeal filed by the assessee is partly allowed.
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