Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2017 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (11) TMI 131 - HC - Income TaxAdmission of investment made as undisclosed income during the block period - Set off against the above undisclosed income being realisation from debtors falling outside block period - Held that:- Indisputably, the assessee has admitted undisclosed income for the block period at ₹ 12.87 lacs. The deduction was claimed by the assessee of ₹ 10,56,991/- against the above undisclosed income as set off being the realization from the debtors prior to block period. Obviously, the onus was on assessee to lead direct evidence to show that he had the said amount of undisclosed income available at the beginning of the block period. Apparently, the calculation made by the CIT (Appeals) while treating 25% of the total sundry debtors covered by unexplained sundry debtors prior to the block period thereby treating 75% of the debtors as outstanding, has no logical basis. We are of the considered opinion that the view taken by the ITAT that the ratio of unexplained debtors and creditors as at the beginning of the block period can be better determined by the ratio of disclosed debtors and creditors as per the books of account as on 31.3.96 being the beginning of the block period is logical and justified and thus, the same does not warrant any interference by this court in exercise of its appellate jurisdiction. Addition towards the loan given to Shri D.P.Agarwal as on 1.4.96 being the first day of the block period - Held that:- As noticed that sum of ₹ 75,000/- was taken by Shri D.P. Agarwal from the assessee in cash and it is also specifically mentioned that no amount was outstanding prior to the said transaction. There was no evidence furnished showing that the amount was advanced by the late father of the assessee and therefore, the bald assertion of the assessee in this regard has rightly been not accepted by the A.O. and thus, the addition made by the A.O. sustained by the CIT (Appeals) and ITAT is absolutely justified.
|