TMI Blog2012 (9) TMI 650X X X X Extracts X X X X X X X X Extracts X X X X ..... the money which was utilized for the purpose of income from other source. The borrowings were made through bank account cheque. A.O. had not brought on record any evidence that these borrowings were used for personal purposes. Therefore, addition not justified. Decision in favour assessee. - ITA No. 152/Ahd/2010 - - - Dated:- 9-7-2012 - Shri D.K.Tyagi and Shri T.R. Meena, JJ. By Appellant Shri K. R. Dixit, A.R. By Respondent Shri C.K. Mishra, Sr.D.R. ORDER PER : T.R.Meena, Accountant Member This is an appeal at the behest of the Assessee which has emanated from the order of CIT(A)-II, Baroda, order dated 30.10.2009 for assessment year 2006-07. The effective grounds of appeal are as under:- 1. That o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apital of Rs. 2,65,000/- during the year under consideration. The ld. A.O. had given reasonable opportunity to the appellant to explain the source of fresh capital introduced on various dates. The appellant claimed before the A.O. that the fresh capital introduced had been withdrawn from the Bharat Co-operative Bank of SB A/c No. 9422. The A.O. asked to furnish the details of cheque no. and date of withdrawal of the cash from the above bank but the required details were not submitted by the appellant. Therefore, he made addition of Rs.2,10,000/- u/s 69 as unexplained investment. 5. Being aggrieved by the order of the A.O., the appellant carried the matter before the CIT(A) who has confirmed the addition on the ground that Rs.10,000/- we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied on Hon ble Gujarat High Court decision in 6 CTR 647 and prayed to admit the additional evidence in the interest of justice, which were failed to produce it earlier. 7. Ld. D.R. vehemently argued that the A.O. as well as ld. CIT(A) had considered all the evidences and new evidence filed before us is not to be admitted being fresh evidence. 8. We have perused the orders of the authorities below and heard the argument of both sides. The appellant explained vide his letter dated 07.07.2008 before the A.O. that Rs.2,00,000/- deposited introduced as fresh capital with partnership concern by withdrawing cash Rs.1,00,000/- on 03.10.2005 from Bharat Co-operative Bank of SB A/c No. 9422 and Rs.50,000/- each on 11.10.2005 by withdrawing the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he interest income of Rs.1,82,416/- claiming the net loss of Rs.30,849/- under the head income from other sources. The appellant made claim of interest to the following persons: Before the Assessing Officer, the appellant submitted that loans had been taken from the above mentioned persons for utilizing the money in earning income. The assessee further claimed that he had joined as a partner in different partnership firms and invested capital in the said firms from borrowed funds. He further submitted that the expenditure was allowable as per Section 57(iii). The ld. A.O. was not convinced that the borrowings were made wholly and exclusively for earning income chargeable under the head income from other sources. The assessee could not e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the A.O. 13. We have perused the orders of the authorities below and heard the arguments of both sides. The assessee undisputedly borrowed the money which was utilized for the purpose of income from other source. The genuineness of the borrowed has not doubted by the A.O. The borrowings were made through bank account cheque. The ld. A.O. had not brought on record any evidence that these borrowings were used for personal purposes. The appellant had filed PAN nos. of all the recipients who have disclosed the interest income in their respective returns before their A.Os. As claimed by the appellant, interest expenses were allowed by the A.O. in earlier year. Thus, the CIT(A) was not justifying in confirming the addition on account of int ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
