Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

ITO - II, Baharaich Versus Smt. Pooja Devi Srivastava

Addition u/s 40A (3) - CIT(A) deleted addition on the ground that payments of ₹ 132,000/- made on 21.03.2010 and ₹ 167,620/- on 28.03.2010 fall on Sundays and banks were closed which was one of the exceptions provided in Rule 6DD(j) - Held that:- We find that learned CIT (A) has allowed relief only in respect of two payments which were made on Sundays and he has confirmed the balance disallowances u/s 40A (3). We also find that it is noted by the A.O. in the assessment order that the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

iness affairs and this bank account was a personal account. It is not shown by the revenue that any business transaction was carried out through this bank account and hence, we find no merit in the objection of the A.O that the HDFC Bank Account is not incorporated in Balance Sheet. Even if the assessee fails to establish the purpose for which the loan was stated to have been taken by the assessee, it cannot be said that for this reason alone, the loan is bogus and addition is called for. There .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t of stamp paper purchased in cash and it was explained before CIT (A) that this payment was made out of cash available in personal capacity. Learned CIT (A) held that in the facts of the present case, it is reasonable to accept that the assessee may be having some cash as personal savings and he accepted this claim to the extent of ₹ 80,000/-. In our considered opinion, the amount of personal cash accepted by CIT (A) is not excessive and hence, we hold that there is no infirmity in the or .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he addition of ₹ 2,99,620/- made u/s 40A (3) of IT Act on the ground that payments of ₹ 132,000/- made on 21.03.2010 and ₹ 167,620/- on 28.03.2010 fall on Sundays and banks were closed which was one of the exceptions provided in Rule 6DD(j) without considering the fact that assessee failed to submit the requirement and necessity of payment on Sundays before the Assessing Officer. The Ld CIT (A) - II, Lucknow before giving relief has also not examined the facts whether the payme .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

has allowed relief only in respect of two payments which were made on Sundays and he has confirmed the balance disallowances u/s 40A (3). We also find that it is noted by the A.O. in the assessment order that these are cash purchases. Therefore, there is no requirement to find out the due date of the bill. This is not the case of the A.O. that these two dates are not on Sunday. Considering all these facts, we decline to interfere in the order of CIT (A) on this issue. This ground is rejected. 5. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ts that interest earned on deposits was also not incorporated in computation of income. The Ld CIT (A) - II, Lucknow has also not examined the unusual pattern of loan taken from 98 different persons who are neither relative nor family members which creates doubt over the genuineness of so called loan taken by the assessee. In doing so, the Ld CIT (A) - II, Lucknow has also erred in law and on facts in deleting the addition of ₹ 18,00,000/- without appreciating the findings made by the Asse .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t. The appellant obtained loans on personal grounds for purchase of land from 98 persons. The loans taken in cash from agriculturists were deposited in bank account number 08661000004351 with HDFC Bank, Bahraich. The said bank account was a personal account and not a business account and therefore entries therein were not reflected in the books of accounts. The AO invoked provisions of section 68 of the Act for making addition of cash deposit in the bank account. At the outset, I find that in th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the ordinary financial year. Even under the provisions embodied in section 68 of the said Act it is only when any amount is found credited in the books of the assessee for any previous year that the section will apply and the amount so credited may be charged to tax as the income of that previous year, if the assessee offers no explanation or the explanation offered by him is not satisfactory. As the Tribunal has pointed out, it is fairly well settled that when moneys are deposited in a bank, t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

view of this, the Tribunal was, with respect, justified in holding that the pass book supplied by the bank to the assessee in the present case could not be regarded as a book of the assessee; that is, a book maintained by the assessee or under his instructions. In our view, the Tribunal was justified in the conclusions at which it arrived. 5(2)(ii) The AO is therefore not justified in invoking the provisions of section 68 of the Act. The AO has wrongly invoked the provisions of section 68 of th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

pport of loans taken filed affidavits of all the 98 persons. The AO insisted on production of 10 persons as per serial numbers 5, 15, 25, 35, 45, 55, 65, 75, 85, and 95 as mentioned in paragraph 4 on page 2 of the assessment order. The appellant produced 9 persons out of the 10 called by the AO. Shri Dinesh Kumar mentioned at serial number 95 could not be produced. Statement on oath of 9 persons was recorded by the AO on 27.12.2012. All the 9 persons confirmed having given loans to the appellant .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sheet. The balance sheet prepared by the appellant was related to business affairs and the HDFC Bank account having been held as a personal account with no business transactions, was not incorporated therein. Even otherwise, the matter which requires consideration is the nature and source of cash deposit in the bank account. The next issue is that the appellant has filed affidavits of ail 98 persons from whom loans were taken and the AO has examined only 10 of them. All the affidavits filed as .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ss of the cash book entries or the statements made in the affidavits. The decision of the Supreme Court lays down "that if there is no material whatsoever on record for doubting the veracity of the statements made in the affidavits and if the deponents have also not been subjected to cross-examination for bringing out the validity of their statements, then the Tribunal would not be justified in doubting the correctness of the statement made by the deponents in the affidavits." Thus the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

on-filing of details of land purchased for which loans were taken, 1 find that the AO has misdirected his findings. The issue is the veracity of loans taken from 98 persons amounting to ₹ 18,00,000/-. The utilization of the loan taken is not an issue. 5(5) I find from my examination that when the assessee has filed confirmations of the cash creditors in the form of affidavits which have not been disproved, the initial burden placed upon the assessee can be said to have been discharged and .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n ITA No. 336 (LKW.) of 2011 dated MAY 1, 2012 wherein it was laid down as under- The Assessing Officer should not have come to any conclusion without examining the cash creditors. The assessee cannot be aware of the source of creditors, which would be within the personal knowledge of the creators. Mere doubt with regard to the creditworthiness should not automatically reflect in disbelieving the case of the assessee to make addition under section 68 without showing that the assessee would have .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

primary evidence in proof of the fact that loan was advanced by third party. Thus, the initial onus shifts onto the revenue to prove that the creditors lack creditworthiness and to come to such conclusion, the assessee cannot be asked to produce any evidence which is within the personal knowledge of the third party. In the instant case, the Assessing Officer did not examine the parties and proceeded on the assumption that creditors would not have saved any money to advance the loan. In the circ .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rom the order of CIT (A), we find that the A.O. had inter alia three objections that the HDFC Bank Account is not incorporated in Balance Sheet, (2) No evidence was filed in support of loan except affidavits and (3) details of land for the purchase of which loans were taken were not filed. Regarding the first objection, a clear finding is given by CIT (A) that the balance sheet was prepared for business affairs and this bank account was a personal account. It is not shown by the revenue that any .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

affidavits. Regarding credit worthiness of lenders, it is observed by CIT (A) that if the A.O. had doubts, the A.O. should have directed the assessee to produce the creditors or would have examined the creditors directly and without doing so, the A.O. in taking an adverse inference. Learned CIT (A) has followed a Third Member tribunal order rendered in the case of Vishnu Jaiswal in ITA No. 336/LKW/2011 dated 01.05.2012. Considering all these facts, we find no merit in this objection of the A.O. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

Article: SERVICES UNDER REVERSE CHARGE UNDER GST REGIME

Forum: Duty Drawback & Input Credit - under GST

Forum: Excise duty credit on finished stock at additional place of business.

Forum: Credit on Repair of Company Car & Its Insurance

Highlight: Rate of exchange of conversion of the foreign currency with effect from 22th September, 2017 - Notification

Highlight: Companies (Acceptance of Deposits) Second Amendment Rules, 2017 - Notification

Highlight: Implementing Electronic Sealing for containers by exporters under self-sealing procedure prescribed by Circular 26/2017-Cus dated 1st July, 2017 and Circular 36/2017 dated 28 th August, 2017. — reg. - Circular

Highlight: Amendment to Paragraph 2.72 (b) of the Handbook of Procedures of the Foreign Trade Policy (FTP) 2015-20 - Public Notice

Notification: Amendment in Appendix 3 (SCOMET items) to Schedule- 2 of ITC (HS) Classification of Export and Import Items 2012

Circular: Amendment to Paragraph 2.72 (b) of the Handbook of Procedures of the Foreign Trade Policy (FTP) 2015-20

Notification: Companies (Acceptance of Deposits) Second Amendment Rules, 2017

Notification: Rate of exchange of conversion of the foreign currency with effect from 22th September, 2017

Forum: Trans1 return

News: Exchange Rate of Foreign Currency Relating To Imported and Export Goods Notified

Circular: Promote the officers of the Indian Revenue Service (Customs and Central Excise) to the grade of Principal commissioner of customs, GST & CX

Circular: Allocate the charges amongst the Members of the Central Board of Excise and Customs

Circular: Strategy for audits in 2017-18 consequent to GST - Audit by Central Excise and service Department to continue for the accounting year 2016-17 and for the past period

Circular: Appoint the IRS (C&CE) officers as Principal Commissioner (Revision Application) and ex-officio Additional Secretary

Circular: Time limit for filing intimation for composition levy under Rule 3(1) of the CGST Rules, 2017 extended to 16-8-2017

Circular: Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 120A of the Central Goods and Service Tax Rules, 2017

Circular: C.B.E. & C. Advisory on Customs related matters on introduction of Goods and Services Tax regime

Circular: List of Reduced Tax Liabilities under GST regime in comparison to present combined Indirect Tax rates

Circular: Works Contract for construction of Flats, Complex — Builders to pass on GST benefit to buyer otherwise anti-profiteering provisions of Section 171 of GST Act to apply

Circular: Clarification regarding applicability of section 16 of the IGST Act, 2017, relating to zero rated supply for the purpose of Compensation Cess on exports – Regarding.

Circular: Clarification on Inter-state movement of various modes of conveyance, carrying goods or passengers or for repairs and maintenance- regarding

News: RBI Reference Rate for US $

Highlight: Addition u/s 23(1)(a) - deemed rent - once the property is let out and at any point of time this remained vacant during the same cannot be brought to tax under the head House properties income.

News: Haryana constitutes screening committee on anti-profiteering

Highlight: Valuation of imported goods - it is necessary to re-examine the matter of both license agreement as well as supply contract simultaneously, to see if the enhanced royalty was in the guise of adjustment of the price of components.

Notification: Levy of anti dumping duty on New/unused pneumatic radial tyres with or without tubes and/or flap of rubber (including tubeless tyres) having normal rim dia code above 16 originating in, or exported from China PR

Highlight: Cenvat credit availed on Club Membership for the Director is not admissible as it cannot be said to be remotely connected with the activity of manufacture

Circular: Amendments in Hand Book of Procedures 2015-20 –reg.

News: Jaitley asks biz not to wait till last day to file GST returns

Circular: Implementing Electronic Sealing for containers by exporters under self-sealing procedure prescribed by Circular 26/2017-Cus dated 1st July, 2017 and Circular 36/2017 dated 28 th August, 2017. — reg.

Article: 20 Things You must know about E Way Bills in GST Law

Article: ‘DUTY DRAWBACK’ CANNOT BE EQUATED WITH ‘REBATE OF DUTY’

Highlight: Notification regarding GST rate for branded cereal, pulses and flour

News: Notification regarding GST rate for branded cereal, pulses and flour

Highlight: Anti-dumping duty on import of bus/truck tyres from China

Highlight: Cabinet approves Extension of time period of the Scheme "Special Industry Initiative for J&K" (Sll J&K) - Udaan

Highlight: Non-payment of service tax - maintenance and repair charges - appellants had knowingly and deliberately shown the repair charges as job work charges to mislead about their taxability - demand confirmed.

Highlight: BAS - execution of the project of smart card for vehicle registration – implementing the SOC-VRC project - The fact that the Government has outsourced some part of the work and paid certain consideration for such outsourced work, does not make the activity subject to service tax.

News: Cabinet approves Extension of time period of the Scheme "Special Industry Initiative for J&K" (Sll J&K) - Udaan

Highlight: Constitution of National Anti-profiteering Authority (NAA) under GST-reg. - Trade Notice

Highlight: Amendments in Hand Book of Procedures 2015-20 –reg. - Various amendments are made in Chapter-4 of Hand Book of Procedures 2015-2020.

Circular: Constitution of National Anti-profiteering Authority (NAA) under GST-reg.

Highlight: Sharing of expenses - BAS - promotion of business of group companies - sharing of expenditure for common facilities cannot be treated as service by one to another in such arrangement.

News: RBI Reference Rate for US $

Article: Credit of unsold stock [Section 140(3)] - Actual Credit as well as Notional Credit - Part-I - GST Transitional provisions

Circular: Certain Clarifications sought on Construction Services provided in the Real Estate Sector – reg.



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version