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2015 (9) TMI 379 - ITAT KOLKATA

2015 (9) TMI 379 - ITAT KOLKATA - TMI - Addition of unsecured loans - Held that:- It is clear that the assessee is unable to prove the immediate source of the transaction for the reason that the creditor is having bank account no. 071696 of UCO Bank, Barakar where an amount of ₹ 3,00,000/- was deposited on 03.10.2006 and on that very same day this amount was given as loan to the assessee i.e. her husband. Apart from this amount of ₹ 3,00,000/- there are small entries varies from S .....

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s and cheques issued are there from 24th April, 2006 to 3rd October, 2006 and on various dates the bank balance was more than ₹ 20,000/- and sometimes even ₹ 1 lac. It means that there was regular cash flow in the bank account from which the loan of ₹ 2,50,000/- was given to the assessee i.e. her nephew. In view of the above, it is of the view that Shashi Devi Poddar was having sufficient basis and funds to give loan of ₹ 2,50,000/- to the assessee. Therefore, no reason t .....

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amount was available with the loan creditor and amount was given by way of demand draft, no reason to doubt the same. Accordingly, this is accepted as genuine and delete the same.- Decided against revenue.

Addition on low household withdrawal - Held that:- Assessee filed the details of other family members’ withdrawals like assessee’s wife Smt. Rinku Poddar wherein she has declared household withdrawals at ₹ 21,600/- and Smt. Shashi Devi Poddar amounting to ₹ 48,000/-. If .....

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of CIT(A), Asansol in Appeal No. 96/CIT(A)/ASL/Ward-2(3)/ASL/2009-10 dated 26.04.2013. Assessment was framed by ITO, Ward-2(3), Asansol u/s. 143(3) of the Income-tax Act, 1961 (hereinafter referred to as the Act ) for Assessment Year 2007-08 vide his order dated 23.12.2009. 2. The first issue in this appeal of assessee is against the order of CIT(A) confirming the addition of unsecured loans of following amounts: i) ₹ 3,00,000/- from Smt. Rinku Poddar, ii) Rs.2,50,000/- from Smt. Shashi D .....

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as allegedly unexplained cash credits within the province of s. 68 of the Income Tax Act, 1961 without adducing any adverse evidence on record and his alleged findings on that behalf are altogether arbitrary, unwarranted and perverse. 2. FOR THAT the Ld. Commissioner of Income Tax (Appeals). Asansol misconstrued the position in law in illegally upholding the impugned addition of ₹ 5,99,000/- made under the application of the provisions of s. 68 of the Income Tax Act, 1961 by the Ld. Incom .....

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es of the loan creditors, their creditworthiness and genuineness of the transactions being proved by the appellant, the purported finding of the Ld. Commissioner of Income Tax (Appeals), Asansol upholding the impugned addition of ₹ 5,99,000/- made by the Ld. Income Tax Officer, Ward 2(3), Asansol on the specious allegation of unproved Cash credit by rejecting such immaculate evidence adduced on record is wholly illegal, illegitimate and infirm in law. 3. Briefly stated facts are that the a .....

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in respect to these cash creditors. The AO also issued notices u/s. 133(6) of the act to these cash creditors and asked to furnish the following details: i) Identity Proof bearing signature, ii) Whether any loan was paid to the above person, if yes, then furnish the details of loan paid i.e. year in which the loan was given, mode and date of payment. iii) Details of fresh loan given and loan squared off during the F.Y. 2006-07. iv) Please mention the mode of payment made and received and enclos .....

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(6) of the act, stated that this loan was advanced by cheque no.0000731751 from her Savings Bank A/c. No.071696 maintained with UCO Bank, Barakar dated 03.10.2006. She also submitted bank pass book. She also explained that the above loan was given out of her available funds as on that date in her bank account. She also enclosed copies of her I. T Returns for AY 2005-06 and 2006-07 along with accounts. In respect to return of income for AY 2007-08, it was stated by her that she did not file the r .....

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quired the assessee to produce Smt. Rinku Poddar and she was finally produced before the AO on 09.12.2009 and statement was recorded. There were certain inconsistencies in the statement like she denied giving any loan to Shri Manoj Kumar Poddar, the assessee and moreover, she admitted that there is no big amount deposited in her account. In view of these inconsistencies and the fact that this amount of ₹ 300000/- was deposited on the very same date and issued cheque to assessee immediately .....

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re me, the Ld. Counsel for the assessee apart from other evidence stated that this amount of ₹ 3,00,000/- is a deposit out of cash flow statement. When this was pointed out to him, he stated that he is ready to file the cash flow statement. I have gone through the entire paper book consists of pages 1 to 78 and noticed that the only evidence which were produced before AO like I. T. returns, accounts of the creditor, computation of income and bank statement, which are now available in this .....

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on for the reason that the creditor is having bank account no. 071696 of UCO Bank, Barakar where an amount of ₹ 3,00,000/- was deposited on 03.10.2006 and on that very same day this amount was given as loan to the assessee i.e. her husband. Apart from this amount of ₹ 3,00,000/- there are small entries varies from ₹ 10,000/- to ₹ 20,000/- in the bank account and there was never a balance of more than ₹ 20,000 to ₹ 30,000/- in this bank account. In view of the .....

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of the Act, she replied that this loan was given by cheque bearing no.000181920 from her Bank A/c. No. CD56188 of UCO Bank, Barakar. She also submitted bank pass book. She also explained that the above loan was given out of her available funds as on that date in her bank account. She also enclosed copies of her I. T Returns for AY 2005-06 to 2007-08. She had shown income u/s. 44AF of the Act from sale of consumer goods. The AO noticed from the bank account that a cash of ₹ 2,48,000/- has b .....

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ad deposited money in my account on that date. But that money is not mine . In view of these inconsistencies, the AO treated this amount as unexplained because the source of this deposit was not proved. 8. Aggrieved, assessee preferred appeal before CIT(A), who also confirmed the action of AO by holding that in view of the evidence in hand the creditworthiness and genuineness is not proved. Aggrieved, now assessee is in appeal before Tribunal. 9. I have heard rival submissions and gone through f .....

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now available in this paper book. Also Shashi Devi Poddar is sole proprietor of M/s. Sakambari Sales Agency, Barakar and the I. T. return for AY 2005-06 to 2007-08 have been filed showing business income. The loan of ₹ 2,50,000/- has been given from current account No. 56188 of UCO Bank, Barakar in name of Sakambari Sales Agency. I have gone through the current account bank statement wherein various entries of cash deposits and cheques issued are there from 24th April, 2006 to 3rd October .....

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d I delete the addition. 10. The next cash credit of ₹ 49,000/- received from Shri Kanhaiya Lal Poddar the assessee before the AO explained that this amount was advanced by the cash creditor by way of demand draft No. 812125 purchased from SBI, B. B. Ganguli Street, Kolkata amounting to ₹ 49,000/-. According to AO, the assessee has not responded to the notices issued u/s. 133(6) of the Act. Hence, he treated this loan as unexplained. But the assessee claimed before the AO that the cr .....

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he AO is right in holding that the loan is unproved one. Aggrieved, now assessee is in appeal before Tribunal. 11. I have heard rival submissions and gone through facts and circumstances of the case. I find that this is a merely small amount of ₹ 49,000/- advanced out of current year s income. The current year s income of the loan creditor is about ₹ 1,10,250/-, which is sufficient to meet this loan amount. Even otherwise, the loan was advanced on 23.12.2006 almost at the end of the .....

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