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2015 (12) TMI 558 - ITAT BANGALORE

2015 (12) TMI 558 - ITAT BANGALORE - TMI - Undisclosed cash credit - Held that:- What we find is that a credit of ₹ 3 lakhs appears both in the statement of affairs as on 31.03.2005 as well as as on 31.03.2006 in the name of Shri. Govinda Reddy. These statement of affairs were filed along with the returns of income for A. Ys.2005-06 and 2006-07. Amount remaining the same, if at all it had to be added as unproved credit, it ought to have been done in the year in which assessee had received .....

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was dated.25.04.2005. If that be so, ‘house lease amount’ that ought have been there in the statement of affairs as on 31.03.2005 was ₹ 6 lakhs and not ₹ 7,50,000/-. AO had clearly given a finding that assessee was unable to show entries in its books of account for receipt of such amounts. Closing cash and bank balance as on 31.03.2005 came only to ₹ 44,499/- and hence evidently did not include the post dated cheque of ₹ 1,50,000/-. Thus the version of the assessee that w .....

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wever, the balance sum of ₹ 1,50,000/- which assessee received during the relevant previous year being not reflected in its books of account could not be considered as the source for explaining ₹ 7,50,000/- shown as dues in its statement of affairs as on 31.03.2006. In the circumstances we are of the opinion that assessee should be given a relief of ₹ 6 lakhs for the sums received by him during the preceding previous year. Accordingly we restrict the addition to a sum of ₹ .....

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consequential since it assails levy of interest u/s.234B and 234C of the Incometax Act, 1961 ( the Act in short) and this also does not need any specific adjudication. 02. Vide its ground number 2, assessee is aggrieved that a credit of ₹ 3,00,000/- in the name of Shri. Govinda Reddy was disallowed by the AO and such disallowance was confirmed by the CIT (A). 03. Facts apropos are that assessee, a seller of second hand vehicles, had filed return of income declaring income of ₹ 3,51, .....

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lt in the balance sheet filed along with the return, and the correct name was Govindappa. As per the assessee, he had purchased site bearing No.29 & 30 at Madeena Nagar, from Shri. Govindappa and a sum of ₹ 3 lakhs was due on the said purchase to Shri. Govindappa. Assessee also mentioned that the outstanding amount stood to be paid during the financial year 2006-07. Address of Shri. Govindappa was also furnished by the assessee. AO issued a summons u/s.131 of the Act, but it seems ther .....

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m the preceding year. Relying on the statement of affairs of the assessee as on 31.03.2005, placed at paper book pages 8 to 10, Ld. AR submitted that the sum of ₹ 3 lakhs was shown as payable to Shri. Govinda Reddy in the said statement. As per the Ld. AR, it was the very same amount that appeared in the liability side of the statement of affairs as on 31.03.2006 filed along with the return for the impugned assessment year. Thus according to him, the balance was only a carry forward of ear .....

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f Mumbai Tribunal in Income-tax Department v.Shailesh D. Shah [ ITA.7012/Mum/2010, dt.11.12.2013]. 07. We have perused the orders and heard the rival contentions. What we find is that a credit of ₹ 3 lakhs appears both in the statement of affairs as on 31.03.2005 as well as as on 31.03.2006 in the name of Shri. Govinda Reddy. These statement of affairs were filed along with the returns of income for A. Ys.2005-06 and 2006-07. Amount remaining the same, if at all it had to be added as unpro .....

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particulars of the creditor and also gave explanation as to how the credit has come into the books of the assessee. In the circumstances, we are of the opinion that the addition for the amount of ₹ 3 lakhs made during the impugned assessment year was uncalled for. Such addition stands deleted. Ground 2 of the assessee stands allowed. 08. Vide its grounds 3 to 5 grievance raised by the assessee is that a sum of ₹ 7,50,000/- shown as a liability in its statement of affairs was disallow .....

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.349851 for ₹ 5,50,000/- and No.349853 for ₹ 1,50,000/-, both of which were dated 26.03.2005. As per the assessee, balance sum of ₹ 50,000/- was received in cash on the very same day. AO on examination of books of account produced by the assessee was of the opinion that sum of ₹ 7,50,000/- was not reflected therein. As per the assessee the cheques issued by the party were bearer cheques and cash was directly drawn from the bank. AO was of the opinion that the sum of ͅ .....

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his return / books of account. CIT (A) was of the opinion that claim of the assessee for receipt of ₹ 7,50,000/- as house lease amount could not be believed. 10. Now before us, Ld. AR strongly assailing the order of lower authorities submitted that ₹ 7,50,000/- was also a carried forward balance from the preceding year. Placing reliance on a lease agreement dt.26.03.2005 entered with Shri. Mohammed Sarshad, Ld. AR submitted that payment of ₹ 5,50,000/- and ₹ 1,50,000/- b .....

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d not be believed as a source for ₹ 7,50,000/- shown in the statement of affairs as on 31.03.2005 and 31.03.2006 for the reason that one of the cheques given by Shri. Mohammed Sarshad was due for payment only in F. Y. 2005-06. 12. We have perused the orders and heard the rival contentions. In support of the house lease amount of ₹ 7,50,000/- shown by the assessee in its statement of affairs as on 31.03.2006 as a liability, assessee is relying on an agreement of lease dt.26.03.2005. P .....

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Road Branch, Bangalore. 3) Balance amount of ₹ 50,000/- (Rupees Fifty thousand only) by way of CASH. Dated 26.03.2005. And will be refunded to the LESSEE upon efflex of the duration of lease and handing over vacant possession of the House. The LESSOR shall have the right to adjust this deposit against, electricity water and maintenance charges if any. It is clear that one of the cheques for ₹ 1,50,000/- was dated.25.04.2005. If that be so, house lease amount that ought have been ther .....

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