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Asst. Commissioner of Income Tax -15 (2) , Mumbai Versus Mr. Nitin V Shah and Vica-Versa

2016 (1) TMI 796 - ITAT MUMBAI

Addition of unsecured loans - Held that:- The assessee could not explain before the AO the source of down payment made in cash, accordingly, it was added u/s 68 by the AO. The assessee’s contention had been that, he had sufficient balance to pay the cash, however, no supporting details / documents were filed. The Ld CIT(A) too confirmed the said addition on the ground that, assessee could not substantiate his explanation by producing any evidence. Accordingly, the said additions was sustained. - .....

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they were either for personal purpose or same were for non-business purpose. The assessee could not produce any material before us to rebut the finding by way of relevant evidence or bills to state that all the expenses were incurred for business purpose. Accordingly, order of the CIT(A) on this score is affirmed - Decided against assessee - ITA No. : 1537/Mum/2011 - Dated:- 30-10-2015 - SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER AND SHRI AMIT SHUKLA, JUDICIAL MEMBER For The Applicant Cross Objec .....

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secured loans of ₹ 8,64,500/- taken from Smt. Veena V Shah and of ₹ 8,49,360/- from Business Communication as unexplained Case Credits u/s 68 of the I.T. Act, 1961 . 2. The brief facts are that, the assessee is an individual who is engaged in the business of arranging seminars and educational lectures etc. In the Balance sheet, the assessee had shown unsecured loans of ₹ 32.13 lakhs. Before the AO in response to the show cause notice, the assessee could furnish the details of u .....

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en total unsecured loans shown in the Balance sheet and explanation not furnished by the assessee. 3. Before the CIT(A), it was submitted that after the assessee had filed the requisite details and the explanation, AO did not gave further opportunity to the assessee and he did not specifically confronted to the assessee regarding non-compliance of notice by Smt. Veena V Shah, who is assessee s mother. Thus, additional evidence were filed before the CIT(A) containing all the relevant information .....

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n taken from Smt. Karishma B. Shah, proprietor of Business Communication, who is sister-in-law of the assessee. This was already stated and explained in the Balance sheet filed and also before the AO and further the confirmation of loan account of the assessee along with the bank account statement was filed before CIT(A). Since additional evidences were filed by the assessee for the first time, the matter was remanded to the AO, along with the written submissions of the assessee. In response, th .....

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sputed by the AO. He further noted that both these lenders are regularly assessed to tax and have been filing their return of incomes and the factum of giving of loan is not only reflected in their bank statement but also been shown in their relevant income-tax records. Thus, the source of these credits stands fully explained. The relevant observation and finding with regard to evidences filed by both the lenders and the conclusion drawn by the CIT(A) is as under :- Accordingly, the AR has filed .....

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come; therefore, the addition made on account of loan taken from Smt Karishma B Shah, to my considered opinion is unjustified. Regarding, the unsecured loan taken from his mother the AR has filed the bank certificate dated 12.12.2010 confirming the overdraft facility availed by Smt. Veena V Shah and the issue of the relevant cheque in favour of the appellant out of the said OD account No.20022515212 maintained with Allahabad Bank, Andheri(W) Branch, Mumbai. The bank has further certified that du .....

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is not disputed by the AO. Moreover, she herself is filing her regular returns of income a copy of her return of income along with computation of income for AY 2007-08 filed by the AR is placed on record. Therefore, on account of these facts of the case and submissions of the AR and further on account of the supporting evidences placed on record, as discussed above to my considered opinion the AO is not justified in considering the loan received on from Smt. Veena V Shah as his unexplained cash .....

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ve bank accounts, to my considered opinion the source of the relevant loans or credits are duly explained. Therefore, in view of the same I find that the AO is not justified in considering the same as unexplained cash credits of the appellant. The entire addition made on this account, it is therefore directed to be deleted. These grounds of appeals are accordingly allowed . 5. After hearing both the parties and on perusal of the material on record in the paper book as well as the relevant findin .....

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dition on account of 68 could be made. Similarly, loan taken from mother, it is seen that, cheque has been issued in favour of the assessee from her OD Account and Bank has further certified that such cheques have been issued out of the OD account and transferred to the assessee s account in the same Branch. Thus, in this case also the source of the loan stands fully explained. Accordingly, the finding as recorded by the CIT(A) is affirmed and grounds raised by the revenue stands dismissed. 6. I .....

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y taking a loan of ₹ 4,35,000/- from HDFC Bank and further making down payment of ₹ 91,920/- in cash. The assessee could not explain before the AO the source of down payment made in cash, accordingly, it was added u/s 68 by the AO. The assessee s contention had been that, he had sufficient balance to pay the cash, however, no supporting details / documents were filed. The Ld CIT(A) too confirmed the said addition on the ground that, assessee could not substantiate his explanation by .....

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es, printing and stationery, staff welfare, hotel expenses and travelling expenses as raised vide ground no. 2 to 9, we find that these additions have been made on the ground that, assessee could not prove the entire expenditure incurred for the business purpose. The reasons for making the disallowance by the AO that they were either for personal purpose or same were for non-business purpose. The assessee could not produce any material before us to rebut the finding by way of relevant evidence o .....

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