TMI Blog2016 (4) TMI 210X X X X Extracts X X X X X X X X Extracts X X X X ..... worthiness and genuineness of the transactions of cash loan received from the above three parties and merely seems to be an adjustment to prove the source of cash in the books of account. For the lack of requisite evidences and information, we are unable to accept the contentions of ld. AR and we are of the opinion that ld. Assessing Officer has rightly made the addition u/s 68 of the Act on account of cash credit for the sum received from above said three parties. - Decided against assessee. - ITA No.1381/Ahd/2012 - - - Dated:- 1-3-2016 - Shri Rajpal Yadav, JM, Manish Borad, AM. For The Appellant by P. M. Patel, AR For The Respondent by Vilas V. Shinde, DR ORDER PER Manish Borad, Accountant Member . This appeal of the assessee is directed against the order of ld. CIT(A) XI, Ahmedabad, dated 24.4.2012. Assessment was framed u/s 143(3) of the IT Act, 1961 (in short the Act) for Asst. Year 2008-09 by ITO, Wd-6(5), Ahmedabad, on 22.12.2010. Assessee has raised following grounds of appeal :- 1. The ld. CIT(A)-XI, Ahmedabad is not justified in treating the cash of ₹ 6,09,500/- as loan/deposits and adding to total income as non genuine loan/deposit u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and assessment proceedings. The first contention of the appellant is that money has been received by the A.O.P. This contention of the appellant cannot be accepted keeping in view of the facts that this A.O.P. namely Prafulbhai K, Patel (AOP) was never formalized by way of registration. Secondly, this A.O.P. does not have a bank account Thirdly, this A.O.P. has not been issued PAN and it is not assessed to tax. Fourthly, this A.O.P. does not exist no more. This was apparently floated to explain the source of cash deposits in the S. B. account of the appellant It is a matter of record that so called cash contributions were deposited in the S.B. account of the appellant Since money was deposited in the S.B. account of the appellant, accordingly it has to be presumed that the same belongs to the appellant The appellant further contends that copy of annual accounts of Prafulbhai K. Patel (AOP) was filed before the A.O, However, perusal of these accounts reveals that these are un-audited. The above facts reveal that the formation of A.O.P. and the so called accounts of AOP are self serving exercise. The above facts indicate that A.O.P. never existed and I am not inclined to agree with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee s main business is of trading in dyes and is conversant with the share trading business. Looking to his ability in share trading business his relatives including his brother in law and their wives gave cash to the assessee for doing the share trading business. This cash was put in the bank account as and when received and trading of shares was carried on treating it to be a business of AOP. The ld. AR submitted that there was no separate bank account opened for share trading business and the bank account with Bhagyodaya Co-op. Bank which was in assessee s personal name and was utilized for carrying on this activity. 7. Ld. AR further submitted that separate financial statements have been prepared for share trading business but because of negligible income the same were not shown in the income-tax return filed by the assessee but the cash received from relatives was not in a shape of unsecured loan but was part of business venture carried on as an AOP and, therefore, no addition to be made under section 269SS for cash loan taken and alternatively submitted that even if the contention of share trading in the name of AOP is not accepted then the peak credit method ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the individual amount of entry-wise loan is less than ₹ 20,000/- and its total comes to ₹ 98,100/-. Only in case of three entries the individual amount received is more than ₹ 20,000/- and the total of these three entries is ₹ 3,20,000/- received from following parties - 1. Vishakhaben M. Patel 1,82,000/- 2. Dhanesh M. Patel 55,000/- 3. Krushnakant N. Patel 83,000/- Total 3,20,000/- 11. Further in the above cash flow statement assessee has shown an opening cash balance as on 1.4.2007 at ₹ 1,67,500/-. It is claimed by the assessee as a cash in hand in his regular books of account and Revenue has not raised any objection in not accepting the opening cash in hand. We accordingly accept the contention of the ld. AR about the source of cash of ₹ 1,67,500/- brought forward from previous year. 12. Now as far as addition in cash of ₹ 25,500/- brought in by assessee Mr. Praful K. Patel is concerned we gather from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an received from the above three parties and merely seems to be an adjustment to prove the source of cash in the books of account. For the lack of requisite evidences and information, we are unable to accept the contentions of ld. AR and we are of the opinion that ld. Assessing Officer has rightly made the addition u/s 68 of the Act on account of cash credit for the sum of ₹ 3,20,000/- received from above said three parties. 15. Summarising our above discussion, we hereby decide that out of total addition of ₹ 6,09,500/- u/s 68 of the Act, we delete the addition for ₹ 2,91,100/- on account of following a) Opening cash as on 1.4.2007 Rs.1,67,500/- b) Cash loan each less than ₹ 20,000 ₹ 98,100/- c) Cash addition by assessee ₹ 25,500/- Tot al Rs.2,91,100/- Accordingly out of total addition made at ₹ 6,09,500/- we delete the addition of ₹ 2,91,100/- and sustain addition of ₹ 3,18,400/-. 16. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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