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2016 (4) TMI 582 - ITAT DELHI

2016 (4) TMI 582 - ITAT DELHI - TMI - Addition of unexplained cash credit - Held that:- Advance has been given by the trust to the assessee on or before the date of deposit in bank account. The assessee has also filed receipt corresponding to these advances from pages 65 to 68 of the paper book. The trust has also confirmed the above advances which has been field at page no. 15 of the paper book. On verification of the balance-sheet of the trust which is filed, we find that the trust has advance .....

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g Officer merely made addition without any evidence in support of his claim. Once the assessee filed all the documents, the burden of proof shifted on the Revenue and if the Revenue was unable to carry out inquiry even after request of the assessee to summon the creditors, the Assessing Officer failed to discharge his burden of proof and unable to establish that the credit of the deposit of ₹ 14,55,575/- in the bank account was from undisclosed sources - Decided in favour of assessee. - IT .....

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lding that the A.O. was justified in rejecting the explanation offered by the assessee and treating the income as income from undisclosed sources u/s 68 of the Income Tax Act, 1961. 2. That the learned Commissioner of Income Tax (Appeals) has erred in law in sustaining the addition of ₹ 14,44,575/- on the basis of credit entries in the bank statement. 3. That the learned Commissioner of Income Tax (Appeals) has erred in law and on facts in holding that the claim of the appellant is an afte .....

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usiness and Income from other sources. The case was selected for scrutiny under Computerized Assisted Selection for Scrutiny (CASS) and notice under section 143(2) of the Act was issued and served within the stipulated time. The Assessing Officer observed that as per the annual information report (AIR) there was cash deposit of ₹ 14,44,575/- in saving bank account maintained by the assessee with Axis Bank, Adarsh Gram Branch, Rishikesh, Uttarakhand. It was explained by the assessee that a .....

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ed Commissioner of Income Tax(Appeals), the assessee explained that the cash was held by him as imprest account in fiduciary capacity on account of Sh. Vedmata Gayatri Trust , Haridwar, however, the learned Commissioner of Income Tax(Appeals) also did not accept the claim of the assessee and held the entire sum of ₹ 14,44,575/- as unexplained cash credit. Aggrieved, the assessee is before us. 3. In grounds 1 to 3 of the assessee , the sole issue involved is , the addition of unexplained ca .....

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referred to receipts issued by the trust in respect of the imprest money advanced to the assessee, which are placed from page 65 to 68 of the paper book. The learned Authorized Representative further submitted that the assessee vide letter dated 16.12.2011 requested the Assessing Officer to issue summon under Section 131 to the Trust for conducting further inquiries if required, however, the Assessing Officer made the addition without conducting any inquiry from the trust. The learned Authorized .....

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the judgment of the Apex Court in the case of Commissioner of Income Tax Vs. Orissa Corporation Pvt. Ltd. [1986] 159 ITR 78 (SC), wherein, it is held that if the assessee discharged his burden and could not issue summons to the creditors, then no adverse inference can be drawn against the assessee. He further submitted that in the absence of invoking power under Section 131 and summoning the witnesses, the Assessing Officer cannot conclude unilaterally hold the deposits as unexplained. 4. On th .....

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he assessee has declared income of ₹ 3,72,330/- during the year which is sufficient to explain the deposit of ₹ 2,44,575/-. As regards to balance of ₹ 12 crores, the assessee explained receipt of the same from Sh. Vedmata Gayatri Trust, Haridwar on following dates: Dates Amount 13.06.2008 ₹ 2,50,000/- 16.06.2008 ₹ 3,50,000/- 17.06.2008 ₹ 3,50,000/- 18.06.2008 ₹ 2,50,000/- ₹ 12,00,000/- 5.1 Before the learned Commissioner of Income Tax(Appeals), the .....

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ove, we find that advance has been given by the trust to the assessee on or before the date of deposit in bank account. The assessee has also filed receipt corresponding to these advances from pages 65 to 68 of the paper book. The trust has also confirmed the above advances which has been field at page no. 15 of the paper book. On verification of the balance-sheet of the trust which is filed at page 21 f the paper book, we find that the trust has advanced money to its Karyakarta (i.e. volunteers .....

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