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2016 (4) TMI 665 - ITAT AHMEDABAD

2016 (4) TMI 665 - ITAT AHMEDABAD - TMI - Unexplained cash credit u/s 68 - Held that:- As regards unsecured loan received from Ashwinkumar L. Patel at ₹ 75,000/- and from Sumitraben J. Patel of ₹ 1,25,000/-, assessee has not provided any details except the affidavits and copies of some ledger account and bank account of Asst. Year 2007- 08 and following years. These affidavits cannot be taken as a substantive proof in order to satisfy the provisions of section 68 of the Act in regard .....

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ind that this loan amount has been taken by cheque and the source of cash deposit of ₹ 50,000/- immediately before issue of the cheque to the assessee has been shown to have been received as gift from grand father and past savings as well as withdrawal of ₹ 43,000/- in previous months from her bank account. We further find that assessee has submitted details of grand father of Falguniben Patel namely Mr. Ramanbhai N. Patel who has retired from railway department and is owning 8 bigha .....

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ed in favour of assessee in part.

TDS u/s 194C - disallowance u/s 40(a)(ia) - Held that:- The assessee has filed its return of income for Asst. Year 2004-05 on 28.10.2004 and has shown income from business or profession under the deeming provisions of section 44AB of the Act available for income from running heavy vehicles. Certainly assessee was not falling under the provisions of section 44AB of the Act for Asst. Year 2004-05. It was the assessment year 2005-06 in which total gross .....

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& Manish Borad, AM. For The Appellant : Arti N. Shah, AR For The Respondent : Sri Vilas V. Shinde, DR ORDER PER Manish Borad, Accountant Member. This appeal of the assessee is directed against the order of ld. CIT(A)-5, Baroda dated 11.03.2015. Assessment was framed u/s 143(3) of the IT Act, 1961 (in short the Act) for Asst. Year 2005-06 on 31.12.2007 by ITO, Ward-2(5), Baroda. Assessee has raised following grounds of appeal :- 1. The Learned Commissioner of Income Tax (Appeals)-5, Vadodara .....

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ht to add, alter, amend and/or withdraw any of the above grounds of appeal. 2. Briefly stated facts as culled out from the records are that the assessee is an individual engaged in the business of providing transport services under the proprietorship of M/s Shivam Transport Services and filed its return of income on10.10.2005 declaring total income of ₹ 1,37,636/-. The case was selected for scrutiny assessment and notice u/s 143(2) of the Act was issued on 26.10.2007. Income of the assesse .....

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000/- Sumitraben J Patel Rs.1,25,000/- Falguniben Patel ₹ 50,000/- and disallowance u/s 40(a)(ia) of the Act was confirmed as the assessee has not deducted TDS u/s 194C of the Act. 4. Aggrieved, assessee is now in appeal before the Tribunal. 5. As regards ground no.1 against the action of ld. CIT(A) confirming the addition of ₹ 2,50,000/- in respect of unexplained cash credit, the ld. AR submitted that the sum of ₹ 2,50,000/- was received from - Ashwinkumar L. Patel ₹ 75, .....

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guniben Patel has received gifts from her grand father and accumulated past savings for past many years and also referred that she has withdrawn ₹ 43,000/- from her bank account with Shree Chhani Nagrik Sahakari Bank Ltd. by way of withdrawal of ₹ 10,000/- on 11/3/2004, ₹ 10,000/- on 4/5/2004 and ₹ 23,000/- on 15/9/2004. As regards other two unsecured loans from Ashwinkumar L Patel of ₹ 75,000/- and from Sumitraben J. Patel of ₹ 1,25,000/- ld. AR just referred .....

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is the first year in which the turnover of the assessee exceeded the monetary limit of gross turnover referred to in section 44AB i.e. ₹ 60 lakhs and as this was the first year of audit, therefore, assessee was not liable to deduct TDS u/s 194C of the Act and in support of the same ld. AR referred to the copy of the income-tax return and computation of income for Asst. Year 2004-05 showing that the assessee has filed return of income under section 44AE in Asst. Year 2004-05 and was not co .....

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loan received from Ashwinkumar L. Patel at ₹ 75,000/- and from Sumitraben J. Patel of ₹ 1,25,000/-, assessee has not provided any details except the affidavits and copies of some ledger account and bank account of Asst. Year 2007- 08 and following years. These affidavits cannot be taken as a substantive proof in order to satisfy the provisions of section 68 of the Act in regard to the identity, creditworthiness and genuineness of loan taken during the year. No evidence in the form of .....

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efore issue of the cheque to the assessee has been shown to have been received as gift from grand father and past savings as well as withdrawal of ₹ 43,000/- in previous months from her bank account. We further find that assessee has submitted details of grand father of Falguniben Patel namely Mr. Ramanbhai N. Patel who has retired from railway department and is owning 8 bighas of agricultural land. In these circumstances, we are inclined to believe that there was some source of cash depos .....

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,507/- u/s 40(a)(ia) of the Act for non deduction of TDS u/s 194C of the Act under the provisions of section 194C which reads as under :- 194C. (1) Any person responsible for paying any sum to any resident (hereafter in this section referred to as the contractor) for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract between the contractor and a specified person shall, at the time of credit of such sum to the account of the contractor or at th .....

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1) is credited to any account, whether called "Suspense account" or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly. (3) Where any sum is paid or credited for carrying out any work mentioned in sub-clause (e) of clause (iv) of the Explanation, tax shall be deducted at source- (i) on the invoice value exclud .....

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the amount of any sum credited or paid or likely to be credited or paid to the account of, or to, the contractor, if such sum does not exceed [thirty] thousand rupees : Provided that where the aggregate of the amounts of such sums credited or paid or likely to be credited or paid during the financial year exceeds [seventy-five] thousand rupees, the person responsible for paying such sums referred to in sub-section (1) shall be liable to deduct income-tax under this section. (6) No deduction shal .....

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