9911796707
TMI Blog2016 (4) TMI 860X X X X Extracts X X X X X X X X Extracts X X X X ..... ed deserves to be hold bad in law. 2) In upholding the addition /disallowance of - (i) Rs. 2,00,000/- u/s 68 of the Income Tax Act, 1961 on account of gift received by the assessee without properly appreciating the fact that sources of the same has been duly explained by the assessee, thus the consequent addition sustained by ld. CIT ()A) deserves to be deleted. (ii) Rs. 4,73,000/- u/s 68 of the Income Tax Act, 1961 on account of unsecured loan taken by the assessee without properly appreciating the evidence adduced before him. Thus the addition of Rs. 4,73,000/- confirmed u/s 68 of Income Tax Act, 1961 deserve to be deleted in toto. (iii) Rs. 1,03,000/- on account of sundry creditors when the assessee has filed complete details & e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned without application of mind. It is further submitted that the information so gathered was not at all thrashed to arrive at the conclusion that certain income has escaped assessment before issuing the notice u/s 148. 3.1. On merit, it is contended that all the gifts were duly supported with evidence in the form of Gift Deeds and confirmation from the donors. The gifts in question were of small amount, all the particulars about donors were duly submitted with the AO. The lower authorities were of the view that the source of donors was not properly explained which was beyond control of the assessee in asmuch as she cannot ask the donor to demonstrate that he had the capacity to make such gifts. The ld. Counsel for the assessee contended t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owing judicial precedents :- 1. Where the creditors are regular assessees and have also filed their affidavits no addition of such cash credits can be made unless there is sufficient material to disprove the genuineness. CIT vs. Heeralal Chagan Lal, 257 ITR 281 (Raj.) Balbir Sing Tomar (Dr.) vs. ACIT (Raj.HC) 20 TW 546. 2. No addition of cash credit can be made simply on the basis of presumption in the absence of any contrary evidence. Sheon Narain Moharilal vs. ACIT 24 TW 318 (ITAT, Jaipur) 3. Establishing the identity of the creditor, proving the genuineness of the transaction and the source of the credit appearing in the books of creditor is sufficient to discharge the onus for explaining the genuineness of the cash credit. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the party has accepted the transaction with the assessee thus their genuineness should not be doubted. It is further pleaded that the liability in question still continues in the books of account. In these circumstances it cannot be held that the liability of the assessee has ceased u/s 41(1) on notional basis. Therefore, the addition may be deleted. 7. Apropos the amount of Rs. 75,367/-, the AO has disallowed the interest only on the reason that income from shares has not been shown which was caused by the fact that the assessee has entered into share trading. Therefore, the interest amount has been disallowed on assumption and hypothecation. 7.1. The ld. D/R has supported the orders of the lower authorities. 8. I have heard the rival ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 81 (Raj.) and Balbir Singh Tomar (Dr.) vs. ACIT (Raj.HC) 20 TW 546. Thus the addition is deleted. 11. Apropos addition of Rs. 1,03,000/- under section 41(1), the liability in question remains outstanding in the books of the assessee merely because the postal notice came back unserved. It cannot reach an inference that assessee's liability has shifted in terms of section 41(1). In view thereof, the addition made is deleted. 12. Apropos remaining ground of disallowance of interest, it has not been disputed that assessee has income from shares and also trading of clothes. The interest has been paid on earlier liabilities during the course of business. Merely because there was a lull in the business which cannot be assumed that the payment of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
