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2016 (4) TMI 860 - ITAT JAIPUR

2016 (4) TMI 860 - ITAT JAIPUR - TMI - Reopening of assessment - Held that:- The proceedings u/s 147 were initiated after recording necessary reasons and after obtaining approval from the Additional CIT. The reasons were recorded on the basis of statement of Shri Kripa Shankar who accepted having indulged in the accommodation entry in respect of M/s. B.C. Purohit & Company by way of affidavit in which the names of Shri Sunil Verma and Smt. Anar Devi find mentioned. Thus the information received .....

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aside.

Addition u/s 68 - Held that:- There was no reason for reopening of assessment in this behalf. The assessee has submitted confirmations along with names, address and PAN numbers of the creditors. In my considered view the assessee has discharged its initial onus to explain the cash credits relying on cases of CIT vs. Heeralal Chagan Lal (2002 (1) TMI 19 - RAJASTHAN High Court ).

Addition under section 41(1) - Held that:- The liability in question remains outstanding .....

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annot be assumed that the payment of interest is not in the course of business. Therefore, the same is allowable under section 36. - ITA No. 628/JP/2011 - Dated:- 29-2-2016 - SHRI R.P. TOLANI, JUDICIAL MEMBER For The Assessee : Shri Manish Agarwal (C.A.) For The Revenue : Shri Raj Mehra (JCIT) ORDER PER R.P. TOLANI, JM This is assessee s appeal filed against the order of the ld. CIT (A), Ajmer dated 19.04.2011 for the assessment year 2001-02 contending that ld. CIT (A) has grossly erred - 1) In .....

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hus the consequent addition sustained by ld. CIT ()A) deserves to be deleted. (ii) ₹ 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 ₹ 4,73,000/- confirmed u/s 68 of Income Tax Act, 1961 deserve to be deleted in toto. (iii) ₹ 1,03,000/- on account of sundry creditors when the assessee has filed complete details & evidence in respect of transac .....

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the reason that assessee had received accommodation entries from Shri Sunil Verma and Smt. Anar Devi, 712, Baba Harish Chandra Marg, Jaipur in the form of gift. 3. The ld. Counsel for the assessee contended that the assessee had filed original return of income along with the copy of the statement of affairs and capital account wherein the gifts of ₹ 2 lacs received from following four persons of ₹ 50,000/- each were duly disclosed :- Shri Sunil Verma 712, Baba Harish Chandra Marg, J .....

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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 dono .....

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ccommodation gifts which is unjustified. 5. Apropos ground no. 3 in respect of loans amounting to ₹ 4,73,000/- received from various persons, during the course of assessment proceedings, assessee has submitted the copies of the confirmation given by all these persons containing their full name, address and PAN of first two persons shown in table, but ld. AO without appreciating the evidences furnished had made the disallowance. It is further submitted that during the course of assessment p .....

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In the matter it is submitted that assessee has no burden to prove the source of the source i.e. from where Shri Kamal Kishore Agarwal has got the amount for giving loan to the appellant. Reliance is placed on the following 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 T .....

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146 (ITAT Jaipur) 4. Whether filing of confirmations and disclosure of the amounts of advance in the income tax returns by the depositors can be treated as sufficient compliance of the provisions of section 68 for explaining the genuineness of cash credits ? Held Yes. Pradeep Kumar Himmatramka vs. ITO 27 TW 393 (ITAT, Jaipur) 5. Source of source should not be asked CIT vs. Daulatram Rawatmull 87 ITR 349 (SC) Heeralal Chagan Lal vs. CIT 257 ITR 281 (Raj.) Rohini Builders vs. ACIT, 117 Taxman 25 ( .....

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hat summon issued u/s 131 to the parties were returned back by the postal authorities. In this regard it is submitted that the assessee has furnished each possible details in respect of transaction with the above parties along with their complete address as available in the records of the assessee and further assessee cannot compel the parties to appear before the income tax authorities. Further in confirmation / letter filed by the assessee the party has accepted the transaction with the assess .....

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to 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 contentions and perused the material available on record. The proceedings u/s 147 were initiated after recording necessary reasons and after obtaining approval from the Additional CIT. The reasons were recorded on the basis of statement of Shri Kripa Shankar who accepted having indulged in the accommoda .....

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