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2016 (5) TMI 766 - ITAT MUMBAI

2016 (5) TMI 766 - ITAT MUMBAI - TMI - Addition of unsecured loan received from his minor daughter and son u/s. 68 - Held that:- The assessee has enclosed the complete bank statement from where it is clear that minor daughter Annica Phillips has advanced a sum of ₹ 1,35,000/- out of RBI Bond maturity and RBI Bond interest and also other deposits made. The assessee has also enclosed copies of RBI certificate issuing RBI bonds in the name of Rohan, minor son and Annica Phillips, minor daught .....

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as well as CIT(A). The CIT(A) has particularly noted this fact in his order which is reproduced above. Further, these bank details were available before the A.O. from where these loans were given and maturity proceeds of RBI Bonds were deposited. In entirety of the facts and circumstances of the case, we are of the view that in the case of the above unsecured loan, the assessee is able to prove the creditworthiness and genuineness of the transaction, i.e., the immediate source of the transactio .....

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out of separate orders of CIT(A) in Appeal nos. CIT(A)-22/ITO-10(3)(4)/IT.306/2011-12 and no. CIT(A)-22/ITO 10(3)(4)/IT.305/2011-12 both dated 27.01.2012. Assessments were framed separately by ITO-10(3)(4), Mumbai u/s. 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the Act ) for AY 2009-10 vide his orders dated 01.11.2011 and 16.11.2011. 2. The only common issues in these two appeals of different assessee s, i.e., in the case of Shri Bobbie Phillips (in ITA No. 1749/Mum/2012) and .....

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- being loans received from daughters of the assessee viz. Rebecca Phillips of ₹ 4,40,000/- and Lyssa Phillips of ₹ 9,60,000/- inspite of the fact that loan confirmations, bank statements, source of deposits were given and fully explained. 2. The Learned Commissioner of Income-tax (Appeals)-22, Mumbai, has erred in stating that several opportunities were given to the Appellant by the Assessing Officer for substantiating the loans received. Similarly, the assessee in ITA No. 1750/Mum/ .....

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(Appeals)-22, Mumbai, has erred in stating that several opportunities were given to the Appellant by the Assessing Officer for substantiating the loans received. 3. Briefly stated facts are that in the case of Shri Bobbie Phillips, the assessee has received loans from daughters, i.e., Rebecca Phillips of ₹ 4,40,000/- and Lyssa Phillips of ₹ 9,60,000/- and Shri Bennie Phillips, the assessee has received a sum of ₹ 13.50 lacs from son Rohan Phillips and a sum of ₹ 1.35 lacs .....

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The ld. CIT(A) also passed identical worded grounds except the amount and name of lenders. For the sake of clarity, we are reproducing the order of CIT(A) in ITA No. 1749/Mum/2012: 2.3 I have gone through the assessment order, perused the submissions made by the appellant and also discussed the case with the A.R. of the appellant. A.O. noted that the assessee had taken loans from two persons i.e. Rebecca Phillips of ₹ 4,40,000/- and Lyssa Phillips of ₹ 9,60,000/-, totaling to ₹ .....

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uld not be taxed u/s.68 of the Income Tax Act, but the assessee again failed to explain source, genuineness and creditworthiness of the transactions. Accordingly, for want of these explanation A.O. arrived at the conclusion that the sources, creditworthiness and genuineness of the transaction has not been established. The lender are minor studying in school. A.O. also noted that as per the earlier assessment records of the assessee no clubbing of minor income u/s.64 have been done. A.O. also hig .....

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was the reasonable cause for which this could not be filed before A.O. despite several opportunities made available to, the appellant. Further, in the bank account of lenders, there are deposits relating to the R.D. matured, which has not been substantiated by the appellant. In view of these facts I find no reason to deviate with the findings of the A.O. made in the assessment order and accordingly the addition made u/s.68 is upheld. Similar is the finding in ITA No. 1750/Mum/2012 by the CIT(A) .....

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of the Voluntary Disclosures of Income Scheme, 1997, wherein he drew our attention particularly to cash declaration made by Rohan Phillips of ₹ 8 lacs at item number 3 which is as under: Sr. No. Amount of income declared Assesment Year(s) to which the income relates If the income is represented by cash (including bank deposits) jewellery bullion investment in shares, debts due from other persons, commodities or any other assets Remarks Description of asset Name in which held Amount 3. Rs.8 .....

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losed and the same bank summary of saving bank account no. 22521 maintained with Bank of India, Turner Road Branch is enclosed. The assessee has enclosed the complete bank statement from where it is clear that minor daughter Annica Phillips has advanced a sum of ₹ 1,35,000/- out of RBI Bond maturity and RBI Bond interest and also other deposits made. The assessee has also enclosed copies of RBI certificate issuing RBI bonds in the name of Rohan, minor son and Annica Phillips, minor daughte .....

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as well as CIT(A). The CIT(A) has particularly noted this fact in his order which is reproduced above. Further, these bank details were available before the A.O. from where these loans were given and maturity proceeds of RBI Bonds were deposited. In entirety of the facts and circumstances of the case, we are of the view that in the case of the above unsecured loan, the assessee is able to prove the creditworthiness and genuineness of the transaction, i.e., the immediate source of the transaction .....

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