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Shri Nitin Kumar Rela Versus The ITO, Ward-Dausa, Dausa

Unexplained cash credit u/s 68 - Held that:- It is observed that when the affidavit was filed by the assessee before the ld. CIT(A) then same becomes an additional evidence and thus the ld. CIT(A) should have either accepted or rejected the same. It is emerges from the record that the assessee has been taking inconsistent plea i.e. first claiming the creditor to be dead and then claiming the creditor that she is residing in South Africa. Similarly, in the case of one Shri Mohan Lal Gupta, there .....

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rwal , CA For The Assessee : Shri Raj Mehra, JCIT-DR ORDER PER R.P. TOLANI, JM This is an appeal filed by the assessee against the order of the ld. CIT(A), Alwar, dated 1-05-2015 for the assessment year 2010-11 wherein the assessee has raised following grounds in his appeal. (1) The ld. CIT(A) has erred on facts and in law in confirming the addition of ₹ 7,00,000/- by treating the loan taken from Smt. Maya Devi of ₹ 5.00 lacs and from Shri Mohan Lal Gupta of ₹ 2.00 lacs as unex .....

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found to have taken cash credits of ₹ 7.00 lacs as under:- (i) Smt. Maya Devi During the year under consideration the assessee has taken loan of ₹ 5.00 lacs vide cheque no. 12588 on 13-01- 2010. The assessee was asked to prove creditworthiness and genuineness of loan along with complete identity of person vide questionnaire dated 27-12-2011. In response, the assessee filed copy of account statement of Smt. Maya Devi, signed the assessee wherein remarks are mentioned as This person is .....

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produce confirmation as well as party for further examination. On verification, it was observed that Smt. Maya Devi is not filing her income-tax return in India as per AST / Computer System of Department. Further, no details of income earning activities as well as bank account transaction were explained during the course of assessment proceedings. Thus, it is very much clear that creditworthiness of Smt. Maya Devi is not proved. It is relevant to mention here that mere filing of bank statement .....

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t received from foreign country persons is routed though bank account just to introduce undisclosed income. Looking to the above facts, creditworthiness of Smt. Maya Devi is not proved and the cash creditor of ₹ 5.00 lacs remains unexplained as per provisions of Section 68 of the I.T. Act ,1961. Therefore, amount of ₹ 5,00,000/- is added to the total income of the assessee. This would result in addition of ₹ 5,00,000/- (ii) Shri Mohan Lal Gupta During the year under considerati .....

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.T. Act, 1961 from the concerned person requiring to produce the supporting evidence to prove his creditworthiness vide this office letter dated 20-12-2012. In response, the A.R. of the assessee filed reply on 26-12-2012 stating that the assessee is an employee of Pvt. Company and filed copy of ITR, bank statement alongwith Form No. 16. On verification, it was noticed that cash of ₹ 49,000/- was deposited on 20-07-2009 and further cash was also deposited on 21-07-2009 in the bank account S .....

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oan taken by the assessee. In response, no satisfactory explanation was furnished. From the above, it is very much clear that the transaction was just routed through the banking channel just to introduce undisclosed income of the assessee. Further bank interest of ₹ 8,260/- is also not genuine as claimed in the absence of genuineness of loan and same is separately disallowed under the head Disallowance of Interest . Looking to the above facts, creditworthiness of Shri Mohan Lal Gupta is no .....

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ot contain quality and specification of the stock inventory. The assessee filed the reply which according to the AO was not satisfactory. Thus the books of account of the assessee were rejected and trading addition was made by following observations. The reply of the A.R. of the assessee has been considered carefully and not found it convincing. It cannot be a valid reason that maintenance of itemwise records is not possible. Moreover, it is evident that the assessee did not maintain complete de .....

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ut transferring the scheme received from M/s. Delta Prime Marketing (P) Ltd., Jaipur who is distributor of Spice Mobile Phone. Looking to the overall defects in accounting of the assessee and in view of the facts discussed above, the trading results declared by the assessee are not subject to verification. Hence, the assessee's books of account cannot be accepted as complete and correct and therefore, the true profits of the assessee's business cannot be deduced and hence provisions of S .....

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ever, a copy of her bank account has been filed but no details of source of her income could be filed. In the course of appellate proceedings, an affidavit from the creditor Smt. Maya Devi alongiwth a copy of Passport was also filed. 4.5 It is submitted that a loan of ₹ 2.00 lacs was taken by cheque from Shri Mohan Lal Gupta on 20-07-2007 and a copy of Form 16 alongwith copy of ITR filed and bank statement was filed with the AO. AO had made the addition as Shri M.L. Gupta earns a salary in .....

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ing the creditworthiness of the creditor and also as regards the source of deposits in her bank account could be filed. The appellant has also failed to file any information regarding the sources of her income. Thus, I hold that appellant has failed to discharge the onus which is placed upon him u/s 68 of the IT Act. The mere fact that amount of loan has been received through cheque does not lead to the conclusion that loan transaction is genuine in the absence of any evidence to prove the credi .....

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he creditor before issue of cheques. The cash deposit has been made twice in the bank account and an amount of ₹ 49,900/- has been chosen with a view to avoid furnishing of PAN in the bank account as cash deposits of ₹ 50,000/- require the same. Thus, clearly the whole transaction appears to have been entered with a view to defeat the provisions of law. 4.8 Further, I find that various Courts have held that it is incumbent upon the assessee to produce the necessary evidence as requir .....

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assessee did not produce any evidence to rebut the presumption drawn against him u/s 68 of the I.T. Act , the addition made based on amounts credited in the account u/s 68 was held to be valid, in the absence of any cogent evidence. 4.9 In view of the above facts, I hold that appellant has not been able to discharge the onus as required uu68 of the I.T. Act. Therefore, I confirm the addition of ₹ 7.00 lacs made by the AO under this head 2.3 During the course of hearing, the ld. AR of the .....

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. CIT(A) which has not been relied on and no supporting evidence in this behalf was produced. Therefore, it emerges from the records that the assessee has failed to discharge his onus in this behalf. Same is the case with Shri Mohan Lal Gupta. The assessee has failed to demonstrate that Shri Mohan Lal Gupta had capacity to lend money of ₹ 2.00 lacs besides transactions have been deliberately calibrated at ₹ 49,900/- just short of ₹ 50,000/- to avoid any computer enquiry and Shr .....

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