TMI Blog2016 (6) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... ided in favour of assessee Undisclosed deposits in bank - Held that:- It is an admitted fact that the assessees received a cheque of ₹ 1,25,000/- from Smt. Rekha Gupta and deposited the same in his bank account Smt. Rekha Gupta is proprietor of M/s. P.K.Gupta & Co. and maintained the cash book in her regular course of business. She deposited a sum of ₹ 1,25,000/- on 14.3.2008 which is evident from page no. 130 of the assessee’s paper book. She also furnished her confirmation which has not been doubted, copy of the same is placed at page no. 46 of the assessee’s paper book. She also disclosed her address as well as bank and Income-tax ward were she was assessed. Smt. Rekha Gupta also furnished copy of her Income-tax return which is placed at page no. 66 of the assessee’s paper book. From the above narrated facts, it is clear that the assessee discharged the onus cast upon him to prove the identity of the depositor, her creditworthiness and genuineness of the transactions. Therefore, the addition made by the AO and sustained by the Ld. CIT(A) was not justified - Decided in favour of assessee Addition on account of low household withdrawals - Held that:- In the prese ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner of Income Tax (Appeals)-19 has erred in fact and law by holding that the addition of ₹ 1,50,000/- made by the Ld. Assessing Officer on account of low household drawings is logical and correct. 5. That while passing the order dated 17.12.2015 the Ld. Commissioner of Income Tax (Appeals)-19 has not taken into consideration the facts and the documents submitted by the assessee during the course of the assessment and the appeal proceedings. 6. The assessee craves leave of this Hon ble Tribunal to add to or amend the aforesaid grounds before disposal of the appeal. 2. Ground no. 1, 5 and 6 are general in nature so do not require any comments on our part. 3. Vide ground no. 2 grievance of the assessee relates to the confirmation of addition of ₹ 93,206/- made by the AO on account of under valuation of closing stock. 4. The facts related to this issues in brief are that the assessee filed the return of income declaring an income of ₹ 1,67,820/- later on the case was selected for scrutiny. During the course of assessment proceedings, the A.O. noticed that the assessee had included certain shares in closing stock but the value of the same w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansactions were delivery based and did not reflect any jobbing. It was further submitted that scripts were not traded on the stock exchange as on 31st March, 2009 and therefore, valuation was taken as nil and since the closing stock was being valued at cost or market price and as the market price was nil, no value was taken in respect of the said closing stock. In his rival submissions, the ld. DR supported the impugned order passed by the Ld. CIT(A). 7. We have considered the submissions of both the parties and carefully gone through the material available on the record. In the present case it is an admitted fact that the assessee was valuing the closing stock at cost or market price whichever was lower and this practice was followed consistently. In the instant case, it was claimed that in the preceding year and succeeding year, similar valuation has been accepted by the Deptt. and whenever the shares were sold, the profit earned in the trading was offered for taxation, the contention of the assessee was that no trading took place as on 31s t March, 2009 in respect of the shares in question, as such the valuation on that date was not quoted and considered as nil. The above sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rther submitted that the assessee proved the identity of the lender, her creditworthiness and genuineness of transaction, therefore, the addition sustained by the ld. CIT(A) was not justified. The reference was made to page no. 47 and 66 of the assessee s paper book which are the copies of confirmation from Smt. Rekha Gupta and Copy of her Income-tax return respectively. It was also submitted that the assessee filed letter dated 26.12.2013 and extract of cash book for M/s. P.K. Gupta Co. (proprietor concern of Rekha Gupta) before the Ld. C.I.T.(A), explaining the source of cash deposit in the books of M/s. P.K.Gupta Co. Reference was made to page no. 127 to 130 of the assessee s paper book. In his rival submissions, the Ld. DR supported the orders of the authorities below. 12. We have considered the submissions of both the parties and carefully gone through the material available on the record. In the instant case, it is an admitted fact that the assessees received a cheque of ₹ 1,25,000/- from Smt. Rekha Gupta and deposited the same in his bank account Smt. Rekha Gupta is proprietor of M/s. P.K.Gupta Co. and maintained the cash book in her regular course of business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 212,609.09 16. It was further submitted that the family of the assessee comprises of only four members i.e. self, his wife and two childrens. They are residing in their own house and the school fees of both the children were made out by drawings made through M/s. P.K.Gupta Co., a proprietary concern of Mrs Rekha Gupta. Therefore, the withdrawals of ₹ 1,00,000/- by assessee and his wife were sufficient to fulfil the day to day needs and no addition was called for. In his rival submissions, the ld. DR supported the orders of the authorities below. 17. We have considered the submissions of both the parties and carefully gone through the material available on record. In the present case, it is noticed that the assessee and his wife had withdrawn a sum of ₹ 1,23,730/- out of which ₹ 23730/- were on account of school fees of the children. The assessee is residing with his family in his own house, and no rent was paid. In the present case, it is not brought on record that how and in what manner the withdrawals by the assessee and his wife were not sufficient to meet out the needs of the day to day life. It, therefore, appears that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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