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2016 (6) TMI 732 - ITAT KOLKATA

2016 (6) TMI 732 - ITAT KOLKATA - TMI - Addition on account of unexplained gift - amount received from the mother - Held that:- The mother of the assessee was not having any independent source of income and she was fully dependent for her maintenance on her four sons including the assessee. The said lady thus has no capacity to give the gift to the assessee and in the absence of any satisfactory explanation offered by her about immediate source from which the amount in question was claimed to be .....

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in question represented loans and the primary onus, therefore was on the assessee to establish the identity and capacity of the concerned creditors as well as the genuineness of the relevant transaction. As rightly contended by the ld. DR in this regard, the assessee has however failed to discharge this onus. Keeping in view the adverse findings of the enquiry conducted by the AO, which the assessee has failed to explain. Thus the amount in question stated to be loans received by the assessee i .....

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h the impugned order of the ld. CIT(A) confirming the addition made by the AO on account of low withdrawals and confirming the addition made on this issue - Decided in favour of revenue - Addition on account of unexplained investment - Held that:- As rightly contended by the ld. Counsel for the assessee by relying on section 45 of the Transfer of Property Act, 1882, 50% of the investment in land, therefore is to be presumed as having made by the wife of the assessee and if there is a failure .....

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arwal, Advocate For the Respondent : Md. Ghayas Uddin, JCIT, Sr.DR ORDER This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income-Tax (Appeals)-21, Kolkata dated 05.02.2016 for the assessment year 2004-05. 2. The relevant facts of the case giving rise to this appeal are that the assessee is an individual who is carrying on profession as a legal practitioner, mainly handling the service matters. The return of income for the year under consideration was fil .....

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aterial available on record, the ld. CIT(A), found no merit in the appeal of the assessee and dismissed the same, thereby confirming all the additions made by the AO to the total income of the assessee. 4. Aggrieved by the order of the ld. CIT(A), the assessee has preferred this appeal before the Tribunal on the following grounds. 1. For that on the facts and in the circumstances of the case, the Ld. CIT(A) was not justified in not adjudicating the ground relating to the estimated disallowance o .....

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the addition of ₹ 1,52,000/- made by the AO on account of loan received by the assessee by wrongly treating the same as unexplained cash credit U/s.68 of the Act . 4. For that on the facts and in the circumstances of the case, the Ld. CIT(A) erred in confirming the addition of ₹ 67,500/- made by the AO on account of advance received by the assessee from the clients. 5. For that on the facts and in the circumstances of the case, the Ld. CIT(A) was not justified in confirming the addit .....

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e of hearing, the ld. Counsel for the assessee has not pressed ground nos.1 and 4 raised by the assessee in this appeal, the same are accordingly dismissed as not pressed. 6. As regards the issue raised in ground no.2 relating to the addition of ₹ 40,000/- on account of unexplained gift, it is observed that the gift of ₹ 40,000/- stated to be received by the assessee from his mother was treated by the AO as unexplained since the capacity of the donor to give such gift could not be es .....

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e paper book in support of the assessee s case on this issue. A perusal of the same however shows that the mother of the assessee was not having any independent source of income and she was fully dependent for her maintenance on her four sons including the assessee. The said lady thus has no capacity to give the gift to the assessee and in the absence of any satisfactory explanation offered by her about immediate source from which the amount in question was claimed to be given to the assessee in .....

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that a total amount of ₹ 1,88,000/- was shown to be received by the assessee as loans from 11 creditors. During the course of assessment proceedings, the said loans were examined by the AO by conducting enquiries by issuing notices under section 133(6) and summons under section 131. These enquiries conducted by the AO revealed that notices could not be served to two creditors at the addresses given while two other creditors categorically denied of having given any loans to the assessee. Wh .....

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ter taking into consideration all the facts and circumstances of the case as brought out by the AO. 8. At the time of hearing before us, the ld. Counsel for the assessee has contended that the amount in question being in the nature of trade advance, the provisions of section 68 are not applicable as held by the Hon ble Bombay High Court in the case of CIT-vs- S.D.Investment and Trading Company 306 ITR 31. As rightly contended by the ld.DR, there is nothing brought on record by the assessee to es .....

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AO, which the assessee has failed to explain, I am of the view that the amount in question stated to be loans received by the assessee is rightly treated by the authorities below as unexplained cash credits which is liable to be added to the total income of the assessee under section 68. In that view of the matter, I confirm the addition made on this issue and dismiss ground no.3 of the assessee s appeal. 9. As regards the issue involved in ground no.5 relating to the addition of ₹ 49,800/ .....

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withdrawals. On appeal, the ld. CIT(A) confirmed the addition made by the AO on this issue after having found that the assessee could not make out any case to show anything wrong in the estimate made by the AO on account of his personal and household expenses. Although the ld. Counsel for the assessee at the time of hearing before me has submitted that the personal and household expenses of the assessee were partly met out of the earnings of his wife from tuition, there is no evidence brought on .....

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ound no.5 of the assessee s appeal. 10. As regards the ground no.6 relating to the addition of ₹ 3,03,433/- made on account of unexplained investment allegedly made by the assessee in purchase of land, it is observed that the investment made in purchase of land was shown by the assessee at ₹ 2,99,000/-. On verification, it was found by the AO that the land at 192C, Picnic Garden Road, Kolkata was purchased by the assessee at ₹ 5,98,000/- and further expenditure of ₹ 48,02 .....

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