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The Income Tax Officer, Ward 9 (3) (2) , Mumbai Versus Shri Subodh R. Nemlekar

2016 (7) TMI 534 - ITAT MUMBAI

Addition u/s 68 - Held that:- CIT(A) has rightly deleted the addition of ₹ 15,00,000/- on the basis of this fact that the HUF has given loan to one Shri Bhushan Nemlekar in A.Y.2003-04 and 2004-05 of ₹ 15,00,000/- which were reflected in balance sheet. The bank statement also speaks about the entry on various dates. Mr. Bhushan Nemlekar has repaid ₹ 15,00,000/- to the HUF on 13.11.2009 and the same amount has been transferred by account payee cheque from the HUF A/c. to Shri Su .....

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nt i.e. ₹ 5,00,000/- added u/s.68 of the Act is concerned. There is no explanation on behalf of the assessee. The fact remains the same as stated by the Assessing Officer in his order. - There is no proper explanation in this regard as to why the cash was deposited in the account of payee just one or two days before the transaction. - Addition confirmed. - I.T.A. No.6260/M/13, I.T.A. No.6453/M/13 - Dated:- 5-7-2016 - SHRI B.R.BASKARAN, AM AND SHRI AMARJIT SINGH, JM For The Assessee : None .....

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revenue has raised the following grounds of appeal:- 1. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) was right in deleting the addition of ₹ 15,00,000/- made by the Assessing Officer u/s.68 of the Income Tax Act. 2. Whether on facts and circumstances of the case and in law, the Ld. CIT(A) was justified in holding that the assessee has proved the credit-worthiness of Subodh R. Nemlekar HUF, without appreciating that Subodh Nemlekar HUF does not have enough .....

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- A. Addition under Section 68 on account of Unsecured Loan taken treated as unexplained cash credit - ₹ 5,00,000/- 2. The Ld. CIT(A) erred in confirming the Addition made by the Ld. Assessing Officer on account of Unsecured Loan taken treated as unexplained cash credit amounting to ₹ 5,00,000/- without appreciating the fact and circumstances of the case. The Addition of ₹ 5,00,000/- invoking the provisions of section 68 is not at all justified and the same may be deleted. C. I .....

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ice u/s.142(1) of the Act was issued and served upon the assessee. The assessee has taken the unsecured loan to the tune of ₹ 20,00,000/- from different parties. The genuineness and creditworthiness of the said loan was not proved, therefore, the loan to the tune of ₹ 20,00,000/- were added to the income of the assessee u/s.68 of the Act. The assessee filed an appeal before the CIT(A) and the CIT(A) deleted the addition to the tune of ₹ 15,00,000/-, therefore, the revenue has f .....

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and Shri Arvind Gandhi issued the cheque of ₹ 2,00,000/- in favour of assessee on 12.06.2009. Accordingly, an amount of ₹ 1,00,000/- was deposited in the account of Shri Dilip Gandhi on 11.06.2009 and Shri Dilip Gandhi issued the cheque of ₹ 1,00,000/- in favour of the assessee on 12.06.2009. In the bank statement of Shri Hiren Gandhi, it came into notice that an amount of ₹ 2,00,000/- was deposited in cash on 10.06.2009 who issued the cheque of ₹ 2,00,000/- on 12.0 .....

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order of Assessing Officer and before the CIT(A) and the CIT(A) deleted the addition to the tune of ₹ 15,00,000/- made u/s.68 of the Act. The finding of the CIT(A) is necessary to advert on record before proceeding further :- 3.6 I have considered the finding of the Assessing Officer and rival submission of the appellant and evidences on record, carefully. I find that Ld. Assessing Officer has wrongly made addition of ₹ 15,00,000/- appearing in the name of Subodh Nemlekar, HUF. It is .....

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sheet. The bank statement reveals the entry on various dates. Mr. Bhushan Nemlekar has repaid ₹ 15,00,000/- to the HUF on 13.11.2009 and the same amount has been transferred by account payee cheque from the HUF A/c. to Shri Subodh Nemlekar on the same day. Hence, the source of credit is the loan which were given by the HUF to one Mr.Bhushan Nemlekar. Immediately after receipt of the same amount it has been advanced to the appellant, hence it cannot be presumed that creditworthiness is not .....

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such ₹ 15,00,000/- is not income of subsequent period but out of old fund available with the HUF. Therefore, I find no substance in the finding of the Assessing Officer. Assessing Officer is therefore directed to delete ₹ 15,00,000/- u/s.68 as this credit is found to be explained one. 6.1 However, with regard to the addition of ₹ 5,00,000/- in view of the section 68 of the Act the CIT(A) has given the following findings:- 3.7 As regards, credit in the name of Shri Arvind Gandhi .....

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hat source of income is very negligible, hence Arvind Gandhi could not lent such money to the appellant. It appears that cash has been given and cheque has been obtained in the name of Arvind Gandhi, hence the finding of the Assessing Officer is worth sustainable. Similarly, loan shown in the name of Dilip Gandhi is also not believable because as per his statement he was not fully knowing appellant and he met only in the office of his income tax practitioner Bharat Patelia and he could not recog .....

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been issued. Similar is the fact in respect of Hiren Gandhi. It can be seen from bank account No.200542136 of bank of Maharashtra that an amount of ₹ 2,00,000/- has been deposited on 10.06.2009 by cash and thereafter a cheque has been issued on 12.06.2009 to the appellant. The bank account reveals the fact that when bank account was reopened Hiren Gandhi was minor and account was opened in joint name with C. D. Gandhi. Obviously, the finding of the Assessing Officer is worth approval that .....

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fficer in respect of loan appearing in the name of Arvind Gandhi, Dilip Gandhi and Hiren Gandhi is sustained and thus an amount of ₹ 5,00,000/- is confirmed and addition in respect of loan appearing in the name of HUF of ₹ 15,00,000/- is found to be from known source, hence deleted. 7. On appraisal of the above mentioned findings we are of the view that the CIT(A) has rightly deleted the addition of ₹ 15,00,000/- on the basis of this fact that the HUF has given loan to one Shri .....

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f the same amount, the amount was transferred in the accounts of the assessee. The creditworthiness and genuineness of the loan has duly been proved on record. Therefore, in the said circumstances the CIT(A) has rightly deleted the addition of ₹ 15,00,000/- u/s.68 of the Act. So far as the question of deletion of remaining amount i.e. ₹ 5,00,000/- added u/s.68 of the Act is concerned. There is no explanation on behalf of the assessee. The fact remains the same as stated by the Assess .....

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