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Shri Mahendrabhai B. Shrivastav Madhu Shrivastav-MLA (Gujarat) Versus ITO, Ward-5 (2) Vadodara

2016 (7) TMI 829 - ITAT AHMEDABAD

Addition u/s 68 - creditworthiness - agriculture income - Held that:- Source of loan has been stated to be agriculture income. But when we peruse the statement, it will reveal that creditor has meager income. It is highly improbable that one could keep saving in cash at home for a long time. For example, Smt. Vijaylaxmi Shrivastva has given an amount of ₹ 3.00 lakhs to the assessee on 31.5.20093. She has bank account with Bharat Co-op. Bank Ltd. She has agriculture land of 16 bighas. Her a .....

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arat Cooperative Bank”. Then, in the next reply to the next question, she deposed that “I keep few amounts of saving at home”. If these two questions are compared with question no.9, where the AO had asked place of keeping agriculture income, she deposed that such income was kept at home. Similarly, we have perused the statement of other creditors. All that statements did not inspire credence to us. The assessee has taken alleged unsecured loan in systematic manner. In some of the cases cash was .....

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while making addition. We do not see any reasons to interfere with the order of the ld.CIT(A). - Decided against assessee. - ITA No.1148/Ahd/2010 - Dated:- 4-7-2016 - SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER For The Assessee : Shri M.K. Patel, AR For The Revenue : Smt.Sonia Kumar, Sr.DR ORDER PER RAJPAL YADAV, JUDICIAL MEMBER: The assessee is in appeal before us against the order of the ld.CIT(A)-V, Baroda dated 16.02.2010 passed for the Asstt.Year 2004- 05. .....

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unts, it revealed to the AO that the assessee has taken unsecured loan of ₹ 13,37,109/- from following 34 persons: Sr. No. Name of the depositors Amount of deposits shown 1. Akbarbhai B Belim ₹ 18,000/- 2. Amrut Ambalal Patel ₹ 18,500/- 3. Bahelim Shabbirhusen Kasambhai ₹ 17,500/- 4. Chauhan Chhatrasingh G ₹ 15, 584/- 5. Chauhan Sanatbhai K ₹ 19,500/- 6. Delwad Ambalal Chimanbhai ₹ 17,500/- 7. Dodia Vakhatsingh Keshrisingh Rs.18,500/- 8. Mahadik Avinash .....

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shbhai Ramdas ₹ 18,500/- 20. Patel Hasmukh Mohanbhai ₹ 18,900/- 21. Patel Jayantibhai Chhaganbhai ₹ 10,375/- 22. Patel Maheshbhai Desaibhai ₹ 17,500/- 23. Patel Natwarbhai B Rs.18,500/- 24. Patel Parshotambhai M ₹ 16,000/- 25. Patel Shanabhai B ₹ 18,500/- 26. Pathan Ayubkhan Mehbubkhan Rs.16,000/- 27. Prabhatsingh I Parmar Rs.18,000/- 28. Prabhatsingh Bhimsingh Sindha Rs.16,000/- 29. Pravinsingh P Sindha Rs.18,000/- 30. Purani Chandrakant Ratilal Rs.18,500/- 3 .....

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nsidered the facts of the case, the submissions of the assessee and the assessment order. In the case of Mrs. Vijayalakshmi Shrivastava in her statement recorded on 21/120/2006, it was stated by her that she owns 16 bighas of land and that wheat and chana is cultivated on the land and that no record of income and expenditure is maintained and that she earns ₹ 50,000/- ₹ 60,000/- from agriculture and the savings are kept at home. During the course of appellate proceedings, however, 6 .....

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be around ₹ 50,000/- to ₹ 60,0007-, on the other hand, in a period of 7 days the receipts of ₹ 3.43 lakh is shown by way of sale bills for crops which were not indicated to be cultivated in the original statement. From these conflicting facts the credit worthiness of the depositor is not proved and all the subsequent documents appear to be' merely self serving in nature. 4.3.1. In regard to deposit of ₹ 3 lakhs from Mahesh Musale, it is seen that the same was claimed .....

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claim to have given the loan on 31/05/2003 or in May 2003. For most of the lenders this was the solitary loan transaction and none of these agriculturists had any evidence of sale of agriculture produce, expenditure bills etc. It is indicated by the AO that these are persons of small means and that most of 7/12 and 8A extract were issued on same date i.e. 19/12/2006 by Talati. It is a well settled law that taxing authority can take note of the surrounding circumstances (CIT vs. Durga Prasad More .....

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bhai Rs.17,500/- 3. Parmar Ratilal Fatehsingh Rs.17,500/- 4. Patel Harishbhai Ramdas ₹ 18,5007- 5. Patel Jayantibhai Chhaganbhai ₹ 10,3757- 6. Patel Maheshbhai Desaibhai ₹ 17,5007- 7. Pravinsingh P Sindha ₹ 18, 0007- 8. Purani Chandrakant Ratilal ₹ 18, 500/- Total ₹ 1,35,3757- Accordingly, out of the total addition u/s. 68 of the IT. Act is sustained to the extent of ₹ 10,01,734/-(Rs.11,37,109- ₹ 1,35,375). 5. Before us, the ld.counsel for the asse .....

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uld make gift in May, 2003 ? Taking us though the page no.34 of the paper book, the ld.counsel for the assessee contended that 31.3.2004 is a credit entry in Nutan Sahakari Bank Ltd. It was not a withdrawal by the creditor. He has withdrawn it on earlier occasions. He further contended that all the creditors have given their affidavits. They have confirmed the transaction during the course of their statement, and therefore, the AO ought to have not doubted the explanation of the assessee. On the .....

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ax as the income of that previous year. There is no dispute that sums were found credited in the accounts of the assessee. In order to discharge onus for giving an explanation exhibiting the nature of transaction and source of transaction, the assessee has filed confirmation from the creditors. Some of them have appeared before the AO also. Thus, as far as identity of the creditor is concerned, that has been proved by the assessee. Monies have been taken in cash - that is also not in dispute. Bu .....

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