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2016 (9) TMI 919

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..... ms part of the case file. Revenue fails to rebut any of the CIT(A)’s findings with the help thereof. We find no reason to interfere in well reasoned lower appellate findings. This first substantive ground fails accordingly. Learned Departmental Representative takes us to Assessing Officer’s findings wherein Shri Amit Patel was found to have deposited the same amount in his bank account on the very day of issuing relevant cheque to the assessee after having received the same from two persons Shri Sandeep and Chhotubhai Patel to the tune of ₹ 5 lacs and ₹ 1 lacs; respectively. This argument fails to impress upon us as the same rather proves source of the assessee’s source wherein all other evidence supports his case. We come to latter sum of ₹ 7 lacs. This case file reveals that the same amount came from one Shri Ramesh Narottam Patel as land advances received back. This also explains source of source in assessee’s case. We further notice that the assessee in the instant case has already filed all income tax statements/returns along with their bank account. Both these persons are related to the assessee (supra). The Revenue does not controvert all these findings .....

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..... in the bank a/c. of the appellant. The complete facts and circumstances of the case has been narrated in the foregoing paras. The AO as well as the Id. AR have narrated the facts which is not on dispute. The short point here to be considered is that whether the appellant satisfied the requirements of the provisions u/s.68 of the Act. In short, on the basis of evidences submitted by the Id. AR, can it be held that the explanations with regards to the identity and creditworthiness of the persons whom the appellant claimed to have received the money was established ? It is undisputed fact that the appellant had advanced aggregate amount of ₹ 39 lacs to the above named six farmers from his explained sources of income in the F.Y. 2006-07. Secondly the AO did not dispute the fact that said advances were given by cheques (banking channel) to four farmers out of six and advanced to remaining two farmers viz. Hemant I. Patel and Ramesh N.-Patel was given in cash by the appellant. Thirdly, it is on records that the appellant insisted cash repayment instantly from the farmers to-whom the advances were given, to make payment to DRT (Debt recovery Tribunal) for purchase of a property. The .....

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..... urchase of another property at Itrava village. vi. The relevant abstract of the appellant's written submissions dated 29-12-2010, filed before the AO justifying the source of cash deposited by the appellant in bank account i.e. out of the repayment received from six farmers also explained partiwise. vii. The Id. AR also submitted the reasons why the appellant insisted on cash payments from those parties. 5.8 I have given due weightage to the observations of the AO and the counter submissions made by the AR. As mentioned earlier, what is to be decided here was whether the submissions made by the AR meet the requirements of the provisions u/s. 68 of the Act. That is two mandatory requirements envisaged in the said provisions are - i) the assessee offers no explanation about the nature and source of such sum, or ii) the explanation offered by him is, in the opinion of the Assessing Officer, not satisfactory. In this case the AO held, after giving due consideration to the submission, that the explanations given by the appellant was not satisfactory due to-the fact that the appellant failed to prove the genuineness and creditworthiness of those parties whom the app .....

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..... er no dispute that the assessee duly accounted for land purchases in financial year 2006- 07 and there is neither any purchase agreement nor cancellation thereof in writing. It is therefore clear that these six vendors have returned their advances to the assessee in the impugned assessment year. Ld. CIT(A) further records a finding a fact that the assessee successfully linked the payment in question in case of each party. The extra-ordinary circumstance forming primary reason of cash payment is that there were some DRT proceedings wherein the assessee was in urgent need of money. We notice that all the relevant evidence forms part of the case file. Revenue fails to rebut any of the CIT(A) s findings with the help thereof. We find no reason to interfere in well reasoned lower appellate findings. This first substantive ground fails accordingly. 5. We come to Revenue s latter substantive ground seeking to revive unexplained cash credits addition of ₹ 13 lacs i.e. ₹ 7 lacs in case of Shri Bachubhai Chottabhai Patel and ₹ 6 lacs from Shri Amit Thakorebhai patel. The CIT(A) deletes the impugned addition as under:- 7.2 DECISION :-1 have carefully considered t .....

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..... directed to delete the addition of ₹ 13,00,000/-. The appellant's ground is allowed. 6. We have heard both the parties. Learned Departmental Representative takes us to Assessing Officer s findings wherein Shri Amit Patel was found to have deposited the same amount in his bank account on the very day of issuing relevant cheque to the assessee after having received the same from two persons Shri Sandeep and Chhotubhai Patel to the tune of ₹ 5 lacs and ₹ 1 lacs; respectively. This argument fails to impress upon us as the same rather proves source of the assessee s source wherein all other evidence supports his case. We come to latter sum of ₹ 7 lacs. This case file reveals that the same amount came from one Shri Ramesh Narottam Patel as land advances received back. This also explains source of source in assessee s case. We further notice that the assessee in the instant case has already filed all income tax statements/returns along with their bank account. Both these persons are related to the assessee (supra). The Revenue does not controvert all these findings in the course of hearing before us. We conclude in these facts that the assessee has .....

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