TMI Blog2017 (3) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... ank statement confirmation and cash flow statement to justify the source of payment. It appears that both the lower authorities had not properly appreciated these documents which goes to the root of issue. Merely on the ground of suspicion the CIT(A) has declined the source of funds explained by the assessee in so far as both the concern who advanced the loan to assessee was group concern of assessee. Thus we set aside both the orders of the lower authorities and the matter is restored back to the file of the AO for deciding afresh after considering all the documents in support of its source of the funds - Decided in favour of assessee for statistical purposes. Addition towards payment made to credit card company - Held that:- Assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and circumstances of the case, the Commissioner of Income Tax (Appeals) erred in confirming an addition of ₹ 6,82,510/- towards payments made to Credit Card Company without appreciating that the same were made by the Company in which the Appellant is the Director and complete details of the same were filed before both the authorities. 3. Rival contentions have been heard and record perused. 4. Facts in brief are that the assessee is an individual engaged in the business of providing Consultancy services in the field of Architecture. The assessee is also a partner of the Partnership Firm, Shradha Realtors, which is engaged in the business of construction and a director in Konark Realtors Pvt. Ltd., which is engaged in the busi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vestment in the hands of the assessee, was added in assessee s hand. 6. Before the CIT(A), assessee filed bank statements, cash flow statement, balance confirmation. CIT(A) asked the remand report and sent all these documents to the AO for his verification and report thereon. However, the AO was not satisfied with the genuineness of transaction and the source of funds, sent a negative remand report. 7. By the impugned order, CIT(A) confirmed the action of the AO after observing as under:- Further, the Ld.AO has added an amount of R. 2,54,95,229/- toward investment in the property known 'Rewa House'. The Ld.AO observed that appellant had acquired 25 % of undivided right in the property known as 'Rewa House' for a co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also abundantly clear from the said agreement that the appellant had paid ₹ 1.02 crore to Mr Banu P. Singh for facilitating the transaction with Praveen Kumari. Therefore, the appellant submitted that the total cost of the property comes to ₹ 2,54,95,229/ -which also includes the payment to the other facilitator and the stamp duty. I find that the appellant explained that the source of investment in the said property is from Shradha Realtors, where the appellant is a partner and in fact the loan confirmation was confirmed by the appellant itself, secondly M/ s. Cello Finance Corporation and thirdly from M/ s. Konark Realtors Pvt Ltd .. I find that except the case of M/ s. Cello Finance Corporation, the other two loan confirmatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficient funds in the account for meeting the payments so made. As per learned AR, all the transactions were recorded in the books of accounts, therefore, no addition was warranted on the plea of unexplained investments. 9. On the other hand, learned DR relied on the order of the lower authorities. 10. We have considered rival contentions and carefully gone through the orders of the authorities below and found from record that during the year under consideration, assessee has purchased 25% of undivided right in the property known as Rewa House for a consideration of ₹ 1 crore. Total investment in the said property was shown at ₹ 2.54 crores. However, before the AO assessee could not file any documentary evidence to prove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, AO observed that as per the AIR details, the assessee has incurred an expenditure of ₹ 6,82,510/- against credit card bills. In absence of any details furnished by the assessee, the source of fund of credit card expenses could not be verified. Accordingly, ₹ 6,82,510/- was added to the total income of the assessee as unexplained expenditure. 12. By the impugned order CIT(A) confirmed the action of the AO. 13. We have considered rival contentions and found from record that the assessee is the Director of M/s. Konark Realtors Pvt. Ltd., and therefore the said payments were made by M/s. Konark Realtors Pvt. Ld., Hence there could have been no addition u/s.69 in the hands of the assessee and since the assessee had not clai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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