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2017 (6) TMI 829 - ITAT DELHI

2017 (6) TMI 829 - ITAT DELHI - TMI - Addition of opening capital carry forwarded from previous year - Held that:- If no evidence or material was produced before the authorities below to show how assessee was having availability of any fund with him or to have any opening capital balance addition is justified. In the absence of any evidence, it is difficult to accept the explanation of the assessee. It is a clear case of building capital and to show opening capital balance. Also suppose any asse .....

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dence to prove that assessee was owner of popular trees or he has actually sold the popular tree to Mr. Khali, no interference is called for in the matter. Similarly production of receipt and statement recorded by AO orally is not sufficient to discharge onus upon assessee to prove genuineness of the transaction in the matter and actual sale transaction of popular tree. In the absence of any evidence or material on record no interference is called for in the matter. - Decided against assessee. - .....

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s under :- ITA No. 2939/DEL/2013 Assessment year - 2009-10 3. This appeal by assessee has been directed against the order of Ld. CIT(A) I Dehradun dated 27thFebruary, 2013 for asstt. year 2009- 10. 4. Ground No. 1 and 2 are general and need not adjudication. Ld. Counsel for assessee did not press ground No. 4 of the appeal. Same is dismissed as not pressed. 5. On ground No. 3 assessee challenged the addition of ₹ 80,000/- out of opening capital of ₹ 1,80,000/- carry forward from prev .....

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ated the sum as his unexplained investment. In appeal it was submitted by assessee that the assessee had furnished his return of income for asstt. year 2008-09 showing capital balance of ₹ 2,40,000/- and mentioned that out of the same an amount of ₹ 1,80,000/- had been invested in asstt. Year 2009-10 for wine shop. A copy was also filed in support of the contention. Ld. CIT(A) noted that assessee was not assessed to tax regularly. The return of income for asstt. Year 2008-09 was furn .....

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ning balance as on 1.4.2009. Ld. CIT (A) therefore noted that it is apparent that return for asstt., year 2008-09 had been furnished just to build capital as it showed opening balance of ₹ 1,00,000/- income of ₹ 2,00,000/- including agricultural income. No tax was paid because return was shown to be below taxable limit. The AO rejected the claim. The computation of income for that year would also be below taxable. The opening cash balance cannot be accepted simply because assessee ha .....

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h September, 2009. However the Ld. CIT(A) noted that the return for preceding assessment year 2008-09 was furnished on 16th September, 2009 i.e after filing of the return for assessment year under appeal. It is also admitted facts that assessee was not regularly assessed to tax. Therefore, there was no evidence available with the assessee of having any opening balance with him in preceding assessment year 2008-09 as well as there were no evidence available to have accumulated amount of ₹ 2 .....

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e or material was produced before the authorities below to show how assessee was having availability of any fund with him or to have any opening capital balance addition is justified. In the absence of any evidence, it is difficult to accept the explanation of the assessee. It is a clear case of building capital and to show opening capital balance. Ld. Counsel for assessee submitted that ITAT Delhi Bench in the case of Vinod Kumar accepted the opening capital balance of earlier year. However, th .....

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pital balance. This ground of appeal of assessee thus has no merit the same is accordingly dismissed. 8. On ground No. 5 assessee challenged the addition of ₹ 4,10,000/- on account of sale of trees to Shri Khalil. The Ld. CIT(A) noted that assessee claimed to have received a sum of ₹ 4,10,000/- by way of sale of trees from Mr. Khalil. Mr. Khalil appeared before the AO and confirmed the transaction. He also submitted that he had received money from a commission agent of timber. The AO .....

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has confirmed giving money to the assessee, it would not mean that transaction was explained. The capacity of the buyer and the genuineness of the transaction are as important factor which should be established. The assessee has not proved anything. Therefore oral testimony of Mr. Khalil will not suffice. The addition was confirmed and this ground was dismissed. 9. After considering rival submissions, we do not find any merit in this ground of appeal of assessee. Ld. Counsel for assessee reiter .....

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