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Truptiben Bakulbhai Patel Versus Income Tax Officer

2017 (9) TMI 528 - GUJARAT HIGH COURT

Undisclosed bank account - unexplained cash credit - Set off of such income against loss suffered by her in the share trading business - no return was filed to claim such set off - no revised return - Held that:- Neither in the return filed for the relevant assessment year 2009-10 nor in the earlier assessments, the assessee had disclosed a bank account in which there were multiple transactions. In fact, the assesssee had made cash deposits of more than ₹ 20 lakhs and also claimed to have .....

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e assessee had made cash deposits of more than ₹ 20 lakhs and the explanation offered by the assessee was found to be unacceptable. The cash gifts of ₹ 17 lakhs and odd was not backed by any supporting documents of the donors. The Assessing Officer and the higher authorities thus committed no error in holding that the assessee had made unexplained cash credit of ₹ 20,04,571/- in the said undisclosed bank account. - Set off of such income against loss suffered by her in the .....

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ed income later on unearthed during the course of assessment. It is also not a case where the assessee in appellate proceedings unlike in the case of Mitesh Impex (2014 (4) TMI 484 - GUJARAT HIGH COURT ) where the assessee on the basis of materials already on record was raising a question of law at the appellate stage. - Decided against the assessee. - Tax Appeal No. 480 of 2017 - Dated:- 4-9-2017 - MR. AKIL KURESHI AND MR. BIREN VAISHNAV, JJ. For The Appellant : MS VAIBHAVI K PARIKH, ADVOCATE O .....

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ts which is in gross violation of provisions of Section 250(6) of the Act which mandate the Commissioner to pass a reasoned order. (ii) Whether in the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in confirming the addition of ₹ 20,04,571/- under Section 68 of the Act as unexplained cash credits without there being any discussion or findings in the order under challenge. (iii) Alternatively and without prejudice, whether, in the facts and circumstances of .....

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relating to cash credit additions and it records a finding that factum of loss is not proved before the AO which is factually incorrect and contrary to the documents placed on record? 2. Brief facts are as under: 2.1 For the assessment year 2009-10, the appellant-assessee had filed return of income on 31.12.2009 declaring total income of ₹ 1.73 lakhs (rounded off) from business and profession and income from other sources, the assessee s principal business being that of trading in shares a .....

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stments. The assessee responded to such notice by pointing out that through the said bank account, the assessee had traded in shares and in course of which she had suffered a loss of ₹ 30.36 lakhs (rounded off). She, therefore, requested that such loss be considered while calculating her total income for the year under consideration. She produced the copy of Profit & Loss account and Balance Sheet for the said business along with other supporting documents. 2.2 In the order of assessme .....

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a sum of ₹ 2,52,200/- was deposited by her through available cash balance and ₹ 48,000/- by withdrawal of cash from her bank account. For the balance amount of ₹ 16,96,300/-, the assessee had claimed that she had received cash gifts of ₹ 17,03,000/- from four different persons. However, she could not give confirmation of each donor along with the name, address, PAN and copies of ledger accounts as appearing in her books of accounts. In that view of the matter, the Assess .....

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arried the matter in appeal. Before the CIT(Appeals), the assessee remained ex-parte and the appeal was therefore dismissed with a brief discussion regarding the assessee s claim of set off. The Commissioner(Appeals) justified it by recording that the Assessing Officer rightly did not allow the set off of share trading loss claimed by the assessee and she had not disclosed the entire affair of her bank account and share trading in her return of income. 2.4 The Tribunal confirmed the view of the .....

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unal has placed reliance upon the decision of the Hon ble jurisdictional High Court in the case of CIT vs. Shilpa Dyeing & Printing Mills P. Ltd., (2013) 39 taxmann.com 3 (Guj). As far as proposition of law is concerned, there is no dispute with regard to them. But in the present case, the assessee has not filed any return declaring loss. She has not shown loss in her books of accounts. She has just claimed loss by way of submission. Factum of loss was not proved before the AO. The ld. AO di .....

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e share trading business. If the unaccounted investment was to be added as an income, the same should be set off against the loss of the business. He relied on the decision of this court in cases of Commissioner of Income- Tax - II vs. Shilpa Dyeing & Printing Mills (P.) Ltd. reported in [2013] 39 taxmann.com 3 (Gujarat) and Commissioner of Income-Tax vs. Mitesh Impex reported in [2014] 46 taxmann.com 30 (Gujarat). 4. The facts of the case are somewhat peculiar. As noted, neither in the retu .....

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