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Ram Baboo Agrawal Versus Commissioner of Income Tax, Agra And Another

2017 (11) TMI 740 - ALLAHABAD HIGH COURT

Addition under Section 68 - proof of creditworthiness and the genuineness of the transaction - Held that:- We find that in the present case, the appellant assessee has not proved any of the aforesaid conditions of Section 68 of Act. It is noticed by the Tribunal that though the confirmation letters from the creditors are placed but no supportive evidence to prove the identity of the creditors or their creditworthiness and genuineness of the transaction is placed. The Tribunal therefore, has held .....

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the Tribunal the appellant has furnished any evidence to prove the identity of the creditors, their creditworthiness and the genuineness of the transaction in the matter. - In our opinion, the Tribunal had taken all the relevant facts into consideration and the conclusion arrived by the Tribunal that the loans represented the assessee's income from undisclosed sources was not perverse or unreasonable. - Decided against assessee. - Income Tax Appeal No. 184 of 2013 - Dated:- 6-11-2017 - Hon& .....

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ase the ITAT was right in making the addition of ₹ 3,71,000/- under Section 68 of the Act relating to 22 creditors whose amount was below ₹ 20000/- and who advance money to the appellant for purchasing silver ornaments ? (ii) Whether the appellant having discharge the onus by submitting the confirmatory letters with complete address of the creditors and the amount being below ₹ 20,000/- per creditor the ITAT was right in making addition on ground that no request for summoning a .....

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nterest from various parties under his business of money lending in the name of Rajnikant and brothers. The present appellant was also indulge in another business which was a proprietorship concerned in the name of M/s Yashodhara Jewellers which was engaged in silver and gold ornaments business. For the Assessment Year in question the assessing authority of the appellant has passed the assessment order under Section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the Act) and vide .....

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time to time. During the course of the scrutiny proceeding the assessing authority has noticed that a number of cash credit entries were appearing in the books from about 20 persons. It is further noticed that to establish the genuineness of the aforesaid credit entries the confirmatory letters were brought on record to substantiate the genuineness of the said transactions. The assessing authority has noticed that the alleged confirmatory letters were having no proof with regard to the identific .....

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ns. The assessing authority has therefore, confronted the aforesaid facts to the assessee and has issued a show cause notice indicating wherein that as to why the alleged cash credit should not be treated as unexplained income under Section 68 of the Act. In its turn the assessee has submitted that he is doing silver ornament business and for the said business, some persons have given him an advanced to purchase the silver ornaments on their behalf as per suitable rates. On query made by the ass .....

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department. Considering the aforesaid facts and that there was no other documentary evidence adduced by the appellant which supports his claim, it was unbelievable to the assessing authority that such a large number of cash deposit to purchase of silver ornaments without any identity proof is correctly established. The assessing authority therefore, has found that the explanation which has been furnished by the assessee was wholly imaginary and was without any substance or evidence as he failed .....

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he order passed by the assessing authority. Still aggrieved by the order of CIT (Appeal) the appellant has preferred an appeal before the ITAT which has been dismissed vide impugned order and judgment dated 28.12.2012. The instant appeal is against the judgment and order of the ITAT dated 28.12.2012. We have heard Sri Suyash Agrawal, learned counsel for the assessee and Sri Shubham Agrawal, learned counsel for the department. The counsel for the assessee has submitted that the assessee is in the .....

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assessing authority has not discharged his burden as provided under Section 68 of the Act. Section 68 of the Act provides as under. "Where any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the sum so credited may be charged to income-tax as the income of the assessee of that previous .....

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and source of such sum so credited; and (b) such explanation in the opinion of the Assessing Officer aforesaid has been found to be satisfactory: Provided further that nothing contained in the first proviso shall apply if the person, in whose name the sum referred to therein is recorded, is a venture capital fund or a venture capital company as referred to in clause 23(FB) of section10.]" Learned counsel for the assessee appellant has submitted that the amount which has been given by the pe .....

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