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2017 (7) TMI 1311

..... ELD THAT:- For the purpose of proving a cash credit, the assessee has to necessarily establish the identity, creditworthiness of creditors and genuineness of transaction. In this case, the identity of the creditor is not in dispute. The genuineness of transaction was also established by filing an affidavit from the donor, namely, the assessee’s mother. At the best, the AO can doubt the creditworthiness of creditor. The assessee’s mother claims that gift was given from her past savings. The Assessing Officer disbelieved the gift because she has no independent source of income and she was not assessed to tax. The assessee’s mother appears to be housewife. She has to take care of household expenses. Whenever received money from husband or son for household expenses, Indian ladies use to save part of the money and whenever the husband or son urgently needs some money, the ladies use to give the same out of their savings. This saving habit of housewives in this country, more particularly, in southern part of country, cannot be ignored by the AO. When the assessee’s mother claims that she saved money given for household expenses and filed an affidavit before the A .....

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..... manent Account Number, it is not known how the assessee claims that someone has used her Permanent Account Number. If really PAN was misused by someone, then we have to examine who has invested the money in Multi Commodity Exchange and who enjoyed the profit of the transaction made. Therefore, the CIT(Appeals) is not justified in deleting the addition on the ground that the addition was made on surmise. Hence, the matter needs to be reconsidered. Accordingly, the orders of the lower authorities are set aside and the addition of ₹ 5 lakhs is remitted back to the file of the AO - AO shall re-examine the issue in the light of the material that may be filed by the assessee and thereafter decide the same in accordance with law, after giving a reasonable opportunity to the assessee. - ITA No.2723/Mds/2016, ITA No.3144/Mds/2016 - 27-7-2017 - SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER For the Appellant : Shri S. Sridhar, Advocate For the Respondent : Shri Gopikrishna, JCIT ORDER PER N.R.S. GANESAN, JUDICIAL MEMBER: Both the appeals of the assessee and Revenue are directed against the very same order of the Commissioner of Income Tax (Appeals) .....

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..... ransaction was also established by filing an affidavit from the donor, namely, the assessee s mother. At the best, the Assessing Officer can doubt the creditworthiness of creditor. The assessee s mother claims that gift was given from her past savings. The Assessing Officer disbelieved the gift because she has no independent source of income and she was not assessed to tax. 7. The assessee s mother appears to be housewife. She has to take care of household expenses. Whenever received money from husband or son for household expenses, Indian ladies use to save part of the money and whenever the husband or son urgently needs some money, the ladies use to give the same out of their savings. This saving habit of housewives in this country, more particularly, in southern part of country, cannot be ignored by the Assessing Officer. When the assessee s mother claims that she saved money given for household expenses and filed an affidavit before the Assessing Officer, this Tribunal is of the considered opinion that the claim of the assessee s mother cannot be brushed aside so lightly without examining it. The assessment year under consideration is 2013-14. Even a mason or construction worke .....

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..... payment is composite one for purchase of iron ore and transportation to Chettinad Cement Corporation Ltd., the same cannot be construed as hire charges, therefore, not liable for deduction of tax either under Section 194C of the Income-tax Act, 1961 (in short 'the Act') or under Section 194H of the Act. Some of the transporters through whom the transport was made, have no Permanent Account Number, but many of transporters had Permanent Account Number. According to the Ld. counsel, no tax was deducted in the case of the transporters who have Permanent Account Number in view of Section 194C(6) of the Act. In respect of those persons who have no Permanent Account Number, the payment was made to the extent of ₹ 44,30,887/- which was disallowed by the CIT(Appeals). Therefore, according to the Ld. counsel, the CIT(Appeals) has rightly restricted the disallowance to ₹ 44,30,887/-. 11. We have considered the rival submissions on either side and perused the relevant material available on record. The assessee contends that the payment was a composite one for purchase of iron ore and transportation, therefore, not liable for deduction of tax. The assessee also claims that .....

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..... onsider the entire issue. Accordingly, the orders of the lower authorities are set aside and the issue of closing stock is remitted back to the file of the Assessing Officer. The Assessing Officer shall reconsider the issue in the light of the material that may be filed by the assessee before him, in accordance with law, after giving a reasonable opportunity to the assessee. 16. The next ground of appeal is with regard to addition of ₹ 5 lakhs. 17. Shri Gopikrishna, the Ld. Departmental Representative, submitted that the Assessing Officer made an addition of ₹ 5 lakhs. The assessee traded in Multi Commodity Exchange. The assessee invested in Multi Commodity Exchange, which was not reflected in the financial statement filed by the assessee. According to the Ld. D.R., the assessee claims before the Assessing Officer that she is not trading, but someone might have used her Permanent Account Number. The Assessing Officer has found that exact amount of investment was not ascertained as the transactions were squared off on the same day or within few days. Therefore, the Assessing Officer added the sum of ₹ 5 lakhs being the investment made in Multi Commodity Exchange. T .....

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