TMI Blog2022 (7) TMI 939X X X X Extracts X X X X X X X X Extracts X X X X ..... Business or Profession. Thus, the assessee was not in clear mind to file the prescribed form and also claimed allowable expenditure, within the provisions of law. Thus, the lower authorities' finding of disallowance does not require any interference. Thus, the grounds raised by the assessee are hereby rejected. Unexplained cash credits u/s 68 - HELD THAT:- As stated in this confirmation accounts, PAN of the party was not furnished and one Mr. Dilip has signed on this document. The assessee also failed to produce Return of Income and bank statement relating to these transactions. Thus, the assessee failed to prove identity of the creditors and their capacity and genuineness of the transactions. It is well settled principle of law that onus of proving the source of the sum of money said to have been received by an assessee is on the assessee to prove identity, genuineness and credit worthiness of the party as held by the Hon'ble Supreme Court in the case of Kale Khan Mohammad Hanif [ 1963 (2) TMI 33 - SUPREME COURT ]. Having not discharged the initial onus of proving identity, credit-worthiness and genuineness of the transaction of cash credit, the additions made by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,000 Construction of electrical room, security cabin. 75,000 Payment for Sand leveling 1,51,000 Payment for Sand leveling 300,000 Advance payment for purchase of fenching 125,000 Purchase of fenching 275,000 Final payment for fenching 275,000 Security guard salry for month of oct,nov with diwali bonus 15,000/- Security guard salry for month of dec jan. feb. 12,000/- Security guard salary for month of march and april 20,000/- Security guard salary for month of may and June 20,000/- Security guard salary for month of July, august .September 30,000/- Cash paid for borewell 350,000/- Cash paid for ring of borewell 150,000/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed Rs. 58,14,544/- comprising cost of acquisition Rs. 28,38,000/-, Stamp paper and other charges Rs. 2,11,800/- and cost of leveling and other expenses Rs. 27,64,744/- and balance of Rs. 6,85,456/- has been offered as income under the head Income from other sources. The AO has disallowed expenditure of Rs. 27,64,744/- from total cost of land claimed as deduction by the appellant stating the appellant has not furnished any evidence for such expenditure. The Appellant, on the other hand, has furnished the break of total expenditure of Rs. 27,64,744/- along with relevant bills and stated that expenditure has been incurred on land to make it saleable and hence shall be allowed as deduction from Sale Consideration. On careful consideration of facts and details furnished by the appellant it is observed that expenditure of Rs. 27,64,744/- mainly consists of cleaning of land, rent for water, electricity, sand leveling, fencing, salary of security guard, borewell, etc. Appellant has failed to establish that expenditure incurred by it is of capital nature to enable it to form part of cost of land. The argument of appellant that expenditure in question is incurred to make the land saleab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been procured during the year the primary onus caste on the appellant has not been fulfilled. Hence the addition made by the AO is sustained. However it is observed that loan procured from Damini Hemalbhai Patel during the year under consideration amounts to Rs. 3,70,224/- and balance of Rs. 1,39,092/- was received in preceding years and forms part of opening balance. The appellants argument that addition u/s. 68 cannot be made with respect to opening balance is accepted and in case of Damini Hemalbhai Patel addition is restricted to Rs. 3,70,224/- being amount received during the year under consideration. The related ground of appeal is partly allowed. 7. Aggrieved against the same, the assessee is before the Tribunal. 8. Before us, the Ld. counsel Shri S.N. Divetia for the assessee reiterated the same arguments made before the lower authorities. The Ld. counsel for the assessee has also filed Paper Book running into 18 pages, and pleaded that disallowance made by the AO to be deleted. In support of his submission, he relied upon the decision dated 29.9.2019 of the Coordinate Bench in the case of Jatinkumar Amrutilal Shah Vs. ACIT in ITA No. 307/Ahd/2017. 9. Per cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lal shah (supra) is clearly distinguishable with the facts of the present case wherein the assessee produced proper invoice, bills, etc. in support of the expenses incurred by that assessee. Thus, the grounds raised by the assessee are hereby rejected. 11. Now coming to the addition made under section 68 of the Act, the assessee placed before us page No. 17 to 18 from the Paper Book being confirmations of the accounts by Shri Jayesh Shah and Wagad Concrete U. This confirmation reads as follows: Given below is the details of your Accounts as standing in my/our books of accounts for the above mentioned period. Kindly return 3 copies stating your I.T. Permanent A/c. No. duly signed and sealed, in confirmation of the same. Please note that if no reply is received from you within a fortnight, it will be assumed that you are accepted the balance shown below 12. As stated in this confirmation accounts, PAN of the party was not furnished and one Mr. Dilip has signed on this document. The assessee also failed to produce Return of Income and bank statement relating to these transactions. Thus, the assessee failed to prove identity of the creditors and their capacity and g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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