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TMI Blog2025 (3) TMI 1050X X X X Extracts X X X X X X X X Extracts X X X X ..... NRO account by selling USD brought by appellate and his wife at the time of returning to India from Angola. 3. The C.I.T. (Appeals) failed to appreciate the material placed on records including bank statements of all friends and relatives along with letter of loan confirmation and certificate of commission received from employer. The appellate reserves its right to add, amend, alter or modify any of the grounds stated hereinabove either before or at the time of hearing." Ground No.1: Addition of Rs. 9,92,000/- made by Assessing Officer under Section 68 of the Act 3. The brief facts of the case are that during the course of assessment, the Assessing Officer observed that the assessee had taken loans totaling to Rs. 9,92,000/- from five parties, but the assessee was not able to satisfactorily explain the source of deposits of the loans taken by the assessee. For the sake of convenience, the bifurcation of the loan amounts taken by the assessee are reproduced as under: Sr. No. Date Amount (in Rs. ) Explanation by assessee 1 15/06/2020 2,00,000 Loan from Mother Smt. Manjulaben B. Rajput 2 15/06/2020 2,00,000 Loan from Mother's sister Smt. Minaxiben B. Chauhan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. Manjulaben B. Rajput for a sum of Rs. 2,00,000/-. The Counsel for the assessee drew our attention to the returns of income filed by the mother of the assessee for A.Ys. 2019-20, 2020-21 and 2021-22 and submitted that the mother had filed the return of income declaring adequate income to prove her creditworthiness. Further, the Counsel for the assessee also drew our attention to relevant pages of the Paper Book to demonstrate that all the parties concerned, from whom loan had been taken by the assessee had filed respective returns of income declaring adequate income and therefore, creditworthiness of such parties had been duly proved. Further, the Counsel for the assessee also drew our attention to pages 117 to 119 of the Paper Book and submitted that confirmations from three parties were also produced before the Assessing Officer to the effect that they had given loan to the assessee, during the impugned year under consideration. 7. In response, Ld. D.R. placed reliance on the observations made by the Assessing Officer and Ld. CIT(A) in their respective orders. 8. We have heard the rival contentions and perused the materials on record. 9. We observe that the assessee had obta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er and Income Tax Return filing details. Accordingly, looking into the instant facts, in our view in the case of Shri Piyush B. Rajput, the assessee has been able to established the identity and creditworthiness of the said party. 10. In light of our observations above, in our considered view, the assessee has been able to duly establish the source of the loan amount taken from the parties and has also established their creditworthiness. Therefore, in our considered view, this is a fit case where no addition is called for under Section 69A of the Act. Accordingly, addition of Rs. 9,92,000/- is hereby directed to be deleted. 11. In the result, Ground No. 1 of the assessee's appeal is allowed. Ground No. 2:- Addition of Rs. 14,40,000/- made by the Assessing Officer under Sectio 68 of the Act. 12. During the course of assessment, the Assessing Officer observed that there were cash deposits amounting to Rs. 14,40,000/- in the assessee's NRO bank account held with Indusind Bank. During the course of assessment, the assessee submitted that in addition to fixed salary of Rs. 65,000/- he was also paid commission of 2% on sales done by him, subject to minimum of UDS 500 per month. Durin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ash from Angola. The amount of 19,700 USD was his saving in Angola from the commission income received from Balaxi Healthcare (Su) LDA. The appellant could not furnish any proof that the USD 19,700 was brought in India and the same were exchanged in Rupees which were deposited in the appellant bank account. It is also pertinent to mention that when such a huge foreign exchange of USD 19,700/- is brought to India the appellant is legally required to declared the same before custom authorities. The appellant has not furnished any evidence either during the assessment proceedings or during the appellate proceedings that the foreign exchange of USD 19,700 was declared to the custom authorities. The appellant also could not furnish any evidence of conversion of USD to Rupees. In view of above discussion, I do not find any evidence of conversion of USD to Rupees. In view of above discussion, I do not find any reason to differ with the finding of the Ld. AO and confirm the addition of Rs. 14,40,000/- as unexplained money u/s 69A of the IT Act, 1961. Therefore, the ground no.3 is dismissed. 5.5 The Ground no.4 is general in nature and does not require adjudication. 6. In the result, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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