2010 (9) TMI 889

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....e facts and circumstances of the case, the Ld. Tribunal was justified in upholding the addition of Rs. 1,74,140/- on account of unsecured loans even though the creditors have confirmed the same along with bank statement and source being with them?" 2. Put shortly, the facts as narrated in the appeal are that the assesses filed its return for the assessment year in question on 26.10.2006 showing an income of Rs. 13,60.028/- on which the tax was paid. During the course of assessment, the Assessing Officer disallowed unsecured loan of Rs. 73,145/- obtained from Smt. Rosy wife of the assessees and Rs. 1,02,745/- from Shri Sanjeev Kumar, HUF The Assessing Officer made an addition of Rs. 3,80,304/- and assessed the total income at Rs. 17,40,390/....

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....mount of purchase shown Date of sale shown Amount of sale shown Profit shown   Crude Oil 03.02.2006 2,74,200/- 08.03.2006 2,98,000 23,800/-   TUR 04.02.2006 3,59,000/- 09.03.2006 3,97,400/- 38,400   Gwar Seed 03.02.2006 1,65,800/- 10.03.2006 1,76,770/- 10,970             73,170/- 4.1 Similarly the assessse introduced an amount of Rs. 1 lac from Sh. Sanjeev Kumar HUF on 18.03.2006. Sh. Sanjeev Kumar is assessee's first cousin. The copy of bank account of Sh. Sanjeev Kumar HUF revealed that this amount was advanced out of a credit entry of Rs. 1,02,745/-in his bank account on 16.03.2008. Further enquiries about the source of Rs. 1,02,745/- revealed that this amount w....

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....ated as under:- ''I do not know the person who is running the brokerage agency. I do not give any advance to that person. I do not know about the commission paid to the brokerage agency. I have seen the relevant copies, of papers showing the purchase & sale of commodities and find that there is no entry of commission on these papers. The transaction with the brokerage agency was through some common friend at Ludhiana. No delivery was taken. The common friend was the surety with the brokerage agency. During the next financial year also, the transaction of commodity future was done and I do not know the name of the brokerage agency. It is known to the common friend. I do not know the profit earned by me in the next year and I do not ....

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....his own money camouflaged as received from them through transactions which have been found to be in genuine. As such amounts of Rs. 73,145/- and Rs. 1,00,000/- are added to the income returned by the assessee u/s 68 of the Act as the asssssee's explanation about th(c) nature and source of these amounts has not been found satisfactory. The interest paid by the assesses in respect of these amounts worked out/ noticed at Rs.460/-& Rs.535/- are also being disallowed and added to the income returned. Total addition under this para works out at Rs. 1,74,140/-(73,145/- + 1,00,000/- + 460/- + 535/-). Penalty proceedings u/s 271(c) qua this question of Rs. 1,74,140/- are being initiated as I feel satisfied that the assesses has furnished inaccurate ....