TaxTMI 
TaxTMI 
2012 (10) TMI 530
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....iled the return of income on 12/01/2009 admitting an income of Rs. 6,36,690/- after claiming deduction under Chapter VI A of the Act, which included the interest from partnership firm by way of salary and interest on capital, profit admitted on his own business activity and other interest incomes derived. The Assessing Officer completed the assessment u/s 143(3) on 30/12/2009 and determined the total income at Rs. 40,25,045/-, making the following additions: 1) Loan amounts received aggregating to Rs. 24,27,365/- is treated as the income of the assessee u/s 68 of the Act. 2) Interest income from the partnership firms aggregating to Rs. 9,60,987/-. 3. Aggrieved the assessee filed appeal before the CIT(A). The CIT(A) confirmed the addition made of Rs. 24,27,365/- and addition of a sum of Rs. 3,54,655/- from NVM Sitharamanjaneya Constructions as interest received from partnership firm. The CIT(A) also confirmed the addition of interest of Rs. 6,06,332/- received from M/s SVK Sitharamanjaneya Constructions. Aggrieved, the assessee is in appeal before us. 4. Before us, the learned counsel for the assessee Shri Rama Rao contended with respect to the five persons as follows....
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....unt is submitted. It can be seen from the bank account available upto 26/11/2007 that an amount of Rs. 16,50,000/- was transferred and the balance amount of Rs. 2,17,000/- was transferred through cheque No. 012902. Copies of the bank account and the letter of confirmation are submitted for perusal before us. 4.5. Ch. Tulasi Srinivas: He filed letter of confirmation mentioning that he advanced Rs. 2 lakhs to the assessee. He mentioned that he is in private service for more than 10 years and the loan is given from out of his savings. The amount was given through cheque No. 86874. The amount was also paid back to him through cheque No. 865252 on 27/04/2009. He is also assessed to tax and his PAN is affixed to the letter of confirmation. The learned counsel for the assessee contended that the Assessing Officer without any reason rejected the contention of the assessee and treated the amount as income of the assessee. 4.6 In view of the above, the learned counsel for the assessee submitted that in the absence of any evidence to the contrary, the Assessing Officer is not justified in making the addition of Rs. 24,27,365/- and, therefore, the same may be deleted. 5. On the....
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....oceedings by issue of notice u/s 153C of the Act, has not pressed by the learned counsel for the assessee, therefore, the same is dismissed as not pressed. 11. In the result, appeal of the assessee is partly allowed for statistical purposes. ITA No. 1076/Hyd/11 - in the case of G. Madhava Ra 12. Briefly the facts of the case are that the assessee is a partner in the firms of M/s NVM Seetharamanjaneya Constructions and M/s SVK Constructions. There was a search and Seizure action u/s 132 of the Act in the case of the above two firms along with some other concerns. There was no seized material pertaining to the year of account. The Assessing Officer issued notice u/s 153C rws 153A of the Act to the assessee and converted the case into scrutiny. During the year of account, the assessee raised the following unsecured loans: C. Venkata Raju Rs. 30,00,000/- G. Sashi Bhushan Rs. 60,000/- K. Kalavathi Rs. 1,00,000/- Rs.31,60,000/- 13. During the course of assessment proceedings, the assessee submitted confirmation letters from the above three persons before the Assessing Officer wherein all the three persons have categorically confirmed that the amounts w....
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....t. Such proof includes proof of the identity of his creditor, the capacity of such creditor to advance the money and, lastly, the genuineness of the transaction. These things must be proved prima facie by the assessee and only after the assessee has adduced evidence to establish prima facie the aforesaid, the onus shifts to the department. Where the assessee establishes only the identity of the creditor and nothing more, the cash credits can be treated as income of the assessee from undisclosed sources. In the case of Prakash Textile Agency, [1980] 121 ITR 890, the Hon'ble Calcutta High Court was held that where the assessee only establish existence and identity of the creditor but failed to establish ability of the creditor to advance loan or genuineness of the transaction, the loan given by the creditor represents income of the assessee from undisclosed sources. In the case of Dhanalaxmi Steel Re-reolling Mills Vs. CIT, 228 ITR 780, the Hon'ble AP High Court held that section 68 of the Income-tax Act, 1961, does not stop at stating that there should be an explanation about the nature and source of any sum found credited in the books of the assessee; the assessing officer is also ....