TaxTMI 
TaxTMI 
TaxTMI 
2013 (11) TMI 811
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....e Assessment Order passed by the AO u/s 143(3) of the Act was bad in law and invalid. 3. The Ld CIT (A) has erred in law and in facts in treating the income from House Property on estimation basis amounting to Rs. 36,000/-. 4. The Ld CIT (A) has erred in law and in facts confirming the addition of Rs. 17,61,900/- on account of unexplained cash credit u/s 68 of the Act. 5. The Ld CIT (A) has erred in law and in facts in disallowing the commission expenses claimed by the appellant amounting to Rs. 40,262/-." 2. At the outset, Ld Counsel mentioned that ground no.1 and 2 are not pressed. After hearing both the parties, the said grounds are dismissed as not pressed. Regarding ground no.3, Ld Counsel mentioned that considering the smallness o....
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....ere examined, it was noticed that the sources of the loans are out of sale of jewellery. To support the loans given to the assessee, the „in-laws‟ have filed copies of the bills evidencing the sale of jewellery to M/s. Prerak Gems, copies of which are filed before us in the form of paper book. When the enquiries were further extended to M/s. Prerak Gems, assessee received a letter from M/s. Prerak Gems dated 4.11.2009 and the contents of the said letter read as under: "Please refer to your letter dated 12.10.2009, in which you have directed to submit the details of transaction with Madhukant J. Gandhi, A/23, Satellite Center, Premchand Nagar Road, Vastrapur, Ahmedabd and from Jashubhai Gandhi (address same) during the financial....
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....assessee, CIT (A) rejected the explanation given by the assessee considering the discrepancies found on the documents furnished by the assessee. He has provided detailed discussion and analysis before concluding and confirming the said additions made by the AO. Aggrieved with the said order of the CIT (A), the present appeal is filed by the assessee. 6. During the proceedings before the us, Ld Counsel stated that it is a case of examining the sources of the source, which is not permitted in law. However, he mentioned that the impugned addition u/s 68 of the Act, involves the transactions of among the relatives and not third parties. However, he fairly submitted that the loan creditors are not assessed to tax. In addition, Ld Counsel mentio....
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....e of the appellant‟s flat. Though the appellant has claimed that the said amount had been raised by his in-laws on sale of their personnel jewellery, it is seen that the AO‟s enquiry had dearly revealed that there was no verification of the said sale. In fact the concern M/s. Prerak Gems had clearly stated that as per their records, they had not carried out any type of transaction with the in-laws of the appellant. This statement had been given by the concern on the enquiry made by the AO under section 133(6) of the Income Tax Act. It is also seen from the statement submitted by the appellant on 03/03/2010 that it is only after the law approached the jeweller that the jeweller issued clarificatory letter stating that an error ha....
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....ry examination of the said pages clearly reveals that these names seem to be an afterthought in the said register for example the concern Prerak Gems has recorded purchases for the month of March 2006 in a very chronological order i.e. date wise. However, the name of Mrs MJ Gandhi appears at the tail end of the said purchase page recording of purchase made from her as on 14/3/06. This purchase is a suspect as it is seen that for the rest of the purchases made from 1/3/06 to 29/3/06 the concern has recorded the same date wise in chronological manner. The appellant has also not been able to provide any proof of a return of income filed by the above 2 persons wherein capital gains on the sale of jewellery has been declared to prove that there ....
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....of the impugned commission of Rs. 40,262/-. In this regard, we find it relevant to reproduced the said para 7 of the impugned order which reads as under. "7. The next ground of appeal is in respect of disallowance of commission expense of Rs. 40,262/- made by the AO that during the course of assessment proceedings the appellant had not furnished the name and address of the parties to whom the said commission had been paid. In the absence of details the commission payment claimed had been disallowed. During the course of appellate proceedings, the appellant has stated that he has paid commission of Rs. 40,262/- to one Shri R.R. Shah. He has also filed a copy of return of the said person and a statement of total income of the said person. In....