TaxTMI 
TaxTMI 
2014 (7) TMI 419
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.... all the matters to the file of the AO. Then the assessing officer passed the impugned assessment order by making various additions. The assessee challenged the additions by filing appeal before Ld CIT(A) and the appeal was allowed partly by him. Still aggrieved, the assessee has filed this appeal before us. 4. The first issue relates to the assessment of Gift amount of Rs. 1,60,000/- received from H.T.Gajwani. In the original assessment proceedings, the AO assessed the above said gift amount for want of proof of source of the gift, though the assessee had furnished a simple letter confirming payment of gift. During the present proceedings, the assessee furnished copies of return acknowledgement of the donor and also a declaration of gift obtained from him. The AO noticed that the declaration was dated 31.3.2004 and the earlier letter speaked about the gift given in the year 2003-04. In view of the above said discrepancy, the AO again assessed the gift amount. The Ld CIT(A) also confirmed the same on the reasoning that the declaration of gift is given on a plain paper; the source of gift not given and the donor is not related to the assessee by blood. 4.1 The Ld A.R pointed o....
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....ion. 5. The next issue relates to the assessment of loan amount of Rs. 6,70,000/- received from Shri Vikaram D Menda. The AO noticed that the lender was son of the assessee and he was 29 years old. It was stated that the lender was working with a C.A by getting Rs. 500/- p.m and was receiving a sum of Rs. 45,000/- p.a. as tuition fees. However, the lender could not give name and addresses of the students from whom the fees were received. He also stated before the AO that the funds were invested in mutual funds and the proceeds received on liquidation of the same was used to give the loan to the assessee. The AO took the view that the lender was just 23 years old during the relevant year and the income declared by him was not commensurate with the amount of loan given to the assessee. Hence, the AO assessed the loan amount of Rs. 6,70,000/- as income of the assessee u/s 68 of the Act. The Ld CIT(A) also confirmed the said assessment. 5.1 We have heard rival contentions on this issue. The Ld A.R submitted that the assessee has received the impugned loan amount by way of cheque and hence the source of the loan stands proved. However, the AO has asked the assessee to prove the so....
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....sessed to Income tax and he has been filing return of income for the past several years. Under these set of facts, we are of the view that there is no reason to suspect the credit worthiness of Shri Vikram D Mehta. Accordingly, we are unable to agree with the conclusions reached by ld CIT(A). Accordingly, we set aside the order of Ld CIT(A) and direct the AO to delete the assessment of Rs. 6,70,000/-. 6. The next issue relates to the assessment of Rs. 1,45,000/- received from Dilip D Menda. A perusal of the documents filed by the assessee shows that the assessee has received a sum of Rs. 50,000/- on 16.7.2003 and Rs. 95,000/- on 17.12.2003 and both the amounts have been received by way of cheques. A perusal of bank account of Shri Dilip D Menda shows that the lender has deposited cash into his bank account before issuing cheque to the assessee. Further, he was just 19 years old at that point of time and he has claimed that he had received income by giving private tuitions. It appears that he has filed his return of income for the first time in assessment year 2004-05 and the income declared by him was Rs. 47,159/- only, whereas the loan advanced to the assessee during the year w....
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....furnish necessary details. Since the relevant details have been furnished in the paper book, we are of the view that the same requires examination by the AO. Accordingly, we set aside the order of Ld CIT(A) on this issue and restore the same to the file of the AO with the direction to examine the issue afresh by considering the details furnished by the assessee and take appropriate decision in accordance with the law. 8. The next issue relates to the addition of Sundry creditors balance of Rs. 9,31,896/-. We notice from the assessment order that the AO has conducted enquiries with the Sundry creditors, only for the purposes of verifying the genuineness of purchases. In page no.85 of the paper book, the assessee has furnished the break-up details of the sundry creditors balance of Rs. 9,31,896/-. On a perusal of the same, we notice that the above said amount relates to 24 creditors. However, the AO has conducted enquiries with the following five creditors only:- Ambika Apparel 99,457.00 Avni Enterprises 5,309.00 Bul Bul Garments 1,20,705.00 Gayatri Textiles 1,21,338.00 Mahavir textiels 2,66,801.50 The Ld A.R contended that the AO was not justified....