TaxTMI 
TaxTMI 
2015 (2) TMI 62
X X X X Extracts X X X X
X X X X Extracts X X X X
.... both the parties submitted that though the appeals pertains to 3 different years, but most of the grounds are common and therefore they have common submissions to make and therefore all the appeals can be heard together. We therefore proceed to dispose of all the appeals by a consolidated order for the sake of convenience and thus proceed with narrating the facts of A.Y. 2005-06 (ITA No. 450/AHD/2011). 2. Assessee is an HUF stated to be engaged in the business of grains and having agricultural income. In this case a return of income was filed on 31.03.2006 declaring total income of Rs. 47,520/-. The case was selected for scrutiny and thereafter the assessment was framed under section 143(3) vide order dated 15.12.2009 and the total income....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s. 2,77,035 Unsecured Loans u/s. 68 of the Act Rs. 10,11,237 Agricultural Income u/s. 68 of the Act Rs. 95248 Since the grounds raised by Revenue and Assessee are interconnected both are considered together. 4. During the course of assessment proceedings and on perusing the return of income, A.O noticed that Assessee is stated to have received unsecured loan from 4 persons aggregating to Rs. 11,35,485/- (list of depositors stated at page 3 of the order). He also noticed that Assessee had also shown balance in the capital account of Rs. 6,53,975/-. A.O noted that various notices were issued by him to Assessee to explain the source of capital and genuineness of loans but none attended nor any clarification called for by him were....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n on 19-12-2007 and furnished the documents mentioned at para 4.3 of the assessment order. Statements u/s. 131 were recorded from him and family members. Shri Vinod J. Modi, ITP was summoned and statement u/s. 131 was recorded by the A. O. on 20-12-2007, the contents of which find place at para 4.7 of the assessment order. As seen from page-7 of the assessment order, the balance in the capital account of Rs. 6,53,975/- and unsecured loans of Rs. 11,35,485/- were added to income retuned and agricultural income returned of Rs. 2,12,218/- was treated as income from other sources. Hence the appeal. 2.1. As stated in the preceding para, the instant case is a strange one and the facts ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....it is seen from the return of income that name and father's name is kept blank in the 'verification'. The signature is totally different from the signature of the appellant as appearing in the 'driving licence' and the signature as attested by the banker. (The signatures on the return of income for A.Ys. 03-04, 04-05 and 05-06 differ year to year). Bank account No (mentioned in ROI) is .15873 with BOI, Naroda. 3.1.4, Inspite of the glaring discrepancies and the explanation (with supporting evidence) of the appellant, A.O. did not accept the appellant's contention that the appellant HUF never existed and that the ROI was never filed by it. The basis for rejection of appellant's claim, as appearing at para 4.8 of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nd CIT(A) and further submitted that Assessee has no income of the HUF and the income shown in the name of HUF is baseless as the father of Pravinbhai Kachadia the karta of HUF, (Shri Becharbhai Kachadia) expired in June 2002 and therefore the father of karta could not have gifted any money in 2005 to the Assessee which was shown in the declaration. The ld. A.R. also pointed to the letter written by the Assessee to the A.O wherein it was stated that the immovable property owned by the father of the Karta was a kachha house in a small village containing 2 rooms only without any bathroom or kitchen and had no piece of land or agriculture land, the mother Ms. Divaliben Kachadia has no bank account no income and no land his son, Atmiya is minor....