TaxTMI 
TaxTMI 
2015 (2) TMI 200
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....ed and as such there is no justification to deny the claim of deduction by holding that no evidence was furnished in support of claim of expenditure. 2. That the learned Commissioner of Income Tax (Appeals) has also erred both in law and on facts in upholding the addition of Rs. 4,00,000/- representing unsecured loan received by the appellant from husband of the appellant Shri Manoj Kumar who is an independent assessee. 2.1 That mere fact there were cash deposits in the bank account of Sh. Manoj Kumar could not be a ground to conclude that creditworthiness of the creditor was not proved and hence the addition made is sustained is not tenable. 3 That the learned Commissioner of Income Tax (Appeals) has erred both in law and on facts in upholding the addition of Rs. 5,50,000/- representing advances made in earlier years and received in the instant year and as such addition made in disregard of the facts and evidence on record is wholly untenable and unsustainable. It is there....
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....rchased one plot for an amount of Rs. 5,66,000/-. In AY 2008-09 the assessee incurred cost towards the improvement of this plot, assessee has incurred expenses of Rs. 1,88,000/- on leveling and erecting of boundary wall-of this plot. Which means assessee had made investment of Rs. 7,54,100/- in this plot. It is pertinent to note that assessment for AY 2008-09 has attained finality and the expenses claimed visa- vis improvement of land has been accepted. 6. It is submitted that in the impugned year when the assessee has sold out this plot she had claimed the deduction of Rs. 7,54,100/-( Cost of Improvement). However, during the course of assessment proceedings the AO, without referring to any material, disallowed the amount of expenses incurred by assessee on leveling and erection of boundary wall. 7. Finding of AO in this regard are at Page No-1- Para-2 8. CIT(A) affirmed the order of the AO without appreciating the fact that cost of improvement was incurred and allowed in immediately previous assessment year and the....
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....p; 15. The issue raised in ground number 2 and 2.1 pertained to the addition of Rs. 4.00 Lakhs received by the assessee from her husband on account of unsecured loan. The fact in this regard is that assessee has received an amount of Rs. 4 Lakhs from her husband and the AO added this amount under section 68 on the ground that husband of the assessee failed to prove the source of these funds. The CIT(A) also affirmed the finding of the AO 16. The Finding of AO in this regard are at page No 2 Para 2 of the order and CIT(A) are at Page No 5 Para 7 of the order. Submissions of the assessee before this Hon'ble Bench are as under:- 17. It is submitted that it is not a case where some amount has been received from any entry operator in as much as the sum was received from the husband therefore there is no question of any dubious methods involved 18. The husband of the assessee was regularly assessed to tax and all the documents such as Income Tax details and other were dul....
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.... 25. The AO overlooking the confirmation of third parties and overlooking the return of income of assessee for AY 2008- 09, wherein these funds were duly reflected added the amount under section 68 of the Act. 26. The finding of the AO are at Pg No 3 Para 4 and CIT(A) are at 7 Para 10 of the order. Submissions of the assessee before this Hon'ble Bench are as under:- 27. Advances were given in previous year and the copy of the return of income and Balance sheet were filed before the AO. 28. It is settled position of law that no third party would come forward with false evidence to oblige an assessee 29. It is submitted that AO disallowed the amounts on the ground that assessee failed to produce the witness before him. In this regard it is submitted that it is settled position of law that opening balances cannot be added under section 68 See Delhi High Court Usha Studs case r....
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....and expenditure incurring for leveling the land and construction of boundary wall. We have perused the relevant documentary evidence filed by the assessee in the Paper Book containing pages 1 to 37 as well as the order passed by the Revenue Authorities, we are of the view that in the interest of justice, the issue requires re-examination at the level of the AO, because some relevant evidence assessee has produced before the Revenue Authority, has not been appreciated by them. In the interest of justice, we set aside the issue to the file of the AO, with the direction to decide the same afresh under the law, after adequate opportunity of being heard to the assessee. 6.2 As regards the issue of addition of Rs. 4 lacs representing unsecured loan received by the assessee from her husband Sh. Manoj Kumar, we are of the view that assessee has produced necessary evidence before the AO to prove the genuineness and creditworthiness of Sh. Manoj Kumar who had advanced the loan of Rs. 4 lacs to her wife i.e. assessee. Assessee has filed the return of income of her husband Sh. Manoj Kumar and copy of the bank account in which her husband has deposited money on 5.12.2008, 10.12.2008 and 16.12.....