TaxTMI 
TaxTMI 
2015 (7) TMI 835
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....ssee on 30.08.2010. On verification, the Assessing Officer found that the assessee along with his wife Smt. R. M. Janaki and his son Shri. R. M. Subbiah has purchased a plot No. 34 measuring one ground 400 sq. feet equal to 260.13 sq. mtrs. At Ayyappa Nagar in S. F.No 119/1A1A1A1H of Koyambedu Village, Nungambkkam Taluk, Chennai from Shri K. Ramakrishnan and his son R. Suresh for Rs. 50,00,000/-. On perusal of Balance Sheet, the Assessing Officer found that on the liability side, the Assessee had admitted a fresh loan of E43,90,000/- from R. Balasubramanian equally in the hands of the assessee and his wife for Rs. 27,25,000/- (including stamp duty). In this regard the assessee was asked to produce the creditor on 05.12.2011 for examination. Since the Assessee and his representative failed to produce the creditor, a summon u/s. 131 was issued to him through Income tax Inspectors. The Inspectors reported that Shri. R.Balasubramanian had relocated to Srirangam where he was issued summons. Shri. Balasubramainan appeared on 07.12.2011 and a sworn statement was recorded that he was working as a manager in Mahalakshmi Engineering College, Thodaiyur, Trichy for a monthly salary of Rs. 15,0....
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....ls filed, the Assessing Officer found that the assessee had purchased housing plot measuring 1 ground and 400sq ft. at Chennai, jointly with her husband and son. The assessee's share of the plot as well as the cost of construction carried out in the plot was met out of the borrowings of Rs. 44,00,000/- from one Shri. R. Balasubramanian. The Assessing Officer, asked the assessee to file confirmation letter from the said creditor. The confirmation letter, so produced before the Assessing Officer, lacked details of sources from which the loan was advanced and the assessment details of the creditor. The assessee did not produce the creditor form examination. After hectic efforts in tracing out the creditor, the Assessing Officer, in response to the summons u/s.131 issued. Shri. Balasubramanian, appeared and deposed that he is drawing a monthly salary of Rs. 15,000/- as manager in Mahalakshmi Engineering College, Thudaiyur, and, that he has not given any loan to the assessee Smt. R.M. Janaki. Shri. Balasubramanian also stated that he has no bank account and not assessed to income tax. Since the creditor Shri. R. Balasubramanian, in his deposition, has denied any loan given to the assess....
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....rse of assessment proceedings the Assessing Officer has made an addition of Rs. 43,90,000/- on account of loan received from R. Balasubramanian for non furnishing of details such as identity of the creditors, creditworthiness and assessment particulars of the creditors. The Assessing Officer during the course of assessment proceedings recorded a statement from R. Balsubramanian who deposed before him that he is working as a manager in Mahalakshmi Engineering College, Thodaiyur, Trichy for a monthly salary of Rs. 15,000/- and residing at Srirengam on a rented house for Rs. 5,000/- per month. Further Shri. Balasubramanian stated that he does not have any movable or immovable properties in his name or in his family members name and also does not have any bank account and not assessed to income tax. However, regarding the loan given by him to the assessee he has stated that the loans amount of Rs. 47 lakhs was given through demand draft out of the loan taken from one Shri. Anantharaman, Chennai. He has not charged any interest from the assessee. Thus, the Assessing Officer has doubted the creditworthiness of Balsubramanian and genuineness of the transaction as the loan creditor himself....
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....an was received by the assessee by way of cheque payments the lender in his deposition before the Assessing Officer, has denied that having given any loan to the assessee at Rs. 44,00,000/- and also stated that he is a salaried employee on a monthly salary of Rs. 15,000/- and has no bank account and not assessed to income tax.. Even though the assessee's representative in his submissions defended the above transaction but the same person i.e., R.Balasubramanian, the creditor, who himself has denied having lent the above loan amount of Rs. 44,00,000/- to the assessee. When the said loan creditor, himself deposed before the Assessing Officer, denying any loan amount given to the assessee, and also stated that he is not having any bank account, the defence put forward by ld. Authorised Representative for assessee lack any credible evidence in his hands to support his claim. Hence, the assessee was not able to prove the genuiness of the transaction as well the capacity of the lender i.e. creditworthiness to prove the correctness of the transaction. Hence, the additions made by the lower authorities may be sustained. 6. We have heard both the parties and perused the material on rec....