2015 (10) TMI 933

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....convenience. 2. The only issue involved in these appeals relates to the addition made by the Assessing Officer under S.69 of the Act, on account of unexplained investment, part of which was deleted by the CIT(A). 3. Fats of the case in brief are that the assessee is a partner in M/s. Vistas Constructions and M/s. New Vistas Constructions. Assessee is also shown to be an electric contractor. During the year under consideration, assessee was shown to have invested an amount of Rs. 21,50,000 as capital in M/s.Vistas Constructions. On examination, the sources for such investments were claimed to be out of loans to the extent of Rs. 15,00,000 (from the assessee's mother, Mrs.Nadeera Anees (Rs.5,00,000) and from a distant relative, by name,....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ct. 4. Aggrieved, assessee preferred appeal before the CIT(A), and in the course of appellate proceedings furnished confirmation from the loan creditors, alongwith their bank account extracts, and submitted that identity of the parties having been established alongwith the genuineness of the transactions, there is no reason for making the addition on the ground of insufficient information as regards the creditworthiness and other related aspects of the creditors. Since the information furnished before him constituted additional evidence, the CIT(A) forwarded the same to the Assessing Officer. 5. The CIT(A), after detailed consideration of the matter thereafter, confirmed the addition to the extent of Rs. 15,00,000, by dividing the iss....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... 5,00,000 each was credited into the account of Mr.Abdul Kareem, jut a day before advancing the amounts to the assessee and the assessee failed to prove the creditworthiness of the creditors. With regard to this creditor, assessee submitted that the amounts originated from NRE Account with Andhra bank Mehdipatnam branch, for which confirmation letter was furnished by the wife of the creditor Mr.Abdul Kareem, since he is away from the country and in spite of the cogent evidence, the Assessing Officer treated the amounts as unexplained. The CIT(A), taking note of the lapses on the part of the Assessing Officer in not examining the particulars furnished by the assessee, before coming to the conclusion that the credit-worthiness is not explain....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ntract and there was no accumulated sources of income other than the marginal incomes from the property and agricultural income. We do not find any infirmity in the view taken by the CIT(A) with regard to the own sources, by accepting the claim of the assessee partly. We accordingly reject the grounds of the assessee as well as the Revenue on this aspect, in their respective appeals. 8. Even with regard to the amounts borrowed from mother, Smt. Anees Nadiraa and a distant relative, Shri Abdul Kareem, the reasoning given by the CIT(A) cannot be found fault with. The former being assessee's mother, and the money having been lent from banking channels, there is no dispute with regard to either identity or genuineness of the transaction. Sin....