TaxTMI 
TaxTMI 
2010 (8) TMI 979
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....e ld. CIT(A) erred in law and on facts in confirming an addition of ₹ 50,000/- made by the AO by treating a part of Agricultural income as "Income from other sources" 5. The ld. CIT(A) erred in law and on facts in confirming the addition of ₹ 2,00,000(being gift received of ₹ 1,00,000/- each from Shri Kamal Rathi and Shri Kishor Modi) as unexplained credit; 6. The ld. CIT(A) erred in law and on facts in confirming an addition of ₹ 2,30,000/- as unexplained credit being loan and interest accrued thereon taken by appellant from two parties in the year 1995" 3. Ground no.1 regarding, validity of the assessment order being bar red by limitation. The main contention of the learned AR is that the assessment order was served upon the assessee in the month of February 2007 which was purported to have been passed on 22.12.2006. Thus, she has contended that when the assessment was served on the assessee after two month itself very likelihood to have been passed after the period of limitation expired in the month of December 2006. She has relied upon the decision in the case of Harendrapal Singh Bha Tia V/s CIT reported in (2004) 091 TTJ 598(Ind-Trib)....
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....f the relevant record, we find that the AO has recorded in paragraph 2 of the assessment order that this case was assigned to him as per the notification no. Addl/CIT-Range 22(3)/Notification/06-07 dated 26.7.2006. Thus it is clear that the case was transferred vide above notification. Even otherwise, when the assessee made a statement at Bar that this ground may be dismissed as not pressed. Accordingly, we dismiss this ground being not pressed. 10. In the result, the ground no.2 is dismissed. 11. Ground no.3, regarding the disallowance of expenses. The AO in the assessment order made disallowance at 20% of the various expenses by holding that personal use of telephone, motorcar cannot be ruled out and in respect of other expenses, the genuineness of these expenses are not verifiable in the absence of supporting documents except the cash vouchers. The details of disallowance are as under: Donation 16,102 Motor car 9,483 Telephone 7,568 Motor car depreciation 6,774 Traveling 11,700 Business promotion expenses 10,463 12. On appeal, the CIT(A) has found that the disallowance of 20% on the basis that cash vouchers were produced before him and supporting bills were not ....
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....ultivation, sale bill and purchase bill. Accordingly, in the absence of record, the AO estimated ₹ 50,000/- out of agricultural income declared by the assessee as income from the other sources and added to the total income of the assessee. 18. On appeal, the CIT(A), confirmed the action of the AO. 19. Before us, the learned AR has submitted that the assessee has been returning his agricultural income regularly for last 7-8 years. The assessee acquired the land in question from CIDCO on leave and license for agricultural/plantation purpose because High Tension wire is going over the said land. She has contended that the AO has accepted the claim of the assessee of agricultural income of ₹ 1,76,480/- for the assessment year 2003-04 then the claim for this year for lesser amount cannot be denied. She has relied upon the decision in the case of DCIT V/s Smt.Archana Devi reported in 84 TTJ 467(Jodhpur). 20. On the other hand, the learned DR has submitted that for the assessment year 2003-04, there was no assessment but the return was processed under section 143(1). Even otherwise principal of res-judicata in the mater of income tax is not applicable as every assessment ye....
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....to the summons. The assessee did not file the details of gift received by him including ₹ 230000/-. Accordingly, the AO made an addition of ₹ 4,30,000/- being unexplained income of the assessee. 24. On appeal, the CIT(A) has confirmed the addition made by the AO. 25. Before us, the learned AR of the assessee has submitted that the AO has not mentioned any section under which the addition was made. However, presumably addition was made under section 68 of the Act. She has contended that the gift were received from Shri Kamal Rathi of ₹ 1,00,000 and Shri Kishor V Modi of ₹ 1,00,000 through gift deed in favour of the assessee. The assessee furnished their PAN details and copy of return of income. Therefore, the assessee discharged the onus of providing identity, capacity, credit worthiness of the donor and genuineness of the transactions. The disallowance of gift in respect of the donors i.e S/Shri Shri Kamal Rathi and Shri Kishor V Modi of ₹ 1,00,000 each is unwarranted specifically in view of the fact that the donors are income tax assessee. As regards, the remaining amount of ₹ 2,30,000/-, the learned AR has submitted that the assessee received....
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....se the transactions was though through bank channel, the same cannot be treated as genuine and the capacity of the donor is also not conclusively proved in the absence of sources of gift. When the relationship between the assessee and the donor is no proved then the test of human probability comes into play for determining the genuineness of transaction. The lower authorities have fortified their views by the following decisions: ITO V/s Skyjet Aviation (P) Ltd (2000) 243 ITR 1 (AT) (Ahd) Sumiti Dayal V/s CIT (1995) 214 ITR 801 CIT V/s Durga Prasad More (1971)82 ITR 540 ACIT V/s Rajeev Tandon (2007) 108 ITD 560(Del) Therefore we do not find any reason to interfere in the findings of the lower authorities in respect of the gift of ₹ 1,00,000 each made by Shri Kamal Rathi and Shri Kishor V Modi. 28. As regard the alleged loan of ₹ 2,00,000 alongwith interest of ₹ 30000/- totaling to ₹ 2,30,000/- converted into gift is concerned, the assessee has contented this is merely a book entries and the amount was received in the year 1995 was duly shown as loan. It is undisputed fact that this liability is no more exist as the parties has not pressed, their cl....