TaxTMI 
TaxTMI 
2016 (4) TMI 861
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....'). 2. The first issue to be decided in this appeal is as to whether an addition u/s. 69C of the Act towards unexplained expenditure amounting to Rs. 6,00,000/- for house hold expenses could be made in the facts and circumstances of the case. 3. The brief facts of this issue are that the ld. AO found that the assessee even though had made withdrawals of Rs. 18,69,039/- for his personal expenses had not chosen to make any cash withdrawals for meeting his household expenses. The ld. AO also found that the assessee had withdrawn Rs. 50,000/- from his another bank account ( no. 75952) with the Axis Bank, Mumbai, which was lying as closing cash balance at the end of the year. In these circumstances, he chose to make an addition of Rs. 6 la....
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....enses were cash withdrawals from the Axis Bank, Mumbai, ought not to have made any addition as unexplained expenditure, as admittedly the sources of withdrawals have been proved by the ld.AO himself. 5. We have heard the rival submissions and perused the materials available on record including the paper book filed by the assessee. We find that the assessee has shown total drawings of Rs. 35,38,395/-, which included the amounts incurred towards personal expenses of the assessee. This includes withdrawals made by the assessee by cheques for his personal expenses towards rent paid amounting to Rs. 13,80,000/-for residential accommodation and telephone expenses etc. We also find that sum of Rs. 2,82,728/- has been treated as perquisite in th....
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....e assessee was in receipt of interest free loan of Rs. 2.50 crores from M/s. Bright Impex and Agencies (P) Ltd during the assessment year 2008-09. The assessee furnished the name, address and income-tax particulars of the said loan creditor together with balance sheet and return acknowledgements of the loan creditor to explain the identity, creditworthiness and genuineness of the transactions before the ld.AO. It was found that monies were received by the assessee by a/c payee cheques. The assessee also furnished the bank statement of the lender to prove the immediate source of credit. The ld.AO found that the assessee had not discharged his onus in terms of section 68 of the Act by proving the genuineness of the transaction and creditworth....
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....nation for not receiving the same. e) The CIT(A) has ignored the debits and credits of crores in the account of the lender company which have no connection with any business transactions and are proof of its actual business of providing Hawala entries. 8. The ld. DR vehemently supported the order of the ld.AO in making addition. In response to this, the ld.AR argued that the entire details about loan creditor have been duly furnished by the assessee before the ld.AO. The said transactions were received by the assessee by a/c payee cheques. The said loans were also duly represented by the assessee in May-June 2009 by a/c payee cheques. The three essential ingredients of section 68 of the Act namely, identity of the creditor, genu....
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....e FYs. 2007-08, '08-09 & '09-10 in pages 13-15 of the paper book, copy of audited annual financial accounts of M/s. Bright Impex & Agencies Pvt. Ltd for the FY 2007-08 in pages 16- 28 of the paper book, copy of bank statement in respect of Current A/c No.95111010006717 of M/s. Bright Impex & Agencies Pvt. Ltd in pages 29-32 of the assessee's paper book, PAN details of M/s. Bright Impex & Agencies Pvt. Ltd in page 33 of the assessee's paper book and copy of ld.AO's Remand report in pages 35-36 of the assessee's paper book. On perusal of the aforesaid papers, we find that the lending company, M/s. Bright Impex & Agencies Pvt. Ltd has got paid up capital of Rs. 3,25,85,000/- as on 31-03-2008 and Reserves & Surplus of Rs. 26,87,67,396/- as on 3....
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....n the balance sheet of the loan creditor, which were also placed before the ld.AO. However, the ld.AO based on certain factual errors committed by him with regard to the status and creditworthiness of the loan creditor that it is assessee's own money, which has been laundered and found it is way back to his own coffers in the garb of loan from M/s. Bright Impex & Agencies Pvt. Ltd . From the facts and material available on record, we find that the assessee has duly proved his complete onus with regard to the identity of the creditor, genuineness of the transaction and creditworthiness of the creditor and had satisfied all the three ingredients of section 68 of the Act. We find that the ld.AO had not chosen to issue summon/notice u/s. 133(6)....