TaxTMI 
TaxTMI 
2017 (6) TMI 394
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....34,42,014/- made on account of unexplained cash credit u/s.68 of the Act. He has also erred in law and on facts in deleting the disallowance of Rs. 1,01,818/- Interest paid to depositors. 3. The relevant facts as culled out from the materials on record are as under:- The assessee is engaged in business of trading of cloth in the name of style of M/s. Ambica Sales Agency. During the year under consideration the assessee has shown business income of Rs. 2,98,783/-. The assessee has also shown salary income of Rs. 1,50,000/- and capital gain of Rs. 3,47,567/- and other source of income of Rs. 45,067/- during the year under consideration. After deduction of Rs. 1,00,000/- under section 80C of the Act and deduction of Rs. 10,219/- under secti....
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....ank accounts and also deposited the cash into their accounts and issued cheques to the various persons. The names of the above persons from whom you have obtained the deposit are appeared in the list of 61 persons. In view of the above, the detailed show cause notice was issued to the assessee on 25.11.2010. It was necessary verified the identity, creditworthiness and genuineness transaction, in the background of the evidences found during the course of survey in the case of Shri Lalitkumar Sharma & Other and particularly, in view of the statement recorded on oath of Shri Ramdinesh Sharma. Therefore, the assessee was requested to produce the 7 persons, in order to verify the identity, creditworthiness and genuineness of transaction. Furthe....
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....ell as PAN the provided, all are assed to tax. Therefore, genuineness of loan should not be doubted. As regard, to produce the parties, it is submitted that the assessee have no good relation with the said parties now and therefore, it will be not comfortable to produce the parties. Further, it was submitted that "If for a moment your version is accepted then also it cannot be accepted that these person cannot have substantial income/assets to give loan for earning interest. Even if certain entries are found to be non genuine, it will not lead the entire transaction as non genuine since every person will be investing his money in one way or another. Therefore, merely based on statement recorded of third party, no addition should be made f....
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....persons and operated the bank accounts himself in the name of these persons, deposited cash into their bank accounts and issued cheques to various persons. The modus operandi of the business carried on at 115, P.B. Parekh Tower, Kankaria, Ahmedabad has been explained by Shri Ramdinesh Sharma. He has categorically admitted that opened all the bank accounts in the name of these persons. The cheque books issued by the bank were kept in his custody. He used to avail the signature of the concerned persons on blank cheques and kept them in his custody. He received cash from the persons who were in need of accommodation entries for unsecured loans. The cash so received was deposited in one of the bank account of the above persons. After depositing....
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....it. This is only reason to ask the assessee to produce the depositors. However, the assessee fails to avail the opportunity accorded to it. In the above backgrounds and materials available with the department the onus is cast upon the assessee to produce the persons and the assessee cannot absolve himself from the onus cast upon him. The mere filing of confirmation and copy of return of income of depositors does not served the purpose unless and until the facts is verified from the depositors. Therefore, the assessee has not fulfilled the onus cast upon him. The ample opportunities have been given to the assessee to produce the persons. Because, in the above background and materials available with the department, it is necessary to verify....