TaxTMI 
TaxTMI 
2017 (11) TMI 999
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....come as Returned by the assessee ought to have been accepted and made the basis of Assessment. 2. That the Ld. Commissioner of Income Tax (Appeals) had erred in law as well as on facts of the case in sustaining the addition of Rs. 1,00,000/- as unexplained cash credit u/s 68 of the Income Tax Act which ought not to have been sustained by the Ld. Commissioner of Income Tax (Appeal). 3. That the Ld. Commissioner of Income Tax (Appeal) had erred in law as well as on facts of the case in sustaining the addition of Rs. 2,23,279/- as interest paid on unsecured loans and treated it as Income of the assessee which ought not to have been treated it as Income of the assessee. 4. That the Ld. Commissioner of Income Tax (Appe....
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.... of Rs. 1 lakh only. When called upon to explain the cash credit of the balance of Rs. 1 lakh assessee submitted that the said amount was received as loan from five persons and produced their affidavits. On examination the AO found that the alleged lenders were petty workers and two of them were the employees of the assessee. Their earnings are between Rs. 1,500/- and Rs. 5,000/- per month and hence, the AO found that their lending the amount was doubtful. In respect of sum of Rs. 1,82,505/- appearing in the bank account, assessee stated that a sum of Rs. 38,085/- was the maturity amount of pigmy saving account opened on the name of his daughter and Rs. 27,500/- was the compensation from Insurance Company. AO did not accept this explanation....
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....city of Rs. 1,500/- to Rs. 4,500/- per month, the AO should have examined the issue by questioning them to know the source of the amounts for extending the loan to the assessee, instead of rejecting the sworn statements without scrutiny. No reasons are assigned by the AO for discarding the sworn statements and it is not known where from the AO gathered the information relating to the financial capacity of these persons. For this reason, we find that Rs. 1 lakh is not such a big amount as could not be contributed by five persons and in the absence of any material the AO should have accepted the contention of the assessee. 5. Now coming to the addition of Rs. 1,82,505/-, assessee explained only two amounts i.e. Rs. 38,085/- and Rs. 27,500/....
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.... total sales/gross receipts/turnover from the business/profession carried out by the assessee, exceeds the monetary limit specified u/s 44AB during the financial year immediately preceding the financial year under consideration, and the assessee failed to come out with any logical or meaningful explanation to explain reasons for non-compliance of provision of Section 40(a)(ia) of the Act. Ld. AR brought to our notice that the order of the Ld. CIT (A) shows the submission of the assessee before him to the effect that the persons to whom the interest was paid by the assessee had paid the advance tax and self assessment tax over and above the tax payable, thereby not causing any loss to the Revenue and the Revenue is permitted to levy interest....