TaxTMI 
TaxTMI 
2017 (11) TMI 1236
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....n purchased and sales are accepted by him. 2. The learned Commissioner of Income-tax (Appeals) has erred on facts and in law in confirming the addition of Rs. 85,49,700 by treating the following cash creditors as unexplained : S. No. Name of the creditor Amount 1. Ravi Kant Rs. 1,00,000 2. Bishan Singh/Ashok Kumar Rs. 28,10,000 3. Raju/Satpal Tanwar Rs. 16,74,700 4. Rakesh Chiwa/Bhukar Rs. 5,00,000 5. Vinita Devi Rs. 34,65,000 Total Rs. 85,49,700 3. The learned Commissioner of Income-tax (Appeals) has erred on facts and in law in not allowing the set off of trading addition against the addition of cash credit confirmed by him." Ground of the Revenue's appeal "1. That the Commissioner of Income-tax (Appeals), Alwar has erred in law as well as on the facts and circumstances of the case in reducing the trading addition of Rs. 23,49,472 to Rs. 2,85,181 made by the Assessing Officer on account of low gross profit rate declared. 2. That the Commissioner of Income-tax (Appeals), Alwar has erred in law as well as on the facts and circumstances of the case in reducing the addition of Rs. 2,03,16,200 to Rs. 85,49,700 made by the Assessing Officer on a....
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....uterised cash book, ledger and purchase bills and claimed that bills/vouchers for expenses debited in the profit and loss account are not maintained owing to the same being petty in nature. The Assessing Officer, however, held that the assessee has failed to discharge its onus regarding the rejection of books of account in as much as no details of stock, sale summary and bills/vouchers of expenses claimed in the profit and loss account were produced for verification. In response to the same, the asses see produced the sales summary and submitted that the stock details are not required being no opening and closing stock and bills for expenses claimed in the profit and loss are not maintained being some petty in nature and some fixed in nature. The assessee thus pleaded that application of section 145(3) is unlawful and unjustified. The assessee also questioned the application of gross profit rate of 13.92 per cent. by submitting that the same cannot be altered/changed inasmuch as all the bills/vouchers for purchase account and expenses towards the trading account are vouched and sales value is confirmed. Further, the decline in the gross profit rate by 1.25 per cent. in comparison t....
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....ot comparable as the turnover of the assessee is Rs. 2.98 crores as compared to the turnover of Rs. 85.53 lakhs of the wine contractor at Bhiwadi. The turnover has increased from Rs. 76.27 lakhs in the preceding year to Rs. 2.98 crores as a result of selling goods at a lesser margin of profit. The gross profit declared has however increased from Rs. 5.56 lakhs in the preceding year to Rs. 18.02 lakhs in the period under consideration. 4.7 It is further stated by the appellant that the Assessing Officer has accepted the gross profit rate 3.77 per cent. declared in the assessment year 2010-11 under an order passed under section 143(3) of the Income-tax Act. It is stated that complete books of account have been maintained and were produced before the Assessing Officer in the course of remand proceedings also. 4.8 I have examined the contentions and judicial decisions cited by the appellant and material available on record and find that the appellant has not been able to controvert the fact that complete sales records in the form of supporting vouchers were not maintained and thus could not be produced before the Assessing Officer in the course of the appellate proceedings. Therefo....
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....it rate is 1.59 per cent. In the subsequent year, the Assessing Officer made lump sum trading addition of Rs. 1 lakh vide order dated March 28, 2013 under section 143(3) of the Income-tax Act, 1961, thereby determining the gross profit rate at 3.77 per cent. Thus, when in the subsequent year, on similar facts, gross profit rate is determined at 3.77 per cent. (considering the addition of Rs. 1 lakhs), there is no justification to apply the gross profit rate of 13.92 per cent. applied by the Assessing Officer and seven per cent. applied by the learned Commissioner of Income-tax (Appeals) by ignoring that net profit rate of 3.15 per cent. is better as compared to the previous year and the subsequent year. Hence, the gross profit rate of 6.04 per cent. declared by the assessee in the year under consideration be accepted. 4.2 It is a settled law that even if the books of account are rejected it is not necessary that there should be a trading addition. After rejection of the books of account, assessment is to be made in the manner provided under section 144. This would require taking into consideration all the circumstantial facts and the past history. It is to be noted that overall gr....
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....egarding pressure on the gross margins in view of increase in the turnover and at the same time, looking at the past history, estimated the gross profit rate of seven per cent. In the peculiar facts and circumstances of the case where there is no satisfactory explanation to substantiate the fall in the gross profit rate, we find the approach of the learned Commissioner of Income- tax (Appeals) was reasonable where he has followed the past history of the assessee. In the result, the grounds taken by both the assessee and the Revenue are dismissed. 7. Ground No. 2 of the assessee's appeal as well as ground No. 2 of the Revenue's appeal are relating to the additions under section 68 of the Act. The Assessing Officer has made an addition of Rs. 2,03,16,200 which has been reduced to Rs. 84,49,700 by the learned Commissioner of Income-tax (Appeals). The assessee is challenging the sustenance of addition of Rs. 84,49,700 and the Revenue is challenging the reduction in addition under section 68 of the Act from Rs. 2,03,16,200 to Rs. 84,49,700. 7.1 Before we examine the facts of the case, it would be relevant to refer to the legal propositions in the context of section 68 which ha....
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....holders, directly or indirectly buy or subscribe to shares or lend money to the company. Upon receipt of money, the share subscribers/lenders do not lose touch and become incommunicado. Call money, dividends warrants, interest payout, etc. have to be sent/made and the relationship remains a continuing one. Therefore, an assessee cannot simply furnish some details and remain quiet when summons/notices issued to shareholders/lenders remain unserved and uncomplied. As a general proposition, it would be improper to universally hold that the assessee can plead that they had received money but could do nothing more and it was for the Assessing Officer to enforce shareholders/lenders attendance in spite of the fact that the shareholders/lenders were missing and not available. Their reluctance and hiding may reflect on the genuineness of the transaction and creditworthiness of the shareholder/lender. It would be also incorrect to universally state that an inspector must be sent to verify the shareholders/lenders at the available addresses, though this might be required in some cases. Similarly, it would be incorrect to state that the Assessing Officer should ascertain and get addresses fro....
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....ment, whether the investor professes and was an angel investor, the object and purpose (profit motive) behind the investment and whether any dividend declared and distributed in the past or not. Whether share subscribers have their own profit making apparatus and were involved in any tangible business activity or were they merely rotated money, which was coming through the bank accounts, which means deposits by way of cash and issue of cheques. Creditworthiness and genuineness of the transaction is therefore not proved by showing merely issue and receipt of a cheque or by furnishing a copy of statement of bank account of share subscriber, when circumstances requires that there should be some more evidence of positive nature to show that the subscribers had made genuine investment. Similar analogy will apply in respect of any loan transaction. (j) The entire evidence available on record has to be considered and a reasonable approach has to be adopted. The final conclusion must be pragmatic and practical, which takes into account holistic view of the entire evidence including the difficulties, which the assessee may face to unimpeachably establish identity, creditworthiness of the ....
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....on 68. Each of these 13 cases are discussed in detail in the following paragraphs : 8.1 Ravi Kant-Rs. 1 lakh (assessee's appeal) : Assessing Officer's Appellate and remand CIT(A)'s findings Assessing Officer Page 6 Appellate proceedings CIT(A) Page 31-33 - No confirmation filed - Permanent account number is AAIPC2761N - Assessee has merely filed a confirmation along with permanent account number of the creditor - No identity proof filed - Amount received on March 28, 2009 through demand draft - Assessee failed to produce the creditor - Address not provided at primary stage of scrutiny proceedings and same was provided on December 27, 2011 - Complete address given in assessment proceedings as Ravi Kant S/o Ram Chander, Chandna Bus Stand, Near Natraj Hotel, Rewari, Haryana - No reply received from creditor in response to notice under section 133(6) - No permanent account number Remand proceedings - Notice issued under section 131 came back with the remark 'refused service' - No regular source of income to give loan Confirmation filed on December 26, 2013 (PB 8) - Copy of bank statement not filed - No explanation about source of cash creditor Assessing O....
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....used service'. When these facts were confronted to the appellant in the course of remand proceedings, the appellant has stated that the amount was received through banking channel and beyond this he failed to substantiate the transaction of loan having been received. No copy of the bank statement of the creditor was filed. No details regarding the sources of income so as to establish the creditworthiness of the creditor were filed, no copy of the Income-tax return filed by the creditor was produced before the Assessing Officer. In view of the above facts, I find that the appellant has not been able to discharge the onus under section 68 of the Income-tax Act- identity and creditworthiness of creditor, genuineness of the trans action have not been proved. Thus, I confirm the addition of Rs. 1,00,000 made by the Assessing Officer on this account." 8.4 We have heard the rival submissions and perused the material available on record. We do not find any infirmity in the order of the learned Commissioner of Income-tax (Appeals). The assessee has failed to satisfy the initial onus cast on him in terms of the identity and creditworthiness of the creditor, genuineness of the transact....
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.... account filed - On July 22, 2008 and July 23, 2008, there are cash deposits in the bank account of the cash creditor which ultimately has been utilised in DD issued for Rs. 16,74,000 from this bank account - No Income-tax return of the assessment year 2009-10 seems to have been filed by Sh. Anil Kumar 9.1 In this regard, the learned authorised representative submits that he relied on the finding of the Commissioner of Income-tax (Appeals). It was further submitted that the Assessing Officer wrongly stated that only one DD of Rs. 16,74,000 was filed whereas the assessee has filed three DD's, two of Rs. 16,74,000 each and one of Rs. 500. In fact, the assessee has deposited Rs. 8,37,200 by DD at the time of participation in auction for allotment of a plot with RIICO Ltd . Thereafter, Rs. 50.23 lakhs was further deposited. Out of it, Rs. 33,48,500 (Rs. 16,74,000 + Rs. 16,74,000 + Rs. 500) was deposited by Sh. Anil Kumar on behalf of the assessee. Accordingly, this amount was credited to the account of Sh. Anil Kumar in the books of the assessee. In support of the amount of Rs. 33,48,500 paid by Sh. Anil Kumar to RIICO Ltd. on behalf of th....
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....ings of the learned Commissioner of Income-tax (Appeals) remain uncontroverted before us. We hereby confirm the deletion of the addition of Rs. 33,48,500. The ground of the Revenue's appeal to this extent is hereby dismissed. 10. Bhishan Singh-Rs. 28,10,000 (Assessee's appeal) Assessing Officer's findings Appellate proceedings CIT(A)'s findings - No confirmation filed - Complete address given in assessment proceedings as VPO Santhlaka, 278 Vasai- 401202 - The appellant has filed confirmation, a certificate from bank and affidavit of the creditor. - No identity proof filed - The appellant failed to produce the creditor and also failed to furnish any evidence regarding sources of credits and income of the creditor - Proper address not provided during first reply of scrutiny proceedings - Amount of Rs. 28.10 lakhs has been received from Bhishan Singh by account payee cheque No. 55682 of Bank of Baroda - No reply received in response to the notice issued by the Assessing Officer under section 133(6) - Perusal of bank statement of Sh. Bhishan Singh revealed that he deposited cash of Rs. 10,000 and Rs. 28 lakhs on March 12, 2009 in his Bank of Baroda, savings acco....
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....genuineness of the transaction. He is assessed to tax. He has replied under section 131 to the Assessing Officer. All these facts prove his creditworthiness. The reason for giving the confirmation by Shri Ashok Kumar was explained in as much as the same was given out of the bank account which is jointly held by Bhishan Singh and Ashok Kumar. The assessee is not required to prove the source of the source more particularly when his permanent account number is provided. Only because notice issued under section 131 to the creditor has come back with the remark "refused service" and the creditor could not be produced, cannot be a reason to make the addition ignoring that notice issued under section 133(6) has been served on the creditor and the Assessing Officer did not pursue the matter further. In these facts, the addition confirmed by the learned Commissioner of Income-tax (Appeals) is unjustified and the same be deleted. 10.2 The findings of learned Commissioner of Income-tax (Appeals) are as under : "In view of the above facts, I find that the appellant has filed a confirmation of the creditor, a certificate from the bank and affidavit of the creditor-Sh. Bishan Singh. The appel....
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....essee has thus failed to satisfy the initial onus placed on him especially in terms of the creditworthiness of the creditor. In the result, we confirm the findings of the learned Commissioner of Income-tax (Appeals) and the addition of Rs. 28,10,000 is hereby confirmed. The ground of the assessee's appeal to this extent is thus dismissed. 11. Mangal Singh-Rs. 7,20,000 (Department's appeal) Assessing Officer's findings Appellate proceedings CIT(A)'s findings - The assessee produced Sh. Mangal Singh and his statement was recorded on December 16, 2011 wherein he stated that he is filing regular return of income since 2006-07 and is having permanent account number ADYPT7676E - Sh. Mangal Singh is an Income-tax assessee holding permanent account number ADYPT7676E, residing at Main Village Gali, Neelam Chowk, Bhiwadi. - The appellant has filed confirmation, copy of Income-tax return, permanent account number, copy of bank account etc. before the Assessing Officer. - On a perusal of the bank statement of Sh. Mangal Singh, it is revealed that he deposited cash of Rs. 8,82,240 on March 4, 2009 and on the same day issued DD's on behalf of the assessee for the purpose of li....
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.... find that the appellant has been able to discharge the onus under section 68 of the Income-tax Act identity and creditworthiness of creditor, genuineness of the transaction have been proved. Accordingly, I delete the addition of Rs. 7,20,000 made by the Assessing Officer on this account." 11.3 We have heard the rival contentions and pursued the material available on record. In the instant case, the assessee has failed to discharge the onus placed on him under section 68 in terms of satisfying the test of creditworthiness of Shri Mangal Singh. Regarding the assessee's contention that an amount of Rs. 8,82,240 has already been brought to tax in the hands of Shri Mangal Singh and the same cannot be brought to tax in the hands of the assessee again, we are unable to accept the same. The reason for the same is that it is unclear at this stage whether the proceedings in case of Shri Mangal Singh has attained finality or not. Therefore, it cannot be said that the same amount has been subjected to tax twice. We further do not agree with the findings of the learned Commissioner of Income-tax (Appeals) as the test of creditworthiness has not been satisfied in the instant case and thus,....
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....er confirmation bears the name Raju Tanwar and has been signed as 'Raju'. Thus, how the cash creditor is changing names and even his signatures with the passage of time is not clear which implies that assessee has made entry in his books as per his own sweet. - As per the account statement filed in respect of Sh. Raju Tanwar for account No. 20441668239 with Allahabad Bank, Bhiwadi, it is evident that there was cash deposit in the bank account for Rs. 16.50 lakhs which was subsequently utilised in issuance of DD's. As per the confirmation of account filed, it is stated that Rs. 16,74,700 has been received in account of Sh. Pratap Singh Tanwar on account of payment received from RIICO. Thus, if DD's were issued from account of Sh. Raju Tanwar why the encashment has been made in account of Sh. Pratap Singh Tanwar is not clear - Though Sh. Raju is a permanent account number holder but no Income-tax returns are being filed by him except for the assessment years 2006-07 and 2007-08 at returned income of Rs. 81,456 and Rs. 98,630 i.e. below the taxable limit. 12.1 The learned authorised representative submitted that from the above, it can be note....
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....anwar. Therefore, what is the real fact still remains unclear. The appellant has failed to furnish any details regarding the sources of income of the creditor so as to establish the creditworthiness. Further, no copy of the Income-tax return filed by the creditor was produced before the Assessing Officer. The appellant has also failed to produce the cash creditor for examination in response to the notices issued to verify the veracity of the contentions made by him in the letter. It is also worthwhile to note that a number of opportunities were afforded to the appellant in the course of assessment and in the course of remand proceedings but the result remained the same. In fact the remand report has also to be called twice from the Assessing Officer so that due opportunity could be given to the appellant. Therefore, I hold that the appellant has not been able to discharge the onus under section 68 of the Income-tax Act, the identity and creditworthiness of the creditor, genuineness of the transaction have not been proved beyond doubt. Accordingly I confirm the addition of Rs. 16,74,700 made by the Assessing Officer on this account." 12.3 We have heard the rival submissions and....
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....the cash creditor is Rakesh Bhukar s/o Doongar Mal Bhukar. Copy of permanent account number card is at paper book 40. - Details regarding the sources of income so as to establish the creditworthiness of the creditor not filed - No explanation about the source of cash creditor - Address as per the driving licence is WN-19, Chirawa, Jhunjhunu. Copy of driving licence is at paper book 41. - Copy of the Income-tax return filed by the creditor not produced before the Assessing Officer Assessing Officer's observation - The name of the creditor and address has been changed thrice in the course of remand proceedings. First the name of the creditor was given as Rakesh Chiwa, then changed to Rakesh Thankar and finally to Rakesh Bhukar - Notice issued under section 133(6) returned undelivered with the postal remarks 'incomplete address' - Notice issued under section 131 at the address as per the driving licence served but no compliance made by Sh. Rakesh Chiwa or Thankar or later renamed as Bhukar - How the cash creditor is changing names and cities i.e. earlier reported as Bhiwadi to later reported as Chidawa with the passage of time i....
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....ions and pursued the material available on record. The appellant has not been able to discharge the initial onus placed on him under section 68 of the Income-tax Act. The identity, creditworthiness of the creditor, and genuineness of the transaction have not been proved The findings of the learned Commissioner of Income-tax (Appeals) remain unrebutted before us and the same are hereby confirmed. In the result, the addition of Rs. 5,00,000 is confirmed and appeal of the assessee to this extent is dismissed. 14. Bhagirath Singh Shekhawat-Rs. 7.20 lakhs (Department's appeal) Assessing Officer's findings Appellate proceedings CIT(A)'s findings - No confirmation - Permanent account number is ASVPS3578E - The appellant has filed confirmation, copy of Income-tax return, permanent account number, copy of bank account etc. before the Assessing Officer in course of remand proceedings. Further, the cash creditor has also furnished these documents before the Assessing Officer in response to notice issued under section 133(6) of the Income-tax Act in course of remand proceedings. - No identity proof - Address is Vijay Deep House, Transport Nagar, Jaipur Road, Sikar - 332001 - B....
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....ount has been subsequently repaid on March 29, 2012. Thus, when the assessee has discharged the onus under section 68, no addition can be made. Therefore, the order of the learned Commissioner of Income-tax (Appeals) be upheld by dismissing the ground of the Department. 14.2 The findings of the learned Commissioner of Income-tax (Appeals) are as under : "From examination of the above facts, I find that the appellant has filed confirmation, copy of the Income-tax return, permanent account number, copy of the bank account etc. before the Assessing Officer in the course of remand proceedings. Further, the cash creditor has also furnished these documents before the Assessing Officer in response to the notice issued under section 133(6) of the Income-tax Act in the course of remand proceedings. Further, it is submitted by the appellant that the books of account of the creditor are audited under section 44AB of the Income-tax Act and is regularly assessed to tax. It is also stated that the loan has also been returned back by account payee cheque in March 2012. Thus, I find that the appellant has been able to discharge the onus under section 68 of the Income-tax Act identity and cred....
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....ity proof - The assessee cannot be required to explain the source of source of cash credit - The creditor is regularly assessed to tax - The assessee did not considered fit to provide proper and complete address at stage of scrutiny proceedings Remand proceedings - It is submitted by the appellant that in regular books of account of the creditor, there is sufficient cash balance which was deposited in the bank account before the issue of cheque to the appellant. - Perusal of the bank statement of Sh. Vikram Singh (paper book 51-52) filed by the assessee revealed that he deposited cash of Rs. 1.50 lakhs on March 13, 2009 and credited Rs. 80,000 out of DD cancellation on March 13, 2009 and on the same day withdrawn it by pay order issued on behalf of assessee for the purpose of obtaining liquor licence in the name of the assessee - Permanent account number is AZZPS8187J - The appellant has thus discharged the onus under section 68 of the Income-tax Act and the addition made by the Assessing Officer on this account is deleted. - No permanent account number - In response to the notice issued under section 133(6) of the Income-tax Act (paper book 50), copy of the Income-tax re....
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.... cheque to the appellant. It is stated that the creditor is regularly assessed to tax. The Assessing Officer may if he so desires pass the information to the Assessing Officer with whom the creditor is assessed to tax. Thus, I find that the appellant has been able to discharge the onus under section 68 of the Income-tax Act identity and creditworthiness of creditor, genuineness of the transaction have been proved. Accordingly, I delete the addition of Rs. 2,30,000 made by the Assessing Officer on this account." 15.3 We have heard the rival submissions and pursued the material available on record. The learned Commissioner of Income-tax (Appeals) has given a finding that in the regular books of account of the creditor, there was sufficient cash balance, which was deposited in the bank account before the issue of cheque to the appellant. The said finding of the learned Commissioner of Income-tax (Appeals) remain unrebutted before us and the same is hereby confirmed. In the result, the appeal of the Department to this extent is dismissed. 16. Jagdish Singh-Rs. 2,00,000 (Department's appeal) Assessing Officer's findings Appellate proceedings CIT(A)'s findings - No confi....
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....tted that the assessee has filed the confirmation, return of income, permanent account number, bank account statement. The creditor is regularly assessed to tax and the books of account are audited under section 44AB. The creditor has further replied to the Assessing Officer under section 133(6). The amount has been subsequently repaid. The Assessing Officer has made the addition as no explanation has been filed by the creditor regarding the source of cash deposit in the account of the creditor. The onus on the assessee under section 68 is to prove the identity, genuineness and the creditworthiness of the creditor. Thus, when the assessee has discharged the onus under section 68, no addition can be made. Therefore, the order of the learned Commissioner of Income-tax (Appeals) be upheld by dismissing the ground of the Department. 16.2 The findings of the learned Commissioner of Income-tax (Appeals) are as under : "A careful examination of the above facts reveal that the appellant has filed confirmation, copy of the Income-tax return, permanent account number, copy of the bank account etc. before the Assessing Officer in the course of remand proceedings. Further, the cash creditor....
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....eposited on March 17, 2009 out of which DD of Rs. 1 lakhs was issued on same day on behalf of the assessee to obtain liquor licence - Copy of Income-tax return is at paper book 68 - The appellant has thus discharged the onus under section 68 of the Income-tax Act and the addition made by the Assessing Officer on this account is deleted. - No permanent account number - The assessee cannot be required to explain the source of source of cash credit - No regular source of income to give such loan Remand proceedings - No explanation about the source of cash creditor - The creditor was produced for verification on December 1, 2013 whose statement was recorded on oath (paper book 65-67) - The loan is returned back to the creditor through account payee cheque in the financial year 2011-12 and the same is also confirmed by the creditor in reply to question No. 3 of the statement recorded - The source of income of the creditor is renting of crane on daily or hourly basis. The creditor is 52 years old and doing business since a long period of time. The creditor has deposited cash from his business receipts as stated in reply to questio....
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....d to tax Thus, I find that the appellant has been able to discharge the onus under section 68 of the Income-tax Act-identity and creditworthiness of creditor, genuineness of the transaction have been proved. Accordingly, I delete the addition of Rs. 1,00,000 made by the Assessing Officer on this account." 17.3 We have heard the rival submissions and pursued the material available on record. The cash deposit in the bank account of Shri Thawaria has been examined by his jurisdictional Assessing Officer and the same has been accepted as duly explained as evidenced from the order passed under section 143(3) read with section 147 of the Act dated February 23, 2016 which is available on record. Apparently, the said order has been passed subsequent to the order of the learned Commissioner of Income-tax (Appeals) but facts remain that the cash deposited has been found duly explained in cash creditor's own assessment proceedings. In the light of the same, there cannot be any basis to add the same amount in the hands of the assessee under section 68 of the Act. In the result, the Department's appeal to this extent is dismissed. 18. Nisha Devi-Rs. 6,00,000 (Department's appeal....
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.... was produced before the Assessing Officer and his statement was recorded under oath. The amount has been subsequently repaid. Also, the creditor has explained the source of cash deposit in her account. Thus, when the assessee has discharged the onus under section 68, no addition can be made. Therefore, the order of the learned Commissioner of Income-tax (Appeals) be upheld by dismissing the ground of the Department. 18.2 The findings of the learned Commissioner of Income-tax (Appeals) are as under : "An examination of the above facts reveal that the appellant has filed confirmation, copy of the Income-tax return, permanent account number, copy of the bank account etc. before the Assessing Officer in the course of remand proceedings. Further, the cash creditor was also produced before the Assessing Officer in the course of remand proceedings and a statement was recorded on oath. It is submitted by the appellant that the creditor has explained the sources of credits in the bank account. It is stated that the creditor is regularly assessed to tax and is filing return of income. The loan is stated to have been returned back by account payee cheque in financial year 2010-11. Thus,....
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.... same is also confirmed by the creditor in her statement. The assessee is least bothered/not concerned about the usage of funds returned back to the creditor - The appellant has in the counter comments pointed out certain mistakes in the working of the peak credit which may also be considered while assessing the income in the hands of the cash creditor. - No explanation about the source of cash creditor - There are mistakes in the peak credit working carried out by the Assessing Officer Assessing Officer's observation - Perusal of the bank account filed by the creditor reveals that immediately before the advancement of loan of Rs. 34.65 lakhs to the assessee there was equivalent cash deposit in the bank account. - Regarding the repayment of loan, it is observed that cash creditor has received Rs. 30 lakhs on March 27, 2012 and Rs. 4.65 lakhs on March 28, 2012 in its bank account. However, these amounts were immediately withdrawn from bank for purchase of property but since the deal did not materialised, the cash remained with the creditor only. - The claim of the authorised representative that cash creditor has ....
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....ely withdrawn in cash. It was further claimed that the amount withdrawn from bank account was withdrawn for purchase of property but since the deal did not materialize, the cash remained with the cash creditor only. Further, the Assessing Officer has observed that the claim that the cash creditor has permanent account number : AQOPV3722A, as claimed by the authorised representative does not hold good in view of the fact that pan generation is on September 10, 2012 and that no return of income for the assessment year 2009-10 has been filed by Smt. Vinita Devi. This fact was also confirmed by her in the statement recorded on May 2, 2013. The Assessing Officer has meticulously examined the bank account of the cash creditor which was enclosed to substantiate the transaction of having advance the money to the appellant through cheque and found that there are frequent cash deposits in the same. The Assessing Officer has accordingly worked out a peak credit in the case of the cash creditor (Smt. Vinita) which is reproduced above. The peak of unexplained cash deposits in (her) bank account of cash creditor has been worked out at Rs. 65,60,000." It is apparent from the bank account stat....
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....proof - The amount has been received through account payee cheque - The cash creditor was also produced before the Assessing Officer in the course of remand proceedings and his statement was recorded on oath on May 2, 2013 - The assessee did not considered fit to provide proper and complete address at stage of scrutiny proceedings - Confirmation is at paper book 79 - The creditor has explained the sources of cash credits in the bank account as having received an amount of Rs. 1,24,54,137 as compensation from RIICO for acquisition of agricultural land. A copy of certificate from the bank in support of the said receipt was also filed before the Assessing Officer (paper book 82) - Perusal of the bank statement of Mahendra Singh (paper book 81) filed by the assessee revealed that he deposited cash of Rs. 16 lakhs on February 10, 2009, Rs. 9.78 lakhs on February 11, 2009, Rs. 20.20 lakhs on February 12, 2009 and Rs. 12.50 lakhs on February 16, 2009 and thereafter withdrawn on the respective same days for making DD's/pay orders in favour of the assessee for the purpose of obtaining liquor licence in the name of the assessee - The agricultural land of Sh. Mahendra Singh is acquired....