TaxTMI 
TaxTMI 
2019 (2) TMI 806
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed that the ld.CIT(A) has erred in confirming addition of Rs. 16.00 lakhs and Rs. 10.10 lakhs being unexplained credit appearing against M/s.Vision Equities and Shri Arvindbhai M. Gondaliya. These additions have been made with aid of section 68 of the Income Tax Act, 1961. 3. Brief facts of the case are that the assessee has filed return of income on 28.6.2010 declaring total income at Rs. 3,20,000/-. The case of the assessee was selected for scrutiny assessment and notice under section 143(2) was issued and served upon the assessee. A perusal of the record revealed to the AO that the assessee has deposited in cash a sum of Rs. 12,02,500/- in the Cooperative Bank of Rajkot Ltd., Jungadh Branch in saving bank account no.04336. She further d....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... With regard to the cash received from Arvindbhai Manjibhai Gondaliya, the ld.AO issued summons. Shri Arvind Gondaliya appeared and deposed that he has having agriculture land of 15 bighas and net agriculture income of Rs. 2 lakhs. He has two sons, and one of them is running pan-bidi shop and other one is working in dyeing mill. The AO did not dispute identity of this man, but observed that he has no credit-worthiness to give this much money to the assessee. Hence, he made addition of Rs. 16.00 lakhs and Rs. 10.10 lakhs. Appeal to the ld.CIT(A) did not bring any relief to the assessee. 4. Before us, the ld.counsel for the assessee reiterated his contentions, as were raised before the ld.Revenue authorities. He placed on record copy of For....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... assessee offers no explanation about the nature and source thereof, or the explanation offered by the assessee is not, in the opinion of the AO satisfactory, then the sum so credited in the accounts may be treated as income of the assessee of that previous year. 7. As far as cash alleged to have been received from Vibrant Equities is concerned, it is to be appreciated in the light of particular background of this issue. The AO has not disputed that the assessee has issued cheque in favour of the Vibrant Equities, and money was cleared from SB account to that concern. It is also not in dispute that, that concern was running into trouble and ultimately proprietor died in mysterious circumstances. The question is, if an assessee can make pay....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... genuineness of the transaction and made reference to the decision of Hon'ble Supreme Court in the case of Sumati Dayal, 214 ITR 801 as well as Durga Prasad More, 82 ITR 540. We are of the view that the alleged vendee belongs to a lower strata of the society. One of his sons is running PAN shop and another one is working at dyeing mill. He is an agriculturist. He cannot maintain the accounts and monitor his activities in an organized manner. The ld.Revenue authorities expect that he should submit details of agriculture produce, bank accounts, cost of cultivation, proof of sales. These are highly alien to agriculture activities in India, what to talk of marginal farmers. Even big farmers having big chunk of lands are not maintaining these ki....