TaxTMI 
TaxTMI 
2019 (3) TMI 1026
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....ence and brevity. First we take up appeal No.154/Ind/2016 for the A.Y. 2004-05 for adjudication. ITA No.154/Ind/2016: 2. Facts are in brief that in the assessment order the A.O. has noted that during the course of the search, a suit case was found in which 120 coupons were found. These are lottery coupons issued for investment in small savings scheme of Rajasthan. One coupon is given to every investor who invests more than Rs. 5000/-. It is noted by the A.O that Shri Nirmal Kumrawat was holding 120 coupons, therefore, the total investment works out to Rs. 6 lakhs, which was not reflected in the return of income. The A.O. has asked the assesse to explain the same. During the course of search, the assesse has submitted that no investmen....
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.... Government and therefore no addition can be made. During the course of assessment proceedings, the AO. has asked the assessee that there were 120 lottery coupons belonging to you and those coupons are issued for investment of Rs. 5000/- per one coupon. Therefore, assessee must have invested Rs. 6 lakhs to receive 120 coupons, therefore asked the explanation. The assessee has submitted that he has not invested anything in the small saving scheme of Rajasthan Government. The assessee has not given any explanation neither before the Ld. CIT(A) nor before the A.O. regarding the coupons. Therefore, the A.O. has concluded that the assessee has invested an amount of Rs. 6 lakhs and received 120 coupons, therefore addition is made to the extent of....
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.....2005 of Punjab National Bank, Principal Asset Management Mutual Fund addressed to Nirmal Kumrawat, the assessee showing initial investment of Rs. 45,000/- at Rs. 10/- per unit. This investment is made through broker M/s. Safron Investments for savings bank account No.4041000004077 HDFC bank, Indore. The aforesaid investment is not reflected in the return of income of the assessee. In response, the assessee has replied that these mutual funds are purchased by mother of the assessee in the name of the assessee. On verification from IT return of mother of Shri Nirmal kumrawat, the A.O. noted that it does not appear that she has regular source of income from which she has earned so much of liquid funds that could be advanced to any of the pers....
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....anding balance is reflected in the balance sheet nor the same has been repaid to the amount of cash taken from his mother, therefore, assessee's submissions are not genuine or tenable. Apart from these, cheques to purchase said mutual funds was issued from the bank account of Shri Nirmal Kumrawat. These investments made by Smt. Rozina Kumrawat are treated to be in the income of Shri Nirmal Kumrawat from undisclosed source and added the same to the total income of the assessee on substantive basis and in the case of Smt. Rozina Kumrawat on protective basis. In so far as addition of Rs. 40,000/- is concerned the A.O. has noted that the account statement regarding Magnum fund of the SBI Mutual fund in the name of Shri Nirmal Kumrawat bearing f....
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.... Principal Asset Management Mutual Fund in the name of wife of the assesse Smt. Mary Rezina Kumawat. We find no reason to interfere and dismiss the appeal 10. In so far as investment made in SBI Mutual funds in the name of Smt. Marry Rozina Kumrawat, wife of the assessee is concerned, it was submitted that the assessee's mother has purchased the units in the name of the assessee's wife Marry Rozina Kumrawat. Neither before the A.O. nor before the Ld. CIT(A) the assessee is able to substantiate that the his mother is having sufficient funds to purchase the units. Therefore, both the A.O. and Ld. CIT(A) disbelieved the investment made by his mother and addition is made in the hands of the assessee. Even before us, assessee failed to discha....