TaxTMI 
TaxTMI 
2019 (12) TMI 918
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....elete the said ground of appeal. 2. The only effective ground is against sustaining the addition of Rs. 49,50,000/- u/s 69 of the Income Tax Act, 1961 (hereinafter called as 'the Act'). The facts giving rise to the present appeal are that case of the assessee was taken up for scrutiny assessment and the assessment u/s 143(3) of the Act was framed vide order dated 15.12.2016. The A.O. while framing the assessment observed that the assessee had purchased two properties valued at Rs. 58,88,000/- & Rs. 48,21,000/- during the year under consideration. In respect of source of investment it was stated that he had taken loan of Rs. 44 lakhs from relatives and Rs. 55,00,000/- was invested out of his own sources. The A.O. did not accept this contention and made addition of Rs. 49,50,000/- in the income of the assessee. The A.O. further made addition of Rs. 10,000/- on account of excessive deduction claimed by the assessee. Hence, the A.O. assessed income at Rs. 52,84,650/- against the disclosed income of Rs. 3,24,650/-. 3. Aggrieved against this order, the assessee preferred an appeal before Ld. CIT(A), who after considering the submissions dismissed the appeal. Now the assessee is in ....
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....the authorities below. Undisputed fact remains that before the A.O. the assessee has categorically stated that the property in question was purchased out of his own resources, which he stated to be out of loan taken from the bank and loan/gifts from various persons. In support of loan/gifts, he has also filed confirmations who had given loan to the assessee. However, before Ld. CIT(A), the assessee took a U-turn and submitted that the properties were acquired out of the contribution made by the brother of the assessee. The only explanation before this Tribunal for taking such contradictory stand is that in support of the contention documents furnished before the authorities below are third party documents, which cannot be termed as self-created and self-served documents. The assessee has demonstrated with evidence that the brother of the assessee has been remitting money from Kuwait and the cash was being withdrawn by the father of the assessee. We find that Ld. CIT(A) has decided the issue by observing as under: 7. From the above, it is clear that the contention of the assessee was not accepted by the Ld. CIT(A) on the ground that the assessee has been changing his stance. Howe....
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....sted by the assessee. 4.2 When the assessee was asked during the course of assessment proceedings to explain the sources of these investment to the tune of Rs. 1,15,44,520/-, the assesse replied that besides the loan taken from Axis Bank and Punjab National Bank, he had taken gift and loan from nine persons total amounting to Rs. 44 lakh and remaining Rs. 5,50,000/- has been invested from own sources. Further, the assessee was asked to furnish credible documentary evidences in order to establish identity, creditworthiness and genuineness of these nine lenders. Here it would be worth mentioning that during the Tax (A) Document 2 proceedings of scrutiny assessment itself, the assessee filed another. letter and claimed that in the earlier letter, the amount of Rs. 44 lakh received from nine persons had been erroneously mentioned as loan but actually it was 'Gift' except the amount taken from Shri Arjun. The assessee claim that the amount of Rs. 4,00,000/- taken from Shri Arjun was a loan and the amount taken from remaining eight persons was 'Gift'. In support of his claim, the assesseehad furnished some documentary evidences includi....
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....tever documentary evidences in support of his claim but again the mistake of the assessee was noticed. Because in such documentary evidences some person is claiming that has giving the loan but the assessee is claiming that he has taken such amount as Gift. There was complete absence of credibility in the reply of the assessee and only then the AO had made the addition of Rs. 49,50,000/-considering it as 'Investment from unexplained sources.' (iii) Further, in his submission the assessee has stated that actually it was not the matter of Rs. 44 lakh and albeit he has taken amounting to Rs. 61,50,020/- from his brother Shri HuzafaChhawaniwala who is a NRI. Here question arises that assessee's which reply is needed to be taken into account. Scarcely is it possible that one person who is taking huge amount of Rs. 44 lakh or 61 lakh will forget the sources thereof. Even for the sake of justice, the assessee's claim is accepted for a while, then why it was not disclosed before the AO during the scrutiny proceeding. It is not a matter to forget easily. When such amount was received from assessee's brother then what will be fate of the documentary ....
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....his remand report coupled with the facts so elaborately discussed by the AO in the assessment order clearly points out to one single finding that neither the submissions made by the appellant which incidentally are changing every time nor the evidences so produced are reliable. That questions the credibility of not only the appellant but also of all the evidences produced in this regard from time to time. the of transaction, 4.4 The Hon'ble Supreme Court in the case of CIT vs. Biju Patnaik (SC) 160 ITR 674 had held that assessee must prove identity of creditors and the capacity of creditors to advance money and genuineness to then only burden shifts the department. In the case of CIT vs Korley trading Co. Ltd. (Cal.) 232 ITR 820 it was held that mere filing of Income tax file no. is not enough to prove cash credits. The jurisdictional High Court in the case of V.I.S.P. (P) Ltd. CIT (MP) 265 ITR 202 had held that sec 68 did not confine to cash entries in the books. It was further held that if no plausible and reasonable explanation was given by the assessee, the amount could certainly be added towards the income of th....