TaxTMI 
TaxTMI 
2010 (4) TMI 1213
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....ds could not be viewed adversely." 2. The A.O. noted that the assessee has received cash credit being loan of Rs. 5,90,000/- from Smt. Kamala Garg, Rs. 4,50,000/- from Smt. Santosh Garg, Rs. 2,75,000/- from Smt. Seenu Garg and Rs. 1,20,000/- from Shri Rahul Garg, totaling to Rs. 14,35,000/- and added the same under section 68 of the Income-tax Act, 1961 ('the Act' hereinafter). The assessee went in appeal before the CIT(A) and submitted that before the CIT(A) that in all the cases individually all the loans were received through account payee cheque . All the parties from whom the loans had been received are regularly assessed to income tax having Permanent Account Number. The assessee has duly explained the source of the loan in the bank account of the respective parties. Copies of the acknowledgement of the returns of income, computation of income, capital accounts and bank statements of each and every parties were duly submitted. The A.O. has issued summon under section 131 of the Act to produce proof of identity, copy of the return filed alongwith the capital account & computation of income and copy of bank statement. Each of the lenders in reply thereto submitted all the do....
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....opy of return filed alongwith capital a/c and computation of income. 2. Copy of bank statement by which the creditors have given unsecured loans to Tulsi Narain Garg, Sheopur for the A.Y. 05-06. Copies of acknowledgement of returns of income, computation of income, capital accounts and balance sheets for the Asstt. Year 2004-05 and 2005-06 and copy of bank pass books/bank statements from where loans were given. The loan amounts transferred to the appellant were also clearly reflected in the respective bank accounts of the lenders. The appellant also furnished before the A.O. the evidence that the assessee has paid interest on loan and deducted TDS thereon as per law and issued TDS certificates. In the summons the Assessing Officer has directed the appellant to produce evidence either personally or through authorised representative. In compliance of summons the lenders have sent affidavits to confirm the loan given to the appellant and have submitted that all the documents required in the summons were already submitted before the AO, through Shri Tulsi Narain Garg, Sheopur, the appellant. The learned counsel of the appellant has also furnished the copies o....
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....75 (AP High Court) 6) CIT vs. Dhanrajgiri Raja Narasingirji, CTR (SC) 197 page 445 7) Lake Place Hotels & Motels Pvt. Ltd. Udai vs. DCIT (Asst) Udaipaur (2001) 29 ITC 491 (ITAT Jodhpur) 8) Lahoti Medicare Pvt. Ltd. Vs. DCIT (2005) 33 ITC 76 (ITAT Indore) 9) Ganga Prasad Sharma vs. CIT MP (1981) 132 ITR 87 (Indore High Court MP) 10) CIT vs. Daulat Ram Rawatmull 87 ITR 349 (SC) 11) Nemi Chand Kothari vs. CIT 264 ITR 254 (Gauhati) 12) Kalyan Memorial and Charitable Trust vs. ACIT, 124 TTJ 883 (Agra) TM 13) CIT vs. Barjatiya Children Trust (2007) 7 ITJ 319 (MP)" 4. Thus, it was vehemently contended that the order of the CIT(A) be confirmed. 5. Ld. D.R., on the other hand, relied on the order of the Assessing Officer. 6. We have carefully considered the rival submissions and perused the material on record. Section 68 of the Act lays down the rule of evidence and the states that where any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the ....
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....s issue. Thus, ground no.1 taken by the Revenue stands dismissed. 7. The second ground of appeal relates to allowing of relief of Rs. 50,000/- out of total addition of Rs. 2,32,000/-. 8. The brief facts relating to this ground are that the A.O. disallowed on adhoc basis a sum of Rs. 2,32,000/- out of various expenses as detailed in the Assessment Order mentioning therein that the disallowance are made in the absence of proper supporting bills and vouchers. When the matter went before the CIT(A), the CIT(A) reduced the disallowance to Rs. 50,000/- by observing as under :- "The A.O. has made disallowances on adhoc basis under the above heads repeating the similar ground for each disallowance that supporting bills and vouchers were not properly maintained, the payments were made in cash and the same could be of personal nature. The appellant is a civil contractor and the heads under which the expenses are debited are incidental to the business of the appellant which are on account incidental of purchase of material roller charges, wages and freight, loader hiring charges, Boiler and Tractor hiring charges, salaries to staff etc as above. Except for vehicle running and m....