TaxTMI 
TaxTMI 
TaxTMI 
2019 (1) TMI 1756
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....and depreciation amounting to Rs. 201357/- claimed by the assessee ignoring the facts that out of total expenses of Rs. 201357/- Rs. 105217/- is depreciation and other expenses are bare minimum expenses." 3. In this case, return of income declaring income of Rs. 2,36,575/- was filed on 30th May, 2011. Subsequently, the case was selected under scrutiny by issuing of notice u/s. 143(2) of the act on 3rd August, 2012. During the course of assessment proceedings, the assessing officer has noticed that assessee has made following cash deposit in his bank account :- Bank of India Maninagar Branch, Ahmedabad Rs. 15,50,800/- Axis Bank Maninagar Branch, Ahmedabad Rs. 14,19,500/- Axis Bank Maninagar Bannch, Ahmedbad Rs. 10,86,000/-. The assessee was asked to explain the source of cash deposit in the aforesaid bank accounts with documentary evidences. The assessee has furnished copies of cash book, bank book and ledger a/c. The assessee claimed that he was engaged in the business of computer related job work and share consultancy business and maintained regular books of accounts and further claimed that all the transactions including cash transactions were duly recorded in his books o....
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....ransactions and creditworthiness of the depositors. You are therefore required to furnish complete documentary evidences as to prove the identity of the persons, genuineness of the transactions and creditworthiness of the depositors. You are further asked to prove the business needs and utilization of these loans/ deposits; failing which adverse view will be taken, Vide your aforesaid submissions you claimed to have received loans & advances of Rs. 99,500/- in cash and further Rs. 4,50,500/- by cheque from various persons. However, you have failed to submit complete addresses, PANs, confirmation letters, copy of returns of income, source of income of these persons as to prove the genuineness of the transactions and creditworthiness of the depositors. You are therefore required to furnish complete documentary evidences as to prove the genuineness of the transactions and creditworthiness of the depositors. You are further asked to prove the business need of these loans and utilization of Money; failing which adverse view will be taken. Vide your aforesaid submissions you claimed to have received Rs. 1,81,000/- in cash from Shri Harish Pandit Son/ as advance against car sale. In thi....
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....ces and not explained why the amount was withhold for almost 8 months when the deal was cancelled. Therefore, the assessing officer has made addition of Rs. 6,85,300/- (Rs. 1,58,500/-+ 1,68,000/-+ 66,5000+49,000+62,300+1,81,000/-) as unexplained cash credit and added to the total income of the assessee. 4. Aggrieved assessee has filed appeal before the ld. CIT(A). The ld. CIT(A) has dismissed the appeal of the assessee. 5. We have heard the rival contentions and perused the material on record carefully. The assessee has claimed to have received and re-paid cash loan from 17 parties to the amount of Rs. 3,08,500/-. The assessee has further obtained loan in cash for Rs. 99,500/- from 5 persons and an amount of Rs. 4,50,000/- by cheques from the four persons. It is noticed that in respect of nine persons from whom the assesee obtained loan of Rs. 1,58,500/- the asssessee has failed to furnish details or documents i.e. PANs, confirmation letters, copy of return of income, bank statement to prove the identity of the persons and creditworthiness of the depositors. In respect of cash loan of Rs. 1,68,000/- from other 9 persons, the assessee has only submitted confirmation letters witho....
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....PAN of such persons. Considering these facts, we allow the claim of the assessee in respect of the loan amount Rs. 66,500/-. In respect of unsecured loan of Rs. 98,000/- claimed to be received from Shri Harish Soni, it is noticed that the aforesaid person has confirmed the granting of unsecured loan to the extent for Rs. 49,000/- only as against Rs. 98,000/- claimed by the assessee. In respect of Rashmin Patel the assessee has claimed loan advance of Rs. 1,97,000/- and Rs. 49000/ respectively. However, the said party has not confirmed the advance to the amount of Rs. 49,000/- After considering the contention of the assessee that the depositors have inadvertently mentioned the wrong amount in the confirmation letters we consider it appropriate to restore this issue to the file of the assessing officer for deciding afresh after examination of the information to be produced by the assessee. In respect of advance of Rs. 1,81,000/- form Shri Harin Pandit Soni in cash against sale of car in support of which the assessee has submitted a confirmation letter from Harish P Soni showing cash receipt of Rs. 1,81,000/- on 15/07/2010 and payment back on 05-03-2011 due to cancelation of deal.....