2020 (12) TMI 1141

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....2. Briefly stated, the facts of the case are that assessee has filed his return of income on 16.11.2014 declaring total income of Rs. 2,14,310/-. During the course of assessment proceedings, the Assessing Officer observed that the assessee has received Rs. 2,00,000/- from Sh. Nagarmal, Rs. 1,50,000/- from Sh. Mahendra Singh and Rs. 1,00,000/- from Sh. Chaju Ram. The assessee was asked to furnish the details along with supporting evidence in support of source of such cash deposits. 3. In response, the assessee filed the indemnity bonds from these persons stating that the aforesaid persons are farmers and have given above cash out of their agricultural receipts. On going through the indemnity bonds, the Assessing Officer stated that no det....

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....nds of the assessee. It was further submitted that no corroborative evidence has been placed on record to justify the aforesaid addition. It was accordingly submitted that once the assessee has submitted the necessary affidavits of these persons and the AO has failed to carry out further enquiries by issuing summons u/s 131, the assessee cannot be penalized by treating the cash deposit as unexplained income in his hands. It was accordingly submitted that the addition so made and confirmed by ld. CIT(A) may be deleted. 6. Per contra, the ld. DR submitted that the mere filing of affidavits does not absolve the assessee from discharging the initial onus cast on him in terms of identity, creditworthiness and genuineness of the transaction. I....

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....y, they don't have any banking facility nearby, out of their agriculture and animal husbandry and past savings, they have given the amount to the assessee for purchase of flat. The affidavits so submitted by these persons are silent in terms of quantum of past savings and quantum of past income from agriculture, animal husbandry and nothing has been stated regarding land holding, number of animals, etc. The affidavits so filed in absence of necessary corroboration therefore don't support the creditworthiness of these persons. Further, it has been stated that the cash advance has been given towards purchase of flat, however, there is no mention about the locality, area, etc of such flat for which such amount has been given. The assessee in h....