TaxTMI 
TaxTMI 
2021 (8) TMI 758
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.... 2014-15 is taken as the lead year which arises out of the order of learned Commissioner of Income-Tax (Appeals)-47, Mumbai [CIT(A)], dated 31/07/2018 in the matter of assessment framed by Ld. Assessing Officer (AO) u/s 143(3) r.w.s. 153A of the Act on 22/12/2016. The assessee is aggrieved by confirmation of certain additions in the impugned order. 1.2 Having heard rival submissions and upon perusal of relevant material on record, our adjudication would be as given in succeeding paragraphs. 2. The material facts are that pursuant to search action on Balaji Group on 28/01/2015, the premises of the assessee were also covered under the search. In response to notice u/s 153A, the assessee offered returned income of Rs. 6.45 Lacs which was....
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....submitted that the mother had sufficient capital balance which was formed from her lifetime savings. The same was evident from the Balance Sheet of the mother as placed on record. 3.4 A remand report was sought on additional evidences as submitted by the assessee during appellate proceedings. However, Ld. AO, without commenting on merits, opposed admission of additional evidences. The Ld. CIT(A), considering the factual matrix, admitted the additional evidences but rejected the grounds on merits. It was observed that the mother of the assessee advanced gifts to various other members and there was no concrete income in her return of income. The mother was stated to have contributed an amount of Rs. 10.47 Lacs towards household expenses wh....
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....in view of the fact that the mother of the assessee was on old lady and living in a joint family. There is no adverse material to disprove the gifts. Therefore, the conclusion drawn by Ld. CIT(A) could not be sustained and we are inclined to delete the addition of Rs. 1 Lacs. 3.6 So far as the two other donors are concerned, we find that both of them are agriculturist which is supported by their land holdings. The amounts of gifts are less than Rs. 1 Lacs in each of the cases which was below exemption limit of Rs. 2 Lacs. Therefore, there would be no obligation on the donors to file the return of income. The gifts are duly supported by the affidavits of the donors. The details of agricultural land have been well enumerated in their respe....
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....income was reflected in the return of income and it was highly improbable that the mother earned more than Rs. 10 Lacs of agricultural income from agricultural land worth of Rs. 1.19 Lacs. She had gifted various amounts to other family members during the year. The amounts of gifts and household expenses aggregated to more than Rs. 15 Lacs during the year. The action of Ld.AO was based on cogent material on record which could not be disputed by the assessee. Therefore, the additions were confirmed. Aggrieved, the assessee is in further appeal before us. 4.4 After going through the observations of Ld. CIT(A) and material on record and in view of our observations in preceding para 3.5, we are of the view that the drawings made by the mother....
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....deleted. This ground stand allowed. 6. Sundry Creditors 6.1 The assessee was asked to file the details of year-end sundry creditors of Rs. 1.35 Lacs. The assessee submitted that the sundry creditors were for the business covered u/s 44AD. Therefore, the assessee was not required to maintain books of accounts and the name, address & PAN of the creditors was not available. The same was, consequently, added to the income of the assessee. The action of Ld. AO, upon confirmation by Ld. CIT(A) is in further challenge before us. 6.2 We find that in terms of Sec.44AD, the income is computed on presumptive basis and there is no need to maintain books of accounts. Therefore, the impugned addition, as made u/s 41(1), in our considered opinion....