TaxTMI 
TaxTMI 
2022 (12) TMI 530
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....r, no response from the assessee. 2.1. Therefore the assessment was reopened by issuing a notice u/s. 148 of the Act on 27.03.2017 and duly served upon the assessee by affixture. The Assessing Officer issued further notices u/s. 142(1) calling upon the details from the assessee however, as there is no response to the above notices. The Assessing Officer collected the bank account details u/s. 133(6) of the Act from Bank of India and made the cash deposit of Rs. 14,50,500/- as addition u/s. 68 of the Act. The A.O. also added the interest from the saving bank account of Rs. 4,840/- and determined the total income as Rs. 14,55,340/- and demanded taxes thereon and also initiated penalty proceedings. 3. Aggrieved against the same, the assessee filed an appeal before the Ld. Commissioner of Income Tax (Appeals), Gandhinagar. During the appellate proceedings, the assessee produced the details of unsecured loans from 27 persons and confirmations from the parties who are mainly engaged in agricultural activities. The assessee further claimed the above loans are genuine and availed for the purpose of buying a residential property. However as the property deal could not be finalized, th....
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....ed as available on pages 42 to 59 of the remand report. On perusal of these details following facts are noticed:- (i) All the five persons have purchased the stamp paper in sr. nos. 72840 to 72844 on 18th July, 2018 at 15.45 pm which suggest that these confirmations were not given by the lenders but obtained by the appellant to present as connected evidences. (ii) Except in the case of Pate! Shri Shankarbhai Narottamdas, in other cases, the co-owners are more than five persons and the land holding is also not commensurating to their creditworthiness. All the land co-owners must be having their respective families and considering their land holding, it can't be believed that each one of them must be having such creditworthiness. (iii) In none of the case, any evidence of sale of agriculture produce has been submitted. Mere holding of land does not prove that there was agricultural produce which remitted in sufficient cash which in turn could be lent further. Thus, the AO as well as the appellant both have failed to submit cogent evidences to prove the creditworthiness of these persons. In fact, the appellant appears to have created these manuf....
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....er, the AO has not mentioned what kind of business this person is doing and he has also failed to give a finding with regard to his creditworthiness. Considering this fact, this credit of Rs.17,500/- is treated as unexplained. (20) Rs.18,000/- is claimed to have been taken from Shri Shaileshkurnar Shankarlal Patel. He has filed contra confirmation. His source of income is income from business of wholesale trading. He has not maintained any bank account and no return of income has also been filed by him. However, the AO has not mentioned what kind of business this person is doing and he has also failed to give a finding with regard to his creditworthiness. Mere filing of contra confirmation will not prove the creditworthiness of the creditor. Considering this fact, this credit of Rs.18,000/- is treated as unexplained. ............ (24) Rs.20,000/- is claimed to have been taken from Shri Sureshbhai Keshavlal Patel. He has filed contra confirmation. His source of income is business activities. He has not maintained any bank account and no return of income has also been filed by him. However, the AO has not mentioned what kind of business this person is doing....
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....ld that the same as not genuine. Similarly, in the case of other eight creditors when the sum is less than Rs. 2,000/- who are happened to be friends and relatives who offered above credit for purchase of property. 4.2. In support of the same, the Confirmation Letter from the concerned creditors were produced with their Aadhar Card, since many of them are not Income Tax assessees. The Assessing Officer during the Remand Proceedings, partially accepted the some of the creditor's loan transactions and remaining creditor's loan transactions are not accepted by the A.O. and added as the unexplained income of the assessee. As the assessee having repaid the above loans, since the purchase of property was not materialized, the additions made by the Assessing Officer is liable to be deleted. 5. Per contra, Ld. D.R. appearing for the Revenue strongly supported the order of the Ld. CIT(A) and pleaded that the additions made by the CIT(A) does not require any interference and thereby dismissed the assessee's appeal. 6. We have given our thoughtful consideration and perused the materials available on record including the Paper Book filed by the assessee. It is seen from record, the As....