TaxTMI 
TaxTMI 
2011 (4) TMI 1544
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....ecured loan treating the same as unexplained cash credits by wrongly invoking the provisions of section 68. 2. For that on the facts and in the circumstances of the case, the ld. CIT(A) was not justified in confirming the disallowances of Rs.65,720/- on account of interest paid on unsecured loan treating the same as bogus expenditure. 3. For that on the facts and in the circumstances of the case, the ld. CIT(A) erred in confirming the addition made by the AO to the extent of Rs.3,50,000/- on account of alleged gift received from Sri Pradip Mallick, Smt. Sumita Mallick and Sri Benoy Saha. 4. For that on the facts and in the circumstances of the case, Ld. CIT(A) was not justified in confirming the disallowance of Rs.1,748/- on accoun....
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.... 1,00,000/- 3. Benoy Saha 28/01/03 1,50,000/- Notice u/s 131 of the l.T. Act 1961 was issued to the above mentioned so called donors. During the course of deposition it was stated by Sri Benoy Saha that he is employed with Sathi Times, Prop. Sri Ratan Muhury. According to him Sri Saha made cash gift of Rs.1,50,000/- on 28/01/2003 to his employer Sri Ratan Muhury. It is also stated by Sri Binoy Saha that his annual salary income during the year was at 1,00,000/-. Besides his salary income he had also business income from supply of watches to different shop and income from money lending business. Departmental Inspector was deputed to enquire the case. It appears from the report of the Inspector that Sri Benoy Saha is an employee of the....
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....I Shiv Mandir. On request from her husband's friend Sri Ratan Muhury she made cash gift of Rs 1,00,000/- on 27/03/2003. It is also stated that she never made any gift to others excepting the above. Departmental Inspector was deputed to enquire the cases. The Inspector in his report stated that Pradip Mallick is the Principal-Cum-Prop. of St Paul School of Shiv Mandir, Siliguri. The school is running with classes from Nursery to class V having 150 students (approx). As per Inspector's report Sri Mallick has no income from tuition job. He maintains one Maruty Van for personal use. He has two dependent children. They are English-Medium- School going students. After considering all these, credit worthiness of Sri Mallick to make gift of Rs 1,00....
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....e Revenue is not justified to disbelieve the said transactions u/s 68 oft eh IT Act and disallowance of the interest paid on disallowance is not also justifiable. He requested to delete the same. 6.1. As regarding the disallowance on account of gifts similarly he filed income tax acknowledgements, computation of income and final accounts in respect of three donors namely Shri Pradip Mallick, Smt.Sumita Mallick and Shri Binoy Saha which were placed at pages 82 to 87 of the paper book. Since the donors have also confirmed that they have made the gift to the assessee it is not fair on the part of the Revenue to disbelieve the same and made additions in the hands of the assessee and he requested to delete the same. 7. On the other hand, the l....