TaxTMI 
TaxTMI 
TaxTMI 
2024 (7) TMI 137
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....the source and genuineness of cash receipts. 2. On the facts and in the circumstances of the case and in law, ld.CIT (Appeals) erred in deleting addition of 10,32,620/ on account of loan receipts without appreciating that assessee had failed to establish the deposits with identity of the depositors, creditworthiness and genuineness of the transactions. 3. On the facts and in the circumstances of the case and in law, ld.CIT (Appeals) erred in deleting addition of Rs. 71,34,329/ on account of unsecured loan without appreciating that assessee had failed to establish the deposits with capacity and identity of the depositors, creditworthiness and genuineness of the transactions. 4. On the facts and in the circumstances of the case and in law, ld.CIT (Appeals) erred in deleting disallowance of 3,18,833/- u/s. 40(a)(ia) without appreciating that the submission of Form 15G/15H are as an after-thought and fabricated since assessee had not furnished the same during the course of assessment proceedings even though sufficient opportunity was given to the assessee to substantiate his claim with supporting evidence. 5. On the facts and in the circumstances of the case and in law, ld.CIT ....
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....evant document to prove the capacity of such persons to give such huge amounts as gift. Further, the assessing officer observed that the assessee has deposited a sum of Rs. 49,900/- in cash on almost daily basis and the assessee has failed to substantiate as to how these donors had given this cash as "gift" on a daily basis to the assessee. Further, the assessing officer observed that the assessee had also taken a loan from his father Shri Shantilal M. Patel and another loan from his brother in law Shri Chandubhai Z. Patel and it is unrealistic as to how the assessee has received both gift as well as taken unsecured loan from these two persons. Further, the aforesaid gift has also not been drafted by way of a proper gift deed on stamp paper and duly acknowledged by receiver. Therefore, the assessing officer was of the view that the assessee has not been able to explain the source of cash deposit earned outside the books of accounts and the so called gift deed is only an afterthought submitted at the fag end of assessment proceedings and, therefore, the assessing officer added the amount of Rs. 41,56,400/- as undisclosed income of the assessee. 6. In appeal, the Ld. CIT(A) restrict....
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....nt and A.O. preferred not to make any further enquiry either from the donors (of gift) or from the buyers of the agricultural land, complete details in respect of whom were available on record. The receipt of money in piecemeal by the donors from the agreement of sale of land was main reason which prompted the appellant to deposit cash in piecemeal in his bank accounts. 3.3.2. As the appellant has discharged primary onus of proving the identity, creditworthiness and genuineness of gift and the A.O. preferred not to make any enquiry of examine any person, the addition on this count cannot be made merely on the basis of presumptions. In my opinion, the addition of the two gifts aggregating to Rs. 32,00,000/- is not in accordance with the law and the same is directed to be deleted. So far as the deposit of balance amount of cash aggregating to Rs. 9,56,400/- is concerned, no details regarding source of such deposits has been provided and hence, the additions of this amount as unexplained loans/deposit is upheld. The appellant, therefore, gets a relief of Rs. 32,00,000/-. This ground of the appellant succeeds." 7. The Department is in appeal before us against the aforesaid order pas....
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....by both the donors was placed before the assessing officer. Therefore, the assessee had discharged the primary onus of proving the identity, creditworthiness and genuineness of the gifts and the A.O. preferred not to make any enquiry or examine any person. Further the Ld. Counsel for the assessee submitted that there is no requirement to pay stamp duty on cash gift. The gift is duly confirmed by the donors in the gift letters furnished by the assessee. 9. We have heard the rival contentions and perused the material on record. On going through the instant facts, we observed that there is an apparent contradiction in the findings of the assessing officer in the assessment order and the findings of the Ld. CIT(A), while allowing the appeal of the assessee in respect of most of the additions. While Ld. CIT(A) has noted specifically that agreement to sale of land was furnished before the assessing officer during the course of assessment proceedings, clearly this fact is not coming either from the contents of the assessment order and neither from the assessment records placed before us. The assessee has not been able to conclusively proof that copy of agreement to sale of land was furni....
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....eted the addition with the following observations: "4.3. I have considered the submissions of the learned Authorized Representative and the order of the Assessing Officer. It is seen that the loans have been obtained by account payee cheques. The assessee has also submitted the PAN, address, Bank Statements and confirmation of both the parties from whom the short term loans have been obtained by him. Thus, the primary burden which lay upon him for proving the genuineness of the loan has been discharged. Complete details of PAN & confirmation of the parties were placed before the A.O. during the assessment proceedings and A.O. preferred not to make enquiry from Sri G.G. Parikh and Sri Sachin Kharshikar both of whom are existing assessees. Form No. 16 were also filed by the appellant in respect of them. Hence, the addition of Rs. 10,32,620/- cannot be sustained and the same is directed to be deleted." 14. Before us, the Ld. D.R. submitted that there is an apparent contradiction between the findings of the assessing officer and findings of Ld. CIT(A) in their respective orders. While in the assessment order, the assessing officer has specifically taken note of the fact that the ass....
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....and could clearly be influenced by the assessee into lending their names for investing capital through them. The assessing officer observed that in one of the cases, the interest was to be received by the lenders after a period of six years which clearly establishes that the transaction is not genuine. Further, the assessee has also not been furnished copy of the bank statement of the respective lenders who have invested the money with the assessee. Therefore clearly, the assessee has not been able to establish the genuineness of the transaction as the confirmation of the parties was also not furnished by the assessee. 18. In appeal, the Ld. CIT(A) allowed the appeal of the assessee with the following observations: "5.3.17. It is an undisputed fact that all the unsecured loans have been received by the appellant account payee cheques. Further, the appellant has also paid interest on the said loans. This apart, all the said loans have already been repaid along with interest till 31" March, 2012. Further, the copies of confirmation and bank statements of all the parties have also been furnished by the appellant. From the copies of the bank statements filed it is seen that there we....
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.... relation to this ground of appeal are that the assessee submitted certain details of investments in mutual funds, but during the course of assessment proceedings, the assessing officer observed that the assessee is not in a position to give details of mutual funds transactions amounting to Rs. 36,00,000/- and source thereof. Accordingly, the same was added as unexplained investments made outside the books of accounts, to the total income of the assessee. 25. In appeal, the Ld. CIT(A) allowed the appeal of the assessee with the following observations: "7.3. I have considered the submissions of the learned Authorized Representative and the order of the Assessing Officer. It is seen that the appellant has submitted the statements of mutual funds and there is no evidence in possession of the A.O. that any other investments (other than those reflected in the statements) are made by the appellant. The appellant has also explained that there have been some errors of duplication etc. in the data uploaded by the Mutual Funds for which no additions can be made in the hands of the appellant. Simply on the basis of "some" information about the investment in mutual funds by the assessee, ad....