TaxTMI 
TaxTMI 
2025 (6) TMI 1396
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....ar. 3. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) is not justified in confirming the addition of Rs. 70,11,472/- u/s 68 of the Act for unexplained unsecured loans when the source of the loan are explainable. 4. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) is not justified in not admitting the additional evidence produced before him. 5. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) is not justified in confirming the addition of Rs. 3,91,000/- made u/s 69C of the Act on account of cash payment to some relative. 6. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) is not justified in confirming Disallowance of Rs. 36,550/- u/s 40A(3) of the Act for cash payments. 7. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) is not justified in confirming addition u/s 68 of the Act of Rs. 49,62,507/- on account of increase in capital under the head 'by self-account'. 8. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) is not justified in confirming and invok....
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....was worked out to Rs. 90,66,185/-. Applying the GP rate of 18% shown by the assessee, addition of Rs. 16,31,913/- was made by the Assessing Officer in the order passed u/s 143(3) of the Act by invoking the provisions of section 68 of the Act. Similarly, survey team had also inventorized the stock found as on the date of survey and valued the stock with the help of the assessee which comes to Rs. 22,40,052/-. When this was compared with the closing stock as per tentative trading account which is at Rs. 4,18,260/-, a difference of Rs. 18,21,792/- was found. Since the assessee had confirmed the excess stock found but could not explain the excess stock, he agreed to offer the same as additional income over and above his regular business income. The Assessing Officer in the order passed u/s 143(3) of the Act brought to tax the same u/s 69 r.w.s. 115BBE of the Act. 6. In appeal, the Ld. CIT(A) sustained the above two additions. 7. Aggrieved with such order of the Ld. CIT(A), the assessee is in appeal before the Tribunal. 8. The Ld. Counsel for the assessee at the outset submitted that although the assessee had admitted the excess stock of Rs. 18,21,792/- and the GP of Rs. 16,31,....
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....ccordingly partly allowed. 12. Ground No.3 relates to the order of the Ld. CIT(A) confirming the addition of Rs. 70,11,472/- made by the Assessing Officer u/s 68 of the Act. 13. Facts of the case, in brief, are that the Assessing Officer during the course of assessment proceedings noted that the tax auditor in the tax audit report has provided the particulars of each specified sum which is taken as unsecured loan during the year as per column No.31(b) of the audit report. The details of the same are as under: Sr. No. Name of the person from whom specified sum is received Amount of specified sum taken or accepted. 1 Kapil Mohan Chougule Rs.6,00,000/- 2 Kapil Mohan Chougule Rs.8,00,000/- 3 Kapil Mohan Chougule Rs.21,95,000/- 4 Kapil Mohan Chougule Rs.23,893/- 5 Kapil Mohan Chougule Rs.4,76,107/- 6 Kapil Mohan Chougule Rs.2,50,000/- 7 Pandurang Lagu Rs.2,00,000/- 8 Pandurang Lagu Rs.1,00,000/- 9 Pandurang Lagu Rs.1,88,639/- 10 Pandurang Lagu Rs.45,833/- 11 Sou. Manisha Mohan Chougule Rs.4,50,000/- 12 Sou. Manisha Mohan Chougule Rs.2,00,000/- 13 Koustubh Moha....
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....rmation Copy of ITR Copy of bank statement Kapil Mohan Chougule 43,45,000 Not filed Not filed Part bank statement filed during the appeal proceedings. The source of payments made is clear not clear. Pandurang Lagu 5,34,472 Not filed Not filed Part bank statement filed during the appeal proceedings. The source of payments made is not clear Sou Manisha Mohan Chougule 6,88,000 Not filed Not filed Part bank statement filed during the appeal proceedings. There is cash deposit just before the payment to the appellant Koustubh Mohan Chougule 10,00,000 Not filed Not filed Part bank statement filed during the appeal proceedings. The source of payments made is not clear Mohan Dagdu Chougule (HUF) 1,44,000 Not filed Not filed No bank statement filed Sunil Hambirao Shelar 3,00,000 Not filed Not filed bank statement filed during the appeal proceedings. There is a cash deposit of Rs. 2,00,000/- just before the payment appellant. 30. It is a well settled legal position that onus of proving the source of money found to have been received by an assessee is on him. If the assessee has failed to s....
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....onfirmation letter Ledger Account Confirmation Acknowledgement of Return Balance Sheet Profit and loss ac Computation Index of sale of land Pandurang Chintamani Lagu AAKPL6732E 534472 Loan given out of my income and amount received from son Mukund Lagu who is employed in Sweedan transferred amount through bank Amount Rs. 188639 and 45833 returned in the same year and remaining amount is also repaid. Confirmation letter Ledger Account Confirmation Acknowledgment of Return Bank Statements Manisha Mohan Chougule AGPPC8686C 6,88,000 Loan given out of my business income from Dairy. The amount is repaid Confirmation letter Ledger Account Confirmation Acknowledgement of Return Balance Sheet Profit and loss ac Computation Koustubh Mohan Chougule CCOPC1954M 10,00,000 Loan given out of sale proceeds of land Confirmation letter Acknowledgement of Return Balance Sheet Profit and loss ac Computation Index of sale of land &....
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....Officer which were not sufficient to accept the creditworthiness of the loan creditors. Although the assessee has filed the bank statements of some of the loan creditors before the Ld. CIT(A), he did not accept the same on the ground that the assessee could not explain the reasons as to why the same were not filed before the Assessing Officer and the filing of those documents are not in accordance with Rule 46A of the Income Tax Rules, 1962. It is the submission of the Ld. Counsel for the assessee that the loan creditors have declared such loan amounts in their respective Balance Sheets which were filed along with the returns of income prior to the completion of the assessment. It is also his submission that given an opportunity, the assessee is in a position to substantiate his case with evidence to the satisfaction of the Assessing Officer regarding the identity and creditworthiness of the loan creditors and genuineness of the transactions. Considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Assessing Officer with a direction to give one final opportunity to the assessee for proving the identi....
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....e assessee has introduced the capital by obtaining this amount from various close relatives who had given the same to the assessee out of love and affection for betterment of his business. Referring to page 101 of the paper book, he drew the attention of the Bench to the same and submitted that the same reflects the details of amount of Rs. 49,62,507/-. He submitted that an amount of Rs. 28,30,000/- is the opening balance. He submitted that these details could not be produced before the Assessing Officer or the Ld. CIT(A). Therefore, given an opportunity, the assessee is in a position to substantiate his case by filing the requisite details before the Assessing Officer since all these details are already reflected in the books of account. 24. The Ld. DR on the other hand strongly supported the order of the Ld. CIT(A) on this issue. 25. We have heard the rival arguments made by both the sides, perused the orders of the Assessing Officer and Ld. CIT(A) and the paper book filed on behalf of the assessee. We have also considered the various decisions cited before us. It is an admitted fact that due to non submission of any details before the Assessing Officer regarding the detail....