TaxTMI 
TaxTMI 
2026 (2) TMI 927
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.... sustaining the addition of 10,00,000 u/s. 69A, out of the total addition of Rs. 15,00,000 relating to loan received from Shri Pravesh Dwivedi, merely on the ground of alleged insufficiency or creditworthiness. The learned CIT appeals has categorically accepted the identity of the lender and the genuineness of the transaction on the basis of affidavit, ITR and banking records and having done so, the sustenance of balance addition is internally inconsistent, arbitrary and based on conjectures without bringing any adverse material on record. Once primary onus u/s. 69A stood discharged, the partial rejection of the same evidence violates settled principles of law. The addition of Rs. 10,00,000 is therefore unsustainable and liable to be delete....
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....e mainly from agriculture, rent and interest and is not in a position to bear the burden of the disputed demand. The balance of convenience lies in favour of the appellant and recovery at this stage would cause irreparable hardship. The appellant therefore prays that the entire outstanding demand be stayed still disposal of the present appeal." 2. Brief facts in this case are that the assessee had taken loan of Rs. 15 lakhs from Pravesh Dwivedi. The A.O added this amount in the hands of the assessee for the reason that the assessee was not able to furnish ITR of the said Pravesh Dwivedi and the additions were made u/s. 69A of the Income Tax Act, 1961 (for short 'the Act'). 3. That before the Ld. CIT(Appeals)/NFAC, the assessee had fur....
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....s. ITO Ward 2(3)(2), Bulandshahr, reported in 2023(10) TMI 1027-ITAT Delhi on the same issue of applying wrong provision of the Act, observed and held as follows: "14. In view of foregoing discussion, I reach to a logical conclusion that the complete cash book statement clearly explains the source of cash deposit to the bank account of assessee, wherein the assessee has not only included cash receipts as salary and capital withdrawal from two partnership firms M/s Umang Beverages and M/s Mohan Oil & Cattle Feed and a cash salary from Bihar Milk Foods Pvt. Ltd. and has also reduced the amount of drawings for household expenses. The copy of return of income of wife of assessee Smt. Shalini and father of assessee Shri Kalu Mal co-join....
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....h Court of Allahabad in the case of Smt. Sarika Jain Vs. The Commissioner of Income Tax, Bareilly and Another, reported in (2018) 407 ITR 254 (All) which decision was referred to and applied in the earlier decision of the Coordinate Bench of Delhi (supra), the Hon'ble High Court of Allahabad held as follows: "In the present case, it is apparent that the subject matter of the dispute all through before the Tribunal in appeal was only with regard to the addition of alleged amount of the gift received by the appellant-assessee as his personal income under Section 68 of the Act and not whether such an addition can be made under Section 69-A of the Act. In view of the above, it can safely be said that the Tribunal travelled bey....
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....h of Rs. 9,45,000/- and the rent income of Rs. 1.80 lac along with interest income of Rs. 1,20,000/- and net agricultural sale receipt of Rs. 1,25,000/- (1,90,000-65,000/) which accumulates to total cash available as Rs. 14,35,000/-. As per the appellant, it is continuous accumulation of cash for three years. The evidence of agricultural holding has also been furnished." The Ld. CIT(Appeals)/NFAC without conducting any independent inquiry nor without any proper reasoning sustained the addition of Rs. 6,61,000/- i.e. [Rs.11,61,000/- (-) Rs. 5,00,000/-] by holding that the theory of accumulation of cash for three years appears to be an afterthought. Thereafter, the Ld. CIT(Appeals)/NFAC goes to the land holding and social stature of the as....