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2020 (8) TMI 68 - ITAT HYDERABADAddition u/s 68 - Disallowance of gift received from father and brother - HELD THAT:- It is an undisputed fact that both assessee’s father and brother own substantial areas of agricultural land. Therefore, the agricultural income disclosed by them cannot be disputed unless some facts emerged that they have not carried on agricultural activities or have suffered losses in the agricultural activities. Normally farmers do not rely on the banking channel for conducting their day to day activities and do accumulate cash balance - by the class of ration card possessed by the individuals one cannot determine such individuals to belong to people of poor means. It is a generally known fact that on many instances even wealthy farmers possess ration cards of low economic class. CIT (A)’s observation to hold that the quantum of savings of the assessee’s father and brother cannot be relied upon is not appropriate. Considering the extent of land owned by the assessee’s father and brother, their creditworthiness for accumulating the fund cannot be doubted and can be treated as reasonable. Further, the assessee’s father and brother have also confirmed the transaction by furnishing their confirmation statements - Addition u/s 68 deleted - Decided in favour of assessee. Disallowance of unsecured loan - assessee has received an amount of ₹ 3 lakhs from Smt. B. Nirmala as loan treated as bogus - HELD THAT:- Smt. B. Nirmala is engaged in the activity of running a small shop. Therefore, she has some source of income. Further, possessing ration card of low economic strata does not categorically prove that the assessee does not have any resources to earn reasonable income or financially unsound. Moreover, apparently the entire transactions are made through the banking channel. Accumulating an amount of ₹ 3 lakhs by an individual engaged in a small business activity is not an unrealistic factor. Thus the loan transaction cannot be treated as bogus - Decided in favour of assessee.
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