2013 (4) TMI 174 - AT - Income Tax

Addition made on account of two Sundry Creditors under the head Income from Other Sources - Held that - The advances received by the assessee from the two parties were duly adjusted in the subsequent year against the sales made by the assessee to both the parties. Since the advances received were duly adjusted and set off against the sales which were made to these parties and there remained no advances in the subsequent year the addition made by the AO cannot be sustained - thus delete the addition made - in favour of assessee. Addition of Rs.5, 00, 000/- made on account of introduction to Capital under the head Income from Other Sources - Held that - Going through the bank accounts as well as the confirmations filed by the assessee from Tea Brokers (Guwahati) Pvt. Ltd. it is seen that ultimately the amount came to the bank account of the assessee s proprietorship concern i.e. Giriraj Steel Traders of Rs.2 lakhs on 7.3.2001 and Rs.3 lakhs on 21.3.2001 by way of transfer from G. D. Enterprises. This is apart from the fact that the assessee has received a sum of Rs.5, 35, 858/- from M/s. Tea Brokers (Guwahati) Pvt. Ltd. as refund of the loan earlier advanced by the assessee along with interest thereon. M/s. Tea Brokers (Guwahati) Pvt. Ltd. is an income-tax assessee the identity of which is not doubted. The amount has been received through cheque and has duly come in the bank account of the assessee. Thus the assessee has discharged his onus thus the addition deleted by setting aside the order of the CIT(A)- in favour of assessee. Addition of Rs.65, 000/- made on account of introduction to Capital under the head Income from Other Sources - assessee reiterated the submissions that out of cash in hand accumulated from its withdrawals from the bank account of the assessee - Held that - On going through the bank account and cash book and keeping in view of the documents of the assessee the explanation of the assessee that out of cash in hand accumulated from its withdrawals from the bank account of the assessee accepted. No infirmity in the order of the CIT(A) in confirming the addition - against assessee. Addition of Rs.90, 020/- made on account of the introduction to the capital in the proprietorship concern - Held that - Going through the copy of the bank account it is noted that the assessee had transferred on 13.9.1999 a sum of Rs.70, 000/- in the current account of the proprietorship concern and similarly the assessee had transferred on 15.12.1999 a sum of Rs.20, 000/- in his proprietorship concern vide cheques. The sum of Rs.20/- is a petty amount and is also appearing as transfer on 22.3.2001. Thus the observations made by the authorities below are not correct and the sum of Rs.90, 020/- is duly appearing in the Punjab National Bank account number on three dates amounting to Rs.70, 000/- Rs.20, 000/- and Rs.20/-. As the assessee has duly explained the source of the capital introduced in the firm orders to delete the addition - in favour of assessee.