2013 (6) TMI 890 - AT - Income Tax

Summary

Issues Involved:
1. Addition of unexplained cash credits.
2. Addition of unexplained cash credit u/s 68.
3. Addition of undisclosed income from gifts.
4. Addition of undisclosed income from loans.
5. Addition of unexplained loan from a bank.

Summary:

1. Addition of Unexplained Cash Credits:
The first and second interconnected issues pertain to the CIT(A) confirming the addition of advances received against the sale of flats amounting to Rs. 1,80,000/- as unexplained cash credit. The CIT(A) also confirmed cash receipts of Rs. 1,00,000/- from three unidentified persons, Rs. 70,000/- from Sri Saradindu Sarkar, and Rs. 10,000/- from Sri Sujoy Ghatak. The Tribunal upheld the CIT(A)'s decision, noting that the assessee could not explain these cash receipts even during the appellate proceedings.

2. Addition of Unexplained Cash Credit u/s 68:
The third issue involves the CIT(A) confirming the addition of Rs. 1,85,500/- received from Smt. Rekha Guha as unexplained cash credit u/s 68 of the Act. The Tribunal found that the amounts were received through proper banking channels and were mentioned in the repayment details of the loan account. Consequently, the Tribunal deleted this addition.

3. Addition of Undisclosed Income from Gifts:
The first issue in the appeal for A.Y 2004-05 concerns the CIT(A) confirming the addition of Rs. 3,00,000/- received as gifts from six persons as undisclosed income. The Tribunal noted that the assessee had provided complete details, including the identity, creditworthiness, and genuineness of the transactions, supported by income tax documents of the donors. Citing the Calcutta High Court's decision in the case of CIT Vs. M/s. Dataware Private Limited, the Tribunal deleted the addition.

4. Addition of Undisclosed Income from Loans:
The second issue involves the CIT(A) confirming the addition of Rs. 3,00,000/- received as a loan from Smt. Putul Bose as undisclosed income. The Tribunal upheld the CIT(A)'s decision, noting that the assessee failed to provide the bank statement of the loan creditor to substantiate the transaction.

5. Addition of Unexplained Loan from a Bank:
The final issue pertains to the CIT(A) confirming the addition of Rs. 10,00,000/- as unexplained loan taken from West Bengal State Agricultural & Rural Development Bank Ltd. The Tribunal found that the loan was obtained and repaid in the immediately preceding assessment year 2003-04, and thus, no addition could be made on this issue. The Tribunal allowed this ground of appeal.

Conclusion:
The appeals of the assessee were partly allowed, with some additions being confirmed and others deleted based on the evidence and legal precedents. The order was pronounced in the open court on 21-06-2013.