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TMI Blog2012 (8) TMI 550X X X X Extracts X X X X X X X X Extracts X X X X ..... tion on account of unexplained cash credits - Held that:- In terms of section 68 the onus is on the assessee to establish the nature and source of the credits appearing in his financial statements - CIT (A) has recorded a finding that there was no documentary evidence produced in support of the amount in question and even the explanation furnished to the effect that the sum represented advance against proposed sale of land has also been doubted, inasmuch as that even after expiry of 11 years after the proposed sale, the transaction does not appear to have fructified - against assessee. - ITA No.565/PN/07, 566/PN/07, 567/PN/07 - - - Dated:- 25-6-2012 - SHRI G.S. PANNU, AND R.S. PADVEKAR, JJ. Appellant by: Shri Nikhil Pathak Resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which exempts only daily allowance received by a Member of the State Legislative Assembly or Member of the Parliament. The alternative claim of the assessee in terms of section 10(14)(i) of the Act is also untenable, as the same is relatable to allowances received in performance of the duties of an office or employment of profit which is not the case with the instant assessee. Therefore, on both the counts, we find no reasons to interfere with the conclusions drawn by the lower authorities which are hereby affirmed. Thus, on this aspect the assessee fails. 5. In the result, the appeal of the assessee for the assessment year 1995- 96 is dismissed. 6. In ITA No 566/PN/07 relating to the assessment year 1996-97, the first issue is with re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere produced before the Assessing Officer for verification. The Assessing Officer also inferred that the credibility of the prospective buyers was also not proved by the assessee. For all the above reasons, the amount of Rs 6,80,000/- was treated as an unexplained credit and added to the total income of the assessee under section 68 of the Act. Before the Commissioner of Income-tax (Appeals), assessee claimed that the agreement in question was a notarized document and there was no justification to dis-regard the credibility of the same. It was, therefore, contended that the transaction of proposed sale reflected by the impugned document could not be disregarded. The Commissioner of Income-tax (Appeals), however, was not impressed with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e amount of Rs 6,80,000/- in the year of receipt. This may be done as a consequence of giving effect to this order subject to fulfillment of conditions of limitation u/s 153(3) of the ct. This ground of appeal is rejected. 8. Before us, the learned Counsel for the assessee has reiterated the submissions put-forth before the lower authorities and pointed out that the explanations rendered by the assessee have been disregarded in the absence of any particular adverse evidence brought on record by the lower authorities. It was a, therefore, contended that the addition in question be deleted. 9. On the other hand, the learned Departmental Representative, appearing for the Revenue, has defended the orders of the authorities below by placi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bank pass book of the creditor was also produced. The Assessing Officer observed that prior to advancing of the loan there were cash deposits in the bank account of the creditor. The Assessing Officer also noticed that Lokhande family claimed to have given their agricultural land for cultivation to the assessee for a meager consideration of Rs 5000/- per month; that Lokhande family had raised substantial loans from credit co-operative societies and it was improbable that such a creditor will advance interest free loan to the assessee. Accordingly, in this background, the Assessing Officer was not satisfied with the explanation rendered by the assessee with regard to the nature and source of the impugned credit within the meaning of section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he AO, submission of the appellant, remand report of the AOon the submission of the appellant and other relevant record etc. The decisions relied on by the appellant are distinguishable on facts. In view of the detail reasons mentioned by the AO in his assessment order mentioned in para 8.1 above, I am of the considered vie that the appellant failed to prove the creditworthiness of the loaner to advance huge loan of Rs 9 lacs during the span of 9months. The land holding of Mr Vilas V Lokhande, crop grown by him during the relevant period, leads to the conclusion that Mr Vilas V Lokhande would not have been in a position to earn agricultural income to the extent to enable him to give loan of Rs 9 lacs to the appellant in a short span of 9 mo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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