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TMI Blog2013 (5) TMI 560X X X X Extracts X X X X X X X X Extracts X X X X ..... as under : "1. On the facts and circumstances of the case and in law the Ld. CIT(A) was not justified in confirming the addition made by the Assessing Officer of Rs.4,21,000/- for the reasons mentioned in the assessment order. The addition made by Assessing Officer and sustained by Ld. CIT(A) being illegal and without jurisdiction be quashed. 2. On the facts and circumstances of the case and in law and in view of the fact that since no material was found in search or thereafter, no addition can be made in an assessment made u/s.153A of the Act. The addition made by Assessing Officer and sustained by Ld. CIT(A) be quashed". 3. Facts of the case, in brief, are that the assessee is an individual and is engaged in the business of Civil Cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payments of Rs.4,21,000/-? Ans. I have gone through the agreements. As far as I remember this plot was agreed to be purchased by my son Amitkumar Luthra for the amount of Rs.7,11,000/- and the payments made by account payee cheque is definitely reflected in the books of accounts, however cash payments of Rs.4,21,000/- made to the seller to the best of my memory was by my late wife Smt. Urmila K. Luthra who paid on behalf of my son Amit. However, as on today it is not possible to produce documentary evidence in support of this claim and therefore to buy peace of mind and avoid litigation I offer cash payments of Rs.4,21,000/- as income and this income will be assessable in the hands of Amitkumar Luthra in whose name the agreement has been m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 000/- has been paid by cash and remaining balance of Rs. 2,90,000/- by crossed cheque. Please state whether this investment has been disclosed in the Income Tax records or in the books of accounts and what is the source of the cash payments of Rs. 4,21,000/- ? Ans. I have gone through the agreements. As far as I remember this plot was agreed to be purchased by my son Amitkumar Luthara for the amount of Rs. Rs. 7,11,000/- and the however cash payments made by account payee cheque is definitely reflected in the books of accounts. However cash payments of Rs. 4,21,000/- made to the seller to the best of my memory was by my late wife Smt. Urmila K. Luthara who paid on behalf of my son Amit. However, as on today It is not possible to produce do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d courses. Further, during the course of assessment proceedings the assessee in his letter addressed to the AO has accepted for the addition to be made in his hands. Under these circumstances and in view of the detailed reasoning given by the Ld. CIT(A) we find no infirmity in the same. We accordingly uphold the same. The grounds raised by the assessee are accordingly dismissed. 6. Ground of appeal No.3 by the assessee reads as under :- "3. On the facts and circumstances of the case and in law the levy of interest u/s.234A, 234B and 234C is not justified. The levy of interest be quashed". 7. After hearing both sides we are of the considered opinion that levy of interest u/s.234A, 234B and 23C is mandatory and consequential in nature. Acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n by the assessee as to how this deduction u/s.57 is allowable and in absence of any attempt made by the assessee to prove the nexus between the amount of Rs.6 lakhs and interest on fixed deposits the Assessing Officer disallowed the claim of deduction made u/s.57 of the Income Tax Act. 11. Before the CIT(A) it was submitted that the amount of Rs.6 lakhs was paid to Sri Satish Manchanda on 30-08-2002 vide Cheque No.646365 of Punjab & Sind Bank, Current Account No.1278, Aurangabad Branch. The said amount was paid as loan given in the ordinary course of business. The Assessing Officer has neither questioned or requisitioned about the transaction reflected during the assessment year u/s.153A nor has doubted about the genuineness of the transa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e sides, perused the orders of the Assessing Officer and the CIT(A) and the Paper Book filed on behalf of the assessee. We find the assessee claimed deduction of Rs.6 lakhs u/s.57 from the interest on fixed deposits. In absence of any nexus between the interest income on fixed deposit and bad debt claimed the Assessing Officer disallowed the same. We find before the CIT(A) the assessee claimed that the same is an allowable deduction u/s.37 and by mistake the same was claimed u/s.57 and the Assessing Officer had not given adequate opportunity and the genuineness of the bad debt is not doubted by the Assessing Officer. From the order of the Ld. CIT(A) we find the assessee has filed the profit and loss account offering income under the provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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