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TMI Blog2013 (5) TMI 589X X X X Extracts X X X X X X X X Extracts X X X X ..... pose. As regard to the addition of bank loan interest debiting in the Profit and Loss Account, which is said to be returned in installment by the assessee to the HDFC Bank, AO verified the same from HDFC Bank under Section 133(6) and the said bank informed that the loan in dispute was raised by assessee's son, Sh. Jasbir Singh, Prop. M/s Milap Foundry Works and not by the assessee for his own business purposes and he has acted simply as a guarantor for the same. Thus FAA has passed a well reasoned order by rightly upholding the addition in dispute - appeal filed by the assessee is dismissed. - I.T.A. No. 73 (Asr)/2012 - - - Dated:- 13-5-2013 - Sh. H. S. Sidhu And Sh. B. P. Jain,JJ. For the Appellant : Sh. K. R. Jain For the Respondent : Sh. Tarsem Lal, D. R. ORDER Per Bench 1) The assessee has filed the present appeal against the order dated 02.11.2011 passed by learned CIT(A), Amritsar, for the assessment year 2006-07, on the following grounds: i. That the order of Commissioner (Appeals) is contrary to law and the facts of the appellant's case. ii. That the Commissioner (Appeals) erred in ignoring the facts that cash for the purchase of plot had be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lot had been provided by his second wife Smt. Darshan Kaur. Assessee further stated in his reply that his first wife died on 08.01.1999 and afterwards he got married with a widow (Smt. Darshan Kaur). After death of husband of Smt. Darshan Kaur, she sold out all properties and kept cash with her and did not deposit in the bank. The assessee has also replied that his second wife gave him cash of Rs. 9 lakhs and her two brothers has also gifted him Rs. 4 lakhs on the eve of second marriage. 5) Assessing Officer asked the assessee to produce Smt. Darshan Kaur to authenticate his assertion that funds were provided by his wife Smt. Darshan Kaur. In compliance to this, assessee produced Smt. Darshan Kaur, whose statement was recorded on oath on 01.12.208, in which she stated that she is a house-wife having no source of income. She could not give the source of Rs. 13 lacs given to her husband except that she received sale consideration of residential house sold on 20.03.2001. Assessing Officer asked her to furnish documentary evidence of her claim that she sold a residential house in 2001. In response to this, she filed a copy of sale deed of residential house sold for Rs. 2,80,000/- on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 69 of the Act as unexplained investment for the assessment year in dispute and secondly interest of Rs. 1,12,302/- paid to HDFC Bank has also been disallowed on account of the fact that the funds of the HDFC Bank has been transferred in the account of assessee's son, Sh. Jasbir Singh, Prop. M/s Milap Foundry Works and the interest paid at Rs. 1,23,302/- is not attributable to the business run by him. The Assessing Officer completed the assessment without appreciating the documentary evidence produced by the assessee. Similarly, the learned First Appellate Authority has also upheld the assessment order without appreciating the evidence produced by the assessee. Learned counsel for the assessee stated that the plot of Rs. 12 lacs was purchased by assessee's second wife Smt. Darshan Kaur by her own funds and only register deed was written in the name of the assessee. Due to this reason, the assessee has not shown the purchase of plot in his balance-sheet. Assessee had purchased the plot in dispute with the funds of his wife and her brothers. Finally, he stated that the assessee so called voluntary surrender letter dated 22.12.2008 offering for taxation purposes the remaining unexplain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... attributable to the business run by the assessee, the same has also rightly been added by the Revenue Department. He requested that the appeal filed by the assessee may be dismissed. 12) We have heard both the parties and perused the documentary evidence available with use. It is a matter of record that the assessee had purchased a plot of land measuring 960 square yard through power of attorney for Rs. 12 lacs on 17.06.2006 from Smt. Veena Rani, who had given her statement before the Assessing Officer on 23.10.2008 that she had sold the plot of land for Rs. 12 lacs and received the consideration in cash from the assessee. Secondly, as per balance-sheet, there is a secured loan to the tune of Rs. 12,01,562/- from HDFC Bank. In the detail of interest claimed at Rs. 1,28,184/-, assessee had claimed interest of Rs. 1,12,302/- paid to HDFC Bank. The Assessing officer called the information from the HDFC Bank under Section 133(6) of the Act and the said Bank informed that this loan was raised by assessee's son Sh. Jasbir Singh and the assessee was only a guarantor for raising this loan. In the explanation given by the assessee regarding the source of Rs. 12 lacs paid to Smt. Veena Ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icer has written a letter dated 17.12.2008 to the assessee and provided him final opportunity to explain and said that as to why Rs. 12 lacs may not be added to his taxable income for the assessment year in dispute. We find that assessee could not explain the source of Rs. 9.99 lacs and he has written a letter dated 22.12.2008 to the Assessing Officer and surrendered Rs. 9.99 lacs as additional income for the assessment year in dispute which the assessee has attached at page no. 15 of the paper book. Assessee has explained only the source of Rs. 2,80,000/- which was given to the assessee by his wife Smt. Darshan Kaur by selling residential house in 2001 on 23.03.2001. 14) Keeping in view the aforesaid facts and circumstances explained above, we are of the view that the Revenue Authority is wholly justified in making the addition of Rs. 9.99 lacs under Section 69 of the Act because assessee voluntarily surrendered Rs. 9.99 lacs vide his letter dated 22.12.2008 offered for taxation purpose. As regard to the addition of bank loan interest i.e. Rs. 1,12,302/- debiting in the Profit and Loss Account, which is said to be returned in installment by the assessee to the HDFC Bank, the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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