9911796707
TMI Blog2014 (11) TMI 648X X X X Extracts X X X X X X X X Extracts X X X X ..... oceedings under section 271(1)(c) which is premature in nature and does not require any adjudication. 2. We have heard Ld. Counsel and Ld. D.R. and perused paper book placed on record. There are three issues for consideration in the rest of the grounds. Briefly stated, assessee is a Director of M/s. Swagruha Estates & Constructions P. Ltd., For A.Y. 2008-09 assessee filed return of income declaring total income of Rs. 16,69,790 and agricultural income of Rs. 1,85,000. A.O. completed the assessment under section 143(3) making inter alia various additions and determined the total income at Rs. 1,83,84,400. One of the addition made was about various loans/cash credits received by assessee but treated as income under section 68 to an extent of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tural income, no proof regarding such sources was provided. Accordingly, it was submitted that the creditworthiness of the creditor was not proved. Besides, it was also seen that the amount had been advanced out of cash deposits. 10.2.1. From the facts submitted in the report of the Assessing Officer, it is clear that the appellant has not been able to establish the creditworthiness of Sri Vidadala Gopinath. It could not be demonstrated that such amount was given by him out of his income from the sources stated above. Besides, it is also not explained as to what was the source of cash deposited by him in his account for advancing the said loan. Accordingly, in the absence of evidence regarding creditworthiness, the credit of Rs. 7 lakhs sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en. Besides, she noted that the said loan was given by her, out of cash deposits. 10.6.1. In this regard it is the contention of the representative of the appellant that the loan amount was later repaid by the appellant on 9.3.2011. He averred that the identity of the creditor and the fact of advancing of loan had also been duly established. 10.6.2. On a consideration of the facts, I am of the view that even though Mrs. T. Shyamala Devi confirmed having given the loan of Rs. 4,50,000/- and such loan amount was even returned to her later, nothing could be furnished to substantiate the claim that such amount was given out of the retirement benefits of her spouse. The source of deposit of cash in her account before advancing of the loan coul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . T. Venkata Sai Ramana Rao, who is Retired as Deputy Superintendent of Police, Intelligence Department, Hyderabad. 3. My husband paid income tax through the unit officers in form of Form 16. His PAN No.ABGPT-8903-L". The remand report of the A.O. dated 26th March, 2012 indicates as under : "The assessee furnished confirmation letter of T. Syamala Devi, wherein the loan creditor confirmed having advanced an amount of Rs. 4,50,000/- through cheque bearing No.795209 dt.17.04.2007 drawn on Syndicate Bank, Guntur Branch. The sources for advancement of loan were said to be out of the retirement benefits of her spouse T. Venkata Sai Ramana Rao, retired Deputy Superintendent of Police. No evidence of this is given. The assessee furnished stateme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0,25,000 stated to have been incurred for development of land which resulted in short term capital gain. Assessee has sold the property for an amount of Rs. 18,50,000 and claimed expenditure to the tune of Rs. 16,70,210 which comprises of cost of acquisition on 13.12.2005 at Rs. 6,45,210 and cost of improvement of Rs. 10,25,000. A.O. while calculating the computation even though noted down that the purchase consideration was Rs. 6,45,210, however, considered only an amount of Rs. 5,50,000. Assessee raised ground before Ld. CIT(A) stating that A.O. has not taken the registration charges into consideration. Ld. CIT(A), however, did not adjudicate this aspect while adjudicating the cost of improvement vide para-8. It was assessee's submission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted that assessee has laid a road and levelled the plot and labour charges incurred which were noted down in note book of site development expenses. It was submitted that the cost of Rs. 10,25,000 comprises of filling of gravel Rs. 4,03,200, Spreading Rs. 89,670, Digging and Removing Stones at Rs. 2,19,705 and Laying of Roads Rs. 3,12,425. 7.2. Having seen the documents placed on record and the property purchased by assessee, we notice that there are already roads adjacent to the plots when assessee has purchased. All these plots are adjacent to each other and does not require any road internally. Since there is no evidence of any improvement other than the rough notings in a note book, we are not convinced with the claim of assessee. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
