9911796707
TMI Blog2016 (7) TMI 829X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income Tax Act. 3. Brief facts of the case are that the assessee has filed his return of income on 23.3.2006 declaring income of Rs. 1,22,751/-. The case of the assessee was selected for scrutiny assessment and notice under section 143(2) was issued and served upon the assessee on 19.5.2006. On scrutiny of the accounts, it revealed to the AO that the assessee has taken unsecured loan of Rs. 13,37,109/- from following 34 persons: Sr. No. Name of the depositors Amount of deposits shown 1. Akbarbhai B Belim Rs. 18,000/- 2. Amrut Ambalal Patel Rs. 18,500/- 3. Bahelim Shabbirhusen Kasambhai Rs. 17,500/- 4. Chauhan Chhatrasingh G Rs. 15, 584/- 5. Chauhan Sanatbhai K Rs. 19,500/- 6. Delwad Ambalal Chimanbhai R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee and made addition. 4. On appeal, the ld.CIT(A) has partly deleted the addition by observing as under: "4.3. I have carefully considered the facts of the case, the submissions of the assessee and the assessment order. In the case of Mrs. Vijayalakshmi Shrivastava in her statement recorded on 21/120/2006, it was stated by her that she owns 16 bighas of land and that wheat and chana is cultivated on the land and that no record of income and expenditure is maintained and that she earns Rs. 50,000/- - Rs. 60,000/- from agriculture and the savings are kept at home. During the course of appellate proceedings, however, 6 sales bills for the period 27/04/2003 to 04/05/2003 was submitted showing sale of mustard, maize amounting to R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hese agriculturists had any evidence of sale of agriculture produce, expenditure bills etc. It is indicated by the AO that these are persons of small means and that most of 7/12 and 8A extract were issued on same date i.e. 19/12/2006 by Talati. It is a well settled law that taxing authority can take note of the surrounding circumstances (CIT vs. Durga Prasad More- 82 ITR 540 (SC). Going by the theory of totality of circumstances and deeper examination of the statements recorded, affidavits and considering factors such as land holdings, other source of income such as from sale of milk etc., family size, social obligations, saving potential in my view the credit worthiness in respect of the following lenders seems substantiated: Sr. No. Nam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e course of their statement, and therefore, the AO ought to have not doubted the explanation of the assessee. On the other hand, the ld.DR relied upon the orders of the Revenue authorities below. 6. We have duly considered rival contentions and gone through the record. Section 68 of the Income Tax Act contemplates that where any sum is found credited in the books of an assessee, maintained for any previous year and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not in the opinion of the AO satisfactory, the sum so credited may be charged to income-tax as the income of that previous year. There is no dispute that sums were found credited in the accounts of the assessee. In order t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bharat Cooperative Bank". Then, in the next reply to the next question, she deposed that "I keep few amounts of saving at home". If these two questions are compared with question no.9, where the AO had asked place of keeping agriculture income, she deposed that such income was kept at home. Similarly, we have perused the statement of other creditors. All that statements did not inspire credence to us. The assessee has taken alleged unsecured loan in systematic manner. In some of the cases cash was deposited one or two days before the money was given to the assessee, and the assessee is man of means. How it can be expected that small farmers not having any regular source of income would give loan in this fashion. 8. As far as discrepancy po ..... X X X X Extracts X X X X X X X X Extracts X X X X
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