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TMI Blog2012 (12) TMI 1115X X X X Extracts X X X X X X X X Extracts X X X X ..... aw in confirming the additions made u/s. 68 of the Act in respect of Deposits of ₹ 3,20,000/- and Share application money/capital of ₹ 12,50,000/-. The additions may kindly be deleted. 3.0 The learned CIT(A) erred on facts as also in law in confirming disallowance of ₹ 62,130/- made out of insurance expense. The disallowance may kindly be deleted. 2. The assessee is engaged in Cotton ginning activity. During the year under consideration, the assessee had increased the share capital and accepted new loan. The assessee was asked to file confirmation of share money loan creditor with their name, PAN address. The assessee filed details of share holders and loan creditors but various defects were found in case of D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 377; 12.5 lacs share capital u/s.68 of the I.T. Act. 3. The appellant carried the matter before CIT(A) who had confirmed the addition by observing as under: 4.3 I have carefully considered the assessment order, the above submissions and the case law cited by the ld. Authorised Representative. It is noticed that the appellant has accepted deposits as also share application money from different persons. It is clear from the facts that the Assessing Officer has while making the additions as unexplained deposits and unexplained share application money has gone in detail discussion and in case of every depositor and share holder, he has commented upon all facts relating to the concerned amounts. He has enquired about and made analysis of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ti Dayal Vs. CIT 214 ITR 801 (SC) and Oceanic Products Exporting Co. vs. CIT 241 ITR 497(Ker.). In view of the above discussion, I hold that the appellant has not been able to explain the introduction of money in its books to the extent of ₹ 3,20,000/- claimed as deposit received and ₹ 12,15,000/- claimed as share application money received, and hence the addition made by the Assessing Officer of such amounts stands confirmed. 4. Now the assessee is before us. The ld. Counsel for the appellant argued that the assessee had filed affidavits of share holders and explained the sources of income before the A.O. He filed paper book of 54 pages which includes copy of written submission before the CIT(A), copy of confirmation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade deposit out of her savings from household expenses received from her father Samatbhai Karshanbhai, who is a farmer. Copy of 7/12 extracts and 8A extracts from Land Revenue record of Samatbhai Karshanbhai filed which shows that he is having land of 3.41 hector. 2. Pethalji Jadavbhai 3,50,000 + 50,000 By cheque drawn on Mahuva Nagrik Sahkari bank Copy of affidavit of the person confirming the deposit and the confirmation letter along with copies of account filed. This person is holding agricultural land. Copies of extracts from Land Revenue record were filed with the A.O. 3. Manjulaben Manoharkumar 1,65,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2,00,000 By cheque on State Bank of Saurashtra. Copy of affidavit and confirmation letter along with bank pass book were filed. The depositor has explained that her husband Jadavbhai is a farmer and out of their income from agricultural activity this amount is deposited. She had filed extracts from Land Revenue Record. 7. Urmilabnen Pethaljibhai 2,00,000 By cheque on State Bank of Saurashtra. Copy of affidavit and confirmation letter of depositor along with bank pass book filed. The depositor has explained that the amount is her accumulation from house hold savings and the amounts received from her father from time t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ai Balubhai Kalasariya - 1,00,000/- Total 3,20,000/- 12,50,000/- We have examined the evidences but the share holder/depositor have not proved the creditworthiness and genuineness in all the cases. Further, the assessee did not furnish whatever confirmation on 13.09.2007 but furnished on 26.12.2007 whereas the assessment was completed on 31.12.2007. The case law cited by the assessee are not squarely applicable on assessee s case as there no time remained with A.O. to issue the summons to the loanee or share holders. Therefore, we set aside the order to verify the creditworthiness and genuineness of transaction of the above s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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