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TMI Blog2017 (4) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... justified the small sums advanced by them. Both the creditors had current account with the assessee inasmuch as they had received rent from assessee. Under such circumstances, all the three ingredients for establishing the genuineness of transactions u/s 68 were fully met. Assessee failed to produce the creditors before Assessing Officer - Held that:- Merely on this count, the addition cannot be made u/s 68. Thus direct for deleting the addition made by Assessing Officer u/s 68 - Decided in favour of assessee Disallowing the interest paid to the unsecured loans not considered as genuine - Held that:- As noted earlier, both the creditors had paid interest to assessee which has duly been credited in the account statement filed by the assessee and, therefore, fail to understand as to how the disallowance could be made on account of interest payment of ₹ 25,300/-. The entire basis on which the findings of Assessing Officer are based misconceived. Thus, this addition is also directed to be deleted. Disallowing 1/6th of expenses out of shop expenses and expenses out of car and telephone expenses on account of personal user - Held that:- Disallowance out of shop expenses a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t has the reasonable cause for the delay in filing of appeal. 3. That the Ld. CIT (A) erred in confirming the addition of ₹ 230000/- made by the Ld. AO u/s 68 of the Act by treating the fresh cash credits as unexplained. 4. That the Ld. CIT (A) erred in confirming the addition of ₹ 25300/- made by the Ld. AO by disallowing the interest paid of ₹ 25300/- to the unsecured loans not considered as genuine. 5. That the Ld. CIT (A) erred in confirming the addition of ₹ 7070/- made by the Ld. AO by disallowing 1/6th of expenses out of shop expenses on ad-hoc basis. 6. That the Ld. CIT (A) erred in confirming the addition of ₹ 5800/- made by the Ld. AO by disallowing 1/6th of expenses out of car and telephone expenses on account of personal user. 7. That the Ld. CIT (A) erred in confirming the addition of ₹ 36000/- made by the Ld. AO on account of low house hold expenses. 2. Apropos ground no.2, ld. counsel for the assessee pointed out that there was delay in filing the appeal before ld. CIT(A), which was merely attributable to the counsel, who forgotten to file the appeal. He submitted that ld. CIT(A) has decided the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also required them to produce the said ladies for examination on 13.11.2013. He has pointed out that on the date of hearing, assessee attended the assessment proceedings but neither any explanation regarding his queries was furnished by the assessee nor ladies were produced for examination. He, therefore, concluded that the assessee failed to discharge his onus of burden in respect of these two creditors. He, accordingly, made addition u/s 68 of ₹ 2,30,000/-. The Assessing Officer, further, made disallowance of ₹ 25,300/- allegedly on account of interest paid to abovementioned creditors. He, further, made disallowances of ₹ 7070/- out of shop expenses amounting to ₹ 42,397/-, inter-alia, observing that complete vouchers were not produced. Similarly, he also made another disallowance out of telephone and vehicle expenses amounting to ₹ 5800/-. He also made addition of ₹ 36,000/- on account of low house hold withdrawals. Ld. CIT(A) dismissed the assessee s appeal. Being aggrieved, the assessee is in appeal before the Tribunal. 4. Ld. counsel referred to page 8 wherein the return of income of Smt. Santosh Devi, W/o Binod Kumar for assessment ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontained at page 16 17 of the Paper Book evidencing these transactions. 4.2 With reference to aforementioned documents, ld. counsel pointed out that the assessee had duly discharged his primary onus of establishing the identity, creditworthiness and genuineness of the transactions. He submitted that there is no law which prohibits any person from depositing cash in his account and issuing cheque on the same date. He submitted that once the assessee had discharged his primary onus the action could be taken against the creditor and not the assessee. He, further, pointed out that the small amounts were deposited in bank and, therefore, no adverse inference could be drawn. Ld. DR relied on the order of ld. CIT(A). 5. I have considered the submissions of both the parties and have perused the record of the case. The Assessing Officer had made the addition u/s 68 primarily for two reasons. Firstly, the amount was deposited by creditors in their accounts on the same date viz. 14.05.2010 on which date they issued the cheque in favour of the assessee and, secondly, on the ground that assessee failed to produce the creditors before Assessing Officer. As far as the first reasoning is c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e because complete vouchers could not be produced. I, therefore, do not find any basis for interfering with the order of the lower authorities on this count. Similarly, as regards disallowances out of car and telephone expenses are concerned, it cannot be denied that there was personal user of both these facilities and, therefore, disallowance on account of personal user was called for. The disallowance was quite reasonable and no interference is called for on this count. In the result, ground nos.5 and 6 are dismissed. 9. Apropos ground no.7, the Assessing Officer has observed that assessee is having family of two members. He estimated the overall expenditure on various house hold items at ₹ 8,000/- per month and, since, the assessee had shown ₹ 60,000/- towards house hold expenses, therefore, addition of ₹ 36,000/- was made which was confirmed by ld. CIT(A). Ld. counsel pointed out that Assessing Officer did not consider the withdrawals made by assessee s wife of ₹ 30,000/-. In this regard, he referred to page 18 wherein the copy of return of income of Smt. Santosh Devi wife of assessee is contained along with statement of total income, capital account ..... X X X X Extracts X X X X X X X X Extracts X X X X
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