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TMI Blog2018 (1) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... added by the AO with the aid of section 68 of the Act. 3. With the assistance of the ld.representatives, I have gone through record carefully. It emerges out from the record that the assessee is a blind man serving at Blind Men's Association as a cane instructor. He was getting salary income. According to the AO, one Shri Shailesh K. Thaker has filed complaint against assessee pointing out that he has taxable income which has escaped assessment. The background is that the assessee has given a loan of Rs. 5,61,000/- to Shri Shalesh Thaker during the month of August and September, 1996. Shri Shailesh Thaker has issued a cheque bearing no. 105871 drawn on Central Bank of India, Vasna Branch. This cheque was dishnoured and the assessee has fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Rahimkhan F. Pathan 75,000 2. Satyanarayan Tiwari 75,000 3. Pankaj K. Dagli 75,000 4. Nanji D. Khokhariya 75,000 5. Ravji N. Gopani 80,000 6. Tarkeshwar L. Luhar 75,000 7. He further contended that Rs. 2.16 lakhs is his past savings. Rs. 50,000/- was an advance given earlier, which has been received back by the assessee in this year. This amount has been added by the AO under section 69 of the Income Tax Act. The ld.CIT(A) while evaluating evidences, has made discussion with regard to nature of evidence produced by the assessee and how it deserves to be rejected. The discussion made by the ld.CIT(A) reads as under: "3.8 In the course of appeal proceedings, the appellant has furnished the following i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es in 1991,1992 & 1995, aggregating to Rs. 1,05,000/- (c) An undated confirmation of account. 3.9 After careful consideration of the contentions of the A.O., the submissions of the appellant and the various documents furnished by him, I find as under: (a) As observed by the A.O. the agreements for loan are undated and executed on plain paper. (b) Both the appellant as well as the witnesses, i.e., the lenders are silent as to the status of the loans at the time of assessment proceedings. As observed by the A.O., the recovery of loans has become barred by limitation. (c) There is no stipulation as to the amount of interest that the appellant is liable to pay to the lenders. (d) The lenders have claimed to have lent money in ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kker belonged to such other persons and that these amounts were liable to be returned to the said alleged lenders. 3.10 In view of the above, I hold that the Assessing officer was justified in treating the amount of Rs. 4,55,000/- as the unexplained investment of the appellant and hence his deemed income u/s. 69 of the Act." 8. 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 the assessee is not, in the opinion of the AO satisfactory, then the sum so credited in the accounts may be treated as income of the assessee of that previous year. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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