9911796707
TMI Blog2018 (10) TMI 1034X X X X Extracts X X X X X X X X Extracts X X X X ..... ible reasons have been given by the Ld. Counsel for the assessee for giving such short term advances which are ranging from 1 month to 6 month without changing any interest and therefore the addition for alleged interest income of ₹ 55,083/- needs to be confirmed. - Decided partly in favour of assessee - ITA No.564/Ind/2017 - - - Dated:- 17-10-2018 - SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER For The Revenue : Shri P.K. Mitra, Sr.DR For The Assessee : Shri S.S. Deshpande,C.A ORDER PER MANISH BORAD, AM. This appeal of Assessee pertaining to A.Y. 2008-09 is directed against the order of Ld. Commissioner of Income Tax(Appeals)- II, Indore (in short CIT(A) ), dated 01.05 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest free the alleged cash deposits are having their source from agriculture income and accumulated income of preceding years. It was also contended that loans were given to friends and relatives for short period in order to help them in their agriculture operations. Ld.A.O however took the view that the assessee is engaged in money lending business besides earning agriculture income. On the basis of bank account and cash deposited at various dates, Ld.A.O calculated a peak debit balance of ₹ 4,65,024/- treating it as undisclosed investment in money lending business. Ld.A.O also calculated interest income of ₹ 55,803/- on the alleged unaccounted investment and made addition of ₹ 5,20,827/- to NIL income shown by the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso made the addition for interest income of ₹ 55,803/-. 8. Perusal of the bank statement shows that there was an opening balance of ₹ 2,28,946/-. Assessee has declared agriculture income of ₹ 8,00,000/- during the year. It is also not disputed that the assessee has been regularly earning income from agriculture in the past. There is no material available with the Revenue authorities to prove that the assessee received cash from unexplained sources other than agriculture income. However it is true that the assessee has given short term advances to various persons and there are around 19 persons to whom the assessee has paid the amount on credit for short period not exceeding 12 months. 9. In these given facts and cir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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