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TMI Blog2020 (8) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... uals to belong to people of poor means. It is a generally known fact that on many instances even wealthy farmers possess ration cards of low economic class. CIT (A) s observation to hold that the quantum of savings of the assessee s father and brother cannot be relied upon is not appropriate. Considering the extent of land owned by the assessee s father and brother, their creditworthiness for accumulating the fund cannot be doubted and can be treated as reasonable. Further, the assessee s father and brother have also confirmed the transaction by furnishing their confirmation statements - Addition u/s 68 deleted - Decided in favour of assessee. Disallowance of unsecured loan - assessee has received an amount of ₹ 3 lakhs from S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Ld. AO who had made addition in the hands of the assessee for ₹ 3 lakhs which is actually the unsecured loan received from Smt. B. Nirmala invoking the provisions of section 68 of the Act. 3. The brief facts of the case are that the assessee is an individual engaged as an agriculturist and also in the business of trading in mangoes, filed his return of income for the AY 2012-13 on 26/8/2013 declaring an income of ₹ 5,75,240/- and agricultural income of ₹ 3,49,500/-. Thereafter the case of the assessee was taken up for scrutiny and finally assessment was completed U/s 143(3) of the Act on 30/3/2015 wherein the Ld. AO treated the aggregate gift received for ₹ 7 lakhs from his father and brother as unexplained cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee s father belongs to below poverty line and of lowest economic strata. (iii) Though the assessee s father was holding a bank account the gift given to his son was by cash and not through cheque. (iv) The source of the gift from the assessee s brother was also stated to be from the agricultural income earned out of his 5.11 (approx) acres of Agricultural Land. In the case of the brother it was observed that he was earning ₹ 80,000/- per Acre however, his father was earning only ₹ 40,000/- per acre which does not appear to be appropriate. Moreover, the details of the factory where the sugarcane was sold was not furnished. (v) The assessee s brother also holds ration card, from which it is apparent that h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... father and brother, their creditworthiness for accumulating the fund of ₹ 4,50,000/- and ₹ 2,50,000/- respectively cannot be doubted and can be treated as reasonable. Further, the assessee s father and brother have also confirmed the transaction by furnishing their confirmation statements. In this situation, the addition made in the hands of the assessee for ₹ 4,50,000/- and ₹ 2,50,000/- being the gift received from his father and brother is not justifiable. Therefore, I hereby set aside the order of the Ld. CIT (A) and further direct the Ld. AO to delete the above stated addition aggregating to ₹ 7 lakhs made in the hands of the assessee U/s. 68. Ground No.(ii): Disallowance of unsecured loan of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts of the case it is apparent that Smt. B. Nirmala is engaged in the activity of running a small shop. Therefore, she has some source of income. Further, possessing ration card of low economic strata does not categorically prove that the assessee does not have any resources to earn reasonable income or financially unsound. Moreover, apparently the entire transactions are made through the banking channel. Accumulating an amount of ₹ 3 lakhs by an individual engaged in a small business activity is not an unrealistic factor. Keeping in view of the facts and circumstances of the case I am of the considered view that the loan transaction cannot be treated as bogus. Therefore, I hereby set aside the order of the Ld. CIT (A) on this issue ..... X X X X Extracts X X X X X X X X Extracts X X X X
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