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TMI Blog2021 (7) TMI 243X X X X Extracts X X X X X X X X Extracts X X X X ..... chit fund claim. Further, the CIT(A) observed that being govt. employee, the assessee is not permitted to enter in chit fund. Even before us, the ld. AR of the assessee failed to establish that the amount of ₹ 10,00,000/- received from chit fund and the submissions in the written submissions are general and vogue which are not supported to the case of the assessee. CIT(A) examined the bank statement of the assessee and after observing the monthly expenditure of the assessee and nature of transactions carried out by the assessee, he has rightly sustained the addition made by the AO - No infirmity in the order of the CIT(A) in confirming the addition - Decided against assessee. - ITA No. 289/H/2020 - - - Dated:- 28-6-2021 - Satb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,00,000/- and sources for the credit of ₹ 2,75,000/- aggregating to ₹ 22,75,000/- remained unexplained by the assessee, the AO treated the same as income u/s. 69A of the Act. 3. Aggrieved by the order of AO, the assessee preferred an appeal before the CIT(A). 4. The CIT(A) after considering the submissions of the assessee, confirmed the addition of ₹ 10,00,000/- by observing that the assessee is a state government employee and as per the provisions of the state government conduct rules, state government employees are not permitted to make investment in speculative transaction. He further observed that the state government employees are duty bound to inform the head of office regarding investments and the assessee had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vings are considered, the Appellant has adequate savings in cash to pay the monthly chit installments. 3.3 Further, the monthly expenditure estimated at ₹ 18,000 to ₹ 19,000 by the CIT(A) is at the point of recording the statement under section 131 of the Act (i.e. on 30.12.2019) and does not relate to the period of investment. Thus, the same amount of expenditure cannot be related back to the year 2014-2015 where the expenditure cost would be much less due to adjustment in cost inflation. If the monthly expenditure of ₹ 18,500 is adjusted to the relevant year, the average unspent cash available for monthly saving would be about ₹ 9,000 to ₹ 12,000 PM, more particularly taking into account the social statu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a common practice in rural areas and amongst lower social group to invest in unorganized chits run within their community as it easy for them to realize the chit amount as and whenever required. If someone has an urgent need to pay any huge expenditure like school fees or medical bills, the chit fund group allocates the funds to them, since the bank loan times and comes with security and further this is the easier way to get hold of money quickly and without accruing interest and without providing any security. It is a common knowledge that unorganised chits run on trust, ~ and it is not possible to obtain any confirmation from the persons running chit business. It provides security to persons at the time of need to draw money and meet expe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tical demonstration, because that is impossible; it must mean such evidence as would induce a reasonable man to come to a particular conclusion. 7. The ld. DR, on the other hand, relied on the orders of CIT(A). 8. We have considered the rival submissions and perused the material on record as well as gone through the orders of revenue authorities. The CIT(A) demonstrated in his order that the assessee does not have sufficient money to pay monthly chit installments by way of recording his statement u/s. 131 of the Act and examining the bank statements, further observed that no documentary evidence was filed by the assessee to establish genuineness of the chit fund claim. Further, the CIT(A) observed that being govt. employee, the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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