9911796707
TMI Blog2022 (4) TMI 498X X X X Extracts X X X X X X X X Extracts X X X X ..... f an existing credit in the books of SP, i.e., from one account to another. The same could be regarded as unsatisfactory where the AO challenges or otherwise expresses dissatisfaction with the stated reason for this transfer. True, the AO has doubted the Will, claiming it to have been in fact not signed by the mother (VR). CIT(A) has glossed over this aspect, observing that the credit has been passed to the assessee only after her death. It needs to be appreciated that it is only by virtue of the Will that the sum stands credited to the assessee. The only issue that could therefore possibly arise is the claim on the said balance of the other claimants, inasmuch as the same may raise doubts as to its genuineness. Sh. Bardia would during hearing, with reference the Will, explain that VR had bequeathed her capital in each of the three different partnership firms being managed by her three sons, as SP by the assessee, thereto. Further, that the Will is undisputed by any of the Class-1 legal heirs. This, we observe, stands also explained before the AO. Under the circumstances, we find no reason to doubt the genuineness of the credit and, accordingly, confirm the deletion, save the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r deletion and, accordingly, direct its restoration. - ITA No. 56/JAB/2019 & CO 06/2019 - - - Dated:- 7-4-2022 - Sh. Sanjay Arora, Hon'ble Accountant Member And Sh. Manomohan Das, Hon ble Judicial Member For the Appellant : Sh. S. K. Halder Sr. DR For the Respondent : Sh. Rahul Bardia, FCA ORDER PER SANJAY ARORA, AM Vide this Appeal the Revenue challenges the part-allowance of the Assessee s appeal contesting his assessment for Assessment Year (AY) 2015-16 (vide order under section 143(3) of the Income Tax Act, 1961 ( the Act hereinafter) dated 13/12/2017) by the Commissioner of Income Tax (Appeals)- 1, Jabalpur ( CIT(A) for short) vide order dated 28/3/2019. The assessee s Cross Objection (CO) is supportive. 2. The brief facts of the case are that the assessee, a partner, along with his mother, Vinesh Rajput (VR), in a Jabalpur-based firm, M/s. Speed Point (SP), in the retail business of petroleum products, was observed to have received credits for ₹ 113.50 lacs in his personal account for the relevant previous year. His returned income for the current year being only ₹ 28.76 lacs, the said return was selected for be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R in SP during the year (PB pg. 74). The same, as borne out by the record, is, in the main, compensation received by VR from National Highway Authority of India (NHAI) on the acquisition of her land; her bank account (with OBC Bank), wherein the same stands deposited in the first instance, being also made part of the record (PB pg. 75). We are wholly unable to fathom the basis of the said addition. The amount under reference stands credited, firstly, to the bank account of VR and, then, to the bank account of SP, i.e., on the transfer of funds by her thereto (SP). The transfer (credit) to the assessee s account in SP is through a corresponding debit to the account of VR on her death, to give effect to her Will dated 06/12/2014 (PB pgs. 69-73, 86). The impugned amount could therefore be added as unexplained bank deposit in the hands of VR (assessable through her legal representative), or of SP, i.e., u/s. 68 as unexplained credit, the nature and source of which is, rather, apparent. The transfer to the assessee s capital account in SP (which became proprietorship w.e.f. 15.12005) on her death, is only a transfer of an existing credit in the books of SP, i.e., from one account to ano ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fference between the opening balance of the assessee s capital account (i.e., as on 01.4.2014), the beginning of the relevant previous year, in his personal accounts, i.e., ₹ 64.68 lacs, and ₹ 27.77 lacs, being the debit balance in his personal account in the accounts of SP as on 14.1.2005 (PB pg. 82), the date on which, as afore-stated, the accounts of SP were closed on its dissolution on account of the death of VR, one of the two partners in the said firm. What does the said difference signify, we fail to understand. None of the entries in the said two accounts, we observe, have been questioned by the AO. In fact, but for the fact at the same stands made explicit by the AO (refer para 10(ii)/page 6 of his order), making the snapshot of the two ledger accounts afore-noted, a part of his order, we would have been disinclined to believe Sh. Bardia that this difference, which carries no meaning, could be the subject matter of an addition, with we also confirming the balance (as on 14.01.2015) of the assessee s capital in the firm (SP) s audited accounts (PB pg. 81). We are completely at loss to understand the basis of the said addition, and neither was any explained to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee shall be in the set aside proceedings at liberty to furnish not only the documentary evidences produced before the ld. CIT(A), but also any other as may be deemed proper for the purpose of proving his claim/s., or as he may be called upon to furnish by the AO. Here it needs to be appreciated that the credit is from the assessee s mother, who has in fact subsequently (06.12.2014) bequeathed him her entire capital in SP, so that there does not appear to be any reason to doubt that the credit from stand-point of genuineness. We decide accordingly. 10. The sixth and final addition is in respect of the credit of ₹ 20,800, explained as agricultural income. The same has been deleted by the ld. CIT(A) on the basis that the assessee owns 7.17 hectares of agricultural land and, further, had been returning such income in the past. The assessee s case is sans any evidence. No evidence, we find, has been produced at any stage in respect of sale of Masoor Daal , stated to be sold, much less carrying out of any agricultural activity. Two, how, one wonders, the sale of an agricultural commodity, even if shown, would, without anything more, show the same to be cultivated by the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
