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TMI Blog2022 (8) TMI 577X X X X Extracts X X X X X X X X Extracts X X X X ..... thing and therefore the first condition for invoking the provisions of Sec.69A of the Act, does not stand satisfied. Conditions for invoking the provisions of Sec.69A of the Act, are not satisfied in the present case - all the cerdits have been staisfactorily expalined by assessee - affidavits has been filed giving all details like address and PAN confirming that parties had paid through banking channels. - ITA No.378/Bang/2022 - - - Dated:- 10-8-2022 - Shri N. V. Vasudevan, Vice President For the Assessee : Shri. Chythanya V. Mudrabettu, Advocate For the Revenue : Shri. Ganesh R Ghale, Standing Counsel for Department ORDER This is an appeal by the assessee against the order dated 15.03.2022 of National Faceless Appeal Centre (NFAC), Delhi, relating to Assessment Year 2017-18. 2. The assessee is an individual. For Assessment Year 2017-18, the assessee filed a return of income declaring a total income of Rs.5,60,000/-. The source of income of the assessee was income from salary and income from other sources. The assessee was a partner in a partnership firm by name Siddivinayaka Ventures and as partner he received salary of Rs.3,60,000/-. In t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bank accounts. There are no books of account submitted by the assessee in support of return of income filed. The assessee offered no explanation about the nature and sources of the acquisition of money deposited into bank accounts, as discussed above. Therefore, the provisions of section 69A of the Act are clearly applicable in to the case. With the aforesaid observations, the AO brought to tax the differential amount of cash deposited other credits in bank accounts of Rs.8,56,470/- to total income of the assessee under section 69A of the Act as unexplained money. 5. The AO further noticed that a sum of Rs.10 lacs was introduced as capital by the assessee in the partnership firm M/s. Siddivinayaka Ventures vide deed of reconstitution dated 29.6.2016. The source of funds for contribution to capital to the extent of Rs.5 lacs was explained as from assessee s bank account and this was accepted by the AO. With regard to the remaining sum of Rs.5 lacs, the AO found no records. Hence, he treated the capital contribution of Rs.5 lacs as unexplained money u/s/69A of the Act. 6. Further the AO held that the tax liability of the assessee has to be computed as per the provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urce of income and the assessee offers no explanation or the explanation offered is not satisfactory. When the entries are found recorded in the books of accounts, the aforesaid provisions cannot be invoked at all. The source of income of the assessee is salary from the partnership firm Siddivinayak Ventures and income from other sources . A credit entry in the bank pass book regarding receipt of money into that account cannot be the basis to hold that the assessee is found to be owner of any money, bullion, jewellery or other valuable article or thing and therefore the first condition for invoking the provisions of Sec.69A of the Act, does not stand satisfied. 9. Though, I have expressed the opinion that the conditions for invoking the provisions of Sec.69A of the Act, are not satisfied in the present case, nevertheless, I will proceed to examine each one of the credit entries in the bank account based on which the addition was made by the AO. These entries are as follows: Details of credit entry in the bank account based on which additions were made by the AO are as follows: Rs.8,56,470 (credit entries in the bank account) + Rs.5 lacs (capital contribution of the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of the assessee in this regard has to be accepted as satisfactory. ii. Lingfin (Bangalore) Pvt. Ltd., - Rs.5,90,500/- : In so far as this person is concerned, it is a Pvt. Ltd., company. The assessee has approached the aforesaid company for loan to buy a Duster vehicle. The finance company has sanctioned loan of Rs. 6 lakhs. This finance company approached Axis Bank for a refinance and Axis Bank ultimately gave the finance company a sum of Rs.5,92,579/-. Out of the said sum they gave a sum of Rs.5,90,500/- to the assessee by way of RTGS and this entry appears in the assessee s passbook on 18.02.2017. The payment has come through banking channels. The document evidencing taking loan of Rs.6 lakhs from Axis Bank was filed before the CIT(A) but the CIT(A) did not take cognizance of the same, on the plea that the document is not authentic. In the light of the evidence now available with the Tribunal, I find that the credit has been satisfactorily explained by the assessee and the impugned addition cannot be sustained. iii. Mr. Raghu Shetty : The AO made addition of Rs.5 lacs which was capital contribution of the Assessee to the partnership firm M/S.Siddivinaya ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 18,100 In the light of the said confirmation, the credit in question has to be accepted as duly explained. vi. Mr. M. Krishna Mohan Reddy - Rs.41,000/- : Mr. M. Krishna Mohan Reddy filed the confirmation before the CIT(A) which did not have proper particulars but before the Tribunal, an affidavit has been filed giving all details like address and PAN confirming that he had paid Rs.41,000/- through banking channels. In the light of these evidence, I am satisfied that this credit also stands satisfactorily explained. vii. Smt. Ankitha W/o of the assessee Rs.17,000/- : Smt. Ankitha filed a confirmation before the CIT(A) confirming that she gave a sum of Rs.17,000/- as unsecured loan to the assessee through banking channel which was disbelieved by the CIT(A) for want of PAN and other details. Now before the Tribunal, she has filed an affidavit confirming that she made the following payments through banking channels to the assessee. Date Amount (Rs.) 28/03/2017 2,000 31/03/2017 15,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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