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TMI Blog2011 (4) TMI 1544X X X X Extracts X X X X X X X X Extracts X X X X ..... ame as unexplained cash credits by wrongly invoking the provisions of section 68. 2. For that on the facts and in the circumstances of the case, the ld. CIT(A) was not justified in confirming the disallowances of Rs.65,720/- on account of interest paid on unsecured loan treating the same as bogus expenditure. 3. For that on the facts and in the circumstances of the case, the ld. CIT(A) erred in confirming the addition made by the AO to the extent of Rs.3,50,000/- on account of alleged gift received from Sri Pradip Mallick, Smt. Sumita Mallick and Sri Benoy Saha. 4. For that on the facts and in the circumstances of the case, Ld. CIT(A) was not justified in confirming the disallowance of Rs.1,748/- on account of alleged sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. Pradip Mallick 27/03/2003 1,00,000/- 2. Sumita Mallick 27/03/2003 1,00,000/- 3. Benoy Saha 28/01/03 1,50,000/- Notice u/s 131 of the l.T. Act 1961 was issued to the above mentioned so called donors. During the course of deposition it was stated by Sri Benoy Saha that he is employed with Sathi Times, Prop. Sri Ratan Muhury. According to him Sri Saha made cash gift of Rs.1,50,000/- on 28/01/2003 to his employer Sri Ratan Muhury. It is also stated by Sri Binoy Saha that his annual salary income during the year was at 1,00,000/-. Besid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able Institute or any religious organisation. Smt Sumita Mallick, wife of Sri Pradip Mallick, In her statement recorded u/s 131 stated that she is a graduate and her source of income is tuition and knitting job. She also maintains joint bank account with her husband in CBI Shiv Mandir. On request from her husband s friend Sri Ratan Muhury she made cash gift of Rs 1,00,000/- on 27/03/2003. It is also stated that she never made any gift to others excepting the above. Departmental Inspector was deputed to enquire the cases. The Inspector in his report stated that Pradip Mallick is the Principal-Cum-Prop. of St Paul School of Shiv Mandir, Siliguri. The school is running with classes from Nursery to class V having 150 students (approx). As per I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of the loan creditors income tax assessments including copy of their returns of income, balance sheet which clearly exhibit that the loan transactions in respect of loan creditors and they have also disclosed the interest income in their regular returns of income. The Revenue is not justified to disbelieve the said transactions u/s 68 oft eh IT Act and disallowance of the interest paid on disallowance is not also justifiable. He requested to delete the same. 6.1. As regarding the disallowance on account of gifts similarly he filed income tax acknowledgements, computation of income and final accounts in respect of three donors namely Shri Pradip Mallick, Smt.Sumita Mallick and Shri Binoy Saha which were placed at pages 82 to 87 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore we delete the additions of Rs.3,65,110/- made u/s 68 of the IT Act and consequential disallowance of Rs.65,72/- on account of interest. Therefore ground no.1 and 2 of the assessee are allowed. 8.1. As regarding the gifts, we are of the considered view that the Revenue has brought sufficient material on record to the effect that in the circumstances of the case it is quite unusual and unnatural and against human probabilities that without any relation between the donor and the donee and with poor financial status of the donors simply by proving the identity of the donor is not sufficient to establish the gifts to be a genuine one. Therefore, we confirm the action of the Revenue on account of the gifts and dismiss ground no.3 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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