9911796707
TMI Blog2024 (5) TMI 1093X X X X Extracts X X X X X X X X Extracts X X X X ..... ee. Assessee filed balance sheets and tax audit reports of lender. Tax audit balance sheets for year ending 31.3.2017 and 31.3.2018 under head loan and advances mentions Smt. Alka Singh Rs. 25,00,000/-. Tax audit balance sheet for year ending 31.3.2019 mentions Smt. Alka Singh Rs. 20,00,000/- and tax audit balance sheet for year ending on 31.3.2020 does not mention name of Smt. Alka Singh as the amount reflected was refunded back. Source of source need not be proved for unsecured loan for the year under consideration. Further the lender had made cash deposits out of available cash balances. No adverse comments were given by Tax Auditor of the lender in the tax audit report in this regard. The loan given to assessee is duly reflected in audi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was centralized with this Circle by the Principal Commissioner of Income Tax, Haldwani vide his Centralization Order u/s 127 of the I.T. Act, 1961. 3. The case was selected for scrutiny under the norms of compulsory scrutiny. After receipt of Centralization Order, Notices u/s 142(1) dated 26.09.2018, 22.10.2018 and 12.11.2018 of the Income Tax Act, 1961 fixing date of compliance on 03.10.2018 02.11.2018 and 20.11.2018 were issued and duly served upon the assessee. On due dates nobody attended nor any written submission was submitted by the assessee. The assessee filed his return of income on 30.11.2018 declaring an income of Rs 12,54,450/-. Notice u/s 143(2) was issued and served upon the assessee. The assessee has declared income from Sala ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in cash 1,25,000 Stamp Duty on property purchased not traced in bank, assumed in cash 5,94,000 Expenses on property purchased not traced in bank, assumed in cash 81,300 Cash deposited in bank not traced in bank statement 44,600 Total 6,96,700 5. On being asked the assessee failed to submit any explanation in this regard. Thus the amount of Rs. 6,96,700/- is the unexplained cash credit. In view of this an addition of Rs. 6.96,700/- u/s 68 of the I.T. Act. 1961 is being made to the total income of the assessee. 6. During the year, the assessee raised an unsecured loan of Rs. 25,00,000/- from Shri Anil Kumar Singh. The assessee vide notice u/s 142(1) dated 22.07.2019 was asked to establish identity of the creditor, his creditworthiness and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng addition of Rs. 25,00,000/- in absence of incriminating documents. The assessee had submitted confirmation letter from lender, copy of lender's bank account, copy of Income Tax Return of the lender and copy of the lender's Balance Sheet- during the assessment proceeding. After perusal of the above mentioned evidences, the Assessing Officer has come to the conclusion that the amount of Rs. 25,00,000/- is not an Unsecured Loan but an unexplained credit u/s 68 of the Act because of the fact that the copy of the income tax return of the lender which was furnished pertained to AY 2015-2016 and not for A.Y. 2017-2018 and that the lender had deposited cash of Rs. 9,50,000/- in his account on 18.04.2016 and cash of Rs. 6,00,000/- on 22.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 28,58,926/- on which interest of Rs. 2,00,691/- had been debited in the Profit Loss Account. In these circumstances, it was not justified as to how an interest free loan was given to the appellant assessee when Shri Anil Kumar Singh was paying interest on the loan. On above facts Learned CIT(A) concluded that the assessee failed to prove to the satisfaction of Assessing Officer that the case does not come in purview of section 68 of the Income Tax Act, 1961. 12. From examination of record in light abovesaid rival contentions, it is apparent on record that assessee does not maintain books of accounts. Hence Section 68 of Income Tax Act perse is not applicable. Appellant / assessee got interest free loans from Shri Anil Kumar Singh through ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave been received by an assessee is on him. If he disputes the liability for tax, it is for him to show either that the receipt was not income or that if it was, it was exempt from taxation under the provisions of the Act. In the absence of such proof, the revenue is entitled to treat it as taxable income. To put it differently, where the nature and source of a receipt whether it be of money or of other property, cannot be satisfactorily explained by the assessee, it is open to the revenue to hold that it is the income of the assessee and no further burden lies on the revenue to show that that income is from any particular source. 14. In view of abovesaid material facts and well settled principle of law the observations of Learned Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
