VENKATA SUBBARAO BOGGARAPU,HYDERABAD vs. DY. COMMISSIONER OF INCOME TAX, CIRCLE-2(1), HYDERABAD

PDF · subscribers
ITA 648/HYD/2019Status: DisposedITAT Hyderabad20 September 2021AY 2014-153 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the addition, finding that the assessee failed to prove the genuineness and creditworthiness of the alleged cash gifts. The lower authorities had rightly treated the amounts as unexplained cash credits.

What were the facts?

The assessee appealed against an addition of Rs. 24,75,000 as unexplained cash credit. The assessee claimed these amounts were cash gifts from relatives.

What were the issues?

Whether the assessee discharged the onus to prove the genuineness and creditworthiness of cash credits received as gifts from relatives.

Which sections of the Income-tax Act were involved?

Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Hyderabad ‘ B ‘ Bench, Hyderabad

Before: Shri S.S. Godara & Shri Laxmi Prasad Sahu

Hearing: 14/09/2021Pronounced: 20/09/2021

This assessee’s appeal for A.Y 2014-15 arises from the CIT(A)-8, Hyderabad’s order dated 01.02.2019, passed in case No.10218/CIT(A)08/Hyd/2017-18 involving proceedings under section 143(3) of Income Tax Act, 1961 (in short, “the Act”).

Case called twice. None appears at the assessee’s behest. It is accordingly proceeded ex-parte.

2.

Coming to the assessee’s sole substantive grievance that both the lower authorities have erred in law and on facts in making unexplained cash credit’s addition of Rs.24,75,000/-, in the course of assessment dated 28.12.2016, we note that the CIT(A)’s detailed discussion to this effect reads as under :

“8.3 I have carefully' considered the submissions made by the appellant as well as the order of the Assessing Officer. It is the contention of the assessee's AR that the amounts in question were received by the assessee from different relatives as cash gifts, and that by furnishing the confirmations I gift deeds, he has discharged his onus, for which, he has relied upon several judgements of different courts. The evidences furnished and the judgements relied upon have been perused, but they are not found to help the case of the assessee in any manner. By furnishing the confirmation letters (and Aadhar / PAN in a few cases), the assessee's AR has, at best, established their identity. Their credit- worthiness has not been proved, which as per all the Courts, is an important touch-stone for proving the genuineness of a transaction. None of these persons are assessed to tax, for which, the reason advanced by the assessee's AR himself is that their income was below taxable limits. If that be the case, how did they accumulate so much cash that they could gift such huge amounts to the appellant? Neither has the bank account of any of these persons been produced, to prove that they had some substantial source of income. The Sources of the cash deposits, therefore, remain unexplained, and I find that the amounts have been rightly added by the AO as unexplained cash credits ujs.68. The addition made is therefore confirmed and all grounds relating to this issue are dismissed.”

3.

Suffice to say, it has come on record that the assessee has failed to prove genuineness as well as creditworthiness of the impugned gifts involving varying sums in case of the family members. We therefore conclude with these facts and circumstances that both the lower authorities have rightly made the impugned addition in assessee’s hands under sec 68 of the Act. Ordered accordingly.

4.

This assessee’s appeal is dismissed in above terms.

Order pronounced in the Open Court on 20th September, 2021.

More judgments on Section 68

All 29,931 judgments and leading authorities on Section 68 →

Recent GST High Court judgments

Search GST case law →