DESH RAJ SINGH,GHAZIABAD vs. ITO WARD-68(5), DELHI

The AO partly accepted details furnished by the assessee. The Assesing Officer (AO) accepted the source of Rs.15,00,000/- from HDFC Bank Ltd. The other two source of funds aggregating to Rs.22,00,000/- were disbelieved and the AO made addition of Rs. 22,00,000/-. The assessee carried the issue in appeal before the CIT(A), the CIT(A) confirmed the addition made by the AO. 5. The ld. Counsel for the assessee submits that the assessee had received Rs.15,00,000/- from his father to substantiate his contention he placed on record a copy of Indian Overseas Bank saving bank account passbook of his father. Referring to the said passbook, he submitted that father of the assessee had sufficient source to advance Rs.15,00,000-/- to the assessee. The father of the assessee was an agriculturist. Part of his land was acquired by GAIL India Ltd. for laying down pipelines. The father of the assessee had received compensation for said acquisition of land. The ld. Counsel also furnished photo copies of the cheques received by father of the assessee on 09.06.2011, 10.10.2011 and 23.10.2011 at page no. 7 to 9 of the paper book. The ld. Counsel further placed on 3 record copy of the Punjab National Bank saving account passbook of Shir Ombir Singh to substantiate that Rs.7,00,000/- was received by him from his cousin. 6. Per contra, Ms. Sudha Gupta representing the department vehemently defended the impugned order and prayed for dismissing appeal of the assessee. The ld. DR submitted that the assessee failed to furnish relevant documents before the AO and CIT(A) to substantiate that the amounts were received by the assessee from his father and cousin, respectively. 7. Both sides heard, orders of the authorities below examined. The assessee during the course of assessment proceedings could not furnish relevant documents to show source of funds to the extent of Rs.22,00,000/-. Hence, the AO invoked the provisions of section 144 of the Act and completed the assessment. Likewise, the assessee failed to furnish details before the First Appellate Authority. Hence, the CIT(A) in absence of any supporting material confirmed the addition of Rs.22,00,000/-. Before us, the assessee has furnished bank statement of his father Shri Mahavir along with photocopy of cheques that his father had received from GAIL India Ltd. as compensation. The assessee has been able to prove creditworthiness of his father. The assessee has also placed on record copy of affidavit of his father Shri Mahavir (now deceased) that was filed before the AO confirming advancing of Rs.15,00,000/- to the assessee. The assessee has also taken Rs.7,00,000/- from his cousin Shri Ombir Singh. The assesee has placed on record a photocopy of bank passbook of Shri Ombir Singh. The same shows that there were sufficient balance in the bank account of Shri Ombir Singh for advancing to the assessee. Thus, the assessee has been able to show creditworthiness of both the persons. Hence, addition of Rs.15,00,000/- and Rs.7,00,000/- (Rs.22,00,000/-) is directed to be deleted.