B. SRINIVASA VARMA,VISAKHAPATNAM vs. ITO, WARD-3(2), VISAKHAPATNAM

ITA 471/VIZ/2017Status: DisposedITAT Visakhapatnam10 August 2018AY 2011-20128 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the addition of Rs. 10,08,889 as unexplained investment. It found that the assessee failed to provide sufficient evidence to substantiate the genuineness and creditworthiness of contributions from non-tax paying partners.

What were the facts?

The assessee, engaged in liquor retail, invested Rs. 26,58,889 in his business. He claimed this was funded by family savings and Rs. 24 lakhs from associated partners. The Assessing Officer found only Rs. 15 lakhs of the partner contributions to be genuine.

What were the issues?

Whether the addition of unexplained investment is justified when the assessee fails to prove the genuineness of capital contributions from partners, especially non-tax assessees.

Which sections of the Income-tax Act were involved?

Section 69

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM

Before: SHRI V. DURGA RAO, HON’BLE & SHRI D.S. SUNDER SINGH, HON’BLE

For Appellant: Shri G.V.N. Hari – Advocate
For Respondent: Shri K.C. Das – Sr.DR
Hearing: 17/07/2018

PER V. DURGA RAO, JUDICIAL MEMBER

This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals)-1, Visakhapatnam, dated 16/06/2017 for Assessment Year 2011-12. 2. Ground Nos. 1 & 4 are general in nature, no adjudication is required, therefore, same are dismissed.

3.

Ground No. 2 relating to sustenance of addition of Rs.10,08,889/- towards unexplained investment. (B. Srinivasa Varma)

4.

Facts of this issue, in brief, are that assessee is engaged in the business of retail trading liquor in the name and style of M/s.Sri Raja Wines, filed his return of income declaring total income of Rs. 5,65,668/-. The return filed by the assessee

The order continues below.

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