Shri Nilesh Janardan Thakur Vs. ITO (ITAT Mumbai)
The AOs case is that the assessee has received money without any consideration which is taxable under the provisions of section 56(2)(vi) of the Act. The AO has brought out number of reasons to come to the conclusion that money is taxable u/s 56(2)(vi) of the Act. The sum and substance of the findings of the AO in his order is that the assessee is not capable of doing business as stated in his statement and also does not have relevant experience in dealing in the business for which he suppose to have paid by SPCL. Though the assessee as well as the creditor has accepted that money is received towards advance for procurement of land, conduct of the assessee as well as the company goes to prove undoubted fact that this amount is received without any consideration. The AO brought out the conduct of the assessee after receipt of the money to state that the assessee has procured various properties in his personal name out of money received from the company. The AO further stated that the company has failed to take any action for recovery of money even after lapse of three years. Therefore, he came to the conclusion that the purported transaction between the assessee and the company give rise to various doubts and hence opined that the impugned amount is taxable u/s 56(2)(vi) of the Act.
