Case Law Details
Nirav Dilipkumar Desai Vs ITO (ITAT Ahmedabad)
The Assessing Officer observed that the assessee has shown Rs. 11,86,798/- under the head “income from other sources” and in the schedule of other sources. The assessee has shown Rs. 41,15,221/- and claimed expenses of Rs. 29,28,423/-. The Assessing Officer further observed that the expenses claimed has no nexus with the income from offered and therefore, made addition of Rs. 29,28,423/- which was claimed under Section 57(iii) of the Act by the assessee.
It is pertinent to note that as regards addition ground raised by the assessee the Circular No. 14 dated 11.04.1955, the Ld. AR submitted that the assessee had committed a mistake in treating amount of Rs. 32,44,095/- which was taken as personal loan taken by the assessee in the year 1999 as income for the year under head “income from other sources”. But the fact remains that the assessee has shown in the return in respect of old dues not payable as income from other sources and was never shown the same as debts and liabilities by the assessee in the previous year.This fact was not denied by the assessee at any juncture. Merely stating that it is wrongly treated under income from other sources cannot show the genuineness of the assessee related to old dues. The assessee has not brought on record in particular instant where the assessee has right to approach Shri Rasik C. Patel. If the advance was taken from Shri Rasik C. Patel who is now expired as per submissions made before the CIT(A) by the assessee, the assessee has not shown any measures taken by him as to whether in legal heirs of the said party are present to whom the dues can be repaid. Merely writing off the dues cannot allow the claim of the assessee. Thus, the CIT(A) rightly said that the old dues not payable is rightly shown as “income from other sources”. The CIT(A) has rightly placed the total expenses which reveals that no expenses were related to the advances against purchase received from Mr. Rasik Shah. Therefore, the same also cannot be allowed from the income. There is no need to interfere with the finding of the CIT(A). Hence, the appeal of the assessee is dismissed.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
Theappeal filed by the assessee is against the order passed by the Ld. CIT(A)-5, Ahmedabad on 27.11.2018 for A.Y. 2015-16.
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