J K V Stonex Vs ITO (ITAT Jaipur)
Addition u/s. 68 not sustained as revenue activity not yet started and loan received through cheques
ITAT Jaipur held that addition u/s. 68 of the Income Tax Act is not justifiable since assessee firm has not commenced any business activity and hence it is not justified to say that the assessee has camouflaged earned this income. Further, loans are received through account payee cheques and parties are relatives of partners.
Facts- The present appeal has been filed by the assessee mainly contesting that CIT(A) has erred in confirming the addition u/s 68 to the extent of Rs.46,79,121/- out of total addition of Rs.1,40,89,951/- by holding that the assessee could not prove the credit worthiness of Shri Gaurav Agarwal (Loan amount of Rs.7,74,700/-), Smt. Pista Devi (Loan amount of Rs.11,92.025), Smt. Saroj Agarwal (Loan amount of Rs.5,88,276) Shri Mohan Singh (Loan amount of Rs.8,64,370) , Smt. Preeti Agarwal (Loan amount of Rs.12,59,750/-).
Conclusion- All the parties in respect of which addition is sustained are filing their returns of income except Pista Devi who is mother of the partners of the assessee. Entire money has been received through account payee cheques. The assessee firm has not commenced any business activity and therefore, it is not justified to say that the assessee has camouflaged earned this income in view of Delhi High Court Judgement in the case of Alankar Promoters LLP Vs. ITΟ 167 taxmann.com 594.
