Sheela Yogi Vs ITO (ITAT Jaipur)
Once the summons have been issued and these persons have appeared and given their statements before the AO wherein they have confirmed that they have advanced the amount to the assessee towards purchase of the agricultural land and has also disclosed the source of their earnings/savings, the assessee has discharged the necessary onus cast on her in terms of identity, creditworthiness and genuineness of the transactions in the facts and circumstances of the present case. Similar is the position regarding receipt of Cash gifts from father and father-in-law which is duly supported by the respective gift deeds, the contents and authencity of which are not in dispute. In case of CIT vs Shri Bhim Singh Chundawat (supra), the Hon’ble Rajasthan High Court held as under:
“4. A bare perusal of the order passed by the CIT(A) reveals that the CIT(A) discussed the creditworthiness and genuineness of each and every individual transaction and found 13 creditors as genuine. The ITAT has arrived at the finding that the assessee has established the creditworthiness of the creditors to the extent he is obliged under the law to do so. The ITAT found that the creditors have accepted that they had advanced their respective credits to the assessee and also given the details of the sources of the deposit. The ITAT opined that the assessee cannot be burdened with proof of ‘source of source ’ and the cash credit cannot be held to be ingenuine by stretching the ingredients of Section 68 too far. We are of the considered opinion that the findings arrived at by the CIT(A), affirmed by the ITAT regarding identity of the creditors and creditworthiness and genuineness of the transactions remain findings of facts, which do not give rise to any substantial question of law. ”
In the entirety of facts and circumstances of the case, the addition so made is directed to be deleted. In the result, ground no. 3 & 4 of the assessee’s appeal are allowed.
FULL TEXT OF THE ITAT JUDGEMENT
This is an appeal filed by the assessee against the order of ld. CIT(A), Ajmer dated 22.01.2018 wherein the assessee has raised the following grounds of appeal:
“1. On the facts & circumstances of the case and in law also Ld. CIT(A) grossly erred in not accepting the additional evidences filed before him under rule 46A of the Income Tax Act, 1962.
2(i) On the facts & circumstances of the case and in law also ld. Lower authorities grossly erred in initiating reassessment proceedings u/s 147 of the Act.
(ii) On the facts & circumstances of the case and in law also Ld. AO grossly erred in initiating reassessment proceedings on borrowed satisfaction only.
3. On the facts & circumstances of the case & in law also Ld Lower authorities grossly erred in making and confirming a huge addition of Rs. 45,33,000/- under section 68 of the Income Tax Act 1961 by adding advances received by the appellant. The Ld. Lower Authorities has failed in considering the fact that entire detai l regarding advance received by the appellant was submitted during assessment proceedings and ld. AO has not pointed any defect in the same.
4. On the facts & circumstances of the case & in law also Ld. Lower authorities grossly erred in making and confirming adding o f Rs.8,02,000/- u/s 68 of the Income Tax Act by adding the cash gift received by the appellant from relatives despite of the fact that complete evidence of gift received was submitted during the assessment proceedings.
5. On the facts & circumstances of the case and in law also ld. AO grossly erred in finalizing the reassessment proceedings without issuing and serving notice u/s 143(2) of the Income Tax Act, 1961. ”
2. At the outset, the ld AR submitted that the assessee doesn’t want to press ground no. 1, 2 and 5. Hence, these grounds of appeal are dismissed as not pressed by the assessee.
3. Regarding Ground no. 3 and 4, the ld AR submitted that the ld. AO made the addition of Rs. 53,35,000/- u/s 68 of the Income Tax Act by treating advances and gifts as unexplained cash credits vide order dated 27.03.2015. The Ld. CIT(A) confirmed the addition vide order dated 22.01.2018. It was submitted that the assessee during the relevant assessment year purchased an agricultural land measuring 1.8125 hectares situated at village Ghegha for Rs. 1,07,00,000/- from one Smt. Sunder Devi. The assessee had received money from nine persons as advance for sale of another agricultural land. The list of persons from whom the assessee had received the advance is as follows:
