Case Law Details
Sanjib Sudhir Pradhan Vs ITO (ITAT Mumbai)
ITAT Mumbai held that the assessee has not discharged its onus to satisfactorily prove the incurring of expenditure for running the alleged Hotel Management Business. Thus, in absence of satisfactory documentary evidence, addition u/s. 68 of entire turnover disclosed as hotel management business sustained.
Facts- During the reassessment proceedings, it was observed that the assessee has shown Hotel Management Business in the case of Shri Sanjib Sudhir Pradhan in his individual capacity. Since the assessee failed to produce any documentary evidence in respect of conducting Hotel Management Business in spite of various opportunities, AO held that the assessee has not carried out any genuine business transaction during the year under consideration. AO treated the amount of Rs. 14,15,620 appearing in the books of account under the head Hotel Management Charges as unexplained cash credit and added the same to the total income of the assessee u/s. 68 of the Act.
Further, during the year under consideration, the assessee has shown agricultural income of Rs. 6,25,200. During the reassessment proceedings, AO observed that the assessee has stated that the sale of agricultural produce of Rs. 8,52,800 whereas during the reassessment proceedings, the same is shown at Rs. 12,84,980. AO did not agree with the genuineness of the agricultural income earned by the assessee and treated the same as unexplained cash credit.
Conclusion- Held that the assessee has not discharged its onus to satisfactorily prove the incurring of expenditure for running the alleged Hotel Management Business. Further, the ledger account of the Hotel Management receipts and salary paid to the staff is also not furnished by the assessee in the year under consideration. Therefore, in the absence of satisfactory documentary evidence, the plea of the assessee is rejected and the addition made by the AO under section 68 of the Act is upheld.
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