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| The Tax Publishers2019 TaxPub(DT) 7635 (Jp-Trib) INCOME TAX ACT, 1961
Section 68
As regards capital contribution amounting to Rs. 13 lakhs, AO had given adequate opportunity to assessee during the course of assessment proceedings to furnish documentation in support of capital introduction by the concerned member. Further, notice under section 133(6) was also issued which remained uncomplied with and even during remand proceedings, there was nothing which had been filed or brought on record to substantiate the source of capital contribution. Accordingly, onus cast on the assessee was not satisfied and addition of Rs. 13,00,000 was sustained. As regards remaining capital contribution, assessee discharged onus cast on it by filing affidavit accompanied by confirmations of members explaining source of their income i.e. past savings and income from sale of land. Accordingly, addition was deleted to that extent.
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Income from undisclosed sources - Addition under section 68 - Capital contributions by members of AoP -
Assesse was an association of persons (AOP) which derived income from royalty collection contract. AO noticed that certain members introduced huge amount of capital for the business aggregating to Rs. 76 lakhs and after calling for assessee's explanation and seeking information from members by invoking section 133(6), AO made addition of Rs. 76 lakhs by treating the same as unexplained capital introduction earned from undisclosed sources of income. In appeal, assessee filed additional evidences and CIT(A) after considering remand report and submissions of assessee, sustained addition to the extent of Rs. 32 lakhs. Held: As regards capital contribution amounting to Rs. 13 lakhs, AO had given adequate opportunity to assessee during the course of assessment proceedings to furnish documentation in support of capital introduction by the concerned member. Further, notice under section 133(6) was also issued which remained uncomplied with and even during remand proceedings, there was nothing which had been filed or brought on record to substantiate the source of capital contribution. Accordingly, onus cast on the assessee was not satisfied and addition of Rs. 13,00,000 was sustained. As regards remaining capital contribution, assessee discharged onus cast on it by filing affidavit accompanied by confirmations of members explaining source of their income i.e. past savings and income from sale of land. Accordingly, addition was deleted to that extent.
REFERRED :
FAVOUR : partly in assessee's favour
A.Y. : 2011-12
IN THE ITAT, JAIPUR BENCH
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