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Issues Involved:
1. Addition of Rs. 52,500/- as notional salary income. 2. Addition of Rs. 24,000/- for alleged unaccounted income from the sale of opening stock. 3. Addition of Rs. 64,000/- u/s. 69A for unexplained cash deposits. 4. Addition of Rs. 50,000/- for alleged low household withdrawals. 5. Addition of Rs. 10,01,420/- u/s. 68 for alleged non-genuine capital gains on the sale of shares. Summary: 1. Addition of Rs. 52,500/- as notional salary income: The assessee, a director in two companies, showed a reduced salary from Minaxi Fashions Pvt. Ltd. compared to the previous year. The A.O. presumed the assessee continued to earn the same salary and added Rs. 52,500/- to the income. The CIT(A) upheld this addition due to the lack of evidence from the assessee. However, the ITAT deleted the addition as the assessee provided Form no.32 showing resignation from the directorship, which the Revenue did not dispute. 2. Addition of Rs. 24,000/- for alleged unaccounted income from the sale of opening stock: The A.O. added Rs. 24,000/- due to the absence of details regarding the sale of closing stock and unexplained cash deposits. The CIT(A) confirmed the addition, rejecting the assessee's brief submissions. The ITAT upheld the addition, noting the assessee failed to substantiate the sale of closing stock. 3. Addition of Rs. 64,000/- u/s. 69A for unexplained cash deposits: The A.O. added Rs. 64,000/- for unexplained cash deposits. The CIT(A) confirmed the addition, rejecting the assessee's explanation of the deposits representing the opening cash balance. The ITAT found the addition included a double count of Rs. 24,000/- already added under the second ground. Thus, the ITAT sustained the addition at Rs. 40,000/-. 4. Addition of Rs. 50,000/- for alleged low household withdrawals: The A.O. added Rs. 50,000/- for low household withdrawals, which the CIT(A) upheld, considering the disclosed withdrawals insufficient for household expenses. The ITAT deleted the addition, accepting the assessee's explanation of being unmarried, living with parents, and not owning any vehicle or movable property. 5. Addition of Rs. 10,01,420/- u/s. 68 for alleged non-genuine capital gains on the sale of shares: The A.O. added Rs. 10,01,420/- u/s. 68, doubting the genuineness of the capital gains due to discrepancies in the transaction details provided by the Calcutta Stock Exchange and the brokers' non-response to summons. The CIT(A) confirmed the addition, citing discrepancies and lack of corroborative evidence. The ITAT, noting the failure to prove the holding period of shares as exceeding one year, reclassified the gains as Short Term Capital Gains and directed appropriate taxation. Conclusion: The ITAT partly allowed the appeal, providing relief on specific grounds while upholding others based on the evidence and explanations provided.
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