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2012 (7) TMI 767 - ITAT, AHMEDABADAddition on account of cash credits us. 68 of the Act - disallowance of interest thereon - CIT(A) for rejected the ground of appeal simply on the basis that the depositors who are summoned were leady member and they could not earn the income as claimed by them in the return of income - Revenue has not placed anything on record showing that those lady depositors were not having any source of income - lady depositors are assessed to tax and income tax return filed by them was duly accepted by the Department – addition deleted - assessee’s appeal is allowed. Addition on account of household withdrawal – assumptions and presumptions - assumption regarding inadequacy is drawn on the basis of the expenditure that any ordinary middle-class family is likely to incur in course of the year. Therefore, simply because the AO did not bring any material evidence on record to show that household expenses had been incurred from out of unaccounted income, the addition cannot be deleted. The presumption made by the AO and estimation made was very much realistic - factum of earning and withdrawal of money by the parent is not taken into account - addition reduced from Rs.73,000/- to Rs.48,000 - Assessing Officer is directed to re-compute the same accordingly - assessee’s appeal is partly allowed.
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