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2012 (10) TMI 741 - ITAT AGRAUnexplained cash credits – Held that:- Assessee has failed to prove the creditworthiness of all the creditors and no source of their income has been filed - there were no sufficient funds available in their bank account and they were having only small bank balance, which was even not sufficient to meet out their household expenses or day-to-day requirements - assessee has not adduced any sufficient evidence before the authorities below to prove the creditworthiness of the creditors and genuineness of the transactions in the matter. Therefore, the assessee has not satisfied the essential ingredients of section 68 of the IT Act - assessee appeal dismissed Disallowance of 20% expense out of conveyance and mobile phone expenses – alleged that the assessee claimed several expenditures and it was also found that most of the expenses have been incurred in cash and appear excessive looking to the volume of business and also not fully verifiable – Held that:- Use of phone and car for personal purposes cannot be denied. Since no log book is produced to show that these expenses were used wholly and exclusively for the purpose of business - Only copies of the ledger account have been filed, but nothing is proved whether these expenses were incurred wholly and exclusively for the purpose of business – against assessee
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