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2014 (4) TMI 934 - AT - Income TaxDeletion made u/s 68 of the Act – Unexplained sundry creditors – Held that:- The CIT(A) was of the view that the addition in appellant's income could not be made on the basis of apprehensions as done by the AO - At the most these apprehensions may be a 'lead' for further investigation so-as-to establish the actual fact - The AO has not carried out any investigation on such lines - The only issue raised by the AO now remains that instead of sundry debtors, the assessee should have shown equivalent amount as 'cash-in-hand' in the balance sheet and thus should have paid wealth-tax on it - The AO's suggestion, though looking rosy from his angle, could only be implemented if such fact is established on record. The onus of proving it lies with the department and such approach could not be taken merely on the basis that the outstanding balances of sundry debtors could not be verified - Be it as may, since 'cash-in-hand' could not be treated as income in appellant’s hands by any stretch of imagination either u/s 68 or u/s 69 of the Act, the addition made by the A.O. does not stand - there are inherent contradictions in AO's approach in giving treatment to the closing balances of sundry debtors - The opening balances which could be verified from the books of accounts of the assessee cannot be added in current year's income as done by the AO – the AO was not justified in making addition u/s 68 or u/s 69 of the Act – Decided against Revenue.
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