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2014 (11) TMI 764 - AT - Income TaxRejection of explanation offered by assessee – Credits confirmed as appearing in bank account – Held that:- Assessee has genuinely explained the whole arrangement - assessee was also present in the court room and admitted that he has taken some benefit from his friend when he was unemployed and with that loyalty, he accommodated his friend in providing finance to his business of Airtel Relationship centre - It is general practice in the market that some of the shops are accommodating credit card holders by providing cash on discount of 3% to 4% and as seen from the transactions of M/s. Gandhi Jewellers and Srikrishna Sarees and periodic purchases from them and repayments to the credit cards do indicate that funds are obtained in this manner for Mr. Srinivas business purposes and these are only temporary finance arrangement undertaken to help assessee’s friend - It is a fact that Mr. Srinivas has defaulted and present whereabouts are not known to assessee - the other evidences furnished by assessee should have been considered by Revenue - Since the overwhelming evidence furnished by assessee does indicate that the transactions are undertaken to help his friend in getting temporary finance for his business and since Mr. Srinivas repaid the amounts to a large extent out of total transactions, deposits in the bank account cannot be considered as unexplained - As seen from the credit card statements as well as bank statements, there are payments to Airtel also which indicates that Mr. Srinivas had Airtel business transactions – the authorities were not justified in treating the cash deposits as income of assessee as unexplained - Since assessee has given bonafide explanation which is not disproved, the same should be accepted – there is no reason to assess the entire cash deposits made periodically into the bank account for repayment of credit card amounts cannot be considered as income of the assessee – the order of the CIT(A) is set aside – Decided in favour of assessee.
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