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2021 (4) TMI 394 - ITAT HYDERABADUnexplained cash credits - additions made by the Assessing Officer disbelieving the sources of the cash deposits made into the assessee’s Bank A/c with Andhra Bank, Main Branch, Tirupati - assessee is a goldsmith and also that he has never filed any return of income in the earlier years - assessee is stated to have procured old gold through auction sales from Andhra Bank and other customers as well - HELD THAT:- The entire procurement of gold ornaments is not only through auction from Bank, but they are from other customers as well. The learned Counsel for the assessee has filed before this Tribunal, the copy of the Bank A/c of the assessee as well as the customers from whom the assessee has allegedly purchased the gold and also the confirmation letters stating that the assessee has paid the loan amount and after release of gold, the said gold was sold and the sale consideration was given to the assessee in cash. None of these letters were considered and verified by the Assessing Officer and he has accordingly disallowed the entire sum . Thus if the assessee is able to prove the transfer of money from the assessee’s bank a/c to the bank a/c of the customers and if the said gold loan is repaid on the same date, then taking the confirmation from the parties into consideration, the sale consideration of those transactions should be accepted as source for cash deposits. We deem it fit and proper to remand this issue to the file of the Assessing Officer with a direction to verify the Bank A/c of the assessee and also of the other parties and reconsider the issue in accordance with law. Cash withdrawals and the marriage gifts from others and gift from his brother as sources for the balance of cash deposit - Assessing Officer has held the ATM withdrawals and also 2/3rd of the gifts at the time of marriage as sources for redeposits into the Bank A/c as unbelievable. In my opinion, the entire ATM withdrawals may not have been used for day to day expenses and some of them might have been utilized for making the deposits into his Bank A/c. Therefore, we are inclined to accept 50% of the same as source for cash deposits. The assessee gets relief accordingly. Marriage gifts from others also we are inclined to accept 50% of the same as against 1/3rd of the cash gifts accepted by the Assessing Officer. Therefore, 50% of the total amount is accepted as source for cash deposits. As regards gift on account of marriage from his brother, transaction has been done through banking channel and therefore, it cannot be considered as a source for cash deposits - Ground relating to this addition is rejected.
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