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2022 (11) TMI 358 - ITAT MUMBAIAddition u/s 69C r.w.s.115BBE - Payment of credit card by cash as a unexplained expenditure - case was selected under CASS for limited scrutiny purposes to verify “large cash payments made for credit card purchases - HELD THAT:- Addition made by AO without any adverse comment on the cash-book of the assessee (business cash book and personal cash book), additions made will be counted in the category of guess work and without application of mind. The order of Ld. CIT(A) is also absurd may he observed “ It is intriguing to note that why the appellant has an easy and convenient mode of payment to pay his credit card bills in the form of net banking, why would he get into a cumbersome mode of withdrawing cash from the bank account by physically going or sending a person to bank branch and then again go physically to the City Bank Branch to pay credit bills”. This opinion of CIT(A) would have considered appropriate, in case AO had examined the cash book of the assessee and furnished specific remarks about the cash book. The power of CIT(A)is coterminous with that of AO, but an AO can do or his supposed to do, can be done by Ld. CIT(A) also. Being superior authority, his duty is to improve upon the assessment order passed by the AO considering the facts of the case and applicable law. Sec. 69C falls under income from other sources and in the category of deeming provision. Without establishing conclusively, a section like 69C falling under the head Income from Other Sources and that is to, a deeming section, no adverse inference can be drawn against the assessee. We found the order of AO and Ld. CIT(A) are based on conjunction and surmises. Appeal filed by the assessee is allowed.
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