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2007 (1) TMI 496 - HC - Income TaxAddition u/s 68 - Cash Credit - found in the books of account - Addition made to the extent of 1/4th of depreciation and Rs. 1,000 on account of expenditure on books and periodicals. - HELD THAT:- In the facts and circumstances where in the absence of proper material if the AO has resorted to estimate and on estimated basis the Tribunal has sustained the certain amount of claim only, it cannot be said to be that disallowance of the claim is founded on no material or irrelevant consideration. Therefore, the finding on that account does not call for interference. Cash credits - HELD THAT:- The fact that the explanation furnished by Sri Devendra Sankhla about his source of such advancement has not been accepted by the Revenue authority cannot lead to any presumption that the source of such advancement by Sri Devendra Sankhla emanated from the assessee. Therefore, addition of Rs. 16,000 in the income of assessee as cash credit in the name of Sri Devendra Sankhla cannot be sustained. Such addition of income of assessee has to be deleted from the income of assesse. Since, in the present case the AO has definitely referred to non-furnishing of complete address of the creditor and that has hampered the inquiry into the correctness of the advance made by the alleged creditor or his existence, the finding reached by the AO about .unsatisfactory state of explanation furnished by the assessee about having received Rs. 16,000 from Ramulal and consequential addition of such amount as an income from undisclosed sources of assessee for the assessment year in question is a finding of facts founded on relevant consideration. This finding has been successfully sustained by CIT(A) and the Tribunal and it does not give rise to substantial question of law to be examined for reappreciation of the entire evidence in this regard and to reach at a different conclusion. Accordingly, the addition of Rs. 16,000 as unexplained cash credit from Ramulal does not call for interference. Accordingly this appeal is partly allowed to the extent the addition made on account of unexplained cash credit received from Sri Devendra Sankhla are to be deleted. Other additions challenged by the assessee in this appeal are sustained.
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