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2014 (7) TMI 1130 - ITAT HYDERABADUnexplained cash - deficit cash balance - Held that:- Since the books of account were audited and deficit cash was identified on the basis of entries in the books of account, explanation that accountant did not enter the entries of cash receipt properly cannot be accepted as a bona fide explanation. Even though the Assessing Officer did not verify the statements/affidavits filed by partners, the affirmations made there in itself confirms that cash was available with the assessee outside books of account as discussed above. In view of this, we agree with the Assessing Officer and the learned Commissioner of Income-tax (Appeals) findings that the explanation of the assessee is an afterthought and there was no proper explanation for the cash deficit in the books of account. Since the amounts were spent without there being any explained source of the amount, addition of the above amount is called for and accordingly, the same is confirmed. - Decided against assessee.
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