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2014 (3) TMI 1011 - AT - Income TaxUnexplained income under section 68 & 69 - Held that:- Similar issue of addition under section 68 of the Act on account of cash deposits in the bank account of the assessee arose before the Tribunal in Sudhir Kumar Sharma case [2014 (2) TMI 418 - ITAT CHANDIGARH] The modus-operandi explained during the course of survey was that the assessee was receiving the amount in cash and the same were being returned vide cheques through bank accounts - the assessee failed to produce the books of account nor give any explanation vis-ŕ-vis the source of cash deposits in the bank account - In the absence of any explanation or any evidence being produced by the assessee - The onus cast upon the assessee not being discharged, the said cash credits are to be included as income of the assessee in view of the provisions of section 68 of the Act. The assessee failed to file any confirmation in respect of the said cash credits nor any of the persons were produced for examination before the Assessing Officer, though specific direction in this regard was given by the Assessing Officer within the course of recording of statement of the assessee, during assessment proceedings - The assessee even failed to produce the books of account - In the absence of the assessee having discharged his onus of proving the identity, credit worthiness and genuineness of the cash transaction of the cash credits in the bank account, there was no merit in the plea of the assessee - the provisions of section 68 of the Act are applicable. - Decided against assessee. Applicability of peak credit theory – Held that:- The peak credit theory is not applicable as the assessee had deposited cash in the bank account and thereafter, cheques were issued to different parties - there are deposits in cash but as against the said cash deposited, various cheques were issued and the assessee was unable to explain the source of cash deposited in his bank account – Decided against Assessee Addition made on account of low household expenses - Held that:- The family of the assessee consisted of father, mother and three brothers and total withdrawal of ₹ 1,08,000/- was made for household expenses during the year under consideration. In addition, the assessee had incurred expenses on electricity and telephone expenses. The assessee was a bachelor and was living with his parents in their self owned house. The Assessing Officer had estimated the household expenses at ₹ 2 lacs for the year resulting in addition of ₹ 72,000/-. In the totality of the facts and circumstances, we restrict the addition to ₹ 36,000/- - Decided partly in favour of assessee.
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