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2016 (8) TMI 1164 - AT - Income TaxAddition on cash deposits in the joint saving bank account - Held that:- We take note that the assessee has filed before the ld. CIT(A) on 14.9.2015 the proof in respect to the opening cash in hand of ₹ 4,67,709/- as on 1.4.2008 and has filed the copy of financial statement as on 31.3.2008 along with copy of ITR for assessment year 2008-09. From a perusal of the financial statement as on 31.3.2008, we take note that the assessee had opening cash in hand and bank of ₹ 4,67,709/- (which included bank balance of ₹ 1,49,804 in Bank of Baroda account number 0099 and half of ₹ 8920 i.e, ₹ 4460 in account number 07644 in BOB, thus aggregate bank balance as on 1.04.2008 was ₹ 1,54,264.). Thus the cash in hand on 1.04.2008 was ₹ 3,13,345 ( ₹ 4,67,709 – ₹ 1,54,264 ) and the fact is that the assessee had declared ₹ 3,96,814 as income for assessment year 2008-09. In the light of the said documents, we find that the assessee has been able to prove the source of ₹ 1,27,470/- and, therefore, we are inclined to delete the addition sustained by the ld. CIT(A) on this issue. - Decided in favour of assessee. Addition on account of accretion in the capital account - Held that:- We find that the assessee has made cash contribution of ₹ 4.50 lakhs towards capital account of the assessee in the partnership firm, M/s Harish Hosiery where the assessee was a partner in the relevant assessment year. The assessee has made a contribution of ₹ 4.50 lakhs from 1.4.2008 to 1.3.2009. The assessee had withdrawn an amount of ₹ 1.38 lakhs from 7.10.2008 to 30.12.2008. Thus the contribution in the capital account of the assessee was to the tune of ₹ 3.12 lakhs. The assessee submitted before the ld. CIT(A) that the assessee had sufficient opening cash balance in hand as on 1.4.2008 at ₹ 4,67,709/- (including bank balance of ₹ 1,19,804/- in Bank of Baroda account No.0099 and 50% of ₹ 8,920/- i.e. ₹ 4,460/- balance as on 1.4.2008 in Bank of Baroda account No.07644). Thus, the aggregate opening balance in bank as on 1.4.2008 was ₹ 1,54,264/-. Therefore, we take note that the assessee had cash in hand in the beginning of the year at ₹ 3,13,345/-. Thus the assessee was having sufficient opening cash in hand before making contribution in his capital account in M/s Harish Hosiery to the tune of ₹ 3.12 lakhs. So the ld. CIT(A)’s reasoning that there was no document in respect to the cash in hand as on 1.4.2008 is erroneous and, therefore, we are inclined to delete the addition - Decided in favour of assessee.
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