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2016 (2) TMI 1092 - AT - Income TaxAddition on account of deposit in Saving Bank account - Held that:- CIT(A) without giving any cogent reasons rejected the explanation of the assessee without any justification. CIT(A) rejected the explanation of the assessee because the statement of all the above four persons were unrealistic. This itself is no ground to disbelieve the statement of the purchasers because the AO has not brought any evidence on record against the statement of four purchasers to prove the case of the revenue. It is well settled law that the Income tax authorities shall have to consider the evidence and material on record by applying the test of human probabilities and after considering the surrounding circumstances. See case of Durga Prasad More [1971 (8) TMI 17 - SUPREME Court] and Sumati Dayal [1995 (3) TMI 3 - SUPREME Court]. Thus we are of the view that the authorities below without any justification have made the addition against the assessee. The explanation of the assessee is acceptable and as such no addition is called for in the matter. We accordingly set aside the orders of the authorities below and delete the addition - Decided in favour of assessee.
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