Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (11) TMI 66 - ITAT, AHMEDABADUnexplained cash credit u/s.68 - CIT(A) deleted the addition - Held that:- The assessee has explained that Ms. Sharmistha B. Naik was a partner in M/s.Jamna Organizers having a capital of Rs.35,40,000/- and advanced a loan of Rs.3,80,000/- & furnished confirmation letter along with the Bank statement & income tax return - Next of Ms. Ranjanben N. Naik, it was noted that she was also a partner of M/s. Jamna Organizers and out of her capital of Rs.35,40,000/- she had given a loan of Rs.3,80,000/- to the assessee with a confirmation along with bank statement and the copy of return were also filed - The next party was M/s. Jamna Organizers who has furnished that on encashment of FD the amount was advanced. It was explained that the said firm was constituted in the year 1990 and thereafter regularly filing the return, hence subjected to tax regularly. The position of income declared and taxes paid of last several years have also been placed on record. Therefore, it was explained that there were fixed deposits of Rs.16.65 lacs and Rs.12 lacs respectively which were duly disclosed in the books of accounts. Those FDs got matured during the year under consideration and the proceeds were credited in the bank account out of which the impugned amount was advanced - no point of undisclosed income arises - in favour of assessee. Restricting the disallowance at 5% instead of 10% by CIT - Held that:- Considering the nature of business the part-relief granted by CIT(A) was purely a matter of estimation, therefore no legal adjudication is needed - in favour of assessee.
|