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2013 (10) TMI 754 - AT - Income TaxEvidence and explanation regarding source of deposit – Addition made on account of unexplained expenditure – Partner has brought in Rs. 11,00,000 on 12/04/2004 and Rs. 60,000 on 11/03/2005 from the OD account with Karnataka Bank. It was further observed that the partner account is also credited with cash on 30/03/2005 at Rs. 6,12,883/- and Rs. 1,32,500 on 31/03/2005 - Held that:- Assessee was of the view that the above amounts have been deposited out of the OD account of Karnataka Bank, however, the source of the OD account was not explained - In these circumstances, to meet the ends of justice, one more opportunity given to the assessee to provide necessary evidence in support of its claim – Decided in favor of Assessee for statistical purpose. Addition on ground of unexplained destination of the withdrawals and unexplained payee - Assessee had filed account copies of the said withdrawals and also explained that the amounts withdrawn from capital account of one of the partners Sri Vemireddy Prabhakar Reddy cannot be considered something uncommon in view of the fact that the assessee firm was almost closed down during the previous year relevant to the assessment year since the assessee also did not have any business and the income admitted for the assessment year under consideration is NIL – Held that:- The CIT(A), deleted the addition on the ground that the withdrawals made by the assessee's partner Sri Vemireddy Prabhakar Reddy cannot be construed as unexplained withdrawals - In view of the controversial findings by the AO and CIT(A), matter remitted to the file of the AO to examine the account copies filed before the CIT(A) and decide the issue in accordance with law – Decided in favor of Assessee for statistical purpose.
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