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2013 (11) TMI 1235 - AT - Income TaxWhether the money transactions carried out through the bank accounts opened in the name of various partnership firms constituted by the employees and relatives of the assessee, belong to the assessee or not? - Held that:- the tax authorities have come to the conclusion, which was not rebutted at all by the assessee, that the partners are men of small means and further they are employees/relatives of the assessee. Hence, in our view, the tax authorities might have thought it not necessary to examine Mr. Kasim and the same, in our view, would not vitiate the conclusions reached by the tax authorities. The matters can be decided in income tax proceedings on preponderance of probabilities, surrounding circumstances, human conduct and circumstantial evidences. In the instant case, the various points listed out by Ld CIT(A), in our view, establishes the connection between the assessee and the bank accounts opened in the name of the partnership firms. In view of the foregoing discussions, in our view, the surrounding circumstances, preponderance of probabilities, conduct of the assessee herein and evidences gathered by the department show that the partnership firms do belong to the assessee and their bank accounts also belong to the assessee. - Decided against the assessee. Additions on the basis of peak credit - Held that:- When the assessing officer has proposed to assess the peak credit amount in assessment years 2002-03, 2003-04 and 2005-06, in our view, it would not be correct on his part to assess the entire amount of deposits as income of the assessee in assessment year 2004-05 alone. In our view, the assessing officer should have assessed the peak credit amount only in the assessment year 2004-05 also. - AO to compute the peak credit amounts of each of the year in accordance with the method discussed supra and assess the peak credit amount in the initial year i.e.,in assessment year 2002-03 and only incremental peak credits in succeeding years. - Decided partly in favor of assessee.
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