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2014 (2) TMI 612 - AT - Income TaxAddition made u/s 68 of the Act - Unexplained cash credits - Gifts made by mother to son – Held that:- The mother of the assessee made gift to the assessee out of natural love and affection and it cannot be doubted - the assessee has to discharge the onus cast on him with regard to identity of the donor, capacity of the donor and genuineness of the transaction - all the ingredients are duly discharged by the assessee – thus, the gift made by the mother to the son out of natural love and affection cannot be doubted so as to make addition u/s. 68 of the Act – Decided in favour of Assessee. Addition towards disallowance of interest - Funds diverted for non- business purposes – Held that:- The assessee advanced an amount and there was also opening balance - The AO computed interest on the amount owed by the assessee to Smt. Annapurna as the net balance - the total interest liability incurred by the assessee in the assessment year under consideration is Rs. 7,18,000 on total borrowings – thus, the AO is directed to disallow proportionate interest as attributable to the amount advanced to Smt. Annapurna instead of disallowing at 18% on total outstanding - interest is to be disallowed proportionately on the amount advanced to Smt. Annapurna which bears to the total borrowings i.e., Total Interest Paid x Amount advanced to Smt. Annapurna Total amount borrowed – Decided partly in favour of Assessee.
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