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2014 (3) TMI 618 - ITAT MUMBAIAddition u/s 68 of the Act – Unexplained cash credits - Revenue was of the view that the assessee issued bearer cheque to his loan creditors and the same were deposited in the accounts of two persons who are other than the loan creditors of the assessee – Held that:- Nowhere AO has mentioned the fact that assessee had taken loan of Rs. 22.46 lacs during the year – the FAA has given a finding of fact that the said loan amounts were taken as loan by the assessee in the earlier AYs and they were opening balances for the year under consideration - Provisions of section 68 of the Act are very clear for invoking the said section-the first and foremost condition is the credit of some amounts in the books of accounts of the assessee for a particular year - If the assessee does not offer any explanation about such credit or explanation offered by him is not satisfactory, then only AO can make additions for such cash credits - as stated by the FAA, there is no finding that assessee had taken loan of Rs. 22.46 lacs during the under appeal – thus, the order of the FAA does not suffer from any legal infirmity – Decided against Revenue.
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