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2014 (12) TMI 556 - ITAT DELHIUnexplained cash deposits - Failure to substantiate claim through documentary evidence – Held that:- The assessee's case was selected for scrutiny assessment under computer random selection scheme - the assessee maintained a bank account with ING Vysya, Connaught Place vide account NO. 503010008101 and the total deposits in the Bank account amounted to ₹ 12,63,176/-which included few cheque deposits and most of the deposit was by way of cash - In order to prove his bona-fides the assessee had also filed a copy of the appointment letter from both the companies, wherein, the terms of employment was clearly spelt out along with the pay and allowance offered to the assessee was also revealed - the cash deposit was made on various dates into the account of the assessee and the deposits were supported by the confirmation given by the various signatories of both the companies, wherein, it was categorically stated that the amount was deposited by the companies into the account of the assesse for meeting the expenditure as per instruction given by them to the assessee from time to time - When the deposits in the bank account was supported by satisfactory evidences and it was explained by the assessee, no adverse inference could have been drawn and the deposit could not be termed as income from undisclosed source of the assessee – thus, the order of the CIT(A) is upheld – Decided against revenue. Deletion of penalty u/s 271(1)(c) – Income concealed and inaccurate particulars furnished or not – Held that:- ClT(A) was rightly of the view that the assessee has disclosed full facts pertaining to his income made in the return - the assessee neither concealed his income nor furnished inaccurate particulars of his income - there was no finding by the AO that the source of the cash deposit made by the assessee in his bank account was not bona-fide - merely because the deposit appeared in his account and the addition so made to his total income does not necessarily lead to the conclusion that the assessee is guilty of furnishing inaccurate particulars of his income - The furnishing of inaccurate particulars relate to furnishing of factually incorrect details and the information about the income - The assesse has proved that he was the resident representative at Delhi of Sri Vasari Industries Ltd. and ER Textiles Ltd. the assessee was appointed by them to do their liaison and coordination work at Delhi and also that both the companies used to deposit cash or by cheque into the savings bank account of the assessee for expenditure as directed by it - ClT(A) rightly deleted the penalty – Decided against revenue.
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