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2014 (12) TMI 1014 - AT - Income TaxConfirmation of addition by CIT(A) – Deposits treated as unexplained investment u/s 69 - Held that:- The source of such cash deposits have been explained by assessee to have originated from opening cash balance of ₹ 4,67,737 and cash withdrawals - assessee’s claim of availability of opening cash balance cannot be disbelieved - assessee has made cash deposits of ₹ 5,65,000 till 11/06/2009 – it would be reasonable to infer a part of cash deposits could have been met out of the opening cash balance available with assessee as on 01/04/2009 - deposits to the extent of ₹ 4,67,737 can be said to be from explainable source - cash deposits made on 06/10/2009, of ₹ 2,00,000 and on 06/11/2009 of ₹ 75,000 and ₹ 1,00,000 can reasonably be linked to cash withdrawals made on 07/07/2009 of ₹ 1,00,000, on 02/09/2009 of ₹ 75,000 and on 22/09/2009 of ₹ 2,00,000 - cash withdrawals have been completely overlooked by CIT(A) - assessee’s contention that peak negative cash balance of ₹ 1,45,863 as on 26/01/2010 can alone be considered for addition u/s 69 is acceptable – the order of the CIT(A) modified – Decided partly in favour of assessee. Deletions made by CIT(A) - Amounts received through cheque/RTGS ₹ 18,88,050 – Cash loan received from M/s Latabai Gupta ₹ 5,00,000 - Deposits from withdrawal made earlier ₹ 1,00,000 - Held that:- As far as the amount of ₹ 18,88,050 is concerned, it is established on record that the amount was received from six different persons through cheque/RTGS - when the source of deposits to the tune of ₹ 18,88,050 stood explained there is no justification in treating it as unexplained investment of assessee - In so far as deposits of ₹ 5 lakhs claimed to have been made out of cash loan of ₹ 5 lakhs received from Smt. Latabai Gupta is concerned, AO not only initiated but also imposed penalty u/s 271D of the Act against assessee for having received loan in cash in violation of section 269SS of the Act – the action on the part of AO is suggestive of the fact that he has accepted the cash loan to be genuine - CIT(A) was justified in deleting the addition to the extent of ₹ 5,00,000 - assessee has made cash withdrawal of ₹ 1,00,000 on 21/11/2009, whereas assessee made cash deposits of ₹ 1,00,000 on 17/12/2009 - it is reasonable on the part of CIT(A) to conclude that, cash withdrawal made earlier was utilized for making the deposit – the order of the CIT(A) is upheld – Decided against revenue.
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