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2016 (1) TMI 717 - AT - Income TaxUnexplained deposits in the assesse’s bank account u/s.68 - AO arrived at the decision to make addition in the hands of the assessee because all the 4 prospective buyers had not filed the return of income and substantiated their sources of income for the amount advanced to the assessee - CIT(A) deleted the addition - Held that:- From the facts of the case it is evident that the assessee had received cash from proposed buyers of the flat and he has also submitted confirmation statement from them. Since the approval of the construction could not be obtained, the assessee has returned the amount received. Further, Ld. CIT (A) has rightly observed that the following facts:- i) The assessee is an individual and has no business activities. ii) The money deposited in the bank a/c was not utilized by the assessee in any manner. iii) Subsequently the cash deposited in the bank were refunded to the prospective buyers of the flats. iv) The joint developer Sri M.Raja Marrison also confirmed to the transactions. We failed to understand as to why the Ld. Assessing Officer wants to make addition in the hands of the assessee when all the four prospective buyers have confirmed that they advanced the cash to the assessee. Failure on the part of the buyers of the flat to establish their source of income cannot be made as the reason to make addition in the hands of the assessee without out examining them when they themselves had admitted for having advanced the amount to the assessee. - Decided in favour of assessee.
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