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2014 (1) TMI 1862 - AT - Income TaxUnexplained investment in capital account - No supporting evidence for the opening cash balance - advances and cash balance shown to have been available with the assessee - CIT-A deleted the addition - HELD THAT:- Even though assessee was regularly assessed and was showing income from sheet metal crafts on estimate basis in earlier years, there was no balance sheet or any reference to the various assets and liabilities in any of the enclosed documents filed with the returns earlier. In the absence of such evidence, A.O. was in a way justified in disbelieving the cash balance which is almost ten times the income. Even for the advances also, there were no details and no explanation about nature and source. A.O. could have been justified in considering only these two amounts for addition in the year. Advances were not shown in the year ending 31-03-2005 whereas, cash balance was increased in that year. When A.O. was completing the assessments in a block, he is supposed to consider the cash flow over a period of time vis-à-vis the investments and assets found in the course of search. There is nothing on record to examine, whether assessee has made any investments or has any unexplained investments or assets or even unexplained sources for making any investments. A.O. seems to have not examined any of the issues and since, other years assessments orders are also not before us, we are also unable to examine to give any findings on this issue. In the interest of justice, we set aside the Order of the CIT(A) and restore the issue to the file of the A.O. to consider afresh the cash flow statement shown by the assessee vis-à-vis any other documents available in the course of search or any other details of bank accounts etc., which assessee can rely on in order to examine the cash flow statement. Appeal of the Revenue is allowed for statistical purposes.
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