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2019 (7) TMI 1845 - ITAT JAIPURUnexplained cash credit u/s 68 - deposit in the HSBC Bank account, Hong Kong - HELD THAT:- AO has considered this fact that the addition made in the hands of the assessee is subject to the outcome of the ld. Settlement Commission order since the same income cannot be taxed twice. Now the ld. Settlement Commission has already accepted the said income offered by these two firms. We have carefully perused the order of the ld. Settlement Commission wherein this amount was also part of the undisclosed income offered by these two firms for the A.Y. 2014-15. The total undisclosed income was offered which was divided between two firms M/s. Bihari Lal Holaram, partnership firm and M/s. Lakhi Gems. in ratio of 95% : 5%. Finally, the said amount was accepted as offer to tax by these two firms as per the order of the ld. Settlement Commission. Once this amount has already been offered for taxation in the hands of the two partnership firms as per the order of the ld. Settlement Commission dated 22-04-2019 then the addition in the hands of the assessee is not sustainable. Accordingly, the same is deleted. Addition u/s 69C - unexplained expenditure incurred through credit card of Bank of America - not accepting the contention of assessee that payment of this card was made by his uncle Shri Sailesh Lakhi who is residing in USA - HELD THAT:- The assessee in his reply before the AO has explained the source of payment of credit card bill for all the three years as such payments were made by his uncle Shri Shailesh Lakhi, resident of USA. The assessee also filed the confirmation of his uncle Shri Shailesh Lakhi regarding the payment of the credit card bill of the assessee. These facts were not disputed by the AO. Thus the expenditure incurred by the assessee through credit card itself is not an unexplained expenditure but only the payment of credit card bill can be considered as unexplained expenditure. Once the assessee has produced all the details and confirmations regarding payment of credit card bill which has not been controvered by the AO then said payment of credit card bill made by the uncle of the assessee, r/o USA, cannot be held as unexplained expenditure of the assessee. Assessee has established the source of payment and if there is a violation or financial irregularity in the payment of credit card bill by the assessee’s uncle then the same cannot treated as unexplained expenditure in the hands of the assessee. Hence, the addition made by the AO on this account for all the three assessment years is not sustainable when the source of payment is not in dispute. we delete the addition made by the AO on account of credit card expenditure. - Decided in favour of assessee.
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