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2018 (7) TMI 2207 - AT - Income TaxUnexplained cash credits u/s 68 - as assessee failed to offer the nature and source of credits, the AO made the addition - HELD THAT:- Assessee has withdrawn the amounts and made the payments to land lords during the financial year 2009-10 from January to March on three occasions. Similarly, the assessee has made cash deposits of ₹ 805,00,00 from April 2010 to September 2010 and the time gap for withdrawal and deposit was very short. The revenue has not disputed the fact that the assessee had withdrawn the sums from his bank accounts and there were no other investments made by the assessee as per the information available on record, to disbelieve the submission of the assessee. If the AO disbelieves the land advances, conclusion would be the availability of cash with the assessee unless it is established that the funds were used for some other purpose. Since the assessee had sufficient cash balance available from the withdrawals made from the Bank, there is no reason to suspect the source of deposits made in the bank account In case, the department is of the view that advances given was false the same sum of ₹ 95.00 lacs would be available as cash balance and the assessee required to be assessed for wealth tax, but there is no case for disbelieving the source. The fact remains that the assessee has withdrawn the sum of ₹ 95,00,000/- and the said amount would be available to the assessee either in cash or advances unless it is proved otherwise. Since the assessee had sufficient withdrawals from the bank account in the immediately preceding assessment year, we do not see any reason to disbelieve the source of credits made in the bank account. - Decided in favour of assessee.
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