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2020 (3) TMI 1385 - AT - Income TaxUnexplained credit/ advances - Addition of closing credit balances - addition includes three items received by the assessee from his spouse and two other persons - HELD THAT:- Addition of the two amounts from other persons cannot be sustained because these are opening balances and not received in the present year Advance from a wife - No specific section mentioned to make the addition - About the third amount we find that his is a fact that no section is mentioned by the AO or CIT (A) for making this addition and for this reason alone, the addition is bad in law as per the tribunal order cited by the learned AR of the assessee having been rendered in the case of Smt. Sudha Loyalka vs. ITO [2018 (7) TMI 1892 - ITAT DELHI] wherein it was held that non mentioning the precise section makes the addition bad in law. Even if we accept the argument of revenue that this addition is u/s 68 because this addition is made by the AO by holding that loan shown by the assessee is added because creditworthiness of the loan creditor is not established, we are of the considered opinion that the assessee has established the creditworthiness of his wife by bringing a certificate of Village Administrative Officer that the wife of the assessee is holding 5 Acres of Agricultural Land and she is growing Banana, Cabbage, Beans, Carrot, Ragi, Neelagiri and other fruits and vegetables and her annual income is certified by him at ₹ 12 Lacs. For this reason also, this addition is not justified - Assessee appeal allowed.
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