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2016 (7) TMI 14 - AT - Income TaxAddition u/s 68 - amount claimed by the assessee as received from his mother-in-law - Held that:- Source of cash deposit has been explained by the assessee as business receipt, but it was not accepted by the AO. It is pertinent to note that the AO considered only deposit side of the bank account without considering the withdrawal. Further when the AO accepted the gross receipt from the business of studio, then to that extent the deposit in bank account can be considered as explained source if the expenditure incurred by the assessee from the corresponding withdrawal from the bank. Therefore this aspect of deposit and withdrawal in the bank account has not been examined by the authorities below. Accordingly we set aside this issue to the record of AO to examine the same afresh by considering the deposit as well as explaining the withdrawals by matching the same with the business receipts and business expenditure of the assessee. As regards the gift received from the mother-in-law, it is found that the source was explained as sale of agricultural land for a consideration of ₹ 10 lakhs. However, in the sale deed the consideration is stated to be only ₹ 2,20,000/-. Though the assessee produced confirmation of the purchaser of the agricultural land regarding the consideration of ₹ 10 lakhs vide agreement dt.21.01.2008, the said confirmation was not accepted by the CIT (A) on the ground that it was not produced before the AO. Apart from the confirmation of the purchaser of the agricultural land, the assessee also produced the declaration of the mother-in-law, father-in-law and other relatives regarding the gift of ₹ 7 lakhs given by the mother-in-law. Genuineness of the agreement has not been examined by the AO. Further the AO has also not examined the parties to the transaction to verify the claim of the assessee and rejected the claim at the threshold. Therefore in the facts and circumstances of the case, this issue is set aside to the record of the AO to conduct a proper enquiry and verification by examining the concerned parties to the transaction and then decide the issue after giving an opportunity of hearing to the assessee. - Decided in favour of assessee for statistical purpose.
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