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2016 (11) TMI 661 - AT - Income TaxUnexplained cash deposited in the Bank - Intra-Bank Deposit - Held that:- As far as the third part, i.e., cash withdrawals from Over Draft Account in IDBI Bank and corresponding deposits in the Catholic Syrian Bank Ltd are concerned, the assessee has been able to demonstrate the nexus between the withdrawals and deposits. This evidence in the form of bank accounts cannot be rejected only on presumption that the assessee had already had cash balance and there is no need for him to withdraw from the OD account. Such presumption cannot override the written evidence in the form of bank statements and explanation of reasonable nexus. Consequently, the addition in respect of Intra Bank A/c of IDBI Bank and the Catholic Syrian Bank Ltd is deleted. Remaining two items, the assessee could not demonstrate the sources of alleged availability of opening balance. Similarly, in respect of cash loans, the assessee could not establish the creditworthiness of the depositors. In view thereof, it is held that in respect of opening cash and small loans as mentioned above, the assessee failed to discharge its onus; consequently, the additions in respect of the same are upheld, whereas the addition in respect of Intra-Bank Deposit is deleted. - Decided partly in favour of assessee. Deemed dividend u/s 2(22)(e) - Held that:- The nature of transactions reflected from the assessee’s account and company account demonstrates that it was a running current account and the transactions therein are not in the nature of loans and advances so as to be termed as deemed dividend. Therefore, respectfully following the judgment of Hon’ble Gujarat High Court in the case of Schutz Dishman Bio-Tech (P) Ltd (2016 (1) TMI 84 - GUJARAT HIGH COURT ), the addition made u/s 2(22)(e) is deleted.- Decided in favour of assessee
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