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2016 (11) TMI 1160 - AT - Income TaxUnexplained cash credit - addition u/s 68 - income from other sources - Held that:- We have observed that the ld CIT(A) while disposing the appeal of the assessee, instead of examining the gift from the angel of section 68 of the Act, examined the same under section 56 of the Act. The ld CIT(A) concluded that cousin sister did not fall under the category of ‘relative’ as per explanation attached with section 56(2) (v) and therefore the impugned gift is liable to be taxed under this section. As per our opinion the case of the assessee may fall under clause (vi) instead of clause (v) of sub section (2) of secion56. Since ld CIT(A) examined the case of assessee under section 56(2) (v) of the Act, without confronting the assessee hence we deem it appropriate to restore this part of ground to the file of ld CIT(A) to consider it afresh after giving the opportunity to the assessee and pass order in accordance with law. So far as, the cash deposit in United Bank of India & in HDFC Bank are concerned, the Revenue authority has not disputed the withdrawal of cash from her bank on earlier dates. The objection of Revenue is only that cash deposit varies at different occasions and frequent cash deposit itself establishing non-genuine character of the explanation offered. However, the contention of the assessee throughout the assessment proceedings and appellate stage was that, amount was withdrawn for the expenses to be incurred for marriage of her son. We think that there cannot be any evidence about the re-schedule of marriage, though there may be evidence of solemnisation of the marriage. Further, the objection of the Revenue is that if the amount was not utilized, whole amount of withdrawal should have been deposited immediately. Neither the AO nor the CIT (A) worked out the difference of amount withdrawn and the subsequent deposit. The grounds of addition on account of unexplained cash credit when the assessee has categorically pleaded that the cash was withdrawn for specific utilization and the same was deposited is based only on hypothetication of the Revenue authorities. Thus, the addition on account of cash credit is deleted.
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