Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (3) TMI 800 - AT - Income TaxAddition u/s 68 - cash deposits in the bank account - deposit of amount withdrawn earlier - Held that:- As gone through all the bank statements together with the cash book and the cash flow statement clearly depicting the available cash balance on each day of deposit and we find that the assessee has got sufficient sources for cash deposits made in the bank accounts and no part of the same is unexplained. The cash flow statement is admittedly prepared taking assistance from the bank statements. It is not the case of the revenue that the cash withdrawals made by the assessee were utilized for some other purpose so as to prove that the said cash is not available to meet the subsequent deposits. We find that the explanation offered by the assessee that he had resorted to circulation in bank transactions only to reflect the higher banking turnover in order to avail higher credit facilities from banks is acceptable. In any case, there is no element of income involved therein as the cash deposits are duly explained. Hence we hold that the lower authorities had erroneously invoked the provisions of section 68 in the instant case and we hold that the additions made in this regard are hereby directed to be deleted - Decided in favour of assessee TDS u/s 194J - non deduction of tds on accounting charges - Held that:- We find lot of force in the argument advanced by the ld AR that the payment made for accounting charges does not fall under the ambit of ‘fee for professional services’ u/s 194J of the Act as the said person rendering accounting services does not possess any professional qualification for rendering the said accounting services. Accordingly, we direct the ld AO to delete the disallowance made in this regard u/s 40(a)(ia) of the Act. - Decided in favour of assessee
|