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2017 (12) TMI 423 - AT - Income TaxAddition u/s 68 - Held that:- The assessee has submitted correct PAN of all the depositors. He has also submitted confirmation from all these depositors. In the case of M.S. Jewellers, which is a proprietory concern of Satya Prakash Khandelwal, it is noticed that the amount of ₹ 50000/- were received by cheque. The assessee submitted PAN and confirmation of the depositor alongwith full address. It is also noticed from the account of the depositor that there was a opening balance of ₹ 3,54,000/-. Thus, the amount of ₹ 50,000/- received by the assessee by cheque was actually return of balance outstanding with M.S. Jewellers, proprietory concern of Satya Prakash Khandelwal, therefore, the ld. CIT(A) was not justified in sustaining the addition. Disallowance of interest paid by the assessee to the deposits - Held that:- Since the addition made U/s 68 of the Act on which, interest was paid by the assessee has been deleted. Since the depositors had been found genuine, therefore, in consequence of that the payments of interest on this deposit is also held to be genuine. Hence, this ground of assessee’s appeal is also allowed.
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