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2018 (5) TMI 1595 - AT - Income TaxUnexplained cash deposits - Determination of income - consider the peak balance of all the seven bank accounts - assessee entitlement to offer income u/s 44AE - Held that:- It is not in dispute that the assessee owns less than 10 vehicles and is accordingly entitled to offer income u/s 44AE - Since the income of the assessee is offered u/s 44AE of the Act, there is no need to make addition towards cash deposits when the same were duly explained to be business proceeds. We direct the AO to delete the addition made towards unexplained cash deposits in the bank accounts made on peak credit theory. The repayment of loan to Sundaram finance Ltd were made only in respect of trucks used in the transport business which were purchased out of loan from the said company. The cash withdrawals made from the bank accounts and the cash sales of the assessee from transport business duly explain the source for making repayments to Sundaram finance ltd. Hence there is no need to make any separate addition - Decided in favour of assessee.
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