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2018 (6) TMI 1229 - AT - Income TaxUnexplained cash deposits in Bank account - Held that:- Amount of ₹ 5 Lakhs has been withdrawn from account of assessee’s NRE A/c, to that extent amount should have been given credit by the authorities. An amount of ₹ 10,78,800/- was deposited out of the so called traveler cheques and out of assessee’s own funds, assessee being NRI and having substantial withdrawals from the US and also on the fact that he is a globe trotter being a senior employee. The explanation given by assessee cannot be simply rejected when he states that he encashed the traveler cheques and deposited cash in the bank account. The amounts are explained and hence the addition is not warranted. We are surprised to note that while Ld.CIT(A) accepts that the provisions of Section 68 cannot be invoked, he invokes Section 69 of the Act, which does not apply to the facts of the case. AO has not made out any case of unexplained investments made by assessee. These are simply deposits in the bank account which are generally considered as ‘cash credits’ and provisions of Section 68 are correctly invoked by AO. For the reasons best known to the CIT(A), he invokes Section 69 which does not apply to the facts of the case. Since assessee has given proper explanation, we are of the opinion that no addition is warranted. - Decided in favour of assessee.
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