2019 (9) TMI 351 - ITAT DELHI - Income Tax

Head Note / Extract:
Penalty levied u/s 271(1)(c) - Unexplained cash deposits - HELD THAT:- Since the Datamation has already confirmed before the Assessing Officer during the remand proceedings that they are paying the maintenance charges to the assessee, therefore, the cash deposit in the bank account stands explained being the amount received from Datamation. Accordingly, the same is deleted. Ground of appeal No.2 by the assessee is allowed. Addition on account of electricity charges received from Datamation Consults Pvt. Ltd. - HELD THAT:- Explanation of the assessee that he has debited the electricity bill from his bank account for electricity used by Datamation and other parties in the earlier years which were received by him in cash during the current financial year was rejected. In appeal, the ld.CIT(A) upheld the action of the Assessing Officer. As mentioned in the preceding paragraph, during the penalty appeal before the CIT(A) the assessee had filed certain details/confirmations which were sent by the CIT(A) to the Assessing Officer for the remand report. AO in the remand report had confirmed that Datamation has orally confirmed that they are paying maintenance and electricity charges to the assessee. Since the statement of the assessee has been corroborated by Datamation during the remand proceedings before the Assessing Officer, therefore, no addition is called for. Accordingly, ground of appeal No.3 by the assessee is allowed. Addition being loans and advances received - HELD THAT:- A perusal of the various documents filed by the assessee before the lower authorities show that the assessee has filed sufficient details regarding the receipt of loans and advances given in the earlier years. The affidavits filed by the assessee from all the parties with confirmations and their PAN details had not been found to be false or untrue. Further, the amounts are very small. Considering all the addition made by the Assessing Officer and sustained by the CIT(A) is not justified. Accordingly the same is deleted and the ground raised by the assessee is allowed. Addition being the amount received from Mr. Deepak - assessee could not substantiate with evidence to his satisfaction that he has received cash from the office boy Deepak against which cheque was issued to him - HELD THAT:- CIT(A) sustained the addition made by the Assessing Officer. The ld. counsel also could not substantiate with any evidence so as to take a contrary view than the view taken by the CIT(A) on this issue. Accordingly, Ground No.5 is dismissed.