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2019 (12) TMI 675 - AT - Income TaxAddition u/s 68 - Unexplained cash credit - HELD THAT:- We find that the assessee had placed on record sufficient documentary evidences to discharge the primary onus casted upon him and it was obligatory on the part of the revenue to controvert the same. However, no such material has been placed by revenue which would lead to a conclusion that assessee’s unaccounted money was routed in the accounts by way of Share Application Money. The summons issued by AO u/s 131 were duly responded to by the investor entities and ledger confirmations were also filed in support of the transactions. There are no allegations of immediate cash deposits in the bank accounts of investor entities and nothing on record would suggest any cash got exchanged between the assessee and the investor entities. Therefore, on the basis of stated factual matrix, it could safely be concluded that the assessee was successful in proving the identity of the investors, creditworthiness of the entities and genuineness of the transactions. Hence the conclusions drawn by learned first appellate authority could not be faulted with and we find no reason to interfere with the same. Characterization of income - interest income - income has been held to be business income as against Income from other sources - HELD THAT:- We would concur with the submissions of Ld. AO that the same was assessable as Income from other Sources since undisputedly, the said investments were out of surplus funds and the assessee was not engaged in the business of finance and investment.Therefore, we hold that the said income was rightly brought to tax by Ld. AO as Income from other sources. Allowable business expenditure - since they were stated to be incurred for maintaining the corporate status and for the purpose of statutory compliances. The revenue has not agitated the same before us and therefore, the said conclusion would require no adjudication from our side. The Ld. AO is directed to recompute the income of the assessee in terms of this order.
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