Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (2) TMI 18 - AT - Income TaxUnexplained cash credit u/s 68 - onus to prove - HELD THAT:- Assessee has to prove three main ingredients viz., the identity of the creditor, credit worthiness of the creditor and the genuineness of the transactions. In the instant case, it is the claim of the assessee that she has received ₹ 12.00 lakhs and ₹ 4.00 lakhs respectively from her brother and mother. The copies of Statement of total income/income tax returns were furnished to show that both the above said persons are having credit worthiness for make the above said payments. As noticed earlier, both are assessed to income tax and are declaring total income exceeding ₹ 25.00 lakhs. Since both the persons are blood relations, the transactions have been entered through cash. Besides the above, Shri Abhilash is a director of a company and the said company has also confirmed the transactions entered between it and Shri Abhilash. Though the assessee furnished copies of income tax returns of Smt. Subhashini (mother) before the AO, a specific confirmation letter was not filed. Documents show that the identity of the creditors was not doubted and the credit worthiness of both the creditors, in my view, has been proved. Since the transactions were between blood relatives, in the facts of this case, the genuineness cannot be doubted. Hence addition of ₹ 12.00 lakhs and ₹ 4.00 lakhs referred above was not justified Remaining deposit of ₹ 14.00 lakhs - assessee has submitted that she has used her past withdrawals for making the above deposits ad is also having good income and her past savings were also used to make the above said deposits - HELD THAT:- AO has rejected the above said explanations of the assessee without examining the cash flow statement of the assessee. There is no bar for depositing cash withdrawals again into the bank account. When the assessee has not spent the cash withdrawals, it is quite natural to deposit the said amount into the bank account. In order to reject the above said claim of the assessee, it is necessary to show that the assessee has spent the amount so withdrawn. Accordingly I am of the view that the addition of ₹ 14.00 lakhs require fresh examination at the end of the AO. Accordingly I set aside the order passed by Ld CIT(A) on this issue and restore the same to the file of the AO for examining the claim of the assessee with the statement of cash withdrawal - Appeal of the assessee is treated as partly allowed
|