Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (4) TMI 579 - AT - Income TaxAddition u/s 69A - amount in question was seized by the Director of Enforcement, FEMA from the residence of the assessee at Bhubaneswar - assessee explained that the assessee sold his house at Morar, Gwalior and advance was received on sale of his house - HELD THAT:- authorities below should not have asked the purchaser to prove source of the source. The purchaser also in his statement explained the reasons for giving the advance in cash to the assessee because he was not maintaining bank account for the last ten years. The assessee has only the source of income from capital gain and income from other sources being interest. Therefore, the assessee was not doing any business activity during the year under consideration. The assessee has disclosed to the Revenue department about the advance received against property to be sold and such particulars were disclosed in the return of income as well. Therefore, the facts of the case clearly prove that the AO should not have insisted the assessee to prove source of the purchaser for purchase of the property in question. It is not the case of the revenue authorities that the assessee in this case has not offered any explanation so as to attract the provisions of Section 69A - Referring to observations made by the coordinate bench of the Tribunal in case of the purchaser Shri Raghav Garg [2013 (8) TMI 671 - ITAT AGRA] from whom the assessee has taken advance on account of purchase of house property of the assessee in accordance with the agreement to sale, we are of the considered view that since the assessee has duly explained the source of complete cash found during the search by the FEMA and the investigation has also been closed in the case of the assessee by FEMA as reproduced hereinabove, the addition made by the AO and sustained by the Ld. CIT(A) is bad in law and liable to be deleted. Therefore, we delete the addition in dispute and allow the ground No.1 raised by the assessee. Disallowance of reimbursement of expenses - HELD THAT:- Before us ld. AR submitted that the assessee is having the supporting documents as placed in the paper book, therefore, prayed for one more opportunity to substantiate its claim before the AO. In view of the above facts and circumstances of the case, we restore this issue to the file of AO to decide the issue after examining and verifying those documents to be produced by the assessee to substantiate his claim. Non-taxability of amounts received as directors fees - HELD THAT:- Remit this issue to the file of AO to decide the disputed issue after examining and verifying the documents available with the assessee in form of paper book. Non-credit of tax payment - HELD THAT:- AR before us submitted that the revenue authorities have not given credit - we direct the AO to verify the records for payment of tax. If it is found that the assessee has already paid the tax, then the AO will give due credit accordingly. Thus, this ground of appeal of the assessee is allowed for statistical purposes.
|