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2020 (8) TMI 307 - AT - Income TaxUnexplained cash credit u/s 68 - addition being cash balance as reflected in balance sheet - HELD THAT:- The provisions of section 68 can be invoked with respect to the sum found credited in the books of accounts and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not satisfactory. Thus it is very clear that the provisions of section 68 can be attracted in relation to the credit entries found in the books of accounts. Closing cash balance shown at the end of the financial year cannot be subject matter of addition under the provisions of section 68 - addition made under 68 of the Act deserves to be deleted. Assessee has declared her income from the activity of tailoring/embroidery which has been duly accepted by the revenue. Once the revenue disbelief the activity of the assessee, then it has to disturb the entire income offered by the assessee in her return of income. For the income offered to tax from the activity of embroidery business, the revenue has not made any negative remark but for the cash balance shown by the assessee as on 31 March 2015 the revenue doubts on the genuineness of the business activity of the assessee. In our considered view the revenue cannot give different treatment for part of the transaction of the assessee. We are not convinced with the finding of the authorities below. We set aside the finding of the learned CIT (A) and direct the AO to delete the addition made by him. Hence the ground of appeal of the assessee is allowed.
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