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2020 (10) TMI 1113 - AT - Income TaxRevision u/s 263 - unaccounted purchases - HELD THAT:- It is more than clear that albeit the cash was deposited in the assessee’s bank account but the source of such cash was Mr. Dilip Talekar, partner of Laxmisen Agencies. He used the assessee’s bank account by purchasing demand drafts in favour of Wokhardt Limited for making purchases, which business the firm was admittedly doing outside the books of account. AO, not only examined this fact after recording the statement of Mr. Dilip Talekar as well as the assessee, but also got such transactions verified with Wokhardt Limited and the bank of the assessee. This amply proves that the AO made proper verification of the assessee’s claim and reached right conclusion that such cash deposits, in fact, represented transactions carried out by Mr. Dilip Talekar for and on behalf of Shri Laxmisen Agencies. Not only that, the AO of the assessee passed on this information to the AO of Shri Laxmisen Agencies, who, in turn, made addition towards unaccounted purchases. The narration of above facts clearly demonstrates that neither the AO failed to make proper investigation nor did he reach any wrong conclusion in holding that the amount of cash deposits by the assessee in his bank account did not pertain to him. We, therefore, set-aside the impugned order doubting the correctness of the assessment order.
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