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2020 (11) TMI 412 - AT - Income TaxUnexplained deposit in ICICI Bank account - presumption of the AO that the assessee did not have enough cash to deposit ₹ 4,00,000/- - HELD THAT:- Cash receipts of ₹ 3,43,200/- has been reflected in the ledger account and in cash book, there was opening balance of ₹ 1,97,550/-. If these opening balance and cash receipts are taken into consideration, then, the assessee has sufficient funds in its hand to deposit cash of ₹ 4,00,000/- in two bank accounts. AO has disbelieved the cash book as daily balancing was not done without considering the cash book and ledger account .Since the assessee has shown cash receipts and opening balance in hand, assessee has duly proved the cash deposit of ₹ 4,00,000/- and, accordingly delete the same. Ground No.2 of the assessee is allowed. Draft from undisclosed bank accounts - AO made the addition on the ground that the assessee could not even show that the assessee has sufficient cash to make the drafts, which was confirmed by ld CIT(A) - HELD THAT:- The mere fact that the bank accounts from where the DDs are purchases are not reflected in the balance sheet of the assessee is not a ground to disbelieve the drafts made by the assessee. On perusal of the cash book and ledger accounts of the assessee, observe that the assessee has sufficient balance in its accounts to purchase the drafts in favour of Orissa State Beverages Corporation Ltd. Hence, set aside the orders of lower authorities and delete the addition made u/s.69 - Decided in favour of assessee. Disallowance of expenses - on the ground that the assessee could not submit supporting bills and vouchers in support of the expenses, which was confirmed by ld CIT(A) - HELD THAT:- The assessee could not furnish any satisfactory explanation and evidence as to why the supporting evidences were not filed before the lower authorities. Even before the Tribunal, no evidences were filed. Hence, the lower authorities have taken a justified decision to estimate the disallowance. Ground Nos.4 to 11 are dismissed.
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