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2021 (1) TMI 90 - AT - Income TaxAssessment u/s 153A - enhancement of assessment towards cash credit and interest income - HELD THAT:- No doubt, it is well settled principle of law by the decision of various High Courts and Hon’ble Supreme Court that in absence of any incriminating material, no addition can be made in the assessment framed u/s.153C /153A, if such assessments are unabated as on the date of search. But, fact remains that in the present case facts with regard to abatement and unabatement of assessments was not forthcoming from the records as well as additions made towards enhancement of assessment and cash credit and interest income was on the basis of bank account which was the basis for making additions on peak credit and hence, arguments of the assessee that enhancement made by the learned CIT(A) is not on the basis of any incriminating material found during the course of search is unfounded. Therefore, we reject the ground taken by the assessee. Addition to cash deposits - Where the AO during the remand proceedings has recorded categorical finding that although assessee claimed that source for cash deposits is out of cash received from M/s.Saravana Global Holdings Ltd., but account statement of assessee does not vouch the same, whereas the assessee claims that source for three cash deposits was from M/s. Saravana Global Holdings Ltd., for which account statement of the party has been furnished before the AO. Facts are not clear insofar as source of income for cash deposits. Therefore issue needs to be re-examined by the Assessing Officer in light of account statement furnished by the assessee to explain source for three cash credits found on three dates . Interest on fixed deposits - Assessing Officer during the remand proceedings observed that the assessee has received interest income on fixed deposits and credited in the same bank account . However, on perusal of return of income filed for the year, the same was not offered for taxation. Therefore, we are of the considered view that this issue also needs verification by the Assessing Officer.
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