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2021 (3) TMI 7 - AT - Income TaxUnexplained cash deposits u/s. 68 - HELD THAT:- As assessee received a sum from the three parties and this amount has been deposited into Bank account of the assessee with Punjab National Bank. Being so, to that extent it cannot be considered as unexplained deposit by the lower authorities. The assessee has discharged its burden in explaining the source of the deposit into assessee's Bank account. Hence, to this extent of this sum, the credit to be given by the Assessing Officer. Source of deposit of Cash from earlier withdrawal and receipt of gift from the relatives - Held that:- As gone through withdrawals and deposits into Bank Account with Punjab National Bank on various dates. As seen from the bank account, there is repeated withdrawals and deposit into same bank account - There is no presumption that the assessee expended this amount for any other purpose and the lower authorities are not justified in deciding that the assessee has spent the earlier withdrawals for some purpose instead of depositing into same bank account without any material in the hands of authorities. Accordingly, the earlier withdrawals are available to the assessee to redeposit into the said bank account. Further, the assessee explained that there was gift from mother, the assessee has filed confirmation letter from mother before CIT (Appeals), disbelieved it since the credit worthiness of donor was not proved. In our opinion, once the confirmation letter was filed by the assessee from Donor, the burden cast upon assessee is discharged and it would shift to revenue authorities. The Revenue authorities cannot make addition without making any further enquiry. Therefore in these circumstances, the lower authorities are not justified in making addition toward unexplained deposits into bank account. Being so, we have no hesitation in deleting the addition sustained by the CIT (Appeals) on this issue and the ground of appeal of the assessee is allowed.
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