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2021 (3) TMI 45 - AT - Income TaxAddition u/s 68 - unexplained cash deposits - HELD THAT:- Regarding cheque deposit of ₹ 6,50,000/-, there cannot be any addition on this count, since there is confirmation letter given by Sri Madhu Sukumaran. For cash deposit being gift, the assessee filed confirmation letter from Chetan Sharma cash stating that he has given a sum of ₹ 2 lakhs by way of cash as a gift on 10.08.2010 to his son out of love and affection and confirmation letter from Nidhi Sharma a sum of ₹ 2 lakhs gift by way of cash on 18.8.2010 to her son out of love and affection. In our opinion, the cash gift of ₹ 4 lakhs from the assessee's parents is to be accepted as source of deposit as explained, to that extent there cannot be any addition Assessee explained that mutual advisory income, the assessee deposited ₹ 4,77,346 into his bank account. However, the assessee offered income u/s. 44AD only to the extent of ₹ 3,53,740. Hence the balance amount of ₹ 1,23,603 not offered to tax. Being so, as per assessee's income in revised return 100% of the turnover to be considered as income of the assessee. Accordingly, on this count, ₹ 1,23,606 out of ₹ 4,77,346 to be taxed separately. Regarding garment sale assessee has explained that ₹ 92,54,462 is out of previous withdrawals and sale of garments and pleaded that it is to be excluded from the taxation. The assessee has not furnished any evidence to establish the nexus between the earlier withdrawals and deposits into various bank accounts. In such circumstances, we are not in agreement with the assessee's counsel that it is from the earlier withdrawals. In our opinion, these receipts are to be considered as from unknown sources to bring into taxation. Therefore these deposits of ₹ 92,54,462 to be considered as unexplained deposits from 'income from other sources'. It is ordered accordingly. Unexplained deposit into bank account cannot be considered as income u/s. 68 of the Act and it should be u/s. 69/69A - In our opinion, mentioning the wrong section is not fatal, we have to see only the substance not the form. Being so, inter alia, we confirm the addition on this count at ₹ 92,54,462.
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