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2021 (5) TMI 654 - AT - Income TaxAddition made u/s 68 - creditworthiness of loan creditors - HELD THAT:- Assessee failed to convince both the lower authorities with regard to the genuineness and creditworthiness of the creditors. Before us also it was submitted that the above stated amount of ₹ 2,85,000/- was received from Shri Arun Kumar Tiwari. Loan confirmation letter and bank statement have been filed. In the bank statement of Shri Arun Kumar Tiwari equal amount of cash was deposited a day before the issue of cheque to the assessee. No evidence to show the source of cash available with Shri Arun Kumar Tiwari and his financial strength has been filed. Submissions made by the Counsel for the assessee before us are not sufficient to explain the genuineness and creditworthiness of the transaction. We thus are of the considered view that assessee has miserably failed to succeed in the test laid down in the provisions of Section 68 of the Act and thus could not explain the source of credit of cheque of ₹ 1,65,000/- and creditworthiness and genuineness of amount received from Shri Arun Kumar Tiwari. We thus find no reason to interfere in the finding of Ld. CIT(A) and thus confirm the addition. Addition u/s 69A - unaccounted business receipt - no evidence of nexus between the cash withdrawals and redeposit in the bank account - HELD THAT:- We find that except certain withdrawals and deposits in round figures no other entries of day to day cash income/expenditure are appearing. It is not clear that the cash flow statement is only for the individual cash transactions or all the transactions carried out by the assessee during the year. Assessee has also failed to explain various entries appearing in the bank statement specially with regard to the amount withdrawn by Shri Surendra Saha and Shri Mukesh Sahu during the financial year 2009-10 which has been claimed as source of cash as opening balance We find that since the beginning of the assessment proceedings till now the explanation and submission made by the assessee lacks clarity and it is hard to reach a conclusion about the source of cash deposited. However we find that various submissions were filed by the assessee to explain the source but revenue authorities could not go deeper to bring the truth on record. Further Ld. A.O as well as Ld. CIT(A) have observed that it cannot not be denied that the alleged amount is an unaccounted business receipts. In our considered view and in the given facts and circumstances of the case and being fair to both the parties, we treat the alleged cash deposit as unaccounted business receipt and apply net profit rate of 8% on this amount and the same is added to the income of the assessee in place of ₹ 35,00,000/- for unexplained cash deposit. We thus delete the addition of ₹ 32,20,000/- and confirm the addition of ₹ 2,80,000/- and partly allow ground No. 3, 4 & 6 raised on merits.
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