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2021 (12) TMI 751 - AT - Income TaxUnexplained expenditures and unaccounted cash payment - Onus to proof - HELD THAT:- It is the onus of the assessee to justify based on the cogent material that the impugned cash expenditure was incurred out cash balance of the regular cash book of the assessee. If that be so, there cannot be any addition to the total income of the assessee merely on the reasoning that the assessee failed to record the expenditure in the books of accounts on the date of incurrence of the expenses which were actually recorded in the books of accounts on a later date. It is a matter of verification. It has to be seen whether there was the cash available in the books of accounts of the assessee as on the date on which the impugned expenditures were incurred i.e. November 2007. If there was sufficient cash in the books of the firm of the assessee, there is no possibility of treating the impugned expenditure as unexplained expense as provided u/s 69C until and unless the revenue brings on record based on cogent materials that there was no cash available in the books of the assessee on the relevant dates or the source of such expenditure was from the third source which was unexplained. We note that once the revenue has treated the entire amount of expenditure as unexplained expense under section 69C of the Act, there cannot be any addition separately being part and parcel of the total addition otherwise it would lead to the double addition which is not warranted under the provisions of law until and unless the provisions of law requires so - we set aside the issue to the file of the AO for fresh adjudication as per the provisions of law and after necessary verification of the cash book. Ground of appeal of the assessee is partly allowed for the statistical purposes.
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