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2022 (3) TMI 435 - AT - Income TaxAddition on account of bank deposits during the course of assessment proceedings - HELD THAT:- It is observed that there is no dispute that the assessee has declared his income u/s 44AF of the Act, which has been accepted by the revenue authorities and turnovers have also been accepted as per section 44AF of the Act. Considering the submissions of the ld. AR of the assessee that the deposits are from out of the retail sales and from out of the opening capital and cash balances brought forward from the earlier years and inter bank deposits, we restrict the addition to 10% i.e. ₹ 1,01,251/- as against the addition of ₹ 10,12,510/- made by the AO on account bank deposits. Thus, this ground of the assessee is partly allowed. Addition representing gifts received from assessee’s brothers - CIT(A) observed that in the confirmation letter no amount was mentioned and registered gift deed was not produced for perusal. He, therefore, held that the AO had correctly treated the above amounts as unexplained cash credits - HELD THAT:- There is no movement of any cash/kind from the transaction recorded nd the gift which has been executed on 31st May, 2007, but, the assessee has recorded the figure before executing the gift deed, will not attract any cash/kind transactions, as the assessee only inflated the figures. The assessee has made a wrong entry in the books of account, which will not warrant any addition as held by the Hon’ble Supreme Court in the case of Kedarnath Jute Mfg. Co. Ltd[1971 (8) TMI 10 - SUPREME COURT]. No doubt the assessee has wrongly mentioned the amount and the gift has been materialized in the following Financial Year. In view of our above observations, we delete the addition made on this count. Accordingly, this ground is allowed. Non grant relief of LIC premium paid - HELD THAT:- Before us, assessee has produced LIC premium paid receipts, which are placed on record. We, therefore, direct the AO to allow the assessee’s claim towards LIC premium paid, u/s 80C of the Act. Thus, this ground is allowed.
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