Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (5) TMI 1229 - AT - Income TaxAddition u/s 69A - unexplained investment in the bank account - best judgment assessment order u/s 144 - Scope of expression “may” used in Section 69A - whether the assessee has explained the source of such deposit with the help of reliable piece of evidence? - HELD THAT:- Assessee belongs to a non-organized sector of the society. The ld. Sr. D/R is expecting the maintenance of accounts and other details in a meticulous manner as are being maintained by the big business houses, but here it has to be appreciated that the assessee is running a small shop in a rural area. He has explained the source as contribution from his father and brother towards the marriage of his daughter as well as for purchase of some items for the shop. A sum of Rs.6,01,600/- was deposited in the bank account of the assessee on 21/12/2016 and a RTGS was issued on 22/12/2016. It was transferred in the account of M/s. Triven Tracom Pvt. Ltd. According to the assessee, it was given for the purpose of purchasing sugar for trading. If we appreciate the explanation of the assessee by looking at his bank account, then, we find force in his submissions. In day to day behavior, nobody kept the details in a meticulous manner, more particularly the section of the society which is struggling for survival. We could have appreciated the case of the revenue authorities if they were able to lay their hands on other assets of the assessee in shape of house property, land etc. or on details of any unexplained expenditure. Quantum in question is concerned, to this extent, there can be a saving from the father and brother who would have contributed to the assessee towards the marriage of his daughter. The might have saved this money for that purpose and because of demonetization, it was deposited in the bank account. Similarly, the assessee has demonstrated that a sum of Rs.6,10,600/- out of the total deposit was used for the purpose of his business. Though there is no specific evidence but the circumstances of the assessee and his lifestyle do suggest that the expression “may” used in Section 69A of the Act, has to be used here. This expression “may” infused discretion in the Assessing Officer to treat such an investment as explained or unexplained investment - Assessee appeal allowed.
|