Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (6) TMI 895 - AT - Income TaxAddition u/s 68 - Unexplained cash credit/cash deposited in the bank account - CIT (A) restricted the disallowance to 25% of additions made by AO - HELD THAT:- We note from the above facts that the assessee is working in the unorganized sector where most of trading is carried out in cash. During the year under consideration, we note from the assessment order, that while the assessee has deposited a sum of Rs. 23,93,400/- in cash in his bank accounts held with ICICI Banks (two accounts), but the assessee has also during the year under consideration withdrawn a sum of Rs. 23, 69,098/- from his bank account. It has been held in a number of ITAT decisions that unless the Assessing Officer brings any material on record to show that the cash withdrawn was utilized / used for other purpose, it could not be said that such cash withdrawals might not have been redeposited in the bank account - See M/S. MURLIDHAR ICE-CREAM AND SWEET PARLOUR AND VICA-VERSA [2015 (9) TMI 274 - ITAT AHMEDABAD] In the case of Smt. Satya Bhama Bindal [2013 (8) TMI 1162 - ITAT CHANDIGARH] ITAT held that that the concept of peak theory needs to be applied both in respect of the opening introduction of cash in hand and various transactions of cash deposits and withdrawals during the year under consideration. Now, in the instant facts, it needs to be appreciated that while making the disallowance, the assessee’s set of facts and the nature of business he is engaged has to be given due consideration while making any disallowance. In the case of ACIT v. Armee Infotech [2022 (1) TMI 649 - ITAT AHMEDABAD] after taking into consideration the assessee’s set of facts, the line of business he was engaged in, the typical gross profit earned in such line of business etc. restricted the disallowance on account of bogus purchase to 7%. As considering the assessee’s set of facts, in the interests of justice, we are restricting the disallowance to 10% of the deposits made. - Decided partly in favour of assessee.
|