Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (10) TMI 225 - AT - Income TaxUnexplained cash deposit in Banks - assessee stated that primary pleadings and arguments against the additions made was that it tantamounted to duplicate addition since cash deposited related to only one bank account ,each in HDFC Bank and Dena Bank, jointly held in the names of both the assessees while the Revenue had held that there was separate bank accounts in relation to which addition of cash found deposited had been made in the hands of both the assessee - HELD THAT:- As noted from the submissions of the assessee before the Ld.CIT(A), that they had offered to submit any further evidences which was required to prove his case. But the Ld.CIT(A) simply dismissed this contention of the assessee stating that copies of the other alleged bank accounts had been obtained from the banks by the Revenue u/s 133(6) of the Act. The assessee was neither provided copy of these bank accounts nor given any further opportunity to prove that these Bank accounts never belonged to the assessee - CIT(A) simply relied on this information obtained and dismissed assesses arguments completely. Now before us the assessee has produced certificates from the Bank denying existence of any such Bank accounts. This is a very crucial piece of information for adjudicating the issue at hand. And as noted above the assessee was barely provided any opportunity to produce it before the Ld.CIT(A).These evidences now filed by the assessee before us are therefore being admitted by us for adjudicating the issue. Assessee has explained source of cash deposited in their bank accounts, as has being related to the moneys which they had earlier lent to friends and relatives in India by transferring to them through Western Union and had substantiated the explanation by producing documents evidencing transfer of money by the assessees through Western Union. Even these evidences have not been properly appreciated by the authorities below. The assessees had stated to the authorities below that both of them were senior citiziens and had moved to USA way back in 1997-98. That they used to come to India only for brief visits. That on requests from relatives they had on several occasions transferred money to them through Western Union. And when they visited India briefly in the impugned year, in January – February 2011, these relatives returned back some of the money earlier lent to them in cash which was deposited in their bank accounts. The Revenue has not controverted the fact that the assesses are NRI’s and senior citizens. Copies of documents of Western Union evidencing money transfer by the assesses to India was filed to the Revenue authorities. There is no finding of any source of income of the assesses in India, by the Revenue. The veracity of the assesses explanation ought to have been considered by the Revenue in this backdrop of facts. But they chose to apply strict standards of proving genuineness of cash credits by filing confirmations and other documents from the purported depositors. Since the basic issue of existence of actual bank accounts of the assesses, in our considered view needs reconsideration, we restore both the cases back to the AO to first establish this basic fact and thereafter proceed to determine the issue of cash deposits whether explained or not, in accordance with law - Appeals of the assesseeare allowed for statistical purpose.
|