Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (12) TMI 530 - AT - Income TaxAddition u/s 68 - Unexplained cash deposits - HELD THAT:- AO during the Remand proceedings has taken much pain in verifying the genuineness of the loans by the various creditors by issuing them summons and notices u/s. 133(6) - AO disbelieved the loan amount given by assessee’s wife who is said to be engaged in the sale of homemade namkeen & dairy items and garment job work. As further claimed that the cash deposits made in the bank account is the joint account with the assessee’s wife only. Similarly in the case of loan received from assessee’s father in turn assessee’s father borrowed loans from his five friends who are also engaged in agricultural activities. Similarly the other creditors wherein loan received by the assessee are less than Rs. 20,000/- each. The assessee’s contention that the loan has been repaid as he could not buy the residential property due to some unavoidable reasons is found to be genuine and reasonable cause. A.O. has not made any verification of the repayment of loan. In our considered view, the A.O. has made huge verification on small time assessees, many of them are seen to be agriculturists in a small village. Assessee has filed confirmation from all the parties. Assessee also produced land ledger account of the various creditors to prove that they are engaged in agricultural activities. In the above circumstances, we do not find that the addition made by the AO is correct in law. For the above reasons, the addition confirmed by the Ld. CIT(A) are hereby deleted. Appeal filed by the Assessee is allowed.
|