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2017 (3) TMI 72 - ITAT MUMBAIUnexplained Investments - Held that:- Before the AO assessee could not file any documentary evidence to prove the source of funds. Accordingly, original assessment was framed u/s.144 since inspite of giving so many opportunities, assessee did not produce any documentary evidence in support of source of the funds and investments so made in the property. However, before the CIT(A), assessee has filed documents but without appreciating the same, in the remand report, AO again reached to the conclusion that genuineness of transaction was not established. As per paper book placed on record it appears that before CIT(A) the assessee had filed bank statement confirmation and cash flow statement to justify the source of payment. It appears that both the lower authorities had not properly appreciated these documents which goes to the root of issue. Merely on the ground of suspicion the CIT(A) has declined the source of funds explained by the assessee in so far as both the concern who advanced the loan to assessee was group concern of assessee. Thus we set aside both the orders of the lower authorities and the matter is restored back to the file of the AO for deciding afresh after considering all the documents in support of its source of the funds - Decided in favour of assessee for statistical purposes. Addition towards payment made to credit card company - Held that:- Assessee is the Director of M/s. Konark Realtors Pvt. Ltd., and therefore the said payments were made by M/s. Konark Realtors Pvt. Ld.. Hence there could have been no addition u/s.69 in the hands of the assessee and since the assessee had not claimed any expenditure, the question of proving whether it was for the purpose of business do not arise in the case of the assessee. Further on perusal of the Ledger Account in the books of M/s.Konark Realtors Pvt. Ltd., we found that the said amounts were also finally debited to the Assessee’s personal account whereby even the company has not claimed any expenditure. Thus no merit making addition on account of credit card expenditure.- Decided in favour of assessee
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