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2017 (3) TMI 972 - AT - Income TaxUnexplained cash deposit in banks - Held that:- Assessing Officer has failed to appreciate that when two parties had confirmed the transactions with the assessee, the same could not be rejected for petty reasons like unsigned return of income, PAN card etc which could have been got signed from them by issuing notice or making cross verification with their concerned ITO. Form the record, it is clear that the Assessing Officer had neither issued deficiency notice to them/the assessee nor issued any show cause on this ground. Thus, no opportunity was allowed to the assessee to substantiate his claim. As for the rest of the parties the assessee had already submitted reply mentioning his inability to produce them. The Assessing Officer has also not disputed the sales declared by the assessee, so the corresponding purchases should have been accepted. In the alternative, the assessee submitted that, if the Assessing Officer had held the assessee as entry provider, the entire cash deposits in said Bank a/c could not belong to the assessee. It is contradiction in terms to treat entry provider and owner of the cash deposits made in bank account. After hearing both the parties and the rival submissions, in the interest of justice, we set aside the appeal and remit the issue back to the file of the Assessing Officer to check entries - Appeal of the assessee allowed for statistical purposes.
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