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2017 (9) TMI 1100 - AT - Income TaxUnexplained cash deposit in bank account u/s 68 - Held that:- As the assessee has explained cash deposit of ₹ 2,50,000 on 07-05- 2009 out of opening cash balance brought forward from previous financial year. We find tht opening cash balance of ₹ 3,17,000 has been explained as out of cash withdrawal from Citi Bank in February, 2011. We further observe that these bank accounts are declared in the regular return filed for the relevant assessment year. Therefore, we are of the view that the assessee has filed necessary evidences to explain the source of cash deposit for ₹ 2,50,000; hence, we direct the AO to delete additions of ₹ 2,50,000 out of total addition sustained by the CIT(A) of ₹ 3,35,000. Insofar as balance amount, though the assessee claims to have source, failed to file necessary evidence to explain cash deposit on various dates. Therefore, we sustain the balance amount of ₹ 85,000 as unexplained cash credit u/s 68. Enhancement made towards low household expenses - Held that:- We do not find any merits in the arguments of the assessee for the reason that when an assessee is having a total income of ₹ 1,30,69,630 as income, an expdenditure of ₹ 24,000 per annum for his household expenses cannot be relied upon. As rightly observed by the CIT(A), the assessee is residing in posh are of Mumbai City for which ₹ 2,000 pm is not at all sufficient to manage his household expenses. At the same time, the estimate made by the Ld.CIT(A) is also on higher side. Keeping in view all the facts and circumstances of the case and also the fact that the assessee is a member of joint family, a reasonable estimate towards household expenses would meet the ends of justice. Accordingly, we direct the AO to estimate ₹ 30,000 per month toward household expenses of the assessee. Accordingly, the ground raised by the assessee is partly allowed.
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