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2018 (8) TMI 1247 - AT - Income TaxRevision u/s 263 - unexplained credits - set off of net loss from capital assets with cash credit - applicable rate of tax @30% u/s 115BBE on unexplained cash u/s 68 - eligibility for set off of brought forward business loss and unabsorbed depreciation - Held that:- The assessee has treated the unexplained credit to the tune of ₹ 1.86 crores which was credited to the capital account as unexplained income u/s. 68 of the Act and thereafter, set off the net business loss of ₹ 1,76,24,221/- against that unexplained income. - As such, the AO allowed excess relief to the assessee which is prejudicial to the interest of the Revenue. In other words, the failure on the part of the AO to make necessary enquiry rendered the assessment order erroneous which also resulted in allowing excess relief which rendered the assessment order prejudicial to the interest of the revenue. As such, the CIT remitted the issue back to the file of the AO to examine the issue afresh. Treatment of unexplained cash as business income or income from other sources - Held that:- the assessee has not proved the source of unexplained credit, the identity, capacity, genuineness and credit worthiness of the transactions in question and further, it has also not shown the amount in its duly audited accounts as its business income. This leads to the inference that once the assessee has not shown the receipt as its business income, there is no reason as to how the accounting treatment given by the assessee can be overruled by the authorities. Therefore, in our opinion, the aforesaid case law is not applicable in the assessee's case. We are unable to hold that unexplained cash credits assessed under section 68 are to be assessed as income from other sources under section 56. Decided against the assessee.
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