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2020 (1) TMI 289 - AT - Income TaxAddition on account of cash deposits - HELD THAT:- Income is being considered the cash deposits in the hand of the assessee which would not be influenced to the findings in the complaint filed by the assessee against Shri Kalpesh P. Prajapati. We find that the AO has made addition of total cash deposits, however in such cases of cash deposits, only peak balance is being considered. The perusal of statement shows that there is a peak credit balance of ₹ 2,13,747/- as on 24-07-2007. Accordingly, addition to this peak balance is confirmed. We find that there is opening cash deposit of ₹ 2,13,747/- on 04-04-2007, hence the initial cash deposit is also not unexplained. Therefore, the addition of said amount is also confirmed. In view of this, the addition of ₹ 4,13,747/-(4,00,000 + 2,13,747) is confirmed and the balance is deleted. This addition is being confirmed on technical ground as there is a dispute between the assessee and Kalpesh P. Prajapati that the bank account was opened by Shri Kalpesh P. Prajapati and not by the assessee. Further, since the Kalpesh Prajapati has agreed to pay the Income Tax liability before the Hon’ble High Court, therefore as per our considered opinion that the assessee will recover the income tax liability of this income from Shri Kalpesh Prajapati and pay to the Income Tax Department. In view of this fact, the ground of appeal is partly allowed in favour of the assessee.
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