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2020 (4) TMI 185 - AT - Income TaxUnexplained cash credits u/s 68 - cash withdrawal and deposit in the bank account - HELD THAT:- Identity, creditworthiness and genuineness of the transactions, all three requirements go hand-in-hand, however, among all the three, the genuineness of the transaction shall take precedence and the same should be demonstrated clearly when the same is called in question by the Revenue. In the instant case, the theory of borrowing the money in cash from time to time by the assessee from her husband for meeting business expenditure is not supported by any verifiable demonstrable evidence and therefore, the same cannot be accepted. We find that once the Revenue has not disputed that the assessee is engaged in construction business and no independent source of such cash receipts has been determined, the nature of such cash receipts can reasonably be treated as undisclosed business receipts and only net profit arising thereon can be brought to tax. Before the ld CIT(A), the assessee has stated that she has reported net profit @ 8% of her turnover and has filed her return of income. There is no independent finding of the ld CIT(A) in this regard. In the result, we set-aside the matter to the file of the Assessing officer to verify the net profit which has been reported by the assessee for the year under consideration as the same has been accepted during the course of assessment proceedings and apply the same to undisclosed business receipts amounting to ₹ 73.50 lacs and which can be brought to tax. Appeal of the Revenue is partly allowed.
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