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2020 (4) TMI 301 - AT - Income TaxAddition u/s 68 - Cash found to have been deposited in two bank accounts - onus to prove that the credit entries appearing therein were not in the nature of income - HELD THAT:- Onus was on assessee to prove that the credit entries appearing therein were not in the nature of income. It also emerges that the assessee could not file plausible explanation for credit entries before lower authorities Many discrepancies were found in documentary evidences submitted by the assessee in support of the fact that cash deposits were out of proceeds of agricultural produce. Similar is the position before us wherein the assessee is unable to file any additional evidence to support the said fact. The perusal of computation of income would show that the assessee has already reflected agricultural income of ₹ 0.73 Lacs in the return of income. Therefore, the plea the cash deposits were sourced out of agricultural income could not be accepted. Having said so, equity would demand that items which are capital in nature or the transactions which do not give rise to any taxable income should not be considered as assessee’s income since only true income was to be brought to tax. Further, the benefit of cash withdrawals from the said bank accounts should be granted to the assessee. Entire credit received through banking channels aggregating to ₹ 15,82,636/- (₹ 4,35,000/- & ₹ 11,47,636/-) could not be considered as assessee’s income since outward payments have also been made from the said bank accounts. It is noted that besides rental income & agricultural income, the only source of income for the assessee was earnings from shop. Considering this fact, we are of the opinion that a reasonable estimation of profit against these receipts would meet the end of justice. We estimate the same @10% which comes to ₹ 1,58,264/-. The balance addition of ₹ 20,57,059/- shall stand confirmed. The ground raised by the assessee stand partly allowed. Grant of TCS credit which is reflected in Form 26AS - HELD THAT:- AO is directed to verify the same and grant due credit of TCS as per law. The additional ground stand allowed for statistical purposes.
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