Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (12) TMI 182 - AT - Income TaxUndisclosed/unexplained credits in the bank account - HELD THAT:- Assessee has taken loans from several persons, which was partly repaid during the year under consideration and again the loans were taken from the same persons. AO has simply seen credits in the bank account without realising that the same amount is recycled. We find that detailed explanation alongwith re-conciliation has been furnished by the assessee before the CIT(A) but the same was dismissed out-rightly. Similar is the fate of expenditure treated by the AO as paid in cash in excess of cash withdrawals. We find that out of the alleged difference, most of the payments have been made by account payee cheques on account of salaries and wages, tyre purchases and diesel expenses, which totalled to ₹ 24.65 lakhs. These details were also furnished before the CIT(A) but such details received the same fate. We are of the considered view that when the assessee has explained everything with evidences, the CIT-A should not have rubbished those evidences without recording any specific findings. Cash purchase of the impugned property - HELD THAT:- AO has grossly erred in simply believing the contention of the counsel of Shri Ram Babu. It appears that ₹ 97 lakhs was deposited in cash in the bank account of Shri Ram Babu and to explain the source, the ld. counsel simply stated that Shri Ram Babu has received the same from the assessee. Interestingly, Shri Ram Babu died in on 14.11.2013 as per the death certificate exhibited at page 18 of the paper book. Assessment proceedings of Shri Ram Babu took place subsequent to his death. A pertinent question arises as to how the counsel of Shri Ram Babu knew that ₹ 97 lakhs were received by Shri Ram Babu from the assessee when he has left for heavenly abode on 14.11.2013. Order sheet entries are placed at pages 1 to 3 of the paper book. Assessment proceedings are dated February 2014, which means that the assessment proceedings in the case of the assessee were much after the date of death of Shri Ram Babu. Entire addition has been made on assumptions and surmises and on the statement of counsel of Shri Ram Babu which do not have any evidentiary value keeping in mind that Shri Ram Babu died in 2013. Considering these facts in totality, addition of ₹ 97 lakhs is directed to be deleted We remit both these issues to the file of the Assessing Officer. The assessee is directed to furnish all necessary evidences which were furnished before the CIT(A) and the Assessing Officer is directed to examine each and every evidence/explanation and decide these two issues afresh after affording reasonable opportunity of being heard to the assessee. Addition on account of difference of interest as per bank statement and as per books of account - HELD THAT:- The assessee is directed to reconcile the same and explain the difference, if any, and the Assessing Officer is directed to examine the issue afresh and decide the same after giving opportunity of being heard to the assessee. This ground is, accordingly, treated as allowed for statistical purposes.
|