Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (5) TMI 827 - AT - Income TaxUnexplained cash credit u/s.68 - HELD THAT:- As assessee submitted before us that from other business cash has been deposited into the bank account. On perusal of the balance sheet of Shri Sai Wines, there is no investment shown by the assessee as investment in toll of cantonment board of secunderabad and on the liabilities side of the balance sheet filed by the assessee, there is no liability in the name of other business. The balance sheet filed the assessee has shown under the head ‘capital account’, the opening balance is “O” and the capital brought in is ₹ 2,84,64,000/-. Fixed capital has been introduced in the business during the year, the figure of which is tallied with the submissions made by the assessee at paragraph No. 4 as quoted supra. Assessee before us, alternatively, submitted that it is a loan, but not a capital and the same is to be returned to the depositors/creditors. Even if this alternative argument of the assessee is considered by following the judgment of Kedarnath Jute Manufacturing Co Ltd [1971 (8) TMI 10 - SUPREME COURT] the entry in the books of account is not relevant, then, still the assessee has to satisfy the AO as per section 68 of the Act. Therefore, we are of the considered opinion that the issue in dispute shall be remitted back to the AO for de-novo assessment. Accordingly, we restore the matter back to the file of the AO for de-novo adjudication, after giving reasonable opportunity of hearing to the assessee in the matter. Appeal of the revenue is treated as allowed for statistical purposes
|