Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (2) TMI 170 - AT - Income TaxAddition u/s 69 - deposits made in the regular bank account of the brother of the assessee who is separately assessed to tax - HELD THAT:- During the course of the assessment proceedings, the assessee filed an affidavit stating that he is one of the co-owner in the account along with his brother which is only for the sake of convenience and all the funds and the transactions in the said bank account belongs to his brother, who has confirmed all the said transactions in his bank account. Thereafter, the assessing officer without properly appreciating the aforesaid facts has made an addition in the hands of assessee, of entire deposits made in the bank account of the brother of the assessee, which is absolutely erroneous. Assessee has submitted books of accounts of his brother and submitted affidavit also - AO has not made any adverse finding in any of these documents even, though all the details were furnished by the assessee before him. AO ought to have examined all these details and refuted / rejected them, with a cogent adverse findings and discernable line of reasoning, in order to arrive at a conclusion. AO has just brushed aside these evidences without even a word on why they are not acceptable. It is a well settled Law that when an assessee has all the possible evidence in support of its claim, they cannot be brushed aside based on surmises. Therefore, based on this factual position we delete the addition made by the assessing officer. Thus, ground no.1 raised by the assessee is allowed. Addition u/s 68 - maturity proceeds of FDRs, alleging unexplained cash credits - HELD THAT:- Learned Counsel submits that aforesaid FDRs at Sr. Nos. 1 to 4 were made by the assessee, his wife and the brother of the assessee before the commencement of the current assessment year i.e. well before 01-04- 2007 and thus, these FRD were not made during the assessment year under consideration. In this regard, assessee submits a copy of the bank certificates issued by the Dena Bank evidencing the fact that the said FDRs were not made during the current year but were made in the earlier years. Since the investments in the FDRs were not made during the year under consideration, the question of taxing the same alleging it as unexplained cash credit does not arise and hence, based on this factual position we delete the addition. Addition in respect of investment in Mutual Funds - HELD THAT:- As ld Counsel submits that Investments in mutual funds each vide account Nos. 42652075101 and 42677326502 belonging to the assessee and his brother and referred to by the assessing officer gets fully accounted for in the regular books of account of the assessee and his brother. The assessee submitted before assessing officer, the relevant bank statement and the ledger account of investment in mutual fund reflecting the impugned investments. We note that assessing officer did not find any defect in these evidences. Hence the impugned investments should not be treated unexplained, therefore, we delete the addition. The ground raised by the assessee is allowed.
|