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2022 (3) TMI 307 - HC - Income TaxAddition u/s 68 - unexplained cash credit - HELD THAT:- CIT (A) on studying the bank account carefully found that while ₹ 41 lakhs was deposited on 12th June, 2010 and within two days thereafter there was a debit with the narration “TRF to LIC MF Liquid Fund” which meant that it had been invested in the above liquid fund and not used for any investment in land or building on behalf of the Assessee’s daughter. The fact is that the CIT (A) disbelieved that the Assessee was appointed as the general power of attorney holder for his daughter for entering into land/building transactions on behalf of his daughter. Since the funds were used by the Assessee for his own investment it strongly indicated that the source of investment i.e. the cash deposit of ₹ 41 lakhs also belongs to him. Learned Senior Counsel was unable to overcome the above categorical finding of the CIT(A) on how the cash deposit or ₹ 41 lacs was actually used. The explanation offered by the Assessee raised more questions than it answered. For instance, it was not explained why marriage gifts in a substantial sum of ₹ 25 lacs was kept as cash with the Assessee’s daughter. If indeed the daughter maintained a bank account it was but natural that such cash amount would be deposited in such account. The Court is, therefore, not persuaded that any factual or legal error has been committed by the AO, or the CIT (A) or the ITAT in sustaining the above additions under Section 68 of the IT Act. The question framed is therefore, answered in the affirmative i.e. in favour of the Department and against the Assessee.
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