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2022 (12) TMI 839 - ITAT CHENNAIUnexplained cash credit u/s. 68 - cash deposits found in the bank account of the assessee - assessee could not submit any evidence in support of his claim that source for cash deposit is out of known source of income - HELD THAT:- Although the assessee could not justify cash deposit in his bank account with valid evidence, but in our considered view the CIT(A) should not have summarily rejected affidavit filed by nine persons who claimed to be closed relatives of the assessee. When the assessee has filed affidavit from certain persons, it is the duty of the authorities below to verify the claim of the assessee and summon the persons from whom the assessee claims to have received cash. In this case, CIT(A) summarily rejected affidavit filed by the assessee to justify source for cash deposit without carrying out further enquiries to ascertain the claim of the assessee, in light of affidavit filed by various persons. Neither the assessee justified source for cash deposit with necessary evidence, nor the CIT(A) reached a the conclusion that cash deposits with bank account is unexplained income of the assessee, which can be assessed u/s. 68. Thus to settle dispute between the parties by restoring some sought of estimation of income towards cash deposits found in the bank account of the assessee. Therefore, we deem it appropriate to direct the AO to estimate 20% profit on total cash deposits found in the bank account of the assessee. Hence, we direct the AO to sustain 20% profit on total cash deposits and delete balance amount of addition made u/s. 68 of the Act. Appeal filed by the assessee is partly allowed.
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