Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Shri BP. Ravi Versus The Income Tax Officer

2015 (5) TMI 889 - ITAT BANGALORE

Unaccounted Opening cash - Held that:- The entries made at cash book are not supported by the credit card statement and therefore the claim of the assessee that the cash withdrawals using credit card were repaid by cheque issued from the assessee’s bank account and therefore cash withdrawn using credit card should be considered as being available to the assessee to explain the cash deposit of ₹ 16.15 lakhs in his bank account cannot be accepted. The request of the ld. counsel for the asses .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

dian Airlines on 20.11.2008, 23.12.2008 and 26.4.2008. As to how these purchases of air ticket is linked with the visits of the assessee to Sri Lanka, China, Hongkong and Bangladesh is not clear. There is no evidence filed by the assessee to show that these expenses were reimbursed by the employer. In these circumstances, we are of the view that the claim made by the assessee was rightly rejected by the CIT(A). - Decided against assesse.

Gift from mother of ₹ 1 lakh disallowed - .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

that it was highly improbable that the assessee’s mother would have retained cash with her for 3 years and given it as gift to the assessee. - Decided against assessee. - ITA No.33/Bang/2014 - Dated:- 10-4-2015 - Shri N.V. Vasudevan And Shri Jason P. Boaz JJ. For the Appellant : Shri N. Suryanarayana, ACIT(Retd.) For the Respondent : Shri P. Dhivahar, Jt. CIT(DR) ORDER Per N.V. Vasudevan, Judicial Member This appeal by the assessee is against the order dated 4.10.2013 of the CIT(Appeals)-IV, Ba .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Since the source of funds for the aforesaid cash deposit in the bank account remained unexplained, the AO added the same to the total income of the assessee. Besides the above, a deduction of ₹ 67,524 claimed under Chapter-VIA of the Act was also denied for want of evidence to substantiate the eligibility for claim of deduction. The AO ultimately determined the total income of the assessee as follows:- Income returned : 4,44,990 Add: Deduction claimed under Chapter VIA: 67,524 Add: Unexpl .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

deposit of ₹ 32,30,000 in the bank account. The assessee therefore submitted that the cash deposits that the assessee has to explain was only a sum of ₹ 16,15,000. This explanation was accepted by the CIT(A). The assessee explained the source of cash of ₹ 16,15,000/- as follows:- Opening cash (01.04.2008) 4,03,527 Drawings from credit cards 1,50,000 Loan on credit cards 2,00,000 Re-imbursement of foreign tour expenses 2,53,000 Sale of jewellery 2,75,000 Gift from mother (RD mat .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

resent appeal before the Tribunal. 5. Grounds No. 1 & 2 regarding challenge to order u/s. 144 of the Act were not pressed and are therefore dismissed as not pressed. 6. The remaining grounds are only with regard to the various items of source of cash which were disbelieved by the CIT(A). We will deal with each of the items of source of cash as explained by the assessee before the CIT(A) in the light of the order of the CIT(A). (i) Opening cash as on 1.4.2008 of ₹ 4,03,527 7. According .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ee had filed balance sheet as on 31.3.2007, 31.3.2006, 31.3.2005 & 31.3.2004 before the CIT(A). Cash and bank balance have been disclosed in those balance sheets. The opening balance of cash as on 1.4.2008 was arrived at by the assessee only on the basis of cash balance as on 31.3.2007 and after taking into consideration the cash transactions during the previous year from 1.4.2007 to 31.3.2008. According to him, therefore, the source of opening balance of cash stands duly explained. 9. We ha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

to prove the opening cash balance as claimed by him. We therefore agree with the conclusions of the ld. CIT(Appeals) on this issue. (ii) Drawings from credit cards - Rs.1,50,000 (iii) Loan on credit cards - Rs.2,00,000 10. As far as the source of ₹ 3.5 lakhs in respect of the above sources are concerned, the assessee has filed only cash book from 1.4.2008 to 31.3.2009. In the cash book, there is a section showing credit card expenses. According to the assessee, the credit card expenses sh .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

using ATM card are therefore to be considered as cash available for depositing in the bank account. 11. On the above explanation offered by the assessee, the CIT(A) was of the view that the payment by cheque shown by the assessee in cash book as payments made towards repayment of cash withdrawn using credit card was not supported by credit card statement. The CIT(A) was of the view that though substantial amounts have been paid towards credit cards during the previous year, it has not been estab .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

en by remanding the issue to the AO. 13. We have considered the submissions of the assessee and are of the view that the order of CIT(Appeals) has to be upheld. As we have already noticed, the assessee has filed cash book from 1.4.2008 to 31.3.2009 and the same is placed at pages 7 to 13 of the assessee s paperbook. Copy of the capital account ledger is placed at pages 14 to 39 of the Assessee s paper book. Pages 21 to 23 contain classification in the cash book under the head credit card expense .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

also not be accepted because the CIT(A) had rejected the claim of assessee for absence of credit card statement and even before the Tribunal, the assessee did not make any attempts to file the same as additional evidence. In these circumstances, we uphold the order of the CIT(Appeals) on this issue. (iv) Reimbursement of foreign tour expense - ₹ 2,53,000 14. It was the claim of assessee that he had undertaken foreign travel on behalf of the employer and had used credit cards for booking a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the assessee having undertaken the foreign travel on behalf of the company and that the company has reimbursed those expenses. 16. The expenses so reimbursed insofar as it relates to the period from 28.4.2008 to 2.1.2009 is claimed by the assessee to be a sum of ₹ 2,43,000. The details are given in Annexure-I to this order. The assessee has also filed before us the details of foreign trips undertaken by him which are as follows:- Date of visit (from & to) Country visited Date of purcha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version