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Jaspal Singh Sehgal Versus Income-Tax Officer

2016 (5) TMI 138 - ITAT MUMBAI

Unexplained cash credits - Held that:- Opening cash balance - With the assistance of both the parties, it is noted by us that the assessee has shown the closing cash balance in the balance-sheet of the last year. These documents could not be controverted by the lower authorities as well as by the learned Departmental representative before us. Therefore, we direct the Assessing Officer to accept the opening balance of ₹ 3,86,222.

Cash withdrawn from Axis Bank and from PMC Bank - .....

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the assessee from the bank account against the amount of cash deposit into the bank account of the assessee, especially when the cash has been withdrawn and deposited in the same financial year, even if the bank from where cash was withdrawn and bank where the cash was deposited are different. Thus, after considering entire facts and circumstances of the case, we direct the Assessing Officer to give set off of entire amount of cash withdrawn from the Axis Bank and PMC Bank.

Friendly l .....

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led which has been accepted and taxed by the Assessing Officer in the assessment order. Therefore, we direct the Assessing Officer to give credit of this amount also. Thus, this claim is accepted. - Decided partly in favour of assessee.

Unexplained expenditure on account of foreign traveling - Held that:- On the basis of the submissions made during the course of hearing that the entire amount was spent by the assessee by cheque and for this purpose our attention was drawn on page 16 o .....

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r of Income- tax (Appeals), misunderstood the facts and presumed that the entire expenses were incurred by the assessee in cash. The learned Departmental representative did not make any serious arguments to rebut the submissions of the learned counsel. We find the disallowance has been made by the lower authorities under wrong assumption of facts. In our view the entire payment has been made from bank accounts of the assessee. Thus, no disallowance or addition is called for - Decided in favour o .....

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143(3) of the Income-tax Act, 1961, dated December 30, 2011, for the assessment year 2009-10 on the following grounds : "1. The learned Commissioner of Income-tax (Appeals) has erred in upholding the addition of ₹ 20,65,000 made by the Assessing Officer as unexplained cash credits for the reasons stated in the assessment order. 2. The learned Commissioner of Income-tax (Appeals) has erred in upholding the addition of ₹ 4,19,120 made by the Assessing Officer as unexplained expend .....

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id expenditure as debit to his capital account." 2. During the course of hearing, arguments were made by Shri R. S. Bindra, authorised representative (AR) on behalf of the assessee and by Shri K. Mohandas, Departmental representative (DR) on behalf of the Revenue. 3. Ground No. 1 : In this ground the assessee has challenged the action of the lower authorities in making an aggregate addition of ₹ 20.65 lakhs on account of cash deposited in the bank account. We have heard both the parti .....

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bank account was added. 3.2. During the course of hearing before us, the learned counsel for the assessee has taken us through various pages of the paper book explaining item-wise sources of cash under various heads and also submitted summarised and detailed cash book showing inflow and outflow of the cash. After hearing both the party, we have our decision with respect to each of the items of sources of cash in following parameters : (i) Opening cash balance of ₹ 3,86,222 : With the assis .....

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fit of cash withdrawn from the bank on the ground that the assessee could not establish that the cash withdrawn has not been used anywhere else. In our opinion, the approach of the lower authorities is not fair and justified. The assessee has submitted detailed cash summary showing inflow and outflow of the cash for the entire year. In our opinion, the assessee cannot be directed to prove the negative. It is a burden upon the Assessing Officer to prove that cash has been utilised elsewhere by th .....

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sited are different. Thus, after considering entire facts and circumstances of the case, we direct the Assessing Officer to give set off of entire amount of cash withdrawn from the Axis Bank and PMC Bank. (iii) Friendly loans of ₹ 3,55,000 : No serious arguments have been made by the assessee for explaining friendly loans. Rather at the conclusion of the hearing the learned counsel stated that he did not want to press this amount. Therefore, in the absence of proper details and expression .....

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