2013 (2) TMI 765 - AT - Income Tax

Tribunal Upholds CIT(A)'s Decision on Income Assessment & Addition

The Tribunal dismissed the Revenue's appeal and the cross-objection of the Assessee, upholding the CIT(A)'s decision to restrict the addition and assess ... - Issues involved: Challenge to order of ld.CIT(A)-XXI, Ahmedabad dated 04/02/2010 by Revenue and cross-objection filed by respondent-assessee.Issue 1: Restriction of addition made on account of income from undisclosed source.- Revenue challenged restriction of addition from Rs. 35,33,414 to Rs. 1,80,000.- CIT(A) restricted addition based on analysis of bank transactions and lack of evidence.- CIT(A) accepted transactions as related to retail trade but estimated income at Rs. 1.80 lacs u/s.44AF.- Tribunal upheld CIT(A)'s decision, emphasizing the need for rational estimation in absence of evidence.Issue 2: Treatment of cash deposits in bank account related to HUF or individual.- AO noted cash deposits in bank account of Rs. 22,49,410 by individual.- Assessee claimed account belonged to HUF, but AO was unconvinced due to lack of evidence.- CIT(A) dismissed claim of business belonging to HUF, restricted addition to Rs. 1.80 lacs.- Tribunal affirmed CIT(A)'s decision, rejecting Revenue's grounds and cross-objection of assessee.Issue 3: Interpretation of bank transactions and determination of taxable income.- AO taxed entire cash amount in hands of individual due to lack of evidence.- CIT(A) analyzed bank transactions, accepted transactions as related to retail trade, estimated income at Rs. 1.80 lacs.- Tribunal upheld CIT(A)'s decision, emphasizing rational estimation of taxable profit in absence of evidence.Conclusion: Revenue's appeal and cross-objection of Assessee both dismissed by Tribunal, affirming CIT(A)'s decision to restrict addition and assess income in individual capacity.