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of <h1>Tribunal allows appeal, removing unexplained cash credits, considering donors' finances, transaction timing, and gift credibility.</h1> <h3>Shyamal Kumar Mallick Versus Income Tax Officer</h3> Shyamal Kumar Mallick Versus Income Tax Officer - TMI Issues:1. Non-compliance with the direction of the Hon'ble ITAT 'A' Bench, Kolkata.2. Confirmation of the order passed by the Ld. Assessing Officer.3. Addition of 7 lakh as unexplained cash credit.Analysis:1. The appeal raised concerns regarding the Assessing Officer's failure to comply with the direction of the Hon'ble ITAT 'A' Bench, Kolkata, dated 07.5.2008. The Tribunal had instructed a re-adjudication of the matter after considering all material evidence, including information from the donors. However, upon re-examination, it was found that the alleged donors had minimal income, some gifts were made from cash deposits on the same date, and the donors were unavailable for personal examination. Consequently, the AO added back the gifts as unexplained cash credit, a decision upheld by the Ld. CIT(A).2. The Ld. Counsel contended that the Authorities below did not follow the Tribunal's directions, but the Tribunal clarified that the issue was readjudicated afresh as per its directive. The AO presented a tabulated comparison of gift receipts and the donors' return income, highlighting discrepancies. Notably, in one instance, a donor deposited cash just before issuing a cheque, casting doubt on the authenticity of the gift. The Tribunal agreed that such circumstances indicated the gift was unexplained cash credit, upholding the decision for one donor but overturning it for others with no adverse features in their bank accounts.3. Ultimately, the Tribunal partially allowed the appeal, deleting the unexplained cash credit for three donors besides one. The decision was based on the assessment of each donor's financial situation, the timing of transactions, and the overall credibility of the gifts. By confirming some additions and deleting others, the Tribunal aimed to ensure a fair and just resolution based on the evidence presented.This comprehensive analysis highlights the key issues addressed in the judgment, the arguments presented by the parties, and the Tribunal's reasoning behind its decision to partially allow the appeal.
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