2019 (2) TMI 2003 - AT - Income Tax

Appellant's appeal dismissed, discrepancies in cash deposits, denial of exemption under Section 54F.

Shri A. Vasudevan Versus The Income Tax Officer, Ward 1 (5), Tirupur.

Shri A. Vasudevan Versus The Income Tax Officer, Ward 1 (5), Tirupur. - TMI Issues:1. Cash deposit of Rs. 46,50,000 in Catholic Syrian Bank.2. Cash deposit of Rs. 12,50,000.3. Cash deposit of Rs. 6,00,000.4. Denial of exemption under Section 54F of the Act.Analysis:Cash deposit of Rs. 46,50,000 in Catholic Syrian Bank:The appellant claimed to have paid this amount as an advance for a pollution control plant installation, which was later returned in cash by Shri S.K. Pandian. However, the Departmental Representative argued that the confirmation letter produced by the appellant was doubtful and not submitted to the Assessing Officer initially. The bank clarified that the cheque issued was encashed on the same day. The Tribunal found discrepancies in the appellant's claims, stating that the entries were afterthoughts and lacked supporting evidence. Consequently, the order of the lower authority was upheld.Cash deposit of Rs. 12,50,000:The appellant claimed to have given this amount to Shri R. Nagarajan for a similar purpose, but the latter failed to provide evidence of repayment to a dying unit at Erode. The bank confirmed the quick encashment of the cheque issued. The Tribunal noted the lack of evidence supporting the transactions and the failure to establish the creditworthiness and genuineness of the parties involved, leading to the affirmation of the lower authority's decision.Cash deposit of Rs. 6,00,000:The appellant received this amount from Shri D. Palanisamy but could not establish the identity, creditworthiness, and genuineness of the transaction. Despite submitting a cash book, the appellant's failure to provide substantial evidence led to the confirmation of the addition by the CIT(Appeals).Denial of exemption under Section 54F of the Act:The appellant sold a property and reinvested in a residential house, claiming exemption under Section 54F. However, the Assessing Officer found discrepancies as the appellant's wife had already claimed exemption for the same property. Since the wife was considered an independent assessee and had availed the exemption, the appellant's claim was denied. The Tribunal upheld this decision, stating that the appellant could not claim the exemption a second time for the same property.In conclusion, the appeal filed by the assessee was dismissed, and the lower authorities' decisions were confirmed for all the issues raised in the case.