2019 (2) TMI 1512 - AT - Income Tax

Tribunal confirms Rs. 3 lakhs unexplained credits, remits deductions for verification.

Shri Mathai Eapen Vettath Versus The Income tax Officer, Non-Corporate, Ward-1 (3), Kochi.

Shri Mathai Eapen Vettath Versus The Income tax Officer, Non-Corporate, Ward-1 (3), Kochi. - TMI Issues Involved:1. Sustenance of addition of Rs. 49,22,000 towards deposits in the SB accounts.2. Disallowance of Rs. 1,10,000 under Section 80C.Issue-wise Detailed Analysis:1. Sustenance of Addition of Rs. 49,22,000 towards Deposits in the SB Accounts:The Assessing Officer (AO) called for information under Section 133(6) from Catholic Syrian Bank (CSB) and State Bank of India (SBI) regarding the assessee's bank accounts. The AO found deposits totaling Rs. 49,22,000 on 06/03/2014 and 07/03/2014. The AO requested an explanation for the source of these cash deposits. The assessee provided a breakdown of sources, including agricultural income, sale of plantations, motor accident claim, sale of land, and loans from various individuals. However, the AO did not accept the explanation due to the lack of supporting evidence and the non-disclosure of agricultural and professional income in the return of income. Consequently, the AO treated the cash deposit of Rs. 49,22,000 as unexplained cash credit under Section 68 of the Income Tax Act.Before the CIT(A), the assessee reiterated the sources of cash deposits and mentioned substantial cash withdrawals from bank accounts which were re-deposited. The CIT(A) observed that the AO had not considered deposits and withdrawals made during the rest of the financial year 2013-14 and had not investigated whether the assessee was actually earning agricultural income. The CIT(A) directed the AO to give credit for agricultural income, sale of land, and past withdrawals but confirmed the addition of Rs. 3 lakhs claimed as personal loans due to lack of confirmation or PAN of the parties concerned.Upon appeal, the Tribunal found that the assessee had not satisfactorily explained the sources for Rs. 3 lakhs out of Rs. 49,22,000 deposited in various bank accounts. The Tribunal confirmed the addition made by the AO.2. Disallowance of Rs. 1,10,000 under Section 80C:The assessee claimed a deduction of Rs. 1,10,000 under Section 80C for tuition fees paid for his sons' education. The assessee provided receipts for tuition fees but had not furnished details before the lower authorities. The Tribunal noted that under Section 80C(2)(xvii), tuition fees paid by a parent towards the education of their children are eligible for deduction, subject to the provisions of Section 80C(4)(c). The Tribunal remitted the issue to the AO with a direction for the assessee to furnish the details of payment of tuition fees.Regarding the deduction under Section 80TTA for interest earned on a savings bank account, the assessee had not provided details of interest income. The Tribunal remitted this issue to the AO as well, directing the assessee to provide the necessary details.Conclusion:The appeal was partly allowed for statistical purposes, and the stay petition filed by the assessee was dismissed as infructuous. The Tribunal confirmed the addition of Rs. 3 lakhs as unexplained cash credits and remitted the issues of deductions under Sections 80C and 80TTA to the AO for further verification.