TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>ITAT allows appeal, sets aside additions on unexplained bank deposits & investments. Delay condoned, matter disposed, explanations accepted.</h1> The ITAT allowed the appeal for statistical purposes, setting aside additions made by the AO and Ld. CIT(A) regarding unexplained bank deposits and ... Unexplained investment made by the assessee in bank deposits - assessee has submitted that the relevant bank account maintained by the assessee with Syndicate Bank, Asansol Branch was duly reflected in the books of account of his proprietary concern and the cash deposits made in the said account were from the receipts of the proprietary business of the assessee dealing in lottery tickets - if opportunity is given to assessee by sending the matter back to the AO, the assessee is in a position to explain the source of cash deposits - HELD THAT:- Keeping in view all the facts and circumstances of the case, I am inclined to accept this contention of the learned counsel for the assessee. Even the ld. DR has very fairly agreed that the matter can go back to the AO for proper verification of assessee’s explanation. Ground No. 1 of the assessee’s appeal is accordingly treated as allowed for statistical purpose. Unexplained investment made by the assessee in purchase of flat - assessee has submitted that the cash payments in question were also made by the assessee from the withdrawals made from his proprietary concern and since the said withdrawals were duly reflected in the audited books of account of the proprietary concern of the assessee, the same could not be treated as unexplained - as urged that this matter may also be sent back to the AO for giving the assessee an opportunity to explain the source of cash payments in question amounting to ₹ 1,69,000/- from the audited books of account of his proprietary concern - HELD THAT:- As DR has not raised any objection in this regard and has submitted that this matter can go back to the AO for proper verification, we set aside the impugned order passed by the Ld. CIT(A) confirming the addition made by the AO on this issue and restore the matter to the file of the AO for the limited purpose of verifying the explanation of the assessee regarding the cash payment in question from audited books of account of his proprietary concern wherein the same are claimed to be reflected as the withdrawals made by the assessee. Ground No. 2 of the assessee’s appeal is treated as allowed for statistical purpose. Issues:1. Condonation of delay in filing appeal before ITAT.2. Addition of Rs. 7,40,000 on account of unexplained bank deposits.3. Addition of Rs. 1,69,000 on account of unexplained investment in a flat.Issue 1 - Condonation of Delay:The appeal filed by the assessee before the ITAT was delayed by 2 days. The assessee sought condonation of the delay, providing reasons for the same. The Tribunal, after considering the application and finding sufficient cause for the delay, condoned the delay as the Revenue did not object. The appeal was then disposed of on merit.Issue 2 - Unexplained Bank Deposits:The AO and Ld. CIT(A) had made an addition of Rs. 7,40,000 on account of unexplained bank deposits by the assessee. The AO found discrepancies in the balance sheet regarding the deposit made in a fixed deposit with Syndicate Bank. The assessee contended that the deposit was made from a disclosed bank account and should not be treated as unexplained. The ITAT, after hearing arguments, accepted the assessee's explanation and set aside the Ld. CIT(A) order, directing the matter to be verified by the AO again.Issue 3 - Unexplained Investment in Flat:The AO made an addition of Rs. 4,69,000 on account of unexplained investment in a flat by the assessee. The Ld. CIT(A) sustained the addition to the extent of Rs. 1,69,000 as the source of cash payments could not be explained. The assessee argued that the cash payments were made from withdrawals from his proprietary concern and were reflected in the audited books of account. The ITAT agreed with the assessee, setting aside the Ld. CIT(A) order and directing the AO to verify the explanation of the cash payments from the audited books of account.In conclusion, the ITAT allowed the appeal of the assessee for statistical purposes, setting aside the additions made by the AO and Ld. CIT(A) on both issues related to unexplained bank deposits and unexplained investment in a flat.
TaxTMI 
TaxTMI 
