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>Tribunal allows appeal, deletes addition under Income Tax Act Section 69. Interest charge ground rejected.</h1> The Tribunal allowed the appeal, deleting the addition under section 69 of the Income Tax Act. The additional ground on charging of interest was rejected ... - Issues Involved:Appeal against CIT(A)'s order confirming addition under s. 69 of IT Act.Analysis:1. Addition under s. 69 of IT Act:- The appeal challenged the addition of Rs. 2,29,625 under s. 69 of the IT Act as confirmed by CIT(A).- During a search operation, it was found that the assessee purchased bank drafts worth the said amount, which were seized by the Department.- The assessee explained the source of funds used for purchasing the bank drafts, including loans from brothers and own investment.- The AO rejected the explanation, making the addition under s. 69 as unexplained income.- CIT(A) deleted an additional estimated amount related to coal business but confirmed the bank draft investment, citing lack of substantiation by the assessee regarding fund accumulation.- The assessee argued that the investment was made from agricultural income, providing cash flow statements and a certificate from the Tehsildar.- The Tribunal noted that the assessee and his brothers had agricultural income as the only source, and the discretion under s. 69 should be exercised considering the facts of the case.- Referring to a Supreme Court judgment, the Tribunal held that s. 69 could not be invoked in this case, deleting the addition.2. Additional Ground on Charging of Interest:- The assessee raised an additional ground challenging the charging of interest under s. 234A, B & C without specific order, and the charging of interest under s. 234B despite showing nil income.- The authorized representative later decided not to press this ground, leading to its rejection.3. Final Decision:- The Tribunal allowed the appeal, deleting the addition under s. 69 of the IT Act.- The additional ground on charging of interest was rejected as the representative chose not to press it.This detailed analysis outlines the issues involved in the appeal, the arguments presented by the parties, the considerations of the Tribunal, and the final decision rendered in the judgment by the Appellate Tribunal ITAT AGRA.
TaxTMI 
TaxTMI 
