Working capital adjustment, comparable selection and trade receivables interest were revisited in transfer pricing, with key additions deleted and rem...
The ITAT decided in favor of the assessee, a doctor residing in the United Kingdom. The unexplained cash deposits in the assessee's Indian bank account during the demonetization period were claimed to be gifts from the assessee's family members, who are doctors with substantial income in India. The Tribunal accepted the assessee's contention that the cash gifts could not be deposited at once due to difficulties during demonetization. The Assessing Officer failed to conduct further inquiries u/s 133(6)/131(1) to establish the identity, genuineness, and creditworthiness of the donors, despite the assessee furnishing gift certificates. The onus shifted to the Assessing Officer, who made assumptions without completing the inquiry process. Considering the family's status and income, the Tribunal found the explanation for cash gifts over three years justified. However, the Tribunal upheld the addition u/s 115BBE, as the assessee was aware of the nature of additions through the show cause notice, despite the Assessing Officer not mentioning the specific section.
The ITAT decided in favor of the assessee, a doctor residing in the United Kingdom. The unexplained cash deposits in the assessee's Indian bank account during the demonetization period were claimed to be gifts from the assessee's family members, who are doctors with substantial income in India. The Tribunal accepted the assessee's contention that the cash gifts could not be deposited at once due to difficulties during demonetization. The Assessing Officer failed to conduct further inquiries u/s 133(6)/131(1) to establish the identity, genuineness, and creditworthiness of the donors, despite the assessee furnishing gift certificates. The onus shifted to the Assessing Officer, who made assumptions without completing the inquiry process. Considering the family's status and income, the Tribunal found the explanation for cash gifts over three years justified. However, the Tribunal upheld the addition u/s 115BBE, as the assessee was aware of the nature of additions through the show cause notice, despite the Assessing Officer not mentioning the specific section.
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