Concessional penalty for search-disclosed unreconciled jewellery applies where substantive disclosure conditions are met despite omission from origina...
ITAT allowed the appeal and deleted the additions: the tribunal held that unsecured deposits could not be treated as unexplained loans where the depositor's ITR, PAN, address, and interest income (with TDS) were on record and uncontroverted by the Department, negating any presumption of unexplained liability. Separately, additions characterizing deposits as capital introduced were disallowed because the assessee furnished bank statements, partner capital accounts and ITRs evidencing prior withdrawals as the source, the AO failed to specify what further proof was required, and the CIT(A) merely affirmed without reasons. On this record the onus shifted to Revenue, which failed to rebut the assessee's cogent documentary explanation.
ITAT allowed the appeal and deleted the additions: the tribunal held that unsecured deposits could not be treated as unexplained loans where the depositor's ITR, PAN, address, and interest income (with TDS) were on record and uncontroverted by the Department, negating any presumption of unexplained liability. Separately, additions characterizing deposits as capital introduced were disallowed because the assessee furnished bank statements, partner capital accounts and ITRs evidencing prior withdrawals as the source, the AO failed to specify what further proof was required, and the CIT(A) merely affirmed without reasons. On this record the onus shifted to Revenue, which failed to rebut the assessee's cogent documentary explanation.
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