2016 (10) TMI 1105

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....of hearing to assessee. 2. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income-tax (Appeals) has erred in confirming the action of the assessing officer in making addition of Rs. 20,03,000/- as unexplained cash credit u/s 68 of the IT. Act, 1961 and of 8,271/- on account of undisclosed interest income. 3. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income-tax (Appeals) has erred in confirming the action of the assessing officer in not allowing set-off of loss of Rs. 30,36,815/- on trading of shares against the additions of Rs. 20,11,271/- (20,03,000 + 8,271) made as above. 4. It is therefore pra....

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.... unaccounted income earned during the year under consideration in it. It is worthwhile to mention here that the narration of debit entries of the said bank account shows that the assessee has made investment and incurred expenditure, which are unaccounted and made out of such unaccounted income reflected at the credit side of the said bank account. 7.4 The assessee has also failed to explain the source of amount credited by cheques. It proves that it is nothing but the assessee has also earned unaccounted income by cheques and that is why, such cheques have been deposited in this undisclosed bank account. Furthermore, the assessee could not furnish any explanation in respect of debit entries appearing in the said Bank .accounts and....

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.... ld.CIT(A) considering the issue, decided the appeal of the assessee ex parte. The ld.CIT(A) has observed that the assessee failed to demonstrate that she has carried out any share trading activities and suffered a loss of Rs. 30,36,815/-. Before me, on the strength of section 71 of the Income Tax Act, the ld.counsel for the assessee contended that income added by the AO on account of unexplained cash credit is to be set off against the loss in the share trading business. For supporting his contentions, the ld.counsel for the assessee relied upon the order of the ITAT in the case of K.R. Automobiles Vs. ACIT, in ITA No.1972/Ahd/2012. He placed on record copy of the order. 5. On the other hand, the ld.DR relied upon the order of the Reven....