2022 (3) TMI 307

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.... "Whether in the facts and circumstances of the case, the learned Tribunal was justified and correctly held that a sum of Rs. 41,00,000/- belonging to daughter if at all shall be treated as unexplained cash credit under the provisions of section 68 of the I.T. Act when the appellant had no books of account as required under the provisions of the Act ?" 2. The background facts are that a notice was served on the Assessee under Section 143(2) of the Income Tax Act (IT Act) after his return for the AY in question was picked up for scrutiny. The Assessing Officer (AO) found that there was unexplained cash deposit in the sum of Rs. 41,00,000/- in the Assessee's Bank Account. The Assessee explained that the sum had been received from his married....

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....here is no evidence even to support the daughter's claim of having the cash. The circumstances of having the cash as told by the appellant are not under normal human behavior and also not supported by any reasonable evidences. Accordingly, the claim that the cash belongs to the daughter who stays in USA has not been established." 5. The CIT (A) also discussed the requirements of Section 68 of the IT Act and observed as under: "The assessee is required to prove three important conditions, namely, (i) the identity of the creditor,   (ii) the capacity of the creditor to advance the money, and (iii) the genuineness of the transaction. What evidence would be sufficient to establish the said conditions or what material would be rele....

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....1lakhs in the Assessee's S.B. Account on one particular date is indeed unbelievable. In terms of the details furnished by the Assessee's daughter, the ATM withdrawals and withdrawals by self and cash in the sum of Rs. 10,77,900/- was made on 40 occasions between 8th August, 2008 and 7th June, 2010 i.e. over a period of 22 months. During the same period, she was supposed to have received gifts from her father in the sum of Rs. 6.25 lakh. The CIT (A) on studying the bank account carefully found that while Rs. 41 lakhs was deposited on 12th June, 2010 and within two days thereafter there was a debit with the narration "TRF to LIC MF Liquid Fund" which meant that it had been invested in the above liquid fund and not used for any investment in l....