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2013 (12) TMI 1367 - AT - Income Tax


Issues:
1. Unexplained cash deposits of Rs. 5,00,000/- and Rs. 12,00,000/- for AY 2006-07.
2. Payment of tax on admitted income for AY 2007-08.
3. Addition of Rs. 18,30,000/- as unexplained income on account of deposits made in banks for AY 2007-08.

Analysis:
1. For the first issue regarding unexplained cash deposits for AY 2006-07, the AO had added Rs. 5,00,000/- and Rs. 12,00,000/- as unexplained credits. The CIT(A) deleted the addition of Rs. 5,00,000/- after verifying the ways and means account, which showed sufficient funds for the deposits. The Tribunal upheld the CIT(A)'s decision, emphasizing the genuineness of the transactions and the availability of funds as per the ways and means statement.
2. Moving on to the second issue of tax payment on admitted income for AY 2007-08, the Revenue contended that the appeal should be dismissed due to non-payment of tax. However, it was clarified that the tax was paid before the appeal was heard by the CIT(A), rendering the ground raised by Revenue irrelevant. The Tribunal dismissed the Revenue's appeal based on precedents and the timely tax payment by the Assessee.
3. Lastly, the third issue involved the addition of Rs. 18,30,000/- as unexplained income for AY 2007-08. The AO treated various cash deposits as unexplained credits, which the CIT(A) upheld. However, the Tribunal overturned the CIT(A)'s decision after considering the documentary evidence provided by the Assessee, including ways and means accounts and bank statements. The Tribunal found the deposits to be genuine and supported by the financial records, leading to the allowance of the Assessee's appeal.

In conclusion, the Tribunal dismissed the appeals of Revenue for AY 2006-07 and AY 2007-08, while allowing the Assessee's appeal for AY 2007-08. The judgments were pronounced on 20th December 2013.

 

 

 

 

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