2012 (1) TMI 186 - AT - Income Tax

Summary

Issues:
The judgment involves challenges to additions confirmed by Ld CIT(A) for 1/4th of car expenses, 1/4th of car depreciation towards personal use, and unexplained money in a bank account amounting to Rs. 22.51 lakhs for the assessment year 2005-06.

1/4th of Car Expenses and Depreciation:
The assessing officer disallowed a portion of car expenses and car depreciation towards personal use, which the assessee contested before Ld CIT(A) and subsequently before the tribunal. The tribunal upheld the disallowance, deeming it reasonable based on the explanations provided.

Unexplained Money in Bank Account:
The department discovered cash deposits exceeding Rs. 10.00 lakhs in an undisclosed bank account maintained with CITI Bank, totaling Rs. 22.51 lakhs. The assessing officer added this amount to the total income of the assessee u/s 69A of the Act due to unsatisfactory explanations provided. The assessee claimed the funds were received from their sister residing in Italy, routed through the brother for sponsoring educational expenses. Despite confirmation letters from the brother and sister, the tax authorities remained unconvinced, citing lack of detailed remittance information and evidence supporting previous transactions between the siblings. The tribunal, after reviewing the bank account details and explanations, found the assessee's contentions unconvincing, affirming the decision of Ld CIT(A) to dismiss the appeal.

In conclusion, the tribunal upheld the additions of 1/4th of car expenses and depreciation for personal use, along with the inclusion of unexplained funds in the bank account, dismissing the appeal of the assessee.