2013 (4) TMI 914 - AT - Income Tax

Summary

Issues involved: Appeal against order of CIT(A) confirming addition of Rs. 11,000,000 made by AO u/s 68 of the Income Tax Act, 1961.

Details of the Judgment:

Issue 1: Confirmation of addition of Rs. 11,000,000 under section 68 of the Act
- The assessee, an individual, declared taxable income of Rs. 5,42,620 for the assessment year 2009-10.
- AO made addition of Rs. 11,00,000 as unexplained cash credit u/s 68 of the Act due to cash deposit in savings bank account.
- CIT(A) confirmed AO's order based on preponderance of probability.
- Assessee explained cash deposit as proceeds from sale of ONGC shares redeposited in bank.
- AO considered pattern of cash withdrawals from bank ATM and held source of deposit unexplained.
- CIT(A) upheld AO's order stating no force in appellant's explanation and lack of cash flow evidence.
- Tribunal observed sale proceeds of shares, cash withdrawals, and subsequent redeposit by assessee.
- Assessee held cash for periods before redeposit, reasons for which were deemed plausible.
- Revenue failed to prove cash deposit other than withdrawals from bank account.
- Tribunal found taxing based on presumptions unjustifiable and deleted the addition u/s 68 of the Act.
- Appeal of the assessee allowed in his favor.

Conclusion: The Tribunal allowed the appeal of the assessee, deleting the addition of Rs. 11,00,000 made by the AO u/s 68 of the Act.