2011 (2) TMI 1571 - AT - Income Tax

Summary

Issues involved: Addition of unexplained money u/s. 69A and suppression of interest.

Unexplained money u/s. 69A:
The Assessing Officer made an addition of &8377; 11,00,000/- as unexplained money u/s. 69A of the Income Tax Act based on cash deposits in the assessee's bank accounts. The assessee explained that the cash deposits were from family members and were withdrawn within the financial year. However, the AR of the assessee was unable to provide details of the family members or their income sources, leading to the addition of the amount as unexplained money.

Suppression of interest:
Another addition of &8377; 20,290/- was made on account of suppression of interest on fixed deposits. The Assessing Officer found discrepancies in the interest rates declared by the assessee on the fixed deposits compared to the rates provided by the bank. The Ld. CIT(A) confirmed this addition after considering the submissions of the assessee.

Judgment:
The ITAT Kolkata set aside the addition of unexplained money of &8377; 11,00,000/- for fresh verification, directing the Assessing Officer to redecide the matter after considering the additional documents submitted during the appeal. However, the addition of &8377; 20,290/- for suppression of interest was confirmed. The appeal of the assessee was allowed for statistical purposes, with the order pronounced on 28.02.2011.