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Issues Involved: Appeal against order of CIT (A)-V, Surat regarding unexplained cash deposit, undisclosed bank account balance, undisclosed share holdings, and set-off of capital loss in share transactions.
Unexplained Cash Deposit and Undisclosed Bank Account Balance: The revenue appealed against the CIT (A)'s decision to restrict the addition of Rs.1,79,818 for unexplained cash deposit, undisclosed bank account balance, and undisclosed share holdings. The AO had added Rs.12,26,373 to the income of the assessee, including Rs.10,21,500 cash deposit, Rs.25,054 closing balance of ICICI Bank account, and Rs.1,79,818 shares held but not disclosed. The CIT (A) restricted the addition to Rs.1,79,818, considering it as the investment in shares, higher than the peak balance of Rs.1,65,544 in the bank account. The CIT (A) emphasized that the AO should have considered the source of the cash deposit and given the benefit of telescoping, taxing either the peak balance or the investment in shares, whichever is higher. The Tribunal upheld the CIT (A)'s decision, dismissing the revenue's appeal. Set-off of Capital Loss in Share Transactions: The revenue also challenged the CIT (A)'s direction to allow the set-off or carry forward of capital loss incurred in share transactions amounting to Rs.1,81,708, not shown in the return of income. The CIT (A) had remitted the issue back to the AO for verification and decision as per law. The Tribunal found no reason to interfere with the CIT (A)'s decision, as it only directed the AO to verify the claim of the assessee and decide as per law. Consequently, the Tribunal dismissed the revenue's appeal on this issue as well. In conclusion, the Tribunal upheld the CIT (A)'s decision on both issues, dismissing the revenue's appeal in its entirety.
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