9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (8) TMI 673 - AT - Income TaxAddition u/s 69 - Unexplained gifts - assessee submitted that amounts deposited in cash in her bank account represented gift from her husband - CIT-A held that A.O has simply rejected the valid explanation of the assessee without advancing any cogent reasons accordingly, he deleted an addition - HELD THAT - In view of the quantum addition deleted by the CIT(A), we are of the considered view that this appeal of the revenue is covered by the CBDT Circular No.17/2019 dated 8th August, 2019, and is not maintainable and should be dismissed due to low tax effect. Appeal of the revenue is dismissed.
Issues:
1. Acceptance of cash deposits as gifts without a gift deed. 2. Treatment of trade receipts as unexplained cash credits. Issue 1: Acceptance of cash deposits as gifts without a gift deed: The appeal involved the acceptance of cash deposits in the assessee's bank account as gifts from her husband without a gift deed. The Assessing Officer (AO) added the cash deposits as unexplained income, but the CIT(A) deleted the addition after considering evidence of the husband's income tax filings and bank transactions. The CIT(A) emphasized the need to establish the identity and creditworthiness of the donor, which the assessee successfully did. The CIT(A) held that the AO failed to provide valid reasons for rejecting the explanation, leading to the deletion of a significant portion of the addition. Issue 2: Treatment of trade receipts as unexplained cash credits: Regarding the cash deposits from trade receipts, the CIT(A) found that the amounts were included in the assessee's taxable income under section 44AD. The CIT(A) reasoned that since the trade receipts were accounted for under the presumptive taxation scheme, there was no need for further explanation or documentary evidence. The CIT(A) deleted the cash deposits related to trade receipts after considering the submissions made by the assessee. In summary, the ITAT Cuttack upheld the CIT(A)'s decision to delete the additions made by the AO regarding cash deposits treated as gifts and trade receipts. The tribunal emphasized the importance of establishing the genuineness of transactions and complying with relevant tax provisions. The appeal was dismissed based on the low tax effect, in line with CBDT Circular No.17/2019.
|
