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2024 (5) TMI 27 - AT - Income Tax


Issues involved:
The appeal challenges the order of the Learned Commissioner of Income Tax (Appeals) directing the re-computation of capital gains in the hands of the appellant u/s 143(3) of the Income Tax Act, 1961.

Issue 1: Assessment of Cash Deposits

The appellant filed a return of income tax, which was picked for scrutiny assessment. The assessment order u/s 143(3) was passed, adding cash deposits from alleged unexplained sources. The appellant explained that the cash deposited was from withdrawals made by the appellant and her late husband in previous assessment years. The Learned CIT (A) upheld the addition of cash deposits u/s 69A of the Act. The appellant contended that the cash withdrawals were not disputed by the Assessing Officer, and the burden lay on the revenue to prove otherwise. The appellant relied on legal precedents to support their case.

Issue 2: Burden of Proof and Explanation of Cash Deposits

The appellant argued that the cash withdrawals made by the appellant and her late husband were not in dispute, and the cash deposits were from available sources. The appellant emphasized that the mere lack of explanation for cash withdrawals does not invalidate the source of cash deposits. Legal authorities were cited to support this argument. The Department contended that the explanation provided was unacceptable, as ordinary individuals would not keep withdrawn cash and later deposit it. The authorities doubted the explanation and the source of cash deposits.

Judgment Summary:

The Tribunal found that the cash deposits were explained by the cash withdrawals made by the appellant and her late husband in previous assessment years. The burden of proof lay on the revenue to show that the money withdrawn was used for personal purposes or not available with the assessee. The Tribunal held that the explanation provided by the appellant was justifiable, and the authorities had not furnished evidence to contradict it. Therefore, the appeal of the assessee was allowed, setting aside the Assessment Order and the order of the Commissioner of Income Tax (Appeals).

This summary provides a detailed overview of the legal judgment, highlighting the issues involved and the key arguments presented by both parties in relation to the assessment of cash deposits and the burden of proof regarding the explanation of such deposits.

 

 

 

 

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