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2016 (4) TMI 579 - AT - Income Tax


Issues:
1. Addition of unexplained cash deposits in bank account
2. Addition of short term capital gains from shares

Issue 1: Addition of unexplained cash deposits in bank account

Analysis:
The case involves an appeal against the order of the ld. CIT(A)-II, Jaipur for the assessment year 2008-09. The assessee declared total income of &8377; 1,42,300/- and was selected for scrutiny. The Assessing Officer (AO) observed cash deposits exceeding &8377; 10.00 lacs in the bank account, questioning the source. The assessee claimed the cash receipt of &8377; 7,45,500/- as advance against land sale, supported by an agreement. However, discrepancies in the agreement raised doubts. The AO added the amount as unexplained cash credit, citing lack of original agreement, unproven identity and creditworthiness of the purchaser. The ld. CIT(A) upheld the addition, emphasizing discrepancies in the agreement execution date and lack of original agreement submission. The appellant contended the validity of the agreement, absence of expiry date for stamp paper, and non-production of original agreement due to strained relations with the purchaser. The Tribunal noted the absence of credible evidence supporting the explanation, leading to failure in discharging the burden of proof. While acknowledging the stamp paper validity beyond six months, the Tribunal emphasized the lack of authenticity in the photocopy of the agreement. The Tribunal dismissed the appeal, highlighting the questionable transaction and absence of verification, leading to the addition being upheld.

Issue 2: Addition of short term capital gains from shares

Analysis:
During the proceedings, the ld. AR did not press Ground No. 2 related to short term capital gains from shares, leading to its dismissal. Therefore, this issue was not further discussed or analyzed in the judgment.

In conclusion, the appellate tribunal dismissed the appeal of the assessee concerning the addition of unexplained cash deposits in the bank account for the assessment year 2008-09. The judgment highlighted the importance of credible evidence, authenticity of documents, and the burden of proof in income tax proceedings. The Tribunal emphasized the need for corroborative evidence and verification to support explanations in tax matters, ultimately upholding the addition due to insufficient proof provided by the assessee.

 

 

 

 

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