2019 (3) TMI 388 - AT - Income Tax

Addition u/s 68 - unexplained cash credit - money was transferred originally from the loan account of Shri Viniyak Atterde to SB account of Shri Viniyak Atterde and withdrawal of cash by Shri Viniyak Atterde from the SB account and gave a loan to the assessee - HELD THAT - SB account of Shri Viniyak Atterde, the creditor of the assessee, assumes from significant for deciding the issue meaningfully. Therefore, the said additional evidences are admitted and referred to the file of the AO for deciding the issue afresh. AO shall examine the cash flow statement of loan account to the SB account of Shri Viniyak Atterde and if the amounts and debts are matching to the cash received by the assessee as loan, claim of the assessee, may be allowed after examining the documents, additional evidences and the submissions of the assessee in the remand proceedings. Accordingly, the issue is remanded to the file of the Assessing Officer for deciding the issue afresh - Decided in favour of assessee for statistical purposes.

Summary

Issues:
Appeal against addition of unexplained cash credit u/s 68 of the Income Tax Act for Assessment Year 2009-10.

Analysis:
1. The assessee, engaged in the business of garments, filed a return declaring income of ?4,50,638. The Assessing Officer added ?9,00,000 as unexplained cash credit u/s 68. The CIT(A) confirmed the addition, leading to the appeal.

2. The assessee claimed the cash deposit of ?9 lakhs was a loan from her brother, supported by confirmation letters. The Assessing Officer rejected this explanation, resulting in the addition. The assessee submitted additional evidence before the Tribunal, including a loan statement and savings account extract to prove the source of the loan.

3. The Tribunal admitted the additional evidence and remanded the issue to the Assessing Officer. The AO was directed to examine the cash flow statement of the loan account to the savings account of the brother. If the amounts match the cash received by the assessee, the claim should be allowed after considering all documents and submissions.

4. Consequently, the appeal was allowed for statistical purposes, and the issue was remanded to the Assessing Officer for a fresh decision after providing a reasonable opportunity to the assessee.

This comprehensive analysis covers the grounds of appeal, the facts of the case, the arguments presented, the decision of the CIT(A), the additional evidence submitted, and the final judgment by the Tribunal remanding the issue for further examination.