9911796707
TMI Blog2021 (11) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... ion and this ground of appeal is dismissed. Unexplained cash deposits and cheque deposits in bank account - undisclosed sources of income - HELD THAT:- AO has not considered the facts of the assessee on right perspective and added the cash collected by him to his income and part of the cheque collection has been allowed. When one part of collection of loan instalment has been allowed being receipt through cheque then other part cannot be disbelieved and disallowed merely because it was cash deposit. It is also not necessary that any other additional positive material should be produced by the assessee in order to discharge this burden which rests upon him. The assessee may claim to have discharged the burden by relying on the material which is on record by filing a letter dated 7.11.2016 asking the employer to intimate the collection and deposit, irrespective of whether it is complied by the employer or not. If it can be said on a preponderance of probabilities that the failure to give the collection and deposit by the employer has not arisen on account of any fraud or any gross or wilful neglect on the part of the assessee - thus direct the AO to delete the addition. - ITA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. Ground No. 2 relates confirmation of addition of ₹ 27,049/- under the head conveyance allowance . 7. The ld. CIT(A) has confirmed the addition, inter alia, observing as under: ..... During the course of assessment proceedings, the AO found that the appellant has claimed exempt conveyance allowance of ₹ 36,649/-. The AO is of the view that the appellant is eligible for exempt conveyance allowance of ₹ 9,600/-. Therefore, it is sustained and the ground of appeal is dismissed. 8. I have heard the submission of ld. D.R. As per circular No. 6/2004 dated 6.12.2004, the assessee-individual is entitled to deduction of ₹ 9600/- per year with regard to conveyance allowance. In this case, the assessee has claimed ₹ 36,649/-, which is not in accordance with the CBDT circular. Therefore, I concur with the findings of ld. CIT(A) in confirming the disallowance. This ground of appeal is dismissed. 9. Ground No. 3 relates to confirmation not addition of ₹ 18,000/- on account of interest income of ₹ 18,000/-. 10. On perusal of the impugned order, I observe that the assessee had deposited of ₹ 3,00,000/- as fixed deposit and h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the source of cash deposits/cheque deposits with documentary evidence, the authorities below were right in making the addition and confirming the same. 15. I have heard the submission of ld. D.R. and perused the record of the case. It is not disputed that the assessee was working in E-Nxt Financials Ltd., for collection of loan installments from various customers on behalf of his employer. On perusal of assessment order, it is seen that the assessee had produced a letter to the AO dated 7.11.2016 claimed to have been written to E-Nxt Financial Ltd., wherein, information regarding collection and deposit by the appellant was asked for. From the above letter, it is clearly inferred that the service rendered by the appellant to his employer as collection agent of loan instalments. It is claimed by the assessee that after receiving the cash, same was deposited in his bank account and thereafter the same was paid to Employer Company. On perusal of orders of authorities below, I observe that there are cash deposits and cheque deposits in several bank accounts and assessee has failed to furnish necessary evidences regarding the source of collection of cash and cheques and depositing t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntion of the assessee on surmises and conjectures. There is no doubt that every assessee submits explanations. There is further no doubt that every explanation should not be accepted as a truth. But wherever the explanation contains truth, it requires to find out such truth and to give benefit of the same to the assessee. It would not be correct to reject the explanation outright without weighing the evidence and without seeing the reasonableness of the evidence. In the present case, the explanation of the assessee that he has deposited the cash collected from the customers in his bank account and thereafter deposited the same in his employer account cannot be denied outright because it is his contention that he collected cash and cheques on behalf of the employer. The AO has accepted the amount deposited by cheques which was also collected from the customers of his employer. 17. After considering the entire facts and circumstances of the case, I am compelled to observe that the entire amount cannot be treated as unexplained cash credit/deposits in his bank account especially keeping in view the fact that he is working and drawing salary as loan collection employee and the AO ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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