Tam Tam Pedda Guruva Reddy v. Joint Commissioner of Income Tax (Assessments), Mysore
INCOME TAX ACT, 1961
Income from undisclosed source - Addition under section 68 -Cash Credit
AO found that R had advanced loan to assessee and thereupon, he made addition of it in assessees income under section 68 and rejected affidavit filed by him. Tribunal confirmed addition made by AO. Held: R had filed affidavit which stated that R had income from agriculture and from business and he had two fixed deposits which matured during period in question, therefore, credit in question could not be assumed as unexplained credit under section 68.
Income-tax Act, 1961, Section 69C
A.Y. : 1992-93
Decision: In favour of assessee.
INCOME TAX ACT, 1961
Business disallowance under section 40A(3) - Cash payment exceeding prescribed limits -Genuineness of explanation
AO noticed that cash payments made by assessee were in violation of section 40A(3) and therefore, he made disallowance of said payments keeping in view that assessee had failed to satisfy as to genuineness of payments and identity of payee. Tribunal confirmed said disallowance. Assessee submitted details of cash payment to various persons and had stated that Oil Company did not accept cheque from dealers and they dealt with only cash sales. Held: Submission made by assessee showed that assessee had satisfactorily placed material as per rule 6DD(j), therefore, tribunal order was set aside.
Income-tax Act, 1961, Section 40A(3), read with rule 6DD(j) of the Income-tax Rules, 1962
A.Y. : 1992-93
Decision: In favour of assessee.