|The Tax Publishers2020 TaxPub(DT) 5307 (Del-Trib)
INCOME TAX ACT, 1961
Where AO made addition for alleged unexplained credit entries in the bank account as the bank statements were not available with assessee during assessment proceedings and for expenses remaining unexplained, considering fact that AO ignored the fact that assessee took loans from several persons, which was partly repaid during the year under consideration and again the loans were taken from the same persons and also ignored the fact that payments were made by assessee through account payee cheques on account of salaries and wages, etc., matter was remitted back to AO for consideration afresh.
Income from undisclosed sources - Alleged unexplained credit entries in bank account - Bank statements were not available with assessee during Assessment proceedings -
Assessee-an individual, was engaged in the business of civil contracting and during year under consideration, he started the activity of a builder. AO made addition for unexplained credit entries in the bank account as the bank statements were not available with the assessee during assessment proceedings. AO further made addition for expenses remaining unexplained during the assessment proceedings under section 68. Held: Assessee had taken loans from several persons, which was partly repaid during the year under consideration and again the loans were taken from the same persons. AO simply saw credits in the bank account without realising that the same amount was recycled. Detailed explanation along with re-conciliation was furnished by assessee before the CIT(A) but the same was dismissed out-rightly. Similar was the fate of expenditure treated by AO as paid in cash in excess of cash withdrawals. It was found that out of the alleged difference, most of the payments were made by account payee cheques on account of salaries and wages, tyre purchases and diesel expenses. When assessee explained everything with evidences, CIT(A )should not have rubbished those evidences without recording any specific findings. However, in the interest of justice and fair play, both issues were remitted to AO for consideration afresh.
FAVOUR : Matter remanded
A.Y. : 2011-12
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