|The Tax Publishers2021 TaxPub(DT) 1075 (Del-Trib)
INCOME TAX ACT, 1961
Where assessee failed to explain the source of the cash deposit in his bank account by his client through evidence and no creditworthiness of said client was also established, addition made under section 69 of said unexplained cash deposit could not be held as unjustified.
Income from undisclosed sources - Addition under section 69 - Unexplained cash deposit - No satisfactory explanation provided
AO asked the assessee to explain the source of cash deposits made by it in his bank account. Assessee could not file any satisfactory explanation or evidence, therefore, AO made addition to the income of the assessee under section 69. Against this assessee submitted that cash was deposited on behalf of his client for Life Insurance Premium. Held: The contention of assessee could not be accepted because assessee made a cash deposit of the impugned amount in his bank account, therefore, burden was upon the assessee to explain the source of the cash deposit in his bank account through evidence. No creditworthiness of client was also established through any evidence of giving any cash to the assessee on different occasions as alleged. Hence, where, assessee had failed to prove the source of cash deposit made, it being rightly added to the income of the assessee as unexplained income.
FAVOUR : Against the assessee.
SUBSCRIBE FOR FULL CONTENT