Addition for Unexplained Money can’t be made for mere disclosure of Receipt in two different Accounts: ITAT [Read Order]

Unexplained Money - ITAT - Taxscan

The Income Tax Appellate Tribunal (ITAT), Delhi Bench ruled that the addition for unexplained money can not be made for mere disclosure of the receipt in two different accounts.

The Assessee, Yashovardhan Tyagi is an individual who is stated to be engaged in the business of Film distribution under the name and style of M/s. Sukrit Pictures. The assessee filed his return of income for A.Y. 2010-11 declaring total income at Rs.43,96,168/-. The case was selected for scrutiny and thereafter assessment was framed under section 143(3) of the Act vide order dated 30.03.2013 and the total income was determined at Rs.7,64,35,070/-.

The AO considered Rs.20,00,000/- to be received by the assessee which were not recorded in the Books of accounts of the assessee to be unexplained money u/s 69A of the Act and accordingly made its addition. Aggrieved by the order of AO, assessee carried the matter before the CIT(A) who deleted the addition

The revenue through Advocate Dr. Kumar Pranav has urged that the CIT(A) erred in law and on facts in deleting the additions of Rs.20 lacs which had not been recorded by the assessee in his books of accounts despite TDS deduction on the said amount and the assessee failed to substantiate his claim by documentary evidence.

The coram of a Judicial Member, Amit Shukla, and Accountant Member, Anil Chaturvedi noted that CIT(A) while deleting the addition has given a finding that the AO has made addition merely on the basis of suspicion without having any material against the assessee. He has further given a finding that the entire Rs.20,00,000/- has been received by the assessee, recorded in the Books of account, and therefore no addition u/s 69A can be made merely because the receipt was disclosed of Rs.20,00,000/- in every two different accounts.

Therefore, the tribunal while dismissing the appeal of the revenue ruled that once the entire amount of Rs.40,00,000/- is accounted for in the books of the Assessee, no addition under section 69A can be made merely because the receipt was disclosed as Rs.20,00,000/- each in two different accounts. Thus there is no merit in the addition of Rs.20,00,000/- made under section 69A which stands deleted.

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