INCOME TAX ACT, 1961

Section 68

Income from undisclosed sources - Addition under section 68 - Unexplained cash deposits in bank account - Non-providing of opportunity to substantiate the authenticity of the Ikrarnama

On the basis of AIR information that assessee had made certain cash deposits in his savings bank account without quoting his PAN. Notice under section 148 was issued which was stated to have been served upon the assessee through speed post. However, no compliance was made and thereafter assessment was made under section 144 making aggregate addition under section 68 on account of unexplained cash deposit. Held: Entire issue hinges upon the primary evidence which was Ikrarnama /agreement to sell, wherein the purchaser has made payment of cash. Ikrarnama was not filed before AO, because order had been passed ex parte as notices issued by AO were not received by assessee. When Ikrarnama was filed during appeal, CIT(A) called for the remand report and AO also did not give any opportunity so as to substantiate the authenticity of the Ikrarnama and the same was rejected by AO on surmises. AO confirmed the addition merely on the ground that the primary evidence, i.e., Ikrarnama was an after-thought and its authenticity is in doubt. Therefore, matter was remanded back to AO and assessee was directed to prove the authenticity of the Ikrarnama and/or produced the purchaser before AO as and when called upon.

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2009-10

SUBSCRIBE FOR FULL CONTENT