Case Law Details
Shri M.Y. Jahabar Sadique Vs ITO (ITAT Chennai)
Introduction: The ITAT Chennai recently pronounced its decision on the case involving Shri M.Y. Jahabar Sadique and the Income Tax Officer (ITO). The dispute revolves around the substantiation of a cash gift of Rs.6 Lacs received by the assessee from Shri N. Mohamad Najib. The ITAT upheld the AO’s stand on this matter, emphasizing the onus on the assessee to prove the source of the cash deposit.
Detailed Analysis: The primary contention in this case was the inability of the assessee to substantiate a cash gift of Rs.6 Lacs received from Shri N. Mohamad Najib. The AO’s decision on this issue was confirmed by the ITAT, stating that the onus to prove the source of the cash deposit rested on the assessee.
Furthermore, discrepancies in business advances from JBS Ventures were noted. The AO’s stand on this matter was confirmed by the ITAT, with a partial acceptance of the assessee’s explanation. The ITAT, however, maintained the factual findings in the impugned order.
Regarding rental advances, the ITAT found unsatisfactory responses from several creditors. Two creditors’ addresses were untraceable, and two others lacked PAN and earned meager incomes. One creditor, Sh. Mohammed Ismail, successfully confirmed the advances and appeared during appellate proceedings. The ITAT accepted his explanation, leading to the deletion of the addition related to his advances.
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