Case Law Details
Mayank Ratibhai Patel Vs ITO (ITAT Ahmedabad)
ITAT Ahmedabad held that addition towards unexplained cash unsustainable as cash expenses duly incorporated in books of accounts and cash book as well as cash receipts not doubted by the authority.
Facts- AO during the assessment proceedings found that the assessee has incurred certain expenses amounting to Rs. 7,22,272/- on purchase of property such as stamp duty charges and registration charges but failed to explain the source of such expenses. Therefore the AO treated the same as unexplained cash expenses and added to the total income of the assessee.
AO during the assessment proceedings found that the assessee is not carrying out any business activity and therefore the interest expense on the car loan and the depreciation on the car cannot be allowed as deduction as business expenses under the provisions of income tax Act. Thus the AO disallowed the same and added to the total income of the assessee.
Aggrieved assessee preferred an appeal before the learned CIT (A) who confirmed the order of the AO. Being aggrieved, assessee preferred the present appeal.
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