Case Law Details
Rakesh Sharma Vs ITO (ITAT Jaipur)
In a recent case before the Income Tax Appellate Tribunal (ITAT) Jaipur, the authorities carefully examined the findings of lower authorities, submissions, and evidence provided by the parties. The crux of the matter revolved around the assessee’s day-to-day cash flow statement, particularly regarding credits from bank transfers and subsequent cash withdrawals.
Background and Assertions: The assessee, in its defense, presented a comprehensive cash flow statement based on the ICICI S/B bank statement. The statement, available in the Assessee’s paper book, indicated sufficient cash availability on the respective days of cash deposits. However, lower authorities denied the credits of bank transfers and cash withdrawals, raising questions about the genuineness of these transactions.
ITAT’s Analysis: The ITAT meticulously examined both the cash flow statement and the bank statement related to the ICICI account. The bank statement revealed numerous transactions, including deposits, bank transfers, RTGS, and cash withdrawals. The Assessing Officer (AO) acknowledged these transactions but denied their credibility, citing a lack of substantial supporting evidence.
However, the ITAT disagreed with the AO, emphasizing that if evidence is relied upon, it should be considered in its entirety. The tribunal asserted that credits through bank transfers and RTGS from third parties demonstrated the genuineness of the source in the hands of the appellant.
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