MURALI GOLLA,NALGONDA vs. INCOME TAX OFFICER, WARD-1, NALGONDA

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ITA 599/HYD/2020Status: DisposedITAT Hyderabad25 March 2021AY 2017-182 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal directed the Assessing Officer to delete the addition to the extent of the opening cash balance of Rs. 4,83,957/-. The remaining component of the addition was confirmed.

What were the facts?

The assessee's appeal concerned cash deposits of Rs. 6,30,000/- treated as unexplained by the lower authorities. The assessee's cash account showed an opening balance of Rs. 4,83,957/- as of April 1, 2016.

What were the issues?

Whether cash deposits can be treated as unexplained when a substantial portion is covered by the opening cash balance.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, HYDERABAD ‘ SMC’ BENCH : Hyderabad

Before: SHRI S.S. GODARA

Hearing: 23/03/2021Pronounced: 30/03/2021

Date of Hearing : 23/03/2021 Date of Pronouncement : 30/03/2021 O R D E R This assessee’s appeal for A.Y. 2018-19 arises against the Commissioner of Income Tax (Appeals) ‘[CIT(A)]’ - 3 Hyderabad’s order dated 31.08.2020 passed in case no.10257/2019-20 in proceedings u/s 143(3) of the Income Tax Act, 1961 [in short ‘the Act’].

Heard both the parties. Case file perused.

2.

Coming to the sole substantive grievance that learned lower authorities have erred in law in treating cash deposits of Rs.6,30,000/- as unexplained; I notice at the outset in page 7 of assessee’s paper book containing the tax payer’s cash account that his opening balance as on 01.04.2016 was Rs.4,83,957/-. This clinching fact has gone unrebutted from department side. The fact also remains assessee has not been able to explain the source of remaining cash deposit amounting to Rs.1,47,000/- I therefore direct the Sri Murali Golla, Nalgonda. Assessing Officer to delete the impugned addition to the extent of opening cash balance of Rs.4,83,957/-. Remaining component of the impugned addition shall stand confirmed. Necessary computation will follow as per law.

This assessee’s appeal is partly allowed in above terms. Order pronounced in Open Court on 30/03/2021.

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