What did the Tribunal hold?

The Tribunal found that neither the assessee fully explained the source of her father's cash nor did the lower authorities consider withdrawals and cash in hand. Therefore, the addition was reduced.

The assessee deposited Rs. 18,11,000/- in her bank account, out of which Rs. 8 lakhs were treated as unexplained. The assessee claimed these deposits were made by her father, supported by his affidavit.

What were the issues?

Whether cash deposits made by a father into his daughter's bank account are to be treated as unexplained income of the daughter.

Naveena Ravulapally, Siricilla vs ITO | ITAT Hyderabad 2021

Income Tax Appellate Tribunal, HYDERABAD BENCHES “SMC”: HYDERABAD

Before: SHRI SATBEER SINGH GODARA

For Appellant: Shri T. Chaitanya Kumar

For Respondent: Shri Bala Krishna

Hearing: 02/02/2021Pronounced: 04/02/2021

O R D E R This assessee’s appeal for AY 2014-15 is directed against the CIT(A) - 2I, Hyderabad’s order dated 30/10/2019 passed in case No. 0364/2016-17/CIT(A) – 2, Hyd, involving proceedings u/s 143(3) of the Income Tax Act, 1961 ; in short “the Act”. Heard both the parties. Case file perused. 2. The assessee’s sole substantive ground raised in the instant case challenges correctness of both the lower

:- 2 -: Naveena Ravulapally, Siricilla authorities action treating her cash deposits of Rs. 8 lakhs as unexplained. It is not in dispute that out of total deposits of Rs. 18,11,000/- made by the assessee, only a sum of Rs. 8 lakhs has been added . The explained before the lower authorities that this remaining sum had been deposited by her father in her bank account. She also placed her father’s affidavit to substantiate her submission. Both the learned lower authorities have rejected the same.

I have given my thoughtful consideration to rival submissions against and in support of the impugned addition. I find that both the parties have failed to substantiate their respective arguments supporting the impugned addition of Rs. 8 lakhs in entirety for the reason that the neither assessee has explained the source of cash deposits belonging to her father nor the lower authorities have granted the credit of withdrawals as well as cash in hand. I therefore deem it fit and proper in these peculiar facts and circumstances of the case to reduce the impugned addition of Rs. 8,00,000/- to Rs. 4,00,000/- only is sustained with a rider that the same shall not be treated as :- 3 -: Naveena Ravulapally, Siricilla precedent. The assessee gets a relief of Rs. 4,00,000/- accordingly. 4. This assessee’s appeal is partly allowed in terms above. Pronounced in the open court on 4th February, 2021

NAVEENA RAVULAPALLY,SIRICILLA vs. INCOME TAX OFFICER, WARD-1, HYDERABAD

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What were the facts?

What were the issues?

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