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Facts
The assessee's appeal for AY 2012-13 arose from proceedings under section 143(3) r.w.s. 147 of the Income-tax Act. The lower authorities treated cash deposits of Rs.3.20 lakhs as unexplained, after giving credit for Rs.1.20 lakhs from past sales.
Held
The Tribunal noted that the assessee received a cash gift of Rs.2 lakhs from her sister-in-law, which falls under the exempt category of relatives under section 56(2) of the Act. Therefore, the addition of Rs.2 lakhs was deleted.
Key Issues
Whether the cash deposit treated as unexplained income by the lower authorities was indeed a gift from a relative, exempt under Section 56(2) of the Income-tax Act.
Sections Cited
143(3), 147, 56(2)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH: “SMC” NEW DELHI
Before: SHRI SATBEER SINGH GODARA
Date of hearing 05.06.2025 Date of pronouncement 05.06.2025 ORDER This assessee’s appeal for assessment year 2012-13, arises against the Commissioner of Income Tax (Appeals)/Addl./JCIT(A)- 5, Mumbai’s DIN and order no. ITBA/APL/S/250/2024- 25/1072151745(1), dated 14.01.2025 involving proceedings under section 143(3) r.w.s. 147 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Heard both the parties. Case file perused.
It is noticed during the course of hearing that both the learned lower authorities have treated the assessee’s cash deposits of Rs.3.20 lakhs as unexplained to the extent of Rs.2 lakhs thereby giving credit of her past sales of Rs.1.20 lakhs in assessment order dated 3rd December, 2019 and upheld in the lower appellate discussion.
I have given my thoughtful consideration to the assessee’s and Revenue’s vehement arguments supporting their respective stands. The assessee’s case all along is that she had in fact received a cash gift from her sister-in-law Ms. Prabha Shah who had withdrawn the corresponding amount of Rs.2 lakhs from her bank account which was deposited in her account as a gift since covered under the exempt category of relative u/s 56(2) of the Act. That being the case, I hereby see no merit in the impugned addition of Rs.2 lakhs. Deleted accordingly.