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Facts
The assessee allegedly deposited Rs. 52,80,000/- in her bank account. The Assessing Officer (AO) made an addition of Rs. 56,20,900/- as unaccounted income, which was upheld by the Commissioner of Income Tax (Appeals). The assessee claimed the deposits were from withdrawals related to a failed land deal.
Held
The Tribunal held that the assessee had sufficient cash in hand as per the cash flow statement to make the deposits. The Department failed to prove the cash was utilized for other purposes. The AO and CIT(A) erred in confirming the addition.
Key Issues
Whether the addition made by the AO and confirmed by the CIT(A) on account of cash deposits in the bank account is justified, considering the explanation provided by the assessee regarding the source of funds from a failed land deal.
Sections Cited
147, 143(3), 148, 131
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Income Tax Appellate Tribunal, DELHI
per the cash flow statement there was sufficient cash in hand with the Assessee to re-deposit in her bank account and also finding merit in the claim of the Assessee regarding the unsuccessful land deal and returning of money and re-depositing in the bank account, we are of the opinion that the Ld. A.O. and the Ld. CIT(A) have committed error in making/confirming the impugned addition. Accordingly, finding merit in the grounds of Appeal of the Assessee, the Appeal of the Assessee is allowed and the impugned addition is hereby deleted.
In the result, the Appeal of the Assessee is allowed.