PIYUSH MANILAL MEHTA,MUMBAI vs. INCOME TAX OFFICER-32(2)(5), MUMBAI

Facts

The assessee filed his return declaring total income. A notice u/s 148 was issued regarding cash deposits of Rs. 1,52,08,125/- in his minor son's bank account, allegedly from grandparents. The assessee failed to provide details of the donors' creditworthiness, leading to the addition of the entire amount u/s 68.

Held

The Tribunal held that while the assessee failed to satisfactorily explain the cash deposits, the addition of the entire amount was erroneous. The approach of considering only credit entries while ignoring withdrawals was also incorrect.

Key Issues

Whether the addition of entire cash deposits made in the minor son's account u/s 68 is justified without considering withdrawals, and if the peak credit method should be applied.