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Facts
The assessee deposited ₹51,45,000/- in a bank account during AY 2017-18, claiming it originated from cash marriage gifts received in the preceding year (AY 2016-17). The Assessing Officer added this amount as unexplained money under Section 69A and 115BBE, which was upheld by the Ld. CIT(A) due to lack of substantiation regarding the genuineness of gifts and opening cash balance.
Held
The Tribunal ruled that the cash gifts were received in the previous assessment year. The deposits in the impugned assessment year were made from the opening cash balance, not from fresh receipts in the current year. Therefore, any addition for unexplained marriage gifts should have been made in the year of receipt (AY 2016-17), not in the present assessment year (AY 2017-18).
Key Issues
Can an addition for unexplained cash marriage gifts be made in a subsequent assessment year if the cash was received in a prior year and merely deposited from the opening balance in the current year?
Sections Cited
69A, 115BBE
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A” BENCH, KOLKATA
This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 20.08.2024 for the AY 2017-18.
The only issue raised by the assessee in various grounds of appeal is against the confirmation of addition of ₹51,45,000/- by the ld. CIT (A) as made by the ld. AO u/s 69A of the Act on account of cash deposited during the relevant financial year into the bank account.
The facts in brief are that the assessee filed the return of income on 29.03.2018, declaring total income of ₹8,02,930/-. The case of the
In the appellate proceedings, the ld. CIT (A) dismissed the appeal by observing and holding as under:-
“7.3. In the instant case also, the appellant was unable to provide confirmation of the purported gifts received during his marriage. The appellant was also unable to furnish the veracity of opening cash balance as the creditworthiness of the donors and the genuineness of gifts itself was not proved. The appellant was unable to provide confirmation from any of the purported donors, and as the sources claimed by the appellant are not proved with cogent reasoning and confirmation, the veracity of cash balance and its sources itself is to be treated as unexplained. The Income Tax Returns filed by the appellant for the AY 2016- 17 and AY 2017-18 are perused in the course of appellate proceedings. It is noticed from the ITR filed by the appellant that no details regarding purported gifts were furnished in the return of income filed by the appellant for the AY 2016-17 and the appellant has also not furnished any details of purported cash balance available with him as on 31.03.2016. Thus, as the appellant has failed
In the result, the appeal of the assesseeis allowed.
Order pronounced in the open court on 15.01.2025.