AJAYKUMAR MAHADEVBHAI PATEL,VADODARA vs. THE ITO, WARD-1(2)(1) PREVIOUSLY WARD-1(2)(4), VADODARA

The Ld.CIT(A) has erred, both in law and on facts, in confirming the addition of Rs.27,07,000/- under section 69A of the Act in respect of alleged unexplained cash deposits in the bank account.

Both, AO & CIT(A), have erred in passing the impugned orders without properly appreciating facts of the case, submissions of the assessee and documentary evidences available on record in the correct perspective. Such an act is in gross violation of the principles of natural justice and hence, the impugned order deserves to be quashed.

The Ld.CIT(A) has erred in law and on facts of the case in confirming levy of interest u/s.234A/B/C/D of the Act. Asst. Year : 2017-18 - 2–

The Ld.CIT(A) has erred in law and on facts of the case in confirming initiation of penalty proceedings under section271AAC(1) of the Act.

The appellant craves leave to add, amend, alter, edit delete, modify or change all or any of the grounds of appeal at the time of or before the hearing of the appeal.

The assessee filed his return of income on 22.07.2017 declaring total income of ₹2,86,290/-. The case was selected for complete scrutiny under CASS on account of high cash receipts and abnormal increase in cash deposits during the year, including during the demonetisation period. During the assessment proceedings, the assessee explained that the cash deposits were sourced from a gift of ₹47,00,000/- received from her brother, an NRI, comprising ₹26,00,000/- in cash and ₹21,00,000/- through cheques. Documentary evidences such as notarised gift deed, donor’s passport, donor’s bank statement, and assessee’s bank statement were furnished. The Assessing Officer, however, disbelieved the cash gift during demonetisation period and made an addition of ₹27,07,000/- u/s 69A of the Act. Aggrieved by the assessment order, the assessee filed appeal before the Ld. CIT(A) who confirmed the addition made by the Assessing Officer. 4. Aggrieved by the order of the Ld. CIT(A), the assessee is now in appeal before the Tribunal. 5. We have gone through the entire material before us. The donor has gifted Rs.47 lakhs on 06.09.2016, 07.09.2016 & 08.09.2016; out of which Rs.21 lakhs by cheques and Rs.26 lakhs by cash from his brother Asst. Year : 2017-18 - 3–

अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधतआयकरआयुƅ / Concerned CIT 4. आयकर आयुƅ(अपील) / The CIT(A)- 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडŊ फाईल / Guard file.