ONKAR CHAND DOEGAR,SHIMLA vs. INCOME TAX OFFICER WARD SHIMLA, WARD SHIMLA

Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of an order of learned Addl. / Joint Commissioner of Income Tax (Appeals), Agra [CIT(A)] dated 30-12-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) of the Act on 28-11-2019. The sole grievance of the assessee is confirmation of addition of cash deposit of Rs.6.01 Lacs. Having heard rival submissions and upon perusal of case records, the appeal is disposed- off as under. 2. The assessee declared income of Rs.25.98 Lacs. The assessee earned rental income, capital gains and income from other sources. It transpired that the assessee deposited cash of Rs.11.01 Lacs in his bank account as maintained with Indian Overseas Bank. The assessee stated that the amount of Rs.9.75 Lacs was sourced from earlier withdrawals and the remaining cash deposits were sourced out of rental income received in cash which was also confirmed by the tenants. However, Ld. AO partially accepted the claim and made addition of Rs.6.01 Lacs considering the time gap of one month / two month between withdrawals and deposits. The Ld. CIT(A) confirmed the assessment against which the assessee is in further appeal before us. 3. From the facts, it emerges that though the assessee was able to show that there was sufficient withdrawals prior to date of impugned deposits, Ld. AO rejected the same merely on the ground that there was time gap between withdrawals and deposits. Pertinently, no other usage of cash has been shown. The assessee has also earned rent in cash which is already confirmed by the tenants. The rental income has been offered to tax. On these facts, the impugned addition could not be sustained in law. Therefore we delete the same.

The appeal stand allowed.