PRITAM SINGH,JAGRAON vs. INCOME TAX OFFICER, WARD-1, JAGRAON, JAGRAON

PDF · subscribers

ITA 1223/CHANDI/2024Status: DisposedITAT Chandigarh20 May 2025AY 2017-18Bench: SHRI LALIET KUMAR (Judicial Member), SHRI MANOJ KUMAR AGGARWAL (Accountant Member)1 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee, being a senior citizen, was legally permitted to hold cash. The addition was confirmed on a wrong premise, and since the sources were accepted, the confirmed addition was deleted.

What were the facts?

The assessee appealed an order confirming the addition of Rs. 17.15 Lacs in cash deposits. The CIT(A) had accepted the source as earlier withdrawals and agricultural income but confirmed the addition because the assessee allegedly failed to explain the reasons for holding the cash.

What were the issues?

Whether the addition of cash deposits is justified when the source is accepted and the assessee, being a senior citizen, is legally permitted to hold such cash.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, CHANDIGARH

Before: HON’BLE SHRI LALIET KUMAR, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 30-10-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) of the Act on 23-12-2019. The sole grievance of the assessee is confirmation of addition of cash deposit for Rs.17.15 Lacs. The Ld. CIT(A), vide para 7.2 of the impugned order, after verifying the bank statement of the assessee, accepted the fact that the source of cash deposits was earlier withdrawal and agricultural income. But the addition has been confirmed merely on the ground that the assessee failed to fully explain the reasons for keeping such huge amount in cash over a long period of time. Considering the fact that the assessee was a senior citizen, Ld. CIT(A) granted allowance of Rs.10 Lacs and confirmed the remaining addition against which the assessee is in further appeal before us.

This is a clinching fact that sources of cash deposits have been accepted to be early withdrawals and agricultural income as earned by the assessee. The addition has been confirmed on wrong premise that the assessee failed to fully explain the reasons for keeping such huge amount in cash over a long period of time. We find that the assessee is a senior citizen. The law does not prohibit such possession / retention by the assessee. Therefore, there is no justification to partly confirm the addition. Accordingly, the addition as confirmed in the impugned order stand deleted. The Ld. AO is directed to re-compute the income of the assessee.

The appeal stand allowed. Order pronounced on 20-05-2025.

Recent GST High Court judgments

Search GST case law →