BALDEV SINGH PANDHER(DECEASED) THROUGH L/H SH. TANVIR SINGH,LUDHIANA vs. INCOME TAX OFFICER, WARD 3(1), LUDHIANA

Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of an order of learned Commissioner of Income Tax [CIT(A)] dated 15-05-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) of the Act on 21-11-2019. The deceased assessee is represented by his legal heir Shri Tanvir Singh who has filed paper-book supporting the case of the deceased assessee. However, at time of hearing, none appeared for assessee. Left with no option, the appeal is disposed-off as under.

During assessment proceedings, it was noted by Ld. AO that the assessee deposited cash of Rs.24 Lacs during demonetization period. The Ld. AO granting benefit of Rs.8 Lacs for current income and past savings, added the remaining amount of Rs.16 Lacs as undisclosed income u/s 69A. The Ld. CIT(A) granted further benefit of Rs.10.57 Lacs for returned income and agricultural income and confirmed the addition of Rs.13.42 Lacs against which the assessee is in further appeal before us. 3. Upon perusal of cash flow statement for FY 2016-17 as kept in the paper-book on Page No.8, it could be seen that the assessee has opening cash-in-hand for Rs.15.47 Lacs and has made withdrawals of Rs.3.55 Lacs. The assessee is stated to have received amount of Rs.2 Lacs from his family members. As per this statement, the assessee is having sufficient sources to make impugned deposits. After considering this cash flow statement, we could conclude that the assessee had sufficient sources to make the impugned deposits. All these documents were filed before Ld. AO and there is no adverse comment on the cash flow statement as filed by the assessee. This being the case, we delete the impugned addition. 4. The appeal stand allowed. Order pronounced on 22-04-2025. (LALIET KUMAR) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER लेखासद˟ /ACCOUNTANT MEMBER