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

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ITA 779/CHANDI/2024Status: DisposedITAT Chandigarh22 April 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 perused the cash flow statement and found that the assessee had sufficient sources to make the impugned deposits. Accordingly, the addition was deleted.

What were the facts?

The assessee deposited cash of Rs. 24 Lacs during demonetization. After certain benefits and adjustments, Rs. 13.42 Lacs were added as undisclosed income. The assessee's legal heir represented the deceased assessee.

What were the issues?

Whether the cash deposits made by the assessee during demonetization were from undisclosed income, or if sufficient sources could be demonstrated from the cash flow statement.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 69A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, CHANDIGARH

Before: HON’BLE SHRI LALIET KUMAR & 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 [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.

2.

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 Dated: 22-04-2025. आदेश की "ितिलिप अ"ेिषत /Copy of the Order forwarded to : 1. अपीलाथ"/Appellant 2. ""थ"/Respondent 3. आयकरआयु"/CIT 4. िवभागीय"ितिनिध/DR 5. गाड"फाईल/GF

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