GURVINDER KAUR,AMBALA vs. INCOME TAX OFFICER, AMBALA

The Assessee is aggrieved by the action of the ld. CIT(A) in confirming the addition of Rs. 10,00,000/- on account of 45 -Chd-2024 Gurvinder Kaur, Amabala 2 unexplained cash deposits in the bank account of the Assessee. The Assessing Officer during the assessment proceedings noted that the Assessee had deposited an amount of Rs. 10,00,000/- in his bank account during demonetization period. On being asked to explain in this respect, the Assessee explained before the Assessing Officer (A.O.) that the source of said amount was gold loan taken by the Assessee to start the dairy farming business. However, due to the family circumstances, the Assessee could not start the dairy farming business and the unutilized amount was deposited in the bank account.

The Assessing Officer however, observed that there was a gap of six months between the cash withdrawn from the gold loan and re-deposit of the same during the demonization period. He, therefore, made the impugned addition treating the said amount as income of the Assessee from unexplained sources. The ld. CIT(A) confirmed the addition so made by the A.O.

I have heard the rival contentions and gone through the record. The ld. Counsel for the Assessee has submitted that the Assessee is a lady and is working as a teacher in Ambala. He reiterated his submissions that the source of the aforesaid amount was gold loan taken by the Assessee for the purpose of dairy farming business

In view of this, I do not find any justification on the part of the lower authorities in making the impugned addition, the same is accordingly ordered to be deleted.

In the result, the appeal of the Assessee stands allowed.