NAGALAKSHMI SUREKANTHAM MUKKU,VISAKHAPATNAM vs. INCOME TAX OFFICER, WARD 2(1), VISAKHAPATNAM

Facts

The assessee's case was selected for scrutiny for AY 2017-18 due to cash deposits of Rs. 79,19,160/- in her SBI account. The Assessing Officer (AO) made an addition under Section 69A, citing a lack of documentary evidence for the assessee's claim that her husband made these deposits on behalf of clients for payments to GVMC. The Ld. CIT(A) upheld this addition.

Held

The Tribunal observed that the assessee had presented certain documents, like ledgers, that were not adequately considered by the lower authorities. Consequently, the case was remitted back to the Ld. CIT(A) to decide the matter afresh on merits, granting the assessee a final opportunity to produce all relevant documents and evidence.

Key Issues

Whether the addition of Rs. 79,19,160/- made under Section 69A for unexplained cash deposits in the assessee's bank account was justified given the lack of sufficient documentary evidence presented to the lower authorities.