Loading judgment…
Facts
The assessee's appeal for AY 2012-13 concerns cash deposits of Rs.25.41 lakhs made in a bank account, which the lower authorities treated as income from undisclosed sources. The assessee had sold agricultural lands for Rs.32.50 lakhs, including Rs.25 lakhs in cash.
Held
The Tribunal held that the cash received from the sale of agricultural lands was deposited in the bank account. Therefore, the addition of Rs.25.41 lakhs as income from undisclosed sources was not justified.
Key Issues
Whether cash deposits in a bank account, arising from the sale of agricultural land, can be treated as income from undisclosed sources.
Sections Cited
147, 143, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH: “SMC” NEW DELHI
Before: SHRI SATBEER SINGH GODARA
DIN & Order No: ITBA/NFAC/S/250/2022-23/1048408755(1), dated 03.01.2023 involving proceedings under section 147 r.w.s.
143 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
Heard both the parties. Case file perused.
It transpires during the course of hearing that the assessee/appellant is aggrieved against both the learned lower authorities’ action treating her cash deposits amounting to Rs.25.41 lakhs made in Punjab & National Bank in Financial Year 2011-12 as income from “undisclosed” sources; in assessment order dated 13.11.2019 and upheld in lower appellate discussion.
That being the case, the assessee has referred to paras 5.3 and 5.4 in the lower appellate discussion, wherein, it is revealed that she had sold her agricultural lands on 20.07.2012 for Rs.32.50 lakhs which included a cash amount of Rs.25 lakh.
The necessary inference would arise therefore is that the very cash received as sale consideration has been deposited in her bank account in the impugned assessment year. I accordingly find no merit in the impugned addition of Rs.25.41 lakhs made in the assessee’s hands which is hereby deleted in very terms.
The assessee’s appeal is allowed.