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Facts
The assessee appealed against an NFAC order for AY 2012-13, where lower authorities had treated cash deposits of Rs. 12,85,020/- as unexplained in proceedings under sections 147 and 144 of the Income-tax Act. The assessee contended that the source of these deposits was past savings and funds received from family members and relatives.
Held
The tribunal acknowledged that while the assessee couldn't fully substantiate the source, a complete rejection of past accumulations or withdrawals was not justified. Consequently, the tribunal decided a lump sum addition of Rs. 5,85,020/- was appropriate, granting the assessee a relief of Rs. 7,00,000/- from the initial addition.
Key Issues
Whether cash deposits aggregating to Rs. 12,85,020/- in the assessee's bank account were unexplained and if the assessee could adequately explain their source from past savings or family contributions.
Sections Cited
Section 147 of Income-tax Act, 1961, Section 144 of Income-tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’ NEW DELHI
Before: SHRI SATBEER SINGH GODARA
O R D E R
PER SATBEER SINGH GODARA, JM:
This assessee’s appeal for assessment year 2012-13 arises against National Faceless Appeal Centre (NFAC), Delhi’s DIN and order no. ITBA/NFAC/S/250/2024-25/1065131066(1), dated 26.05.2024, in case no. CIT(A), Ghaziabad/11480/2019-20, in proceedings u/s 147 read with section 144 of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’.
Heard both the parties at length. Case file perused.
Learned departmental representative vehemently argued during the course of hearing at the outset that both the lower authorities have rightly treated the assessee’s cash deposits of Rs. 12,85,020/- as unexplained, in the course of assessment framed on 07.12.2019 and upheld by the learned CIT(A)/NFAC in lower appellate finding.
I have given my thoughtful consideration to vehement rival submissions against and in support of impugned addition. Learned counsel for assessee submits that the source of the assessee’s impugned cash deposits is the assessee’s past savings being received from time to time from family members and relatives. It is further highlighted that this assessee also draws some taxable income as well which may not be exactly quantifiable. The fact remains that neither the assessee has been able to plead and prove all the relevant facts to this effect nor such accumulation and past withdrawals etc. could be altogether ruled out in her case. Faced with this situation I deem it appropriate that a lump sum addition of Rs. 5,85,020/- would be just and proper with a rider that the same shall not be treated as a precedent. The assessee get relief of Rs. 7,00,000/- in other words. Necessary computation shall follow as per law.
This assessee’s appeal is partly allowed in above terms. Order pronounced in open court on 19.12.2024.