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Facts
The assessee, Shohini Dey, challenged an addition of Rs. 20,24,780/- made under section 69 of the Income-tax Act, 1961, for cash deposits in a joint bank account maintained with her husband. The lower authorities had made the addition, with 50% attributed to the assessee, on the grounds that she failed to explain the source of these deposits. The deposits were found to have been made by the husband.
Held
The Tribunal observed there was no material to prove the assessee herself deposited the cash sums. Since the husband made the deposits and the addition was made in the wife's hands at 50%, the Tribunal found no merit to sustain the impugned addition against the assessee. The appeal was allowed as the assessee had not made any cash deposit.
Key Issues
Whether an addition under section 69 for cash deposits in a joint bank account can be sustained against the wife when she did not make the deposits and the source was identified as the husband.
Sections Cited
Section 69, Section 147, Section 143(3), Income-tax Act, 1961
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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/250/2023-24/1056320266(1), dated 20.09.2023, in case no. CIT(A) Noida-1/11097/2019-20, in proceedings u/s 147 read with section 143(3) of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’.
Heard both the parties at length. Case file perused.
It emerges at the outset that the assessee is aggrieved against both the lower authorities’ action making section 69 addition of Rs. 20,24,780/- made in the joint account maintained with her husband.
The Revenue has drawn strong stand from the impugned addition made in the lower proceedings on the ground that the assessee (wife) had failed to explain source thereof in assessment as well as in the lower appellate proceedings. It is in this factual background that although the assessee has maintained her joint bank account with her husband, there is no material in the case file that she had herself deposited the cash sums, which is the subject matter of addition. All what transpires is that assessee’s husband’s in fact had the deposits which in turn have been assessed in her hands @ 50%. It is in these peculiar facts and circumstances that I find no merit to sustain the impugned addition as the assessee had not made any cash deposit in her bank account. Ordered accordingly.
This assessee’s appeal is allowed in above terms.
Order pronounced in open court on 29.11.2024.