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Facts
The assessee's appeal for AY 2012-13 challenged a Section 69A addition of Rs. 7.88 lakhs for unexplained cash deposits, sustained by lower authorities. The assessee attributed the source to cattle sale and past savings, but failed to provide full substantiation.
Held
The tribunal partly allowed the appeal, restricting the Section 69A addition from Rs. 7.88 lakhs to Rs. 1.88 lakhs. It deleted the balance Rs. 6 lakhs, considering the assessee's social-economic status, and noted that accumulation of past savings and cash withdrawals could not be ruled out.
Key Issues
Whether the addition of Rs. 7.88 lakhs under Section 69A for unexplained cash deposits was justified, given the assessee's inability to fully substantiate the sources and considering the assessee's social-economic status.
Sections Cited
Section 69A, Section 143(3), Section 147, 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 Commissioner of Income Tax (Appeals) Addl/JCIT(A), Mumbai’s DIN and Order no. ITBA/APL/S/250/2023-24/1059940032(1) dated 19.01.2024, in case no. CIT(A), Delhi-21/11054/2019-20 in proceedings u/s 143(3) read with section 147 of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’.
Heard both the parties at length. Case file perused.
Learned counsel for the assessee presses for his first substantive ground only wherein both the lower authorities have made and sustained section 69A addition of Rs. 7.88 laks treating corresponding cash deposit as unexplained, in the course of assessment as upheld in the lower appellate proceedings.
3. It prima facie emerges from a perusal of the case file that although the assessee has attributed sale of his cattle in the relevant preceding year as source of these cash deposits but he has not been able to substantiate the same all along. The fact also remains that accumulation of past savings, cash withdrawals etc. altogether cannot be ruled out in his case.
4. Faced with this situation, I deem it appropriate to restrict the impugned addition of Rs. 7,88,000/- to lump sum figure of Rs. 1.88 lakhs only keeping in mind the assessee’s social economic status and delete the balance amount of Rs. 6,00,000/- in very terms. The Revenue’s vehement contentions supporting the impugned addition are partly accepted therefore. Necessary computation shall follow as per law.
This assessee’s appeal is partly allowed in above terms.
Order pronounced in open court on 16.12.2024.