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Facts
The assessee filed an appeal against an addition of Rs.10,97,300/- under Section 69A for unexplained cash deposits made in Assessment Year 2017-18. The assessee claimed the source of deposits was from prior cash withdrawals and cash sales, which the Revenue could not specifically deny. However, the assessee failed to explain the impugned cash deposits in their entirety.
Held
The Tribunal, considering the peculiar facts and circumstances, deemed it appropriate to make a lump sum addition of Rs.2,50,000/- instead of the original Rs.10,97,300/-. This decision provides the assessee with a relief of Rs.8,47,300/-. The Tribunal also specified that this resolution should not be treated as a precedent for other cases.
Key Issues
The key issue was the validity and quantum of the addition made under Section 69A of the Income Tax Act for unexplained cash deposits, and whether the assessee adequately explained the source of these deposits.
Sections Cited
Section 69A of the Income Tax Act, 1961, Section 143(3) of the Income Tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Sh. Satbeer Singh Godara
ORDER This assessee’s appeal for Assessment Year 2017-18, arises against the order of CIT(A)/NFAC, Delhi dated 30.11.2023 in case No. ITBA/NFAC/S/250/2023- 24/1058347534(1) in proceedings u/s 143(3) of the Income Tax Act, 1961 (in short “The Act”).
Case called twice. None appears at the assessee’s behest. It is accordingly proceeded ex-parte.
It is emerges during the course of hearing that the able assistance coming from the departmental side that both the learned lower authorities have made section 69A unexplained money addition of Rs.10,97,300/- in the course of assessment framed on 01.12.2019 as upheld in the lower appellate findings.
The assessee had admittedly made cash deposits of Rs.9,12,000/- and Rs.2,06,500/- in the relevant previous year and attributed source thereof of Rs.8,00,000/- representing Deepak Goyal cash withdrawals made on 27.02.2016 and cash sales of Rs.1,85,300/- as previous cash sales. The Revenue could hardly rebut the fact that there is no specific denial of the assessee’s said withdrawal figures as well as cash sales proceeds from trading business in building supplies. The facts also remains that the assessee has not been able to explain source of the impugned cash deposits in entirety.
It is deem it appropriate in these peculiar facts and circumstances that a lump sum addition of Rs.2,50,000/- in the given facts and circumstances would be just and proper with a rider that the sale shall not be treated as proceedings in other case. The assessee gets relief of Rs.8,47,300/- in other words. His instant sale of substantive grievance is partly accepted.
This assessee’s appeal is partly allowed in above terms. Order Pronounced in the Open Court on 21/11/2024.