HITESH JAGAT PAREKH,MUMBAI vs. INCOME TAX OFFICER WARD 25(2)(4), MUMBAI

Facts

The assessee challenged an order confirming additions made by the Assessing Officer (AO) under Section 69A of the Income Tax Act, 1961. The AO made the addition of Rs. 14,75,000/- on account of cash deposits made by the assessee during the demonetization period. The assessee claimed these deposits were out of personal savings and withdrawal from proprietary business. However, the assessee failed to provide supporting documentary evidence.

Held

The Tribunal held that the assessee failed to discharge their initial burden to prove the source of the cash deposits. Relying on various case laws, the Tribunal observed that the assessee did not provide any concrete evidence to substantiate their claim of personal savings or business withdrawals, making the addition by the revenue authorities justified.

Key Issues

Whether the addition made by the AO and sustained by the CIT(A) for unexplained cash deposits during the demonetization period is justified when the assessee failed to provide adequate evidence for the source of funds.