MEENA NAYYAR,NEW DELHI vs. ACIT, CENTRAL CIRCLE-20, NEW DELHI

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ITA 8725/DEL/2019Status: DisposedITAT Delhi22 June 2023AY 2016-173 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the addition was not sustainable as the cash deposit amount was less than 20% of the gross total income and also less than Rs. 2.5 lakhs, which is a threshold mentioned in CBDT instructions for avoiding further inquiry. The addition was directed to be deleted.

What were the facts?

The assessee declared a gross total income of Rs. 6,64,389/- for AY 2016-17, including rental income, presumptive business income, and bank interest. The Assessing Officer made an addition of Rs. 1,11,820/- on account of cash deposited in the bank.

What were the issues?

Whether an addition on account of cash deposits in a bank account is justified when the amount is relatively small compared to declared income and below the threshold specified by CBDT instructions.

Which sections of the Income-tax Act were involved?

Section 44AD

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: E: NEW DELHI

Before: SHRI CHANDRA MOHAN GARG & SHRI PRADIP KUMAR KEDIA

Hearing: 13.04.2023Pronounced: 22.06.2023

ORDER PER CHANDRA MOHAN GARG, J.M. This appeal has been filed against the order of ld. CIT(A)-27, New Delhi dated 29.08.2019 for AY 2016-17.

2.

The ld. counsel of the assessee submitted that except ground no. 5 the assessee does not want to press other grounds hence the same are dismissed and not pressed. The ground no. 5 read as follows:- 5. That on the facts and circumstances of the case and the provisions of law, the ld. CIT(A) has erred in sustaining an addition of Rs. 1,11,820/- on account of cash deposited in bank account.

3.

The ld. counsel of assessee submitted that the ld. CIT(A) has erred in sustaining addition made by the Assessing Officer on account of cash deposit of Rs. 1,11,820/-. The ld. counsel submitted that the assessee for AY 2016-17 filed return of income wherein the assessee has shown income from house property situated at Indirapuram Ghaziabad amounting to Rs. 1,80,000/- and also shown income from business on presumptive basis as per section 44AD of the I.T Act 1961 and has also shown interest income from bank and the assessee has shown gross total income of Rs. 6,64,389/-. The ld. AR further submitted that the assessee received rental income in cash and also made business turnover of Rs. 24,98,680/- out of which some cash turnover was also

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