ITAT Allahabad Judgments — November 2021

The Tribunal partly allowed the appeal. Regarding the addition of Rs. 21,82,000 on account of cash deposited in bank accounts, the Tribunal noted that the credit of Rs. 3,00,000 deposited on 12.07.2008 was already allowed while deciding ground of appeal No. 7. The Tribunal found that the credit of cash deposited on 06.08.2008 and 17.10.2008 in the same bank account was available to the appellant up to an amount of Rs. (21,82,000 - 3,00,000) = Rs. 18,82,000. The Tribunal held that the entire balance amount of investment in DLF Commercial Complex and M/s Rohtas Project Ltd amounting to Rs. 16,00,484, out of cash deposited in the Kotak Mahindra Bank Ltd account of the appellant, is treated as explained, and no addition is called for on this account. Consequently, the addition on account of unexplained investment in DLF Commercial Complex and M/s Rohtas Project Ltd made by the AO was reduced from Rs. 7,50,000 to Rs. 1,76,800, granting the appellant relief of Rs. 5,73,200. The Tribunal also directed the AO to recompute interest under Sections 234A, 234B, and 234C.