ITO Vs Raghu Vyas (ITAT Delhi)
Delhi ITAT, dismissed Revenue’s appeal & upheld CIT(A)’s deletion of addition of ₹87.34 lakh made u/s 69A towards cash deposits. Tribunal noted that Assessee, a painter engaged in sale & exhibition of paintings in India & abroad, had explained cash deposits as arising from sale of paintings, sale of mother’s ancestral jewellery & cash gifts received on the occasion of his son’s engagement (roka). CIT(A) had accepted the explanation after examining documentary evidences including details of painting sales (including lease deed with ITC Maurya), returns of income of earlier years showing painting income, valuation report of jewellery, cash-flow statements & bank statements. ITAT held that explanations relating to personal matters such as sale of ancestral jewellery & customary cash gifts at family functions must be tested on the touchstone of human probability & normal conduct, & cannot be rejected merely on suspicion. As Revenue failed to controvert the factual findings with any cogent material, Tribunal found no reason to interfere with the well-reasoned order of CIT(A). Revenue appeal was accordingly dismissed
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal is preferred by the Revenue against the order dated 30.12.2024 of the Ld. National Faceless Appeal Centre (NFAC) (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in DIN & Order No : ITBA/NFAC/S/250/2024-25/1071682810(1) arising out of the order dated 29.12.2019 passed u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by the ITO, Ward 54(1) for AY: 201718.
