Kaveri V. Joshi Vs ACIT (ITAT Kolkata)
Death of Assessee, No Response—But Evidence Speaks: ITAT Grants Full Relief on Cash Deposit Addition- Cash Deposits Fully Explained from Past Withdrawals: CIT(A) Looked at Only One Bank A/c—ITAT Considers All & Deletes 69A Addition
Kolkata ITAT ‘SMC’ Bench in Mrs. Kaveri V. Joshi (L/H of Late Vinoy Pandharinath Joshi) vs ACIT (ITA No.1281/Kol/2025, AY 2017-18, order dated 23-12-2025) allowed the assessee’s appeal and deleted the entire addition of ₹12.71 lakh made u/s 69A, holding that cash deposits during FY 2016-17 stood fully explained from available cash balances arising out of earlier withdrawals.
The assessee (since deceased), who had been serving in the Merchant Navy, did not respond to assessment notices, leading the AO to treat cash deposits of ₹23.21 lakh in bank accounts as unexplained and make addition u/s 69A. In first appeal, CIT(A) considered only one bank account, deleted ₹10.50 lakh and sustained addition of ₹12.71 lakh, overlooking other bank accounts and cash flow details.
Before ITAT, the legal heir furnished complete details of all four bank accounts, along with year-wise cash withdrawals (FYs 2013-14 to 2016-17), bank statements and a cash availability tally, clearly demonstrating that sufficient cash was available for the deposits made during FY 2016-17.
ITAT noted that:
