Anilkumar Narayanrao Mudradattu Vs ITO (ITAT Panaji)
Material Facts: The assessee, an individual, filed his return for A.Y. 2017-18 declaring income of ₹2,65,000. The case was selected for limited scrutiny under CASS on the issue of large cash deposits during the demonetisation period. During assessment under Section 143(3), the Assessing Officer noted cash deposits of ₹12,91,000. The assessee explained that ₹4 lakh was received as an interest-free loan from his co-brother, ₹2 lakh as an interest-free loan from his sister-in-law’s son, ₹2 lakh represented his wife’s savings and ₹3 lakh represented his own accumulated savings over 20 to 25 years. The Assessing Officer treated ₹12,06,000 as unexplained money under Section 69A read with Section 115BBE of the Income-tax Act. The CIT(A) accepted the explanation regarding ₹2 lakh received from the wife and sustained an addition of ₹9 lakh.
Legal Issue: The issue before the Tribunal was whether the addition of ₹9 lakh sustained under Section 69A was justified in respect of interest-free loans from relatives and the assessee’s accumulated savings.
Relevant Statutory Provisions
The Tribunal considered Sections 69A, 68, 115BBE and 143(3) of the Income-tax Act, 1961.
Assessee’s Submissions
The assessee reiterated that ₹4 lakh and ₹2 lakh were interest-free loans from relatives and filed their names, addresses, PAN, Income-tax Returns and an affidavit. He also filed an affidavit regarding his employment history, salary certificate from Bombay Restaurant and claimed accumulated savings of ₹3 lakh.
