Prasanna Purushottam Majalikar Vs ITO (ITAT Panaji)
Prior Bank Withdrawals Explain Cash Paid for Property Purchase; Panaji ITAT Deletes ₹6.80 Lakh Addition
The assessee, a non-resident individual, purchased a flat in Margao, Goa, for ₹18.80 lakh on 24 October 2019. Of the total consideration, ₹12 lakh was paid through account-payee cheque and ₹6.80 lakh in cash.
The AO was not satisfied with the source of the cash component and treated ₹6.80 lakh as unexplained money. The CIT(A) confirmed the addition.
Before the ITAT, the assessee produced his bank statements showing the following cash withdrawals before the property purchase:
- ₹50,000 on 8 April 2019;
- ₹1.50 lakh on 10 April 2019;
- ₹95,000 on 5 July 2019; and
- ₹4.60 lakh on 23 October 2019.
The total withdrawals amounted to ₹7.55 lakh, exceeding the cash consideration of ₹6.80 lakh. The final withdrawal of ₹4.60 lakh was made just one day before registration of the property.
The Tribunal held that the cash withdrawn from the assessee’s disclosed bank account, together with his regular income, adequately explained the source of the cash payment. Accordingly, the addition of ₹6.80 lakh under section 69A was deleted, and the assessee’s appeal was allowed.
FULL TEXT OF THE ORDER OF ITAT PANAJI
