Smt. Jatinder Kaur Padda Vs DCIT (International Taxation) (ITAT Chandigarh)
Summary: The Chandigarh Bench of the Income Tax Appellate Tribunal allowed the appeal filed by Smt. Jatinder Kaur Padda for Assessment Year 2011-12 against the order of the learned Commissioner of Income Tax (Appeals)-43, New Delhi dated 29.11.2019. The dispute arose from an assessment framed by the Assessing Officer under section 143(3) read with section 147 of the Income-tax Act, 1961 on 26.12.2018. The sole grievance was confirmation of an addition of Rs.58.50 lakh representing cash deposits.
The assessee had not filed a return of income originally, but had made cash deposits in SBI, Jalandhar Branch. The case was reopened and a notice under section 148 was issued. In the return filed pursuant to the proceedings, the assessee explained that the relevant bank account was a joint account with her husband and that the cash had been deposited by her spouse. According to the explanation, the assessee’s husband had withdrawn the amount from his savings bank account in 2008, had advanced it for purchase of property, and the amount was subsequently received back and re-deposited in the joint savings bank account during FY 2010-11.
A further factual circumstance relied upon by the assessee was that she was not present in India when the cash deposits were made. The assessee also furnished an affidavit of Shri Avtar Singh, stated to be the person who returned the advance amount to her husband. The Assessing Officer, however, rejected the explanation because Shri Avtar Singh had allegedly returned the amount after a gap of almost two years and the assessee had not furnished his bank statement or income-tax return. The entire Rs.58.50 lakh was consequently treated as income from undisclosed sources. The CIT(A) confirmed the addition, observing that the assessee had not furnished corroborative evidence in support of her explanation.
