Case Law Details
Harpreet Singh Grover Vs ITO (ITAT Amritsar)
Introduction: The Harpreet Singh Grover vs. ITO (ITAT Amritsar) case revolves around the addition of a cash deposit of Rs. 47,91,000 in the State Bank of Patiala Goniana to the assessee’s total income under section 69 of the Income Tax Act. The dispute arises from the ld. CIT(A)’s rejection of the cash withdrawal from ICICI Bank and the sale of property as sources of cash. The assessment was conducted under section 144 of the Act, prompting the appellant to appeal.
Detailed Analysis: The ld. AO added the entire cash deposit, leading to an appeal before the ld. CIT(A). After considering the appellant’s submissions, the ld. CIT(A) reduced the addition to Rs. 28,95,000, taking into account the cash withdrawal from ICICI Bank and the sale of agricultural land. However, a further appeal was filed to address the remaining addition of Rs. 18,96,000.
The ld. DR supported the ld. CIT(A)’s decision, emphasizing the lack of evidence supporting the cash availability for the ICICI Bank withdrawal and questioning the registration details of the land sale.
The ld. CIT(A) justified the reduction, noting the lack of evidence for the ICICI Bank withdrawal but accepting the sale of land as a valid source. The appellant’s argument that the cash was exchanged at home, as mentioned in the sale deed, was deemed acceptable.
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