Case Law Details
Ram Kishan Vs ITO (ITAT Delhi)
In the recent case of Ram Kishan Vs ITO, the Income Tax Appellate Tribunal (ITAT) of Delhi provided a significant judgement related to Section 69A of the Income Tax Act. The case revolves around the proper explanation of the income source during the assessment process, ultimately impacting the additions made under Section 69A. This article provides a comprehensive analysis of the case and the order passed by ITAT Delhi.
The appellant, Ram Kishan, filed against the order of the Commissioner of Income Tax (Appeals) Faridabad. Despite a significant delay in filing the appeal due to the Covid-19 pandemic, the tribunal admitted it, setting the stage for the case’s proceedings. The case’s focal point was the addition of Rs. 17,50,000/- and Rs. 20,00,000/-, applied under the provisions of Section 69A of the Act.
The learned counsel of the assessee argued that the sources of these cash deposits were adequately explained during the assessment and the appellate proceedings. The counsel also contended that the assessee has an income from agricultural sale proceeds, thereby exempting the income.
The CIT(A) and AO, however, held a different view, stating that the source of cash deposit was not properly explained, leading to these additions. They overlooked that the deposited amounts were, in fact, scrutinized in the case of the assessee’s wife, who held a joint account with the assessee.
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