Case Law Details
Karthick Natarajan Vs DCIT (ITAT Chennai)
ITAT Chennai held that addition towards unexplained money under section 69A of the Income Tax Act sustained as cash deposited during demonetization period cannot be said to be cash gifts received during occasion of marriage in December 2015.
Facts- The assessee is a non-resident individual employed in the USA and living outside India since 2004. Accordingly to assessee, he is not having any source of income in India since 2004. The assessee, being a non-resident and having no source of income in India, as claimed, did not file any return of income for earlier assessment years. For the relevant assessment year 2017–18, the assessee filed his return of income, admitting a total income of Rs. 96,100. The assessee’s case was selected for scrutiny under CASS, and a notice was issued. The AO noticed that during the financial year 2016–17 relevant to the assessment year 2017–18, the assessee made a cash deposit to the tune of Rs. 2,00,000 in his Account.
AO issued a show cause notice calling for explanations for cash deposits in two bank accounts. The AO proposed to complete the assessment by adding Rs. 1.07 crore.
The assessee explained that the cash deposit of Rs. 7 lakhs was cash given to his mother during his visits to India, which was deposited, and the balance of Rs. 1 crore was a gift received during the marriage.
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