Chander Lekha Vashishtha Vs ITO (ITAT Delhi)
ITAT Delhi allows senior citizen’s appeal against Rs. 9 lakh addition under Section 69A. Assessing Officer failed to prove misuse of accumulated cash. Read the full order.
Background: The appellant, a senior citizen lady aged 67 years, filed her return of income for the assessment year 2017-18. The Assessing Officer (AO) made an addition of Rs. 12,07,000 under section 69A of the Income Tax Act, 1961, alleging that the cash deposits were without a proper basis.
Contentions of the Assessee: The appellant contended that the addition was made without a justified reason, based on the whims of the Assessing Officer. The appellant provided evidence, including a cash ledger drawn by a Chartered Accountant, reply to the Assessing Officer, computation of income for AY 2017-18, and an order under section 154 of the Act.
Assessment by CIT(A)/NFAC:The CIT(A)/NFAC partly allowed the appeal, sustaining an addition of Rs. 9,00,000 and deleting Rs. 3,07,000.The CIT(A) allegedly failed to address the cash ledger submitted by the assessee, leading to an arbitrary decision.
Arguments Before ITAT:The appellant argued that Section 69A has no application as the amount was duly recorded in her books of account, and she had filed her return of income.The appellant presented a cash ledger for the financial years 2011-12 to 2016-17, showing an opening balance of accumulated cash and explaining the source of cash deposits.
ITAT’s Observations:
