ACIT Vs Nisha Jain (ITAT Jaipur)
The case of ACIT Vs Nisha Jain, heard by the Income Tax Appellate Tribunal (ITAT) Jaipur, revolves around the addition of Rs. 72 lakh made by the Assessing Officer (AO) concerning cash deposits during the demonetization period. The Revenue challenged the deletion of this addition by the Commissioner of Income Tax (Appeals) [CIT(A)], arguing that incriminating material and statements recorded during the survey indicated these deposits as undisclosed income.
Background of the Case
During a survey conducted on M/s Quick Advertising Co, owned by Smt. Nisha Jain, discrepancies were found between the physical cash on hand and the cash as per the company’s books. The survey revealed a cash balance of Rs. 90,67,052.91, while the physical cash was only Rs. 2,08,000. Additionally, Rs. 72 lakh had been deposited in bank accounts during the demonetization period, which was admitted by Shri Naresh Jain, the husband of the assessee, as undisclosed income. He stated that the business expenses had not yet been recorded in the books, and no supporting documents for unposted expenditures could be provided.
Assessment and Appeal Proceedings
During the assessment proceedings, the AO considered the statements made during the survey, which indicated that the cash deposited was from undisclosed sources. However, the assessee argued that the cash deposits were from withdrawals made from the bank accounts in the financial year 2016-17. The cash book submitted during the assessment showed discrepancies compared to the cash book found during the survey, leading the AO to conclude that the figures had been manipulated, rendering the records unreliable.
