Bharat Kumar Chetri Vs ITO (ITAT Bangalore)
ITAT Bangalore deleted addition made under section 69A of the Income Tax Act towards unexplained money after examining the cash withdrawn and cash deposit amounts, since cash withdrawn is more than cash deposit.
Facts- The assessee filed return of income u/s. 139(1) of the Act on 02.8.2017 declaring total income of Rs.4,24,800. The case was selected for limited scrutiny on the reasons (a) Cash deposit during the year, and (b) Cash withdrawals. Notice u/s. 143(2) dated 14.08.2018 was issued to the assessee, but there was no response. It was noticed that the assessee had deposited cash in his bank account of Rs.21,24,600 at 11 instances as per assessment order para 4. The AO noted that the assessee is an employee of Canara Bank and national Hockey Player. Case was completed u/s. 144 after giving opportunity to the assessee and income was assessed at Rs.21,24,600 which was cash deposited and treated as unexplained investment u/s. 69A of the Act and the AO applied section 115BBE of the Act.
First Appellate Authority (FAA) reduced amount to Rs. 10,41,999 and treated the same as unexplained money. Being aggrieved, the present appeal is filed.
Conclusion- Held that the assessee is a salaried employee and he has no any other source of income as submitted by the ld. AR of the assessee. Therefore it is clear that assessee has deposited cash from the earlier withdrawals which were lying with him. Accordingly there is withdrawal of Rs.10 lakhs (7 + 3 lakhs) and cash deposit of Rs.9,84,200 (10,00,000 – 15,800) from earlier withdrawal. Accordingly, we delete the addition of Rs.9,84,200 out of the addition confirmed by the ld. FAA.
