Surendra Kumar Gupta Vs DCIT (ITAT Delhi)
Income Tax Appellate Tribunal (ITAT) Delhi has set aside an addition of Rs. 41.16 lakh made by the Deputy Commissioner of Income Tax (DCIT) against Surendra Kumar Gupta for unexplained cash deposits. The Tribunal found that Gupta had adequately explained the source of the cash deposits through his imprest account maintained in the books of M/s Yash Impex.
The case, Surendra Kumar Gupta Vs DCIT, involved appeals for the Assessment Year 2013-14, arising from an assessment order passed under Section 153A/143(3) of the Income-tax Act, 1961, and a subsequent penalty order under Section 271(1)(c) of the Act.
The dispute centered on an addition of Rs. 41,16,000/- made on account of cash deposits in Gupta’s bank account. A search and seizure operation under Section 132(1) of the Act was conducted on February 15, 2014, in the M/s Sharp Group of cases, which also covered Gupta. Subsequently, a notice under Section 153A was issued to Gupta on March 13, 2015, to which he filed his return of income declaring Rs. 5,11,190/-.
During the assessment proceedings, the Assessing Officer (AO) observed cash deposits made by Gupta on various dates in his bank account. The AO noted that Gupta had been making such deposits in previous years and sought an explanation for the source of these funds.
