Laxmi Agarwal Vs ACIT (ITAT Kolkata)
Assessee having income from medical profession only- cash deposits were genuine receipts– Kolkata Trib quashes 115BBE Levy
Assessee, a medical practitioner, filed return for AY 2017-18 declaring income of ₹71.29 lakh. AO completed assessment at ₹1.02 crore by making two additions – (i) ₹28.27 lakh deposited during demonetization treated as unexplained cash credit u/s 68 & taxed @60% u/s 115BBE, and (ii) disallowance of ₹4.05 lakh towards capital expenditure.
In appeal, CIT(A) upheld AO’s action, observing that cash retention & deposits were not satisfactorily explained and therefore treated deposits as unexplained, taxable u/s 115BBE.
Before Tribunal, Assessee argued that deposits represented accounted professional receipts from medical practice. About one-third of consultation fees was received in cash & periodically deposited in bank. AO himself had tabulated such receipts, proving deposits were from disclosed income.
Tribunal found merit in Assessee’s plea as the assessee was having income from her medical profession only . It held that once receipts were duly disclosed as part of professional income, cash deposits cannot be taxed again as unexplained income. Hence, provisions of s.68 & 115BBE had no application. Accordingly, Tribunal deleted addition of ₹28.27 lakh.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
