Radha Chandrababu Panikar Vs ITO (ITAT Ahmedabad)
Assessee, a non-filer of returns, was subjected to reassessment u/s 147 on information that cash deposits of ₹11.75 lakh were made in her bank account. AO passed ex parte order u/s 144 treating deposits as unexplained. Before NFAC, Assessee explained that deposits were sourced from loans given by her husband & brother & partly from tuition income. NFAC, however, confirmed the addition citing lack of corroborative evidence.
Tribunal noted that Assessee had no regular taxable income in past or future. Bank statement showed that immediately after deposits, cash was used for paying credit card dues of her son studying abroad. This indicated that cash did not represent income of Assessee. So far as the cash loan received from husband , though direct evidence was lacking due to his demise, explanation was accepted as reasonable. Regarding the Loan from brother, ledger confirmation was on record & was accepted.
Tribunal held that explanation was plausible & Revenue failed to prove that deposits represented undisclosed income. Accordingly, addition of ₹11.75 lakh was deleted. Since addition itself was deleted, penalty of ₹2,09,605/- levied u/s 271(1)(c) for concealment/furnishing inaccurate particulars automatically stood deleted.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
