Smt. Savita Dalal Vs ITO (ITAT Chandigarh)
Assessee did not originally file return. Notice u/s 148 was issued after the Department noticed high-value bank transactions of ₹54.89 lakh in her HDFC Bank account. In response, assessee filed return declaring income of ₹9.78 lakh. AO noted certain cash/credit entries & made addition of ₹8.70 lakh, treating them as unexplained. CIT(A) upheld the addition.
Tribunal’s Observations
Loan from Sister-in-law:
- Assessee had taken ₹4 lakh from her bhabhi, Smt. Suman Gehlot, who had filed return showing income of ₹6.10 lakh & had sufficient balance.
- Tribunal held that a loan from a close relative with independent means should not be doubted.
Loans from Sons:
- Assessee had taken ₹30,000 & ₹40,000 from her two sons, Arun Dalal & Ajay Chaudhry.
- Both had substantial agricultural land (10 acres & 16 acres) generating sufficient income. Hence, loans were genuine.
Addition of ₹2.20 Lakh:
- AO added ₹2.20 lakh alleging it as unexplained credit.
- Tribunal, after checking bank statement, found no such credit entry existed. Addition was held unjustified.
Tribunal held that there were no unexplained credits in assessee’s hands. Addition of ₹8.70 lakh was deleted in full.
FULL TEXT OF THE ORDER OF ITAT CHANDIGARH
The assessee is in appeal before the Tribunal against the order of the ld. Commissioner of Income Tax (Appeals) [in short ‘the CIT (A)’] dated 07.01.2025 passed for assessment year 2013-14.
