Vijay Prakash Ghosalkar Vs ITO (ITAT Mumbai)
Once overall source is accepted, Section 69A cannot be invoked merely due to lack of one-to-one correlation- ITAT Mumbai deletes adhoc addition on cash deposits
Assessee, an individual lady, did not file her return of income originally for AY 2017-18. On receiving AIR information that she had earned interest income, made cash deposits of ₹42.50 lakh in HDFC Bank, purchased time deposits & mutual funds of ₹30 lakh, AO reopened the case u/s 148. In response, Assessee filed a return declaring ₹9,22,640 including presumptive business income. During assessment, AO noticed total bank credits of ₹63.94 lakh & held that cash deposit of ₹43 lakh was unexplained, making full addition u/s 69A.
Before CIT(A), Assessee submitted that she had (i) agricultural receipts of ₹15,79,655, (ii) business receipts of ₹8,37,700 from event management at a banquet hall, & (iii) past savings from agricultural & business income of ₹18,82,645. She also submitted bills & invoices. CIT(A) accepted that Assessee had sufficient sources & even recorded that AO himself acknowledged the bill of ₹15,65,100. However, CIT(A) held that one-to-one matching of deposit vs. source was not possible & sustained an adhoc addition of 10% (₹4,30,000) as unexplained, giving partial relief.
