Vijay Kumar Sharma Vs ITO (ITAT Delhi)
ITAT Delhi Partly Allows Appeal – ₹10 Lakh Cash Deposit Addition Cut Down to ₹1 Lakh for Reasonable Estimate; ITAT Delhi Relief: Rs. 9 Lakh Reduction on Unexplained Cash Deposit u/s 69; Family Savings Dispute: ITAT Grants Substantial Relief on Unexplained Cash Addition
Delhi SMC Bench restricted the addition on cash deposit of ₹10 lakh to ₹1 lakh, granting substantial relief to Assessee.
Assessee, a salaried individual also doing part-time accounting, had deposited ₹10 lakh in cash in his SBI account in May 2011. He explained that it represented family savings and accumulated household cash intended for purchase of agricultural land, which later got cancelled. AO, however, held that such savings were implausible considering modest family income, and made full addition u/s 69. CIT(A) upheld the addition.
Before Tribunal, Assessee submitted that deposits were out of disclosed and small regular incomes of himself, his wife (tuition income ₹1.68 lakh) & mother (rental ₹2.5 lakh), duly filed in their returns. He further produced evidence of the intended land purchase that failed.
Tribunal observed that while Assessee could not explain the full source satisfactorily, Revenue too could not dismiss all explanations outright. Holding that a balanced approach was warranted, the Bench restricted the addition to ₹1 lakh only “in the larger interest of justice,” clarifying that the finding shall not act as precedent.
