Karansinh Patel Vs ITO (ITAT Ahmedabad)
ITAT Ahmedabad Deletes Additions on Demonetisation Cash Deposits — Retirement Benefits & Loan Repayment Held Genuine
Assessee, a retired government employee, appealed against CIT(A)’s order partly confirming addition u/s 69A towards unexplained credits & cash deposits totaling ₹31,90,289/-. AO had made a total addition of ₹50,94,553/- for unexplained deposits during the demonetisation period.
It was explained that the deposits came from legitimate sources such as gratuity, leave encashment, salary arrears, insurance payouts, & milk sales, along with certain loan transactions. Supporting documents like gratuity slips, salary difference records, & confirmations for loans were filed, but CIT(A) ignored these & sustained partial additions.
Tribunal noted that all the documentary evidence substantiated Assessee’s explanation. It found that the AO & CIT(A) failed to consider these materials & that the sources of deposits were satisfactorily proved. The alleged loan repayment from Sanjay Modi of ₹4.95 lakh was also supported by confirmation. Accordingly, the ITAT deleted the entire addition, holding that the deposits were fully explained & the CIT(A)’s partial confirmation was unjustified.
Held: Additions u/s 69A unsustainable as deposits explained through verifiable retirement benefits & other sources — appeal allowed in full.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
