Case Law Details
Pitchi Reddy Garlapati Vs ITO (ITAT Hyderabad)
The Income Tax Appellate Tribunal (ITAT) Hyderabad recently examined a case involving Pitchi Reddy Garlapati (assessee) and the Income Tax Officer (ITO). The central issue was the treatment of a cash deposit of Rs. 9,07,000/- during the period of demonetization in India. This deposit was claimed to be a generous gift from the maternal grandfather to his grandson. The case has been restored to the Commissioner of Income Tax (Appeals) [CIT(A)] for reconsideration, marking a critical moment in understanding income tax liabilities related to generous cash gifts.
Background
Pitchi Reddy Garlapati filed his income tax return for the financial year 2017-18, declaring an income of Rs. 8,85,720/-. During an assessment, it was found that a significant cash deposit had been made during the period of demonetization, leading the Assessing Officer to issue a notice.
Arguments Presented
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