Case Law Details
Devender Vs ITO (ITAT Delhi)
This article discusses an ITAT appeal filed by the assessee against the order of the Commissioner of Income-tax (Appeals). The appeal challenges the addition of cash deposits in a joint bank account by a second account holder, treating it as unexplained money from undisclosed sources.
Analysis: The appeal revolves around a joint bank account held by the assessee and another individual. The primary account holder received cash deposits totaling Rs. 1,07,81,000 during the assessment year 2013-14. The tax authorities sought an explanation for the source of these deposits, and the assessee provided evidence showing that the deposits were proceeds from the sale of rural agricultural land by relatives of the assessee.
However, the Assessing Officer took an adverse view, questioning the connection between the cash deposits and the land sale, leading to the addition of Rs. 64,22,000 as income from undisclosed sources. The Commissioner of Income-tax (Appeals) upheld this addition, prompting the assessee to appeal before the Income Tax Appellate Tribunal (ITAT).
During the ITAT proceedings, the counsel for the assessee presented a strong case, highlighting that the deposits were made by the primary account holder, not the assessee. They provided documentary evidence supporting the claim that the cash deposits were related to the rural agricultural land sale and had nothing to do with the assessee’s income.
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