Case Law Details
Gagandeep Singh Bakshi Vs ITO (ITAT Pune)
ITAT Pune held that addition on account of cash deposits unsustainable as reasonable and plausible explanation given by the assessee.
Facts- The appellant is an individual deriving income under the head “salaries”, “capital gain” and “income from other sources”. ROI for A.Y. 2014-15 was filed on 02.07.2014 declaring total income of Rs.6,66,050/-. Against the said ROI, the assessment was completed ex-parte by the Assessing Officer passed u/s 144 of the Income Tax Act, 1961 after making addition on account of unexplained cash deposits in the bank account of assessee of Rs.20,00,000/- and capital gains on sale of property of Rs.33,84,000/-.
Conclusion- It is evident there is no material to disbelieve the explanation given by the assessee and, therefore, the explanation tendered by the assessee cannot be said to be unreasonable and is a plausible explanation. Therefore, we do not see any reason to reject the explanation of the assessee. In the circumstances, we are of the considered opinion that the ld. CIT(A) ought not to have rejected the explanation of the assessee. Therefore, we direct the Assessing Officer to delete the addition of Rs.15,00,000/- made on account of cash deposits.
FULL TEXT OF THE ORDER OF ITAT PUNE
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