Utpalkumar Devendrakumar Vs DCIT (ITAT Surat)
The Income Tax Appellate Tribunal, Surat allowed the assessee’s appeal and deleted an addition of ₹5.25 lakh made under Section 69 of the Income Tax Act for alleged “on-money” payment in cash towards booking of a residential flat. The assessee, a salaried individual who did not maintain regular books of account, had jointly purchased a flat with his wife for a total consideration of ₹60 lakh. The Assessing Officer noted a cash payment of ₹10.50 lakh and treated half of it as unexplained investment. However, the assessee explained that the cash payment was sourced from accounted withdrawals and furnished bank statements from HDFC Bank evidencing withdrawals aggregating ₹9.92 lakh during the relevant period. The Tribunal observed that these bank records and explanations were ignored by both the Assessing Officer and the first appellate authority. Since the cash payment was satisfactorily explained as coming from disclosed bank withdrawals, the Tribunal held that no addition was warranted. Accordingly, the addition was deleted and the appeal was allowed.
FULL TEXT OF THE ORDER OF ITAT SURAT
This is an appeal filed against the order dated 22-08-2024 passed by National Faceless Appeal Centre (NFAC), Delhi for assessment year 2013-14.
