Nipa Kashyap Patel Vs ACIT (ITAT Mumbai)
ITAT Mumbai held that matter regarding addition under section 68 of the Income Tax Act remanded back for fresh consideration directing appellant to file all documents/ details and supporting evidence explaining source of cash deposits.
Facts- The case of the Appellant was selected for regular scrutiny and assessment was completed u/s. 143(3) of the Act at ‘Nil’ income. Subsequently, information was received by AO that during the assessment proceedings pertaining to the husband of the Appellant, reliance was placed by her husband on the bank statement of the account jointly wherein cash deposits of INR 96,00,000/- were made.
The Appellant had admitted in her statement recorded u/s. 131 of the Act that she has deposited cash of INR 96,00,000/- in the aforesaid joint account held by her with her husband which was not corroborated by documentary evidence, AO formed a belief that income had escaped assessment and therefore, re-assessment proceedings u/s. 147 of the Act were initiated in the case of the Appellant. Accordingly, AO made addition of INR 96,00,000/- u/s. 69A of the Act in the hand of the Appellant.
CIT(A) granted partial relief. Being aggrieved, the present appeal is filed.
Conclusion- Held that the return filed by the Appellant for the immediately preceding Assessment Year 2015-16 has been accepted and the availability of cash-in-hand as on the last date of the relevant previous year 2014-15 was not in dispute. However, on perusal of record we find that the aforesaid submissions made by the Appellant are not supported by any material on record. As observed by the CIT(A), the summary of cash deposits and withdrawals on which reliance was placed by the Learned Authorized Representative for the Appellant is not supported by corresponding supporting documents such as bank statement, income tax return pertaining to Assessment Year 201516, and financial statements. On the other hand we note that the Orders passed by the authorities below are silent on this issue. The details of cash deposits and withdrawals for the relevant previous year 2015-16 have been reproduced by the CIT(A) in the order impugned according to which cash-in-hand of INR 52,47,711/- was available with the appellant as on 01/04/2015. Accordingly, given facts and circumstances of the present case we deemed it appropriate to remand the issue pertaining to addition of INR 96,00,000/- under Section 68 of the Act back to the file of Assessing Officer with the directions to adjudicate the same a fresh after granting Appellant reasonable opportunity of being heard.
