ITO Vs Smt. Kavitha Subbrarayalu (ITAT Chennai)
ITAT Chennai held that cash collected from customers for purchase of stamp papers were deposited in bank hence source of cash deposits duly explained. Thus, addition towards unexplained cash deposits u/s. 69A of the Income Tax Act not justified.
Facts- The assessee is an individual who is carrying on business in stamp vending under license dated 12.11.1997. The assessee didn’t file return of income (RoI) for AY 2015-16 and the AO noted from the information available on ITBA/Insight portal, that the assessee has made cash deposits amounting to Rs.2,41,95,000/- in her bank account, and that she had filed her return of income only from AY 2016-17 onwards. The AO thereafter recorded his reasons for initiation of proceedings u/s.147 of the Income Tax Act, 1961 issued notice u/s.148 of the Act on 30.03.2021 and the AO noted in the assessment order that pursuant to notice, assessee had filed her RoI on 22.12.2021 declaring Rs.1,44,740/- and since no more compliance of the notices were made by assesee, he computed the income of the assessee u/s. 144/ best judgment assessment and added the entire cash deposited in her bank account to the tune of Rs.2,41,95,000/- u/s.69A of the Act for AY 2015-16 by assessment order dated 21.03.2022.
