Rejiya Saleem Vs ITO (ITAT Bangalore)
Bangalore ITAT Deletes Section 69A Addition and Allows Section 80-IA Deduction; Consistency Principle Applied
The Bangalore ITAT in Smt. Rejiya Saleem v. ITO granted complete relief to the assessee by deleting the addition made under section 69A towards alleged unexplained cash deposits and by allowing the deduction claimed under section 80-IA for infrastructure development activities.
On the issue of cash deposits, the assessee explained that the amounts were deposited by her brother for his daughter’s educational purposes and were subsequently withdrawn and returned when the educational plan did not materialise. The assessee furnished a confirmation from her brother, his income-tax returns, and bank statements demonstrating his financial capacity. The Tribunal observed that the Assessing Officer neither summoned the brother nor brought any contrary evidence on record to disprove the explanation. The bank statements also showed that the amounts deposited were later withdrawn and returned. Accordingly, the Tribunal held that the source of the deposits stood satisfactorily explained and deleted the addition made under section 69A.
Regarding the deduction under section 80-IA, the assessee contended that she was engaged in infrastructure development through a solar energy project. The Tribunal noted that the land, licence and project were in the assessee’s name, books of account were audited, and Form 10CCB had been furnished. It further recorded that the Revenue itself had allowed the same deduction in subsequent assessment years, including a scrutiny assessment under section 143(3) for AY 2023-24.
Applying the principle of consistency and noting that there was no change in facts or circumstances, the ITAT held that the Revenue could not deny the deduction only for AY 2017-18 while accepting the claim in later years. The Tribunal therefore directed that the deduction under section 80-IA be allowed and set aside the orders of the lower authorities. The assessee’s appeal was allowed in full.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
This is an appeal filed by the assessee challenging the order of the NFAC, Delhi dated 04/02/2025 in respect of the A.Y. 2017-18.
