Ashok Kumar Vs ITO (ITAT Delhi)
No Mapping Needed When Cash Withdrawals Cover Deposits; CIT(A) Cannot Enhance Without Notice—Full Relief to Assessee
Assessee challenged additions confirmed by NFAC. AO had made addition of Rs.16,41,000/- u/s 69A treating cash deposits as unexplained by rejecting Assessee’s explanation that the deposits were out of cash withdrawals. Tribunal noted that Assessee placed bank book & bank statement showing total withdrawals of Rs.62,38,000/- during the year out of which Rs.16,41,000/- was redeposited because a proposed property deal failed. Tribunal held that once Assessee explains deposits as arising from withdrawals, the initial burden stands discharged & AO cannot invoke deeming provisions on mere presumption that earlier withdrawals were consumed. Mapping of withdrawals & deposits is not required when regular books are not maintained; onus shifts to AO to rebut the explanation with evidence. The addition u/s 69A was therefore deleted.
AO had further added Rs.10,00,000/- being gift from Assessee’s mother-in-law, treating it as non-genuine. Tribunal observed that confirmation & bank statement showed cheque-based availability of funds just prior to the gift. Tribunal held that gifts from family members stand on a different footing than commercial borrowings; AO could have made enquiries but could not disbelieve a family gift merely on suspicion. Addition was deleted.
