Manan Kiritbhai Shah Vs ITO (ITAT Ahmedabad)
The Income Tax Appellate Tribunal (ITAT) Ahmedabad partly allowed the appeal filed by Manan Kiritbhai Shah against the order passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, for the assessment year 2017-18. The case concerned the unexplained cash deposits made by the assessee during the demonetization period, which were treated as unexplained investment under Section 69A of the Income-tax Act. The ITO initially assessed the total income at Rs. 19,63,683, based on unexplained deposits in the bank accounts, as compared to the assessee’s returned income of Rs. 1,66,000.
The CIT(A) had already deleted Rs. 7,76,663 from the total amount, acknowledging that the deposit pertained to another person. However, for the remaining Rs. 10,21,000, the assessee claimed that Rs. 5,20,000 from Bank of Baroda and Rs. 5,01,000 from SBI were from personal savings of family members. Despite the assessee failing to provide supporting documentation regarding the family members’ occupations, the ITAT recognized the family structure (father, mother, and son) and concluded that a fair amount of Rs. 8 lakhs could be considered as cash in hand belonging to them. As a result, the Assessing Officer was directed to grant the benefit of Rs. 8 lakhs.
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