Case Law Details
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.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to as “CIT(A)” for short), dated 22.03.2024 passed under Section 250 of the Income-tax Act, 1961 [hereinafter referred to as “the Act” for short], for Assessment Year (AY) 2017-18.
2. The solitary issue raised by the Assessee is as under:-
“The Ld CIT(A) has erred in law and on facts, while passing order u/s 250 of the Act dated 22.03.2024 for AY 2017-18 regarding cash deposits during demonetization period by treating the same as unexplained investment under Section 69A of the Income-tax Act, 1961.”
3. In this case, the assessment order has been passed by the ITO, Ward 5(2)(1), Ahmedabad on 17.12.2019 determining total income of Rs.19,63,683/- against the returned income of Rs.1,66,000/- on account of unexplained cash deposited in the bank accounts. The ld. CIT(A) deleted the addition of Rs.7,76,663/- as the amount pertains to some other person. With regard to the remaining amount of Rs.10,21,000/-, the assessee submitted that the amount of Rs.5,20,000/- in the Bank of Baroda and Rs.5,01,000/- in the SBI are out of personal savings of the family members consisting of father, mother, son, sister and niece. The ld. CIT(A) held that the assessee failed to furnish documentary evidences with regard the occupations of the family members and confirmed the addition. Having gone through the record before us and the family size consisting of mother, father and son who do not have any separate bank accounts, an amount of Rs.8 lakhs can be fairly considered as belonging to the family members as cash in hand. Hence, the Assessing Officer is hereby directed to accord the benefit of Rs.8 lakhs.
4. In the result, the appeal of the Assessee is partly allowed.
The order is pronounced in the open Court on 29.11.2024
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