Gauri Kumar Vs DCIT (ITAT Bangalore)
Cash found during survey explained – Gifts from relatives, professional receipts & firm withdrawals accepted; additions deleted – ITAT Bangalore
In Ms. Gauri Kumari & Shri Ashish Agarwal vs DCIT (A.Y. 2020-21), cash of ₹78 lakh was seized following a police complaint, out of which the assessees admitted ownership of ₹23 lakh and ₹25 lakh respectively, claiming sources as gifts from relatives, professional receipts and withdrawals from partnership firms. The AO treated the amounts as unexplained money, and CIT(A) partly confirmed additions.
The ITAT held that gifts received from close relatives cannot be rejected merely because gift deeds were notarised later or produced during assessment. Where identity, relationship and confirmations were available, additions on account of gifts were unsustainable. Similarly, professional receipts declared by the assessees, supported by client details, PAN information and records, could not be disbelieved on technical grounds. Further, cash withdrawals from partnership firms were evidenced by ledger extracts and vouchers, and once availability of funds was not disputed, addition could not survive.
Accordingly, additions relating to gifts, professional receipts and partnership firm withdrawals were deleted in both appeals. The Tribunal partly allowed the appeals, granting substantial relief to the assessees.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
