Deepa Hemant Hoon Vs ITO (Mumbai ITAT)
Bank Entries Prove Movement, Not the Money’s Memory—ITAT Upholds Cash Addition u/s 69A & Expense Disallowance u/s 37(1)
Summary: The assessee, Ms. Deepa Hemant Hoon, was an individual and director of Channels Information Technology Private Limited. For AY 2011-12, she had not originally filed a return of income.
Information available with the Department showed receipt of commission of ₹9,590, cash deposits in a savings bank account & credit-card payments. The case was identified through the Non-filers Monitoring System, and notice u/s 148 was issued. In response, the assessee filed a return declaring income of ₹3,17,060.
During reassessment, the AO found aggregate receipts of ₹13,94,590, comprising tuition or coaching receipts of ₹12,21,600, commission of ₹9,590 & tour and travel receipts of ₹1,63,400.
Against these receipts, the assessee claimed direct expenditure of ₹1,14,974 and indirect expenditure of ₹9,23,616, eventually disclosing a net profit of ₹3,56,000.
₹12.63 lakh cash deposits remained unexplained
The AO found aggregate cash deposits of ₹24,85,000 in the assessee’s bank accounts. The assessee explained that these deposits originated from tuition receipts of ₹12,21,600, earlier bank withdrawals of ₹11,60,290 & opening cash savings of ₹1,03,110.
The tuition receipts were accepted as a source. The dispute was confined to the availability of the earlier withdrawals and opening cash balance.





