Bhanushankar Kasalshibhai Dave Vs ITO (ITAT Surat)
The Surat Bench of the ITAT allowed the assessee’s appeal for AY 2012-13 and deleted the addition of ₹29.31 lakh made on account of cash deposits in a bank account. The Tribunal accepted the assessee’s explanation that he was a salaried teacher and the bank account was merely used by his son for carrying out a money transfer business. Cash collected from labourers was deposited into the account and immediately transferred to beneficiaries through banking channels, with the assessee/son earning only a fixed commission per transaction.
The Tribunal observed that the modus operandi was evident from bank statements and had been consistently accepted by the Department in earlier assessments of the assessee’s son. Since the assessee had already offered the commission income at a reasonable rate of ₹40 per transaction to tax, taxing the entire cash deposits as income was held to be unjustified. Accordingly, the reassessment addition was deleted and the appeal was allowed.
FULL TEXT OF THE ORDER OF ITAT SURAT
This appeal has been filed by the assessee against the order dated 19.08.2025 passed by the Ld. Addl/JCIT(A), Panaji (hereinafter referred to as the “Ld. CIT(A)”), under Section 250 of the Income-tax Act, 1961 (hereinafter referred to as the “Act”) for Assessment Year 2012-13.
