Anshuman Agarwal Vs ACIT (ITAT Agra)
In Anshuman Agarwal Vs ACIT, the Income Tax Appellate Tribunal (ITAT), Agra, partly allowed the assessee’s appeal against the order of the Commissioner of Income-Tax (Appeals)/NFAC for Assessment Year 2017-18.
The assessee, a salaried employee earning commission income from property dealing and rental activities, filed his return of income on 15.08.2017 declaring total income of Rs. 28,90,710/-. The case was selected for limited scrutiny under CASS due to large cash deposits during the demonetisation period compared to returned income. The original assessment under Section 143(3) assessed income at Rs. 38,19,815/- after making an addition of Rs. 9,29,105/-. Subsequently, the Principal CIT set aside the assessment for fresh adjudication.
During the fresh proceedings, the assessee explained that out of the proposed addition of Rs. 22,75,000/-, an amount of Rs. 7,72,605/- represented opening cash in hand as on 01.04.2016. The Assessing Officer accepted this explanation and sustained the remaining addition. Before the CIT(A), the assessee submitted that total cash deposits amounted to Rs. 87,77,500/-, out of which Rs. 75 lakhs had been declared under the Income Declaration Scheme, 2016. The balance cash deposits of Rs. 12,77,500/- were examined, and after considering opening cash in hand, an addition was sustained for unexplained deposits.
