ITO Vs Sumit Jindal (ITAT Agra)
Section 69A Addition Deleted Because Bank Credits Were Properly Explained: ITAT; ITAT Rejects Section 69A Addition Because Insurance Premium Transactions Were Explained; Unexplained Money Addition Unsustainable Because Revenue Produced No Contrary Evidence: ITAT; ITAT Upholds Deletion of ₹2.35 Crore Addition Because Insurance-Related Credits Were Explained
The Income Tax Appellate Tribunal (ITAT), Agra, dismissed the Revenue’s appeal and upheld the order of the Commissioner of Income Tax (Appeals) [CIT(A)] deleting the addition of ₹2,35,22,807 made under Section 69A of the Income Tax Act for Assessment Year 2023-24. The Assessing Officer (AO) had treated the credits in the assessee’s bank accounts as unexplained money after scrutiny was initiated on account of large cash payments made for credit card purchases.
The assessee had filed his return declaring income of ₹4,98,990. During assessment proceedings, he explained that he was engaged in collecting insurance premiums from clients in cash and through bank transfers and thereafter paid the insurance premiums using his credit cards issued by Axis Bank, HDFC Bank and SBI. The AO obtained bank statements from Axis Bank and HDFC Bank but did not receive the SBI Bank statement. Based on total credits of ₹2,35,22,807 in the available bank accounts, the AO treated the entire amount as unexplained money under Section 69A.
