Jayshriben Bipinchandra Modi Vs ITO (ITAT Ahmedabad)
Small Cash Payment for Flat Purchase Accepted – ITAT Ahmedabad Deletes Addition u/s 69 for ₹3.38 Lakh Made on Builder’s Disclosure
Ahmedabad ITAT comprising allowed the assessee’s appeal & deleted the addition made u/s 69 for alleged unexplained investment.
AO had added ₹11,38,000/- towards the amount paid to a builder — ₹8,00,000/- by cheque & ₹3,38,000/- in cash — treating it as unexplained. CIT(A)/NFAC upheld the addition on the ground that Assessee failed to substantiate the source of payment.
Before the Tribunal, Assessee clarified that both cheque payments were made to Dharamdev Infrastructure Ltd. through bank transactions duly reflected in her accounts. The only disputed amount was the cash payment of ₹3.38 lakh, which Assessee explained as being from household savings, wife’s pin money, & small family contributions.
Considering the modest amount, personal circumstances, & absence of contrary evidence, the Tribunal found the explanation reasonable & held that the addition was unwarranted. It emphasized that minor cash investments explained through plausible household sources should not invite harsh inference u/s 69 in absence of any evidence to the contrary.
Result: Appeal allowed – addition of ₹3.38 lakh deleted; cheque payments accepted as genuine.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
