Sudarsan De Vs DCIT (ITAT Delhi)
ITAT Delhi deletes Cash Deposit Addition: Unchallenged Affidavit of Assessee’s Wife Accepted as Valid Evidence – No Cross-Examination, No Addition
Delhi ITAT has provided relief to Assessee, by deleting an addition of ₹8.79 lakh made on account of cash deposits in a joint bank account. Tribunal held that the cash deposits were duly explained as belonging to Assessee’s wife & could not be taxed in the hands of the assessee.
The case arose when AO noted cash deposits of ₹8.79 lakh in a joint account maintained by Assessee with his wife during Assessment Year 2015-16. Since no return of income had initially been filed, Assessee later submitted a belated manual return declaring income of ₹43.30 lakh & paid due taxes. During reassessment proceedings, it was explained that the cash deposits had been made by the wife out of her income earned from conducting classical singing classes. In support, she filed an affidavit affirming these facts. AO rejected the explanation on the ground that no records of students or receipts of income from singing classes were furnished & treated the deposits as unexplained cash credit u/s 68. CIT(A), while confirming the addition, went a step further & invoked section 69A, holding the deposits to be unexplained money, without even providing prior notice to Assessee.
