Sunil Kumar Garg Vs ITO (ITAT Jaipur)
Cash Withdrawn From Bank & Immediately Deposited in Post Office Cannot Be Branded Unexplained Merely Because AO Finds the Transaction “Unreasonable”: ITAT Jaipur Deletes Addition u/s 69A
Cash Deposit of ₹31.40 Lakh Treated as Unexplained
The assessee had deposited an aggregate amount of ₹31,40,000 in cash in a post-office savings account jointly held with his wife. During assessment proceedings, he explained that the deposits represented amounts received from his father & mother, maturity proceeds of term deposits and a small amount of past savings.
The assessee produced copies of the bank accounts of his parents evidencing the gifts, his own bank account showing receipt of the amounts and subsequent cash withdrawals, and the post-office account showing the corresponding cash deposits.
The mother had gifted different amounts to the assessee, including ₹4.90 lakh through a bearer cheque, ₹76,000 through an account-payee cheque and ₹3.75 lakh through another bearer cheque. Similarly, the father had transferred various amounts aggregating to a substantial sum through account-payee cheques and bank transfers.
Apart from these amounts, the proceeds of four term deposits aggregating to ₹9,03,452 were credited to the assessee’s bank account. Out of the maturity proceeds, ₹4.50 lakh was withdrawn in cash and deposited in the post-office account. The assessee also explained utilisation of past cash savings of ₹30,000.
