Vimal Chatur Vs ITO (ITAT Jodhpur)
The appeal was filed by the assessee against the order of the ld. CIT(A), National Faceless Appeal Centre, Delhi dated 21.08.2023 for Assessment Year 2017-18, arising from the assessment order dated 17.12.2019 passed under section 143(3) of the Income Tax Act by the ITO, Ward-2(2), Udaipur.
The assessee, a senior citizen, retired Government employee and pensioner, had declared total income of Rs.7,72,480/- in his return filed on 21.07.2017. During scrutiny proceedings, the Assessing Officer noticed cash deposits of Rs.18,29,500/- in the assessee’s bank accounts during the demonetisation period. The assessee explained that the cash represented savings of himself and his wife from earlier years.
The Assessing Officer accepted Rs.2,20,000/- as explained and treated the balance Rs.16,09,500/- as unexplained money under section 69A. On appeal, the CIT(A) found the source of Rs.5,42,400/- explained and restricted the addition to Rs.12,87,100/-.
Before the Tribunal, the assessee relied upon cash flow statements, day-wise cash withdrawal and deposit details, a family settlement under which his wife had received Rs.3,61,000/-, and an affidavit of his wife stating that she had deposited Rs.15,59,000/- in the jointly owned bank accounts. The Department relied upon the orders of the lower authorities.
The Tribunal observed that the lower authorities had doubted the cash flow statements but had not disproved the withdrawals and their sources through contrary evidence. It further noted that the family settlement and the wife’s affidavit had been discarded or disbelieved without examination or adverse evidence. The affidavit remained uncontroverted.
