Shrenik Manish Mehta Vs ITO (ITAT Mumbai)
Credit Card Cash Payments Treated Partly Explained Because Wife’s Professional Income Was Proven; ITAT Accepts Partial Family Gift Explanation for Cash Used in Credit Card Payments; ₹13 Lakh Cash Credit Card Payments Trigger Section 69A Addition, ITAT Grants Partial Relief; Affidavits Alone Insufficient but Supporting Financial Records Can Explain Cash Gifts.
The Income Tax Appellate Tribunal (ITAT), Mumbai partly allowed the appeal of the assessee against the addition of Rs. 13,95,020 made under Section 69A of the Income Tax Act relating to cash payments used for credit card dues during Assessment Year 2023-24.
The assessee had filed a return declaring total income of Rs. 6,30,820. The case was selected for scrutiny because substantial cash payments had been made towards credit card liabilities. During assessment, the Assessing Officer noted that total credit card payments amounted to Rs. 27,65,834, out of which Rs. 13,95,020 had been paid in cash. The assessee explained that the cash came from gifts and financial assistance received from his father, mother, and wife. Affidavits were furnished stating that Rs. 8,00,000 was received from the father, Rs. 4,50,000 from the mother, and Rs. 3,00,000 from the wife out of love and affection for personal use.
