Case Law Details
Shaon Paul Vs ITO (ITAT Bangalore)
Introduction: The case of Shaon Paul vs. ITO, adjudicated at ITAT Bangalore, centers around an appeal challenging the addition of Rs.5 lakhs under section 69A of the Income Tax Act for the Assessment Year 2017-18. The key contention involves the justification of the CIT(A)’s confirmation of the said addition.
Detailed Analysis: Shaon Paul, an NRI and Australian citizen, filed the return of income for the Assessment Year 2017-18, declaring income of Rs.2,21,906 under the head ‘Income from Other Sources.’ The scrutiny of the case, prompted by cash deposits during demonetization, revealed a deposit of Rs.5 lakhs on 16.11.2016 in Shaon Paul’s Canara Bank account.
The assessee explained the source, citing a property sale in 2011 and cash withdrawals of Rs.2 lakhs each in July and September 2011. However, the AO rejected the explanation, asserting that retaining the sum for almost six years was impractical.
The CIT(A) upheld the addition under section 69A, prompting Shaon Paul to appeal before the ITAT. The appellant, through a comprehensive Paper Book, argued that the source of cash deposits was known and derived from legitimate income.
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